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March 31, 2022, 4:06 p.m. EDT

Presidio Property Trust, Inc. Announces Earnings for the Year Ended December 31, 2021

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Definitions

Non-GAAP Financial Measures

Funds from Operations ("FFO") - The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

However, because FFO excludes depreciation and amortization as well as the changes in the value of the Company's properties that result from use or market conditions, each of which has real economic effects and could materially impact the Company's results from operations, the utility of FFO as a measure of the Company's performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company's FFO may not be comparable to other REITs' FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company's performance.

Core Funds from Operations ("Core FFO") - We calculate Core FFO by using FFO as defined by NAREIT and adjusting for certain other non-core items. We also exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration and the amortization of stock-based compensation.

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company's Core FFO may not be comparable to such other REITs' Core FFO.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could." Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. Except as required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the " Risk Factors" section of the Company's documents filed with the SEC, copies of which are available on the SEC's website, www.sec.gov .

Investor Relations Contacts:

Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: (760) 471-8536 x1244

Presidio Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets


December 31, December 31,

2021 2020



ASSETS

Real estate assets and lease intangibles:

Land $ 21,136,379 $ 18,827,000
Buildings and improvements 119,224,375 115,409,423
Tenant improvements 12,752,518 11,960,018
Lease intangibles 4,110,139 4,110,139
Real estate assets and lease intangibles held for investment, cost 157,223,411 150,306,580
Accumulated depreciation and amortization (30,589,969 ) (26,551,789 )
Real estate assets and lease intangibles held for investment, net 126,633,442 123,754,791
Real estate assets held for sale, net 11,431,494 42,499,176
Real estate assets, net 138,064,936 166,253,967
Cash, cash equivalents and restricted cash 14,702,089 11,540,917
Deferred leasing costs, net 1,348,234 1,927,951
Goodwill 2,423,000 2,423,000
Other assets, net 4,658,504 3,422,781
TOTAL ASSETS $ 161,196,763 $ 185,568,616
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 87,324,319 $ 94,664,266
Mortgage notes payable related to properties held for sale, net 1,535,513 25,365,430
Mortgage notes payable, total net 88,859,832 120,029,696
Note payable, net - 7,500,086
Accounts payable and accrued liabilities 4,585,036 5,126,199
Accrued real estate taxes 1,940,913 2,548,686
Dividends payable preferred stock 179,685 -
Lease liability, net 75,547 102,323
Below-market leases, net 73,130 139,045
Total liabilities 95,714,143 135,446,035
Commitments and contingencies (Note 9)
Equity:
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 and 0 shares issued and outstanding (liquidation preference $25.00 per share) as of December 31, 2021 and December 31, 2020, respectively 9,200 -
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,599,720 shares and 9,508,363 shares were issued and outstanding at December 31, 2021 and December 31, 2020, respectively 115,997 95,038
Additional paid-in capital 186,492,012 156,463,146
Dividends and accumulated losses (130,947,434 ) (121,674,505 )
Total stockholders' equity before noncontrolling interest 55,669,775 34,883,679
Noncontrolling interest 9,812,845 15,238,902
Total equity 65,482,620 50,122,581
TOTAL LIABILITIES AND EQUITY $ 161,196,763 $ 185,568,616

Presidio Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)


For the Year Ended December 31,

2021 2020
Revenues:

Rental income $ 18,420,257 $ 23,444,119
Fees and other income 810,852 907,673
Total revenue 19,231,109 24,351,792
Costs and expenses:
Rental operating costs 6,183,189 8,818,283
General and administrative 6,225,510 5,751,754
Depreciation and amortization 5,397,498 6,274,321
Impairment of real estate assets 608,000 1,730,851
Total costs and expenses 18,414,197 22,575,209
Other income (expense):
Interest expense-mortgage notes (4,542,712 ) (6,097,834 )
Interest expense - note payable (279,373 ) (2,715,233 )
Interest and other income (expense), net (3,417 ) (20,636 )
Gain on sales of real estate, net 2,487,528 1,245,460
Gain on extinguishment of government debt 10,000 451,785
Deferred offering costs - (530,639 )
Income tax credit (expense) 47,620 (370,884 )
Total other income (expense), net (2,280,354 ) (8,037,981 )
Net loss (1,463,442 ) (6,261,398 )
Less: Income attributable to noncontrolling interests (2,162,140 ) (1,412,507 )
Net loss attributable to Presidio Property Trust, Inc. stockholders $ (3,625,582 ) $ (7,673,905 )
Less: Preferred Stock Series D dividends (1,173,948 ) -
Net loss attributable to Presidio Property Trust, Inc. common stockholders $ (4,799,530 ) $ (7,673,905 )
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:
Basic & Diluted $ (0.46 ) $ (0.85 )
Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914


Presidio Property Trust, Inc. and Subsidiaries

Reconciliation of Net Income to FFO and Core FFO

(Unaudited)


For the Years Ended

12/31/2021 12/31/2020
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (4,799,530 ) $ (7,673,905 )
Adjustments:
Income attributable to noncontrolling interests 2,162,140 1,412,507
Depreciation and amortization 5,397,498 6,274,321
Amortization of above and below market leases, net (18,139 ) (120,204 )
Impairment of real estate assets 608,000 1,730,851
Loss (gain) on sale of real estate assets, net (2,487,528 ) (1,245,460 )
FFO $ 862,441 $ 378,110
Restricted stock compensation 1,614,228 1,105,272
Core FFO $ 2,476,669 $ 1,483,381

Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914

Core FFO / Wgt Avg Share $ 0.24 $ 0.16

Presidio Property Trust, Inc. and Subsidiaries

Same Store Net Operating Income - Commercial Properties

(Unaudited)


For the Years Variance

2021 2020
%
Rental revenues $ 14,920,335 $ 14,981,535 $ (61,200 ) (0.4 )%
Rental operating costs 6,173,340 6,162,440 10,900 0.2 %
Same Store Net operating income $ 8,746,995 $ 8,819,095 $ (72,100 ) 0.9 %

Operating Ratios:
Number of same properties 11 11
Occupancy, end of period 83.9 % 86.7 % (2.7 )%
Operating costs as a percentage of total revenues 41.4 % 41.1 % 0.2 %

SOURCE: Presidio Property Trust

COMTEX_405056932/2457/2022-03-31T16:05:53

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

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