Presidio Property Trust, Inc.

What they do

The Company owns and manages a portfolio of commercial real estate (office, industrial, retail) and model homes leased back to homebuilders on triple-net leases. As of June 30, 2026, it owned or had interests in seven office buildings and an industrial property (638,620 sq ft), one retail building (10,500 sq ft), and 71 model homes (211,432 sq ft). Commercial properties are located in Colorado, North Dakota, California, Texas, and Maryland; model homes are in four states. The Company is internally managed and serves as general partner in DownREIT partnerships with put/call options on co-investor interests.

Revenue drivers

• Office/Industrial Properties — Largest commercial segment; 758,175 rentable sq ft at Dec 31, 2025, contributing the majority of commercial rental income. Colorado properties account for 41.3% of aggregate annual rent.
• Model Home Properties — Leased triple-net to homebuilders; 80 homes at Dec 31, 2025 (237,981 sq ft), with 69% leased to one homebuilder. Acquisitions were 22 homes in 2025 for $9.4M and 19 in 2024 for $9.7M.
• Retail Properties — One retail shopping center (10,500 sq ft) as of Dec 31, 2025, down from three centers (65,242 sq ft) in 2024; minimal revenue contribution.

Recent performance

For Q1 2026, the Company reported a net loss attributable to common stockholders of $(129,632), or $(0.10) per share, versus net income of $1.7M ($1.31 per share) in Q1 2025. Total revenues were $3.8M in Q1 2026, down from $4.1M in Q1 2025, partly due to the sale of Dakota Center. The sale generated net proceeds of $4.7M and a gain of $3.4M. Interest expense rose to $2.1M from $1.5M, including a $0.7M one-time default interest charge on Dakota Center. Non-cash impairment charges were $524,373 in Q1 2026, mostly related to Shea Center II.

Strategy

The Company focuses on managing, leasing, and selectively redeveloping its existing commercial portfolio, while acquiring model homes in markets with strong employment in technology, AI, and industrial automation. Management is strategically evaluating the commercial portfolio, considering sell/hold/buy decisions and aiming to maximize value through leasing. Tenant retention has been 'excellent' in 2025 and Q1 2026. The Company seeks to reduce G&A expenses, including a voluntary 5% CEO salary reduction starting April 2026 and a Board reduction by one director in June 2026.

Risks

• Tenant concentration in model homes — Approximately 69% of model homes are leased to a single homebuilder, creating significant revenue concentration risk.
• Geographic concentration — Commercial properties are clustered in a few states (Colorado and North Dakota represent over 86% of aggregate rent), making the portfolio susceptible to local economic downturns.
• Interest rate exposure — Weighted average interest rate on debt rose to 6.29% at March 31, 2026 from 5.83% a year earlier, increasing borrowing costs and interest expense.
• Impairment charges — The Company recognized $524,373 in non-cash impairment charges in Q1 2026, with repeated charges on Shea Center II, indicating potential further write-downs.

Outlook

Management continues to seek model home investment opportunities, particularly in markets with technology, AI, and industrial automation employment growth. The strategic review of the commercial portfolio will drive potential dispositions or acquisitions, with a focus on tenant retention. The Company expects further G&A reductions through headcount and governance changes. The Q1 2026 net loss and ongoing impairments suggest near-term earnings pressure.