Exhibit 99.2

 

 

SUPPLEMENTAL FINANCIAL INFORMATION

As of September 30, 2023

FORWARD-LOOKING STATEMENTS

This presentation contains “forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Quarterly Report on Form 10-Q. Forward-looking statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, financial condition, liquidity, capital resources, cash flows, dividends, results of operations and other financial and operating information. When used in this presentation, the words “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “should,” “project,” “plan,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to it and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described in the Annual Report on Form 10-K, as filed March 28, 2023 (“Annual Report”) and the Company’s Quarterly Report on Form 10-Q filed with the SEC on the date hereof (“Quarterly Report”), changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in the “Risk Factors” section of the Annual Report and the Quarterly Report, many of which are beyond our control. Should one or more of these risks or uncertainties materialize or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

COMPANY OVERVIEW

 

●	Presidio Property Trust, Inc. (“Presidio” or the “Company”) was founded in 1999 as NetREIT
●	Presidio is an internally managed real estate company focused on commercial real estate opportunities in often overlooked and regionally dominant markets
●	The Company acquires, owns, and manages office and industrial real estate assets in markets with strong demographic and economic drivers with attractive going-in cap rates
●	Presidio’s commercial portfolio currently includes 12 commercial properties with a book value of approximately $92 million
●	In addition to its commercial real estate holdings, Presidio generates fees and rental income from affiliated entities, which manage and/or own a portfolio of model homes (1)

	(1)	The Company holds partial ownership interests in several entities which own model home properties
	(2)	Includes book value of model homes

     

COMMERCIAL PORTFOLIO

($ in000’s) Property Location		Sq., Ft.				Date Acquired				Year Property Constructed				Purchase Price (1)				Occupancy				Percent Ownership				Mortgage On property
Office/Industrial Properties:
Genesis Plaza, San Diego, CA (2)			57,807				08	/10			1989				10,000				100.0	%			76.4	%			5,968
Dakota Center, Fargo, ND			119,434				05	/11			1982				9,575				58.1	%			100.0	%			9,260
Grand Pacific Center, Bismarck, ND			95,244				03	/14			1976				5,350				54.6	%			100.0	%			3,806
Arapahoe Center, Colorado Springs, CO			79,023				12	/14			2000				11,850				88.0	%			100.0	%			7,471
West Fargo Industrial, West Fargo, ND			150,099				08	/15			1998	/2005			7,900				100.0	%			100.0	%			3,943
300 N.P., West Fargo, ND			34,517				08	/15			1922				3,850				66.4	%			100.0	%			-
One Park Centre, Westminster CO			69,174				08	/15			1983				9,150				82.3	%			100.0	%			6,074
Shea Center II, Highlands Ranch, CO			121,306				12	/15			2000				25,325				62.1	%			100.0	%			17,023
Baltimore, Baltimore, MD			31,752				12	/21			2006				8,892				100.0	%			100.0	%			5,670
Total Office/Industrial Properties			758,356											$	91,892				77.2	%						$	59,215
Retail Properties:
Union Town Center, Colorado Springs, CO			44,042				12	/14			2003				11,212				79.5	%			100.0	%			7,910
Research Parkway, Colorado Springs, CO			10,700				08	/15			2003				2,850				100.0	%			100.0	%			1,604
Mandolin, Houston, TX (3)			10,500				08	/21			2021				4,892				100.0	%			61.3	%			3,589
Total Retail Properties			65,242											$	18,954				86.2	%						$	13,103
			823,598											$	110,846				77.9	%						$	72,318

	(1)	Starting in January 1, 2009, acquisition related costs and expenses were expensed when incurred until ASU 2017-01 was adopted by the Company in 2017. Since adoption in 2017, acquisition related costs for real estate acquisitions that do not meet the definition of a business, are capitalized.
	(2)	Genesis Plaza is owned by two tenants-in-common, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 76.4%, based on our ownership percentages of each tenant-in-common.
	(3)	Owned by NetREIT Highland LLC, which was formed in 2012. NetREIT Highland LLC is wholly owned by NetREIT Palm Self Storage LP (a joint venture where Presidio Property trust owns 61.3%).

MODEL HOMES PORTFOLIO

Geographic Region		No. of Properties				Aggregate Square Feet				Approximate % of Square Feet				Current Base Annual Rent				Approximate of Aggregate % Annual Rent
Midwest			4				12,307				4.0	%		$	182,748				4.9	%
Southeast			4				9,875				3.2	%			172,428				4.6	%
Southwest			94				287,075				92.8	%			3,401,016				90.5	%
Total			102				309,257				100.0	%		$	3,756,192				100.0	%

CONSOLIDATED BALANCE SHEET

Presidio Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

		September 30,				December 31,
		2023				2022
		(Unaudited)
ASSETS
Real estate assets and lease intangibles:
Land		$	20,580,587			$	19,189,386
Buildings and improvements			133,531,747				125,979,374
Tenant improvements			15,636,305				13,861,839
Lease intangibles			4,110,139				4,110,139
Real estate assets and lease intangibles held for investment, cost			173,858,778				163,140,738
Accumulated depreciation and amortization			(37,845,097	)			(34,644,511	)
Real estate assets and lease intangibles held for investment, net			136,013,681				128,496,227
Real estate assets held for sale, net			2,434,624				2,016,003
Real estate assets, net			138,448,305				130,512,230
Other assets:
Cash, cash equivalents and restricted cash			7,778,764				16,516,725
Deferred leasing costs, net			1,501,812				1,516,835
Goodwill			2,423,000				2,423,000
Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9)			23,996,141				—
Other assets, net (see Note 6)			3,785,367				3,511,681
Total other assets			39,485,084				23,968,241
Investments held in Trust (see Notes 2 & 9)			-				136,871,183
TOTAL ASSETS		$	177,933,389			$	291,351,654
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net		$	101,059,368			$	95,899,176
Mortgage notes payable related to properties held for sale, net			1,428,848				999,523
Mortgage notes payable, total net			102,488,216				96,898,699
Accounts payable and accrued liabilities			5,294,349				4,028,564
Accounts payable and accrued liabilities of SPAC (see Notes 2 & 9)			-				5,046,725
Accrued real estate taxes			1,506,532				1,879,875
Dividends payable			478,253				178,511
Lease liability, net			23,989				46,833
Below-market leases, net			14,509				18,240
Total liabilities			109,805,848				108,097,447
Commitments and contingencies (Note 2 & 9):
SPAC Class A common stock subject to possible redemption; none as of September 30, 2023 and 13,225,000 shares as of December 31, 2022 (at $10.45 per share), net of issuance cost of approximately $6,400,000			-				130,411,135
Equity:
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 898,940 shares issued and outstanding (liquidation preference $25.00 per share) as of September 30, 2023 and 913,987 shares issued and outstanding as of December 31, 2022			8,989				9,140
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,859,726 shares and 11,807,893 shares were issued and outstanding at September 30, 2023 and December 31, 2022, respectively			118,597				118,079
Additional paid-in capital			181,483,892				182,044,157
Dividends and accumulated losses			(121,638,764	)			(138,341,750	)
Total stockholders’ equity before noncontrolling interest			59,972,714				43,829,626
Noncontrolling interest			8,154,827				9,013,446
Total equity			68,127,541				52,843,072
TOTAL LIABILITIES AND EQUITY		$	177,933,389			$	291,351,654

CONSOLIDATED STATEMENT OF OPERATIONS

Presidio Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2023				2022				2023				2022
Revenues:
Rental income		$	4,262,790			$	4,243,887			$	12,534,431			$	12,884,280
Fees and other income			221,384				148,088				615,107				401,697
Total revenue			4,484,174				4,391,975				13,149,538				13,285,977
Costs and expenses:
Rental operating costs			1,478,479				1,434,225				4,452,628				4,365,781
General and administrative			1,635,610				1,509,139				5,413,413				4,306,835
Depreciation and amortization			1,351,705				1,318,164				4,054,109				3,973,582
Total costs and expenses			4,465,794				4,261,528				13,920,150				12,646,198
Other income (expense):
Interest expense - mortgage notes			(1,375,199	)			(1,382,120	)			(3,579,381	)			(3,485,693	)
Interest and other income, net			254,486				590,586				1,394,687				757,318
Gain on sales of real estate, net			757,285				1,307,258				2,294,574				4,057,527
Loss on Conduit marketable securities			(17,682,154	)			—				(17,682,154	)			—
Gain on deconsolidation of SPAC			40,321,483				—				40,321,483				—
Income tax expense			(134,620	)			(294,996	)			(632,147	)			(819,520	)
Total other income, net			22,141,281				220,728				22,117,062				509,632
Net income			22,159,661				351,175				21,346,450				1,149,411
Less: Income attributable to noncontrolling interests			(673,279	)			(1,114,928	)			(2,155,212	)			(3,032,806	)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders		$	21,486,382			$	(763,753	)		$	19,191,238			$	(1,883,395	)
Less: Preferred Stock Series D dividends			(527,873	)			(538,286	)			(1,595,606	)			(1,616,397	)
Less: Series A Warrant dividend			—				—				—				(2,456,512	)
Net income (loss) attributable to Presidio Property Trust, Inc. common stockholders		$	20,958,509			$	(1,302,039	)		$	17,595,632			$	(5,956,304	)
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:
Basic & Diluted		$	1.77			$	(0.11	)		$	1.49			$	(0.51	)
Weighted average number of common shares outstanding - basic & dilutive			11,851,343				11,780,090				11,841,847				11,784,500

CONSOLIDATED STATEMENT OF CASH FLOWS

Presidio Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

		For the Nine Months Ended September 30,
		2023				2022
Cash flows from operating activities:
Net income		$	21,346,450			$	1,149,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			4,054,109				3,973,582
Stock compensation			828,193				861,837
Bad debt expense			27,729				11,116
Gain on sale of real estate assets, net			(2,294,574	)			(4,057,527	)
Gain on deconsolidation of SPAC investment			(40,321,483	)			—
Net change in Conduit fair value marketable securities			17,682,154				—
Net change in fair value marketable securities			(169,530	)			70,183
Net change in fair value SPAC Trust Account			(1,209,542	)			(811,687	)
Amortization of financing costs			263,863				180,250
Amortization of below-market leases			(3,731	)			(41,167	)
Straight-line rent adjustment			(280,619	)			(148,181	)
Changes in operating assets and liabilities:
Other assets			(92,877	)			585,984
Accounts payable and accrued liabilities			378,761				245,652
Accounts payable and accrued liabilities for the SPAC			652,577				316,128
Accrued real estate taxes			(373,343	)			(447,279	)
Net cash provided by operating activities			488,137				1,888,302
Cash flows from investing activities:
Real estate acquisitions			(13,715,923	)			(8,087,250	)
Additions to buildings and tenant improvements			(2,817,786	)			(1,939,712	)
Investment in marketable securities			(2,083,328	)			(1,243,672	)
Proceeds from sale of marketable securities			2,302,456				1,787,695
Investment of SPAC IPO proceeds into Trust Account			(624,998	)			(134,895,000	)
Withdrawals from Trust Account for SPAC taxes			832,480				—
Withdrawals from Trust Account for Redemption of SPAC Shares			137,157,011				—
Deletions / (additions) to deferred leasing costs			5,808				(53,377	)
Proceeds from sales of real estate, net			7,113,065				20,603,179
Net cash provided by (used in) investing activities			128,168,785				(123,828,137	)
Cash flows from financing activities:
Proceeds from mortgage notes payable, net of issuance costs			13,400,934				14,992,425
Repayment of mortgage notes payable			(7,885,953	)			(9,586,079	)
Payment of deferred offering costs			—				(3,201,266	)
Distributions to noncontrolling interests, net			(3,013,831	)			(3,812,698	)
Proceeds from initial public offering of SPAC			—				132,859,920
SPAC offering non-controlling interest adjustment			—				(609,920	)
Redemption of SPAC shares			(137,157,011	)			—
Repurchase of Series A Common Stock, at cost			—				(277,696	)
Repurchase of Series D Preferred Stock, at cost			(250,770	)			(84,386	)
Dividends paid to Series D Preferred Stockholders			(1,595,606	)			(1,616,398	)
Dividends paid to Series A Common Stockholders			(892,646	)			(2,857,081	)
Net cash (used in) provided by financing activities			(137,394,883	)			125,806,821
Net (decrease) increase in cash equivalents and restricted cash			(8,737,961	)			3,866,986
Cash, cash equivalents and restricted cash - beginning of period			16,516,725				14,702,089
Cash, cash equivalents and restricted cash - end of period		$	7,778,764			$	18,569,075
Supplemental disclosure of cash flow information:
Interest paid-mortgage notes payable		$	3,637,980			$	3,038,713
Non-cash financing activities:
Potentially convertible common stock for SPAC		$	—			$	134,895,000
Dividends payable - Common Stock Series A		$	302,495			$	—
Dividends payable - Preferred Stock Series D		$	175,758			$	178,916

EBITDAre RECONCILIATION

		For the Three Months Ended								For the Nine Months Ended
		9/30/2023				9/30/2022				9/30/2023				9/30/2022
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders		$	20,958,509			$	(1,302,039	)		$	17,595,632			$	(5,956,304	)
Adjustments:
Interest Expense			1,375,199				1,382,120				3,579,381				3,485,693
Depreciation and Amortization			1,350,461				1,304,441				4,050,378				3,932,415
Asset Impairments			-				—				-				—
Net Loss on Sales of RE			(757,285	)			(1,307,258	)			(2,294,574	)			(4,057,527	)
Loss on Conduit marketable securities			17,682,154								17,682,154
Gain on deconsolidation of SPAC			(40,321,483	)			—				(40,321,483	)			—
Income Taxes			134,620				294,996				632,147				819,520
EBITDAre		$	422,175			$	372,260			$	923,635			$	(1,776,203	)

FFO AND CORE FFO RECONCILIATION

		For the Three Months Ended								For the Nine Months Ended
		09/30/23				09/30/22				09/30/23				09/30/22
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders		$	20,958,509			$	(1,302,039	)		$	17,595,632			$	(5,956,304	)
Adjustments:
Income attributable to noncontrolling interests			673,279				1,114,928				2,155,212				3,032,806
Depreciation and amortization			1,351,705				1,318,164				4,054,109				3,973,582
Amortization of above and below market leases, net			(1,244	)			(13,722	)			(3,731	)			(41,167	)
Impairment of real estate assets			-				-				-				-
Loss on Conduit marketable securities			17,682,154				-				17,682,154				-
Gain on deconsolidation of SPAC			(40,321,483	)			-				(40,321,483	)			-
Loss (gain) on sale of real estate assets, net			(757,285	)			(1,307,258	)			(2,294,574	)			(4,057,527	)
FFO		$	(414,365	)		$	(189,927	)		$	(1,132,681	)		$	(3,048,610	)
Restricted stock compensation			287,691				293,136				828,193				861,837
Series A Warrant dividend (non-cash)			-				-				-				2,456,512
Core FFO		$	(126,673	)		$	103,209			$	(304,488	)		$	269,739
Weighted average number of common shares outstanding - basic and diluted			11,851,343				11,780,090				11,841,847				11,784,500
Core FFO / Wgt Avg Share		$	(0.011	)		$	0.01			$	(0.026	)		$	0.02

SEGMENT DATA

 

 

DEFINITIONS – NON-GAAP MEASUREMENTS

EBITDAre - EBITDAre is defined by NAREIT as earnings before interest, taxes, depreciation, and amortization, gain or loss on disposal of depreciated assets, and impairment write-offs.

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, a non-GAAP measure, 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 have 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, a non-GAAP measure, 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, non-cash warrant dividends 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.