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Note 13 - Segments

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13. SEGMENTS

The Company’s reportable segments consist of three types of real estate properties for which the Company’s chief operating decision maker (CODM), which is our Chief Executive Officer ("CEO"), as the CEO has the final decision when allocating capital and personnel to the various segments, internally evaluate operating performance and financial results: Office/Industrial Properties, Model Home Properties and Retail Properties. The Company also has certain corporate-level activities including accounting, finance, legal administration, and management information systems which are not considered separate operating segments.  There is no material inter-segment activity.

The CODM evaluates the performance of our segments based upon an internal net operating income (“NOI”), which is a non-GAAP supplemental financial measure on a quarterly basis as disclosed in the 10-Qs and 10-Ks. We believe that NOI is a widely accepted measure of comparative operating performance in the real estate community. However, our use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. The Company defines NOI for its segments as operating revenues (rental income, tenant reimbursements, parking income, and other operating income, net of provision for bad debt) less rental operating costs (property operating expenses, real estate taxes, insurance, utilities, repairs and maintenance, and asset management fees) excluding interest expense. NOI excludes certain items that are not considered to be controllable in connection with the management of an asset such as non-property income & expenses, depreciation & amortization, real estate acquisition fees & expenses, non-cash impairments and corporate general & administrative expenses. Quarterly, the Company reviews and tests for non-cash impairments, as required by GAAP, on all our properties (i.e., Office/Industrial Properties, Retail Properties, and Model Home Properties); however, the CODM does not consider those non-cash impairments with evaluating the segment’s cash operations and NOI.

The CODM uses NOI to evaluate and assess each segments' performance and in deciding how to allocate resources.  For Model Home performance, the CODM also includes the gain or loss on sale of real estate assets net of any impairments, because we believe that is a major component in the operating success of the segment and part of the business model for Model Homes.  The gain on sale of model homes resulted in cash flows to the Company that the CODM can decide on how to allocate to future operations. 

The following tables compare the Company’s segment activity and NOI and adjusted NOI for Model Home income to its results of operations and financial position as of and for the six months ended June 30, 2025 and 2024, respectively.  The line items listed in the below NOI tables include the significant expense considered by the CODM for cash allocations on future investments.  The Other Non-Segment & Consolidating Items represent corporate activity, the investment in Conduit, and other eliminating items for consolidation.  The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment.  This includes the loss on Conduit marketable securities.

The following tables compare the Company's segment activity to its results of operations and financial position as of and for the three and six months ended June 30, 2025, and June 30, 2024:

		For the Six Months Ended June 30, 2025
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Rental revenue		$	300,013			$	4,920,507			$	1,934,822			$	—			$	7,155,342
Recovery revenue			56,439				1,102,401				—				—				1,158,840
Other operating revenue			400				127,255				(1,326	)			63,414				189,743
Total revenues			356,852				6,150,163				1,933,496				63,414				8,503,925
Rental operating costs			105,392				3,167,862				98,097				(296,103	)			3,075,248
Net Operating Income (NOI)			251,460				2,982,301				1,835,399				359,517				5,428,677
Gain on Sale - Model Homes			—				—				564,258				—				564,258
Impairment of Model Homes			—				—				(117,712	)			—				(117,712	)
Adjusted NOI		$	251,460			$	2,982,301			$	2,281,945			$	359,517			$	5,875,223

		For the Six Months Ended June 30, 2024
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Rental revenue		$	773,696			$	4,773,051			$	2,351,463			$	—			$	7,898,210
Recovery revenue			192,372				1,023,343				—				—				1,215,715
Other operating revenue			63,174				116,143				72,904				10,457				262,678
Total revenues			1,029,242				5,912,537				2,424,367				10,457				9,376,603
Rental operating costs			296,595				3,008,035				82,936				(331,494	)			3,056,072
Net Operating Income (NOI)			732,647				2,904,502				2,341,431				341,951				6,320,531
Gain on Sale - Model Home			—				—				2,829,998				—				2,829,998
Impairment of Model Homes			—				—				(196,793	)			—				(196,793	)
Adjusted NOI		$	732,647			$	2,904,502			$	4,974,636			$	341,951			$	8,953,736

		For the Three Months Ended June 30, 2025
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Rental revenue		$	93,574			$	2,452,956			$	1,019,301			$	—			$	3,565,831
Recovery revenue			-				715,922				—				—				715,922
Other operating revenue			-				64,893				428				31,666				96,987
Total revenues			93,574				3,233,771				1,019,729				31,666				4,378,740
Rental operating costs			4,824				1,549,497				49,940				(141,656	)			1,462,605
Net Operating Income (NOI)			88,750				1,684,274				969,789				173,322				2,916,135
Gain on Sale - Model Homes			—				—				323,359				—				323,359
Impairment of Model Homes			—				—				(90,769	)			—				(90,769	)
Adjusted NOI		$	88,750			$	1,684,274			$	1,202,379			$	173,322			$	3,148,725

		For the Three Months Ended June 30, 2024
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Rental revenue		$	390,812			$	2,408,910			$	1,107,631			$	—			$	3,907,353
Recovery revenue			84,441				482,404				—				—				566,845
Other operating revenue			600				59,703				47,784				4,256				112,343
Total revenues			475,853				2,951,017				1,155,415				4,256				4,586,541
Rental operating costs			156,640				1,462,471				41,706				(168,322	)			1,492,495
Net Operating Income (NOI)			319,213				1,488,546				1,113,709				172,578				3,094,046
Gain on Sale - Model Home			—				—				811,903				—				811,903
Impairment of Model Homes			—				—				(101,245	)			—				(101,245	)
Adjusted NOI		$	319,213			$	1,488,546			$	1,824,367			$	172,578			$	3,804,704

Since a significant portion of the total operating expense for Retail and Office/Industrial are recouped as part of recovery revenue, the CODM looks at NOI as a whole when reviewing the segments.  For the Model Home segment, the properties are leased on a triple net basis and the tenants are responsible for a significant portion of the operating expenses.  Therefore, the CODM focuses on Model Home revenue, any impairments and the gain on sale of model homes.

The CODM reviews on a regular basis the GAAP performance of each segment, including the significant segment expenses reported for GAAP shown in the table below. Our significant segment expenses include consolidated expense categories presented in our consolidated statements of operations, as well as rental operating costs.  This information is provided to the CODM and factors into the CODM’s decision making for company-wide strategy. The following tables compare the Company’s segment activity and to its results of GAAP operations and financial position as of and for the six months ended June 30, 2025 and 2024, respectively.  The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment as noted above.

		For the Six Months Ended June 30, 2025
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Revenues:
Rental income		$	356,452			$	6,022,908			$	1,934,822			$	—			$	8,314,182
Fees and other income			400				127,255				(1,326	)			63,414				189,743
Total revenue			356,852				6,150,163				1,933,496				63,414				8,503,925
Costs and expenses:
Rental operating costs			105,392				3,167,862				98,097				(296,103	)			3,075,248
General and administrative			—				16,850				417,895				2,450,889				2,885,634
Depreciation and amortization			54,617				1,954,744				443,967				2,468				2,455,796
Impairment of goodwill and real estate assets			—				4,226,620				117,712				—				4,344,332
Total costs and expenses			160,009				9,366,076				1,077,671				2,157,254				12,761,010
Other income (expense):
Interest expense - mortgage notes			(198,039	)			(1,813,284	)			(974,346	)			(2,672	)			(2,988,341	)
Interest and other income, net			—				—				15				10,339				10,354
Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9)			—				—				—				(184,459	)			(184,459	)
Gain on sales of real estate, net			4,213,068				—				564,259				—				4,777,327
Income tax (expense) benefit			—				—				(52,481	)			23,980				(28,501	)
Total other income (expense), net			4,015,029				(1,813,284	)			(462,553	)			(152,812	)			1,586,380
Net income (loss)			4,211,872				(5,029,197	)			393,272				(2,246,652	)			(2,670,705	)
Less: Income attributable to noncontrolling interests			—				(29,614	)			(310,854	)			—				(340,468	)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders		$	4,211,872			$	(5,058,811	)		$	82,418			$	(2,246,652	)		$	(3,011,173	)

		For the Six Months Ended June 30, 2024
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Revenues:
Rental income		$	966,068			$	5,796,394			$	2,351,463			$	—			$	9,113,925
Fees and other income			63,174				116,143				72,904				10,457				262,678
Total revenue			1,029,242				5,912,537				2,424,367				10,457				9,376,603
Costs and expenses:
Rental operating costs			296,595				3,008,035				82,936				(331,494	)			3,056,072
General and administrative			—				—				444,669				3,842,697				4,287,366
Depreciation and amortization			237,878				1,938,072				517,170				9,268				2,702,388
Impairment of goodwill and real estate assets			—				—				196,793				—				196,793
Total costs and expenses			534,473				4,946,107				1,241,568				3,520,471				10,242,619
Other income (expense):
Interest expense - mortgage notes			(289,488	)			(1,692,231	)			(1,056,702	)			(2,630	)			(3,041,051	)
Interest and other income, net			—				—				15				9,837				9,852
Net gain in Conduit Pharmaceuticals marketable securities (see footnote 9)			—				—				—				(13,888,667	)			(13,888,667	)
Gain on sales of real estate, net			—				—				2,829,998				—				2,829,998
Income tax (expense) benefit			—				—				(139,107	)			(21,479	)			(160,586	)
Total other income (expense), net			(289,488	)			(1,692,231	)			1,634,204				(13,902,939	)			(14,250,454	)
Net income (loss)			205,281				(725,801	)			2,817,003				(17,412,953	)			(15,116,470	)
Less: Income attributable to noncontrolling interests			—				(61,194	)			(1,912,039	)			—				(1,973,233	)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders		$	205,281			$	(786,995	)		$	904,964			$	(17,412,953	)		$	(17,089,703	)

		For the Three Months Ended June 30, 2025
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Revenues:
Rental income		$	93,574			$	3,168,878			$	1,019,301			$	—			$	4,281,753
Fees and other income			-				64,893				428				31,666				96,987
Total revenue			93,574				3,233,771				1,019,729				31,666				4,378,740
Costs and expenses:
Rental operating costs			4,824				1,549,497				49,940				(141,656	)			1,462,605
General and administrative			—				—				187,935				1,035,723				1,223,658
Depreciation and amortization			22,928				955,575				231,954				1,234				1,211,691
Impairment of goodwill and real estate assets			—				4,226,620				90,769				—				4,317,389
Total costs and expenses			27,752				6,731,692				560,598				895,301				8,215,343
Other income (expense):
Interest expense - mortgage notes			(39,942	)			(921,953	)			(514,636	)			(1,339	)			(1,477,870	)
Interest and other income, net			—				—				8				5,198				5,206
Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9)			—				—				—				(7,802	)			(7,802	)
Gain on sales of real estate, net			—				—				323,359				—				323,359
Income tax (expense) benefit			—				—				(30,309	)			(23,601	)			(53,910	)
Total other income (expense), net			(39,942	)			(921,953	)			(221,578	)			(27,544	)			(1,211,017	)
Net income (loss)			25,880				(4,419,874	)			237,553				(891,179	)			(5,047,620	)
Less: Income attributable to noncontrolling interests			—				(11,655	)			(217,250	)			—				(228,905	)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders		$	25,880			$	(4,431,529	)		$	20,303			$	(891,179	)		$	(5,276,525	)

		For the Three Months Ended June 30, 2024
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Revenues:
Rental income		$	475,253			$	2,891,314			$	1,107,631			$	—			$	4,474,198
Fees and other income			600				59,703				47,784				4,256				112,343
Total revenue			475,853				2,951,017				1,155,415				4,256				4,586,541
Costs and expenses:
Rental operating costs			156,640				1,462,471				41,706				(168,322	)			1,492,495
General and administrative			—				—				236,747				1,966,169				2,202,916
Depreciation and amortization			120,585				985,733				240,556				4,496				1,351,370
Impairment of goodwill and real estate assets			—				—				101,245				—				101,245
Total costs and expenses			277,225				2,448,204				620,254				1,802,343				5,148,026
Other income (expense):
Interest expense - mortgage notes			(144,576	)			(881,309	)			(498,591	)			(1,369	)			(1,525,845	)
Interest and other income, net			—				—				8				5,198				5,206
Net gain in Conduit Pharmaceuticals marketable securities (see footnote 9)			—				—				—				(10,027,433	)			(10,027,433	)
Gain on sales of real estate, net			—				—				811,903				—				811,903
Income tax (expense) benefit			—				—				(53,484	)			(27,537	)			(81,021	)
Total other income (expense), net			(144,576	)			(881,309	)			259,836				(10,051,141	)			(10,817,190	)
Net income (loss)			54,052				(378,496	)			794,997				(11,849,228	)			(11,378,675	)
Less: Income attributable to noncontrolling interests			—				(37,040	)			(432,325	)			—				(469,365	)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders		$	54,052			$	(415,536	)		$	362,672			$	(11,849,228	)		$	(11,848,040	)

		June 30,				December 31,
Assets by Reportable Segment:		2025				2024
Office/Industrial Properties:
Land, buildings and improvements, net (1)		$	69,162,017			$	74,425,180
Total assets (2)		$	70,228,381			$	76,292,662
Model Home Properties:
Land, buildings and improvements, net (1)		$	40,850,511			$	37,416,000
Total assets (2)		$	41,464,138			$	38,166,964
Retail Properties:
Land, buildings and improvements, net (1)		$	4,554,707			$	15,743,789
Total assets (2)		$	4,703,901			$	16,673,605
Reconciliation to Total Assets:
Total assets for reportable segments		$	116,396,420			$	131,133,231
Corporate and other assets:
Cash, cash equivalents and restricted cash			1,243,312				564,922
Other assets, net			10,760,681				10,871,497
Total Assets		$	128,400,413			$	142,569,650

(1) Includes lease intangibles.

(2) Includes land, buildings and improvements, cash, cash equivalents, and restricted cash, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis.

		For the Six Months Ended June 30,
Capital Expenditures by Reportable Segment		2025				2024
Office/Industrial Properties:
Capital expenditures and tenant improvements, office		$	709,531			$	1,010,815
Model Home Properties:
Acquisition of operating properties, model home			9,444,465				5,740,918
Retail Properties:
Capital expenditures and tenant improvements, retail			—				203,121
Totals:
Acquisition of operating properties, net			9,444,465				5,740,918
Capital expenditures and tenant improvements			709,531				1,213,936
Total real estate investments		$	10,153,996			$	6,954,854

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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