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Note 7 - Mortgage Notes Payable | 12 Months Ended
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Dec. 31, 2025
Notes to Financial Statements |
Mortgage Notes Payable Disclosure [Text Block] | 7. MORTGAGE NOTES PAYABLE Mortgage notes payable consist of the following:
|  | Principal as of |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, |  |  | December 31, |  |  | Loan |  |  | Interest |  |  |  |  |
Mortgage note property |  | 2025 |  |  | 2024 |  |  | Type |  |  | Rate (1) |  |  | Maturity |
Dakota Center (2) |  |  | 8,739,687 |  |  | $ | 9,091,395 |  |  | Fixed |  |  |  | 4.74 | % |  | 7/6/2024 |
Research Parkway (3) |  | - |  |  | 1,526,860 |  |  | Fixed |  |  | N/A |  |  | N/A |
Arapahoe Service Center |  |  | 8,670,000 |  |  |  | 8,670,000 |  |  | Fixed |  |  |  | 6.75 | % |  | 12/5/2029 |
Union Town Center (3) |  | - |  |  | 7,709,746 |  |  | Fixed |  |  | N/A |  |  | N/A |
One Park Centre |  |  | 6,096,528 |  |  |  | 5,919,517 |  |  | Fixed |  |  |  | 6.83 | % |  | 9/1/2030 |
Genesis Plaza |  |  | 6,235,986 |  |  |  | 5,813,843 |  |  | Fixed |  |  |  | 7.07 | % |  | 9/1/2029 |
Shea Center II (4) |  |  | 16,353,296 |  |  |  | 16,660,803 |  |  | Fixed |  |  |  | 4.92 | % |  | 1/5/2026 |
West Fargo Industrial |  |  | 5,750,000 |  |  |  | 5,750,000 |  |  | Fixed |  |  |  | 7.14 | % |  | 7/6/2029 |
Grand Pacific Center |  |  | 6,360,819 |  |  |  | 6,460,405 |  |  | Fixed |  |  |  | 6.35 | % |  | 5/10/2033 |
Baltimore |  |  | 5,670,000 |  |  |  | 5,670,000 |  |  | Fixed |  |  |  | 4.67 | % |  | 4/6/2032 |
Mandolin |  |  | 3,440,873 |  |  |  | 3,508,702 |  |  | Fixed |  |  |  | 4.35 | % |  |  | 4/20/2029 |
Subtotal, Presidio Property Trust, Inc. Properties |  | $ | 67,317,189 |  |  | $ | 76,781,271 |  |  |  |  |  |  |  |  |  |  |  |
Model Home mortgage notes (5) |  |  | 25,604,494 |  |  |  | 26,060,798 |  |  | Fixed |  |  |  | 5.94% - 8.00% |  |  | 2025 - 2030 |
Mortgage Notes Payable |  | $ | 92,921,683 |  |  | $ | 102,842,069 |  |  |  |  |  |  |  |  |  |  |  |
Unamortized loan costs |  |  | (847,316 | ) |  |  | (747,975 | ) |  |  |  |  |  |  |  |  |  |  |
Mortgage Notes Payable, net |  | $ | 92,074,367 |  |  | $ | 102,094,094 |  |  |  |  |  |  |  |  |  |  |  |
(1) | Interest rates as of December 31, 2025.
(2) | The non-recourse loan on the Dakota Center property matured on July 6, 2024. During December 2024, the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt. As of December 31, 2025, the property was included in the real estate assets held for sale, net on the consolidated balance sheet. During July 2025, the lender approved a purchase offer from a third party for $5,125,000. The property was subsequently sold as of January 2026. See Note 4. Real Estate Assets above for further discussion on impairment of the property.
(3) | These properties were sold during February 2025 and their loan balances were paid in full.
(4) | During the year ended December 31, 2025, the Company impaired Shea Center II for a total of approximately $2.5 million after low property occupancy triggered a cash management event under the terms of the loan agreement. Subsequent to the year ended December 31, 2025, the Company received a notice that the Company's failure to repay in full by January 5, 2026 the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. The Company has received notification that the Shea Center II property governed by this agreement will be moved into receivership, which will fulfill its obligation for this non-recourse loan.
(5) | As of December 31, 2025, there were five model homes included as real estate assets held for sale. Our model homes have stand-alone mortgage notes at interest rates ranging from 5.94% to 8.0% per annum as of December 31, 2025.
The loan agreement between NetREIT Model, Homes, Inc. (“NRMH”) and its lender has a covenant for a Fixed Charge Coverage Ratio, (“FCCR”) as defined for NRMH as of any date that equals (a) the sum of (i) EBITDA for the period ended as of such date minus (ii) distributions for the period ended as of such date divided by (b) the sum of (ii) principal payments paid for the period ended as of such date plus (iii) interest expense for period ended as of such date. The FCCR is to be no less than 1.10 to 1.00, tested at the end of each fiscal quarter. As of December 31, 2025, NRMH was in compliance with this covenant. The Company and standalone subsidiaries have other various quarterly and annual reporting requirements to the individual property lenders and is in compliance with all material conditions and covenants on those mortgage notes payable as of December 31, 2025 with the exception of Dakota Center's loan maturity and Shea Center's DSCR coverage. Scheduled principal payments of mortgage notes payable were as follows as of December 31, 2025:
|  | Commercial |  |  | Model |  |  |  |  |
|  | Properties |  |  | Homes |  |  | Total Principal |
Years ending December 31: |  | Notes Payable |  |  | Notes Payable |  |  | Payments |
2026 |  | $ | 25,504,041 |  |  | $ | 4,469,150 |  |  | $ | 29,973,191 |
2027 |  |  | 463,715 |  |  |  | 1,251,371 |  |  |  | 1,715,086 |
2028 |  |  | 454,843 |  |  |  | 8,169,780 |  |  |  | 8,624,623 |
2029 |  |  | 23,497,197 |  |  |  | 5,870,293 |  |  |  | 29,367,490 |
2030 |  |  | 5,812,792 |  |  |  | 5,843,900 |  |  |  | 11,656,692 |
Thereafter |  |  | 11,584,601 |  |  |  | — |  |  |  | 11,584,601 |
Total |  | $ | 67,317,189 |  |  | $ | 25,604,494 |  |  | $ | 92,921,683 |

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