Presidio Property Trust, Inc.

For 2021, Presidio reported core FFO of $2.5 million versus $1.5 million in 2020. Interest expense was 45% lower than in 2020, and the company collected slightly more than it billed to tenants in 2021, or more than 100% of billed amounts. On the property side, it sold four commercial properties during 2021 for $33 million of transaction volume, and its Model Home division sold 44 homes for approximately $21 million and recognized a gain of about $3 million while acquiring 18 model home properties for approximately $8 million. No next-quarter or full-year numerical guidance was provided; management instead said it expects to continue pursuing smart acquisitions and to raise capital when the timing and markets are favorable.

Jack Heilbron emphasized that Presidio is using its status as a public company to raise capital, recycle assets, and pursue opportunities aligned with its core strategy of investing in markets with strong employment bases such as industry, government, and universities. He highlighted the Baltimore acquisition, the exit from nearly all California properties, the shareholder warrants, and the SPAC sponsorship as ways the company is trying to create value. His tone was confident and opportunistic, with a clear focus on capital markets access and shareholder upside.

Adam Sragovicz said the key financial improvement was the rise in core FFO to $2.5 million from $1.5 million, supported by a 45% reduction in interest expense. He also pointed to rent collection strength, noting that 2021 collections were slightly above billed amounts because some tenants caught up on past-due rent from 2020. He framed the SPAC sponsorship as another potential source of shareholder value, since Presidio paid the upfront costs and could receive shares in the new public company if it successfully takes a target public.

Analysts asked how much Presidio might make from the SPAC, and Jack Heilbron said the company’s equity could be as much as 30% to 40% of total equity, or more, depending on negotiations. Another question focused on acquisition targets, and Gary Katz said the company is prioritizing yield-driven, stable, longer-term leases with little capital expense and rollover risk across diversified property types such as industrial, office, or retail. On lockdown risk, Katz said the portfolio handled the prior shutdown relatively well and he would not expect a worse outcome if another lockdown occurred.