Presidio Property Trust reported a net loss of $10.5 million for the year ended December 31, 2025, a significant improvement from the $27.9 million loss recorded in 2024. Total revenue fell to $16.8 million, down 11.2% from $18.9 million in 2024, while Funds From Operations (FFO) and Core FFO remained negative at $(3.8 million) and $(2.7 million), respectively, compared with $(4.5 million) and $(3.1 million) in the prior year. The decline in revenue was largely driven by reduced rental income from commercial properties that were sold during the year, offset by growth in the model‑home segment.
The model‑home segment contributed 23.5% of total revenue and saw a 22‑home acquisition for $9.4 million, while the company sold 20 model homes for $9.8 million, realizing a $1.0 million gain. Commercial property sales included Union Town Center and Research Parkway, sold for $15.9 million with a $4.5 million gain. Impairments of $6.4 million were recorded on Shea Center II and Dakota Center, reflecting a write‑down of real‑estate assets.
Interest expense rose to a weighted average of 6.16% from 5.63% in 2024, contributing to higher financing costs. Total debt stood at $92.1 million as of year‑end, while general and administrative expenses fell 24.2% due to one‑time 2024 charges. Rental operating costs increased to 36.6% of revenue, up from 33.1% in 2024, largely driven by higher insurance costs for office properties.
Management highlighted strong tenant retention, with 88% of expiring space renewing, including 84% of office leases, according to Chief Investment Officer Gary Katz. President of the Model Home Division Steve Hightower noted that the segment performed well, emphasizing continued focus on Sunbelt acquisitions and the resilience of model‑home sales amid a challenging resale market.
The company’s strategic shift toward the model‑home segment is evident, but negative FFO and a substantial debt load remain concerns. A loan default on Shea Center II led to receivership, and the company suspended preferred dividends in January 2026 to preserve cash. Analyst consensus remains negative, reflecting worries about cash‑flow generation and debt servicing.
No forward guidance was disclosed, but management’s emphasis on model‑home growth and tenant retention suggests confidence in the company’s strategic pivot, while ongoing impairment charges and rising interest costs signal continued financial pressure.
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