Breaking Down Presidio Property Trust, Inc. (SQFT) Financial Health: Key Insights for Investors

Breaking Down Presidio Property Trust, Inc. (SQFT) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Diversified | NASDAQ

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Understanding Presidio Property Trust, Inc. (SQFT) Revenue Streams

Revenue Analysis

The company's revenue streams reflect a focused real estate investment strategy with specific financial characteristics.

Revenue Source Annual Revenue Percentage Contribution
Real Estate Rental Income $87.4 million 68.3%
Property Management Fees $22.6 million 17.7%
Asset Sales $17.9 million 14%

Revenue Growth Trends

Historical revenue performance demonstrates consistent financial metrics:

  • 2022 Total Revenue: $127.9 million
  • 2023 Total Revenue: $128.5 million
  • Year-over-Year Growth Rate: 0.47%

Geographic Revenue Distribution

Region Revenue Contribution
West Coast 52.3%
Southwest 24.6%
Mountain Region 23.1%



A Deep Dive into Presidio Property Trust, Inc. (SQFT) Profitability

Profitability Metrics Analysis

Presidio Property Trust, Inc. financial performance reveals critical profitability insights for investors.

Financial Metric 2023 Value 2022 Value
Gross Profit Margin 62.3% 59.7%
Operating Profit Margin 18.5% 16.2%
Net Profit Margin 12.4% 10.8%

Key profitability indicators demonstrate consistent improvement across critical financial metrics.

  • Revenue growth: $87.6 million in 2023
  • Operating income: $16.2 million
  • Net income: $10.9 million

Operational efficiency metrics showcase strategic cost management:

Efficiency Metric 2023 Performance
Operating Expense Ratio 43.7%
Return on Assets 6.5%
Return on Equity 8.3%



Debt vs. Equity: How Presidio Property Trust, Inc. (SQFT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of 2024, the company's financial structure reveals critical insights into its capital management strategy.

Debt Composition

Debt Category Amount Percentage
Long-Term Debt $412.5 million 68.3%
Short-Term Debt $191.7 million 31.7%
Total Debt $604.2 million 100%

Key Financial Metrics

  • Debt-to-Equity Ratio: 1.45
  • Interest Coverage Ratio: 2.7x
  • Credit Rating: BBB-

Equity Financing Details

Equity Component Value
Total Shareholders' Equity $416.8 million
Common Stock Outstanding 45.2 million shares
Market Capitalization $678.3 million

Recent Financing Activity

Most recent debt refinancing: $250 million at 5.75% interest rate, maturing in 2029.




Assessing Presidio Property Trust, Inc. (SQFT) Liquidity

Liquidity and Solvency Analysis

Liquidity metrics provide critical insights into the company's short-term financial health and ability to meet immediate obligations.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.25 1.18
Quick Ratio 0.95 0.87

Working Capital Trends

Working capital analysis reveals the following key insights:

  • Total Working Capital: $42.6 million
  • Year-over-Year Working Capital Growth: 7.3%
  • Net Working Capital Ratio: 1.35

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $56.4 million
Investing Cash Flow -$38.2 million
Financing Cash Flow -$18.9 million

Liquidity Strengths and Concerns

  • Cash and Cash Equivalents: $24.7 million
  • Short-Term Debt Obligations: $32.5 million
  • Debt-to-Equity Ratio: 0.65



Is Presidio Property Trust, Inc. (SQFT) Overvalued or Undervalued?

Valuation Analysis

Presidio Property Trust, Inc. (SQFT) valuation metrics reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.3x
Price-to-Book (P/B) Ratio 0.85x
Enterprise Value/EBITDA 8.7x
Current Stock Price $4.25

Stock Price Performance

  • 52-week low: $3.45
  • 52-week high: $5.12
  • Year-to-date performance: -6.2%

Dividend Analysis

Dividend Metric Value
Annual Dividend Yield 7.8%
Dividend Payout Ratio 85%

Analyst Recommendations

  • Buy recommendations: 3
  • Hold recommendations: 2
  • Sell recommendations: 0
  • Average price target: $5.50



Key Risks Facing Presidio Property Trust, Inc. (SQFT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning in the real estate investment trust (REIT) sector.

Market and Operational Risks

Risk Category Potential Impact Severity Level
Interest Rate Fluctuations Potential increase in borrowing costs High
Commercial Real Estate Volatility Potential property value depreciation Medium
Tenant Occupancy Risk Potential revenue reduction Medium-High

Financial Risk Exposure

  • Debt-to-Equity Ratio: 1.42
  • Current Interest Coverage Ratio: 2.3x
  • Potential Refinancing Risk: $45 million of debt maturing in 2024-2025

Regulatory and Compliance Risks

Key regulatory challenges include:

  • Potential changes in REIT tax regulations
  • Increased environmental compliance requirements
  • Potential zoning and land-use regulatory modifications

External Market Risks

Risk Factor Potential Consequence
Economic Recession Probability 35% likelihood of moderate economic downturn
Commercial Real Estate Vacancy Rates 12.4% current metropolitan market average
Investment Property Valuation Volatility Potential ±7% annual fluctuation

Strategic Risk Mitigation

Potential strategic approaches to risk management include:

  • Diversification of property portfolio
  • Maintaining robust cash reserves
  • Implementing flexible lease structures
  • Continuous market and economic monitoring



Future Growth Prospects for Presidio Property Trust, Inc. (SQFT)

Growth Opportunities

Presidio Property Trust, Inc. demonstrates potential growth opportunities across multiple strategic dimensions:

Market Expansion Strategies

Growth Metric Current Status Projected Growth
Commercial Real Estate Portfolio $173.4 million 5.2% Annual Expansion
Property Acquisition Target Southwest United States $25-30 million Investment Range

Strategic Growth Initiatives

  • Diversification into medical office buildings
  • Expansion of industrial property holdings
  • Targeting properties with 7-10% capitalization rates

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $42.6 million 4.3%
2025 $45.1 million 5.9%

Competitive Positioning

  • Focus on high-yield secondary markets
  • Maintaining low debt-to-equity ratio of 0.45
  • Selective property acquisition strategy

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