Presidio Property Trust, Inc. (SQFT): History, Ownership, Mission, How It Works & Makes Money

Presidio Property Trust, Inc. (SQFT) operates a contrarian real estate strategy, but can a deliberate focus on overlooked secondary markets and triple-net leased model homes defintely stabilize a portfolio in this high-interest rate environment?

Looking at the Q3 2025 results, the company's net real estate assets stood at $113.3 million as of September 30, 2025, with a quarterly total revenue of approximately $4.2 million, and an improved net loss of $1.9 million-a significant jump from the prior year's loss. The core of the business-including 84 triple-net leased model homes and a commercial portfolio-is navigating the market with $94.6 million in mortgage debt, so understanding this unique structure is key to valuing its future performance.

Presidio Property Trust, Inc. (SQFT) History

Presidio Property Trust, Inc.'s Founding Timeline

You need to know where a company started to understand its current strategy. Presidio Property Trust, Inc. began with a clear, contrarian mandate: find value in real estate that institutional investors typically ignored. This deep-value approach has defined its two-decade-plus journey.

Year established

The company was originally established in 1999 under the name NetREIT.

Original location

It was initially incorporated in the State of California on September 28, 1999. The executive offices remain in San Diego, California, though the company later reincorporated in Maryland to optimize its Real Estate Investment Trust (REIT) structure.

Founding team members

The company's long-term direction has been steered by its leadership, notably CEO Jack K. Heilbron. He has been a key driver of the strategy to acquire properties in non-major markets and implement a hands-on management approach to unlock value.

Initial capital/funding

While the original private funding is not publicly detailed, a major capital infusion came with its public listing. The company's initial public offering (IPO) in October 2020 raised gross proceeds of approximately $2.5 million, based on the sale of 500,000 shares at $5.00 per share.

Presidio Property Trust, Inc.'s Evolution Milestones

The company's evolution wasn't a straight line; it involved a crucial strategic pivot and a corporate rebrand to better reflect its diversified portfolio. Here's the quick timeline of how it went from NetREIT to a NASDAQ-listed REIT.

Presidio Property Trust, Inc.'s Transformative Moments

The biggest shift for Presidio Property Trust, Inc. was the move from purely commercial real estate to a hybrid model that included residential model homes. This wasn't just a portfolio addition; it was a fundamental change in their cash flow profile.

• The 2010 Model Home Pivot: The decision to acquire model homes from national homebuilders on a triple-net lease basis was transformative. This niche provides secure, predictable cash flow because the homebuilder (the tenant) covers all operating expenses, similar to a traditional triple-net lease. This residential segment is highly accretive to stockholder returns, even though model homes are a relatively small portion of the total asset base.
• The 2025 Asset Optimization: You can see the strategy in action in early 2025. The company reported a Q1 2025 net income of $1.7 million, a massive swing from a net loss of $5.8 million in Q1 2024. This turnaround was fueled by strategic dispositions, including the sale of two commercial properties for $17.0 million, which generated a net gain of $4.2 million. This shows a defintely pragmatic approach to capital recycling.
• Focus on Net Real Estate Assets: As of March 31, 2025, the company held $117.4 million in net real estate assets, including 84 model homes, showing the continued importance of the model home portfolio alongside their core commercial holdings. The trailing twelve months revenue ending June 30, 2025, was $18.05 million.

This history of strategic pivots and asset management is key to understanding their current investor profile. You should check out Exploring Presidio Property Trust, Inc. (SQFT) Investor Profile: Who's Buying and Why? for a deeper dive into who is betting on this contrarian REIT.

Presidio Property Trust, Inc. (SQFT) Ownership Structure

Presidio Property Trust, Inc. (SQFT) is a publicly traded Real Estate Investment Trust (REIT) with a shareholder base primarily dominated by institutional investors, a common structure for a Nasdaq-listed entity. This concentration means strategic decisions are heavily influenced by a few large financial firms, while retail investors still hold a significant portion of the float.

Presidio Property Trust, Inc.'s Current Status

Presidio Property Trust, Inc. is an internally managed, diversified REIT, meaning it owns and often operates its income-generating properties, which include commercial real estate and a model home division. The company's Class A Common Stock trades on the Nasdaq Capital Market under the ticker symbol SQFT, confirming its status as a public entity. As of November 2025, the company's market capitalization was approximately $0.01 billion, reflecting its small-cap status. The stock price was approximately $4.64 per share as of November 18, 2025.

You can review the company's strategic priorities in detail here: Mission Statement, Vision, & Core Values of Presidio Property Trust, Inc. (SQFT).

Presidio Property Trust, Inc.'s Ownership Breakdown

The ownership structure is heavily weighted toward institutional capital, which is typical for a REIT. Here's the quick math on who holds the common stock as of mid-2025, based on the total shares outstanding of approximately 1.44 million.

The largest single block is held by an institutional investor, but the company's CEO also holds a defintely material stake. Insider ownership, specifically CEO Jack Heilbron's direct stake, stands at approximately 8.37% of the company's shares. This is a significant figure that aligns management's interests directly with shareholder returns.

Presidio Property Trust, Inc.'s Leadership

The company is steered by an experienced, if small, senior management team with an average tenure of 3.9 years, providing continuity in strategy. The leadership team is responsible for the day-to-day operations and investment strategy, focusing on acquiring commercial properties in regionally dominant, non-core US markets.

• Jack Heilbron: Chairman, President, and Chief Executive Officer (CEO). He has served in this capacity for over 26 years, providing long-term strategic direction. His total yearly compensation was $747,030 as of late 2024.
• Edwin Bentzen: Chief Financial Officer (CFO). He assumed the CFO role in September 2023, overseeing all financial matters. His total yearly compensation was $477,590 as of late 2024.
• Gary Katz: Chief Investment Officer (CIO). He joined in 2010 and is responsible for the company's investment and asset management functions, including acquisitions and leasing. His total yearly compensation was $746,380 as of late 2024.

The Board of Directors, which includes Mr. Heilbron and four independent directors, has an average tenure of 4.3 years, ensuring a balance of management insight and independent oversight.

Presidio Property Trust, Inc. (SQFT) Mission and Values

Presidio Property Trust, Inc. (SQFT) is built on a contrarian investment philosophy, seeking to generate superior stockholder returns by finding and enhancing value in real estate assets that major institutional investors often overlook. This deep value approach is the core of their cultural DNA, driving every decision from property acquisition to tenant relations.

Honestly, their mission is simple: find hidden value where others don't, and then use smart management to realize it. This is a classic 'buy low, manage well' strategy in real estate.

Presidio Property Trust, Inc.'s Core Purpose

Official mission statement

The company's mission is to be a publicly traded Real Estate Investment Trust (REIT) focused on acquiring and operating properties in often non-mainstream markets, which possess unique opportunities to enhance value. This mission translates into clear, actionable goals:

• Generate strong financial performance and long-term capital appreciation for stockholders.
• Concentrate on properties with hidden value, often resulting from unique seller circumstances.
• Provide attractive returns to investors through a combination of rental income and property value appreciation.

For the third quarter ended September 30, 2025, the company reported total revenues of approximately $4.2 million, reflecting the challenge and opportunity of this strategy in the current commercial real estate environment.

Vision statement

Presidio Property Trust, Inc.'s vision extends beyond major metropolitan hubs, aiming to bring high-quality work environments to underserved locales. They see a need for quality real estate in both big cities and small towns, and they step in where others hesitate.

This vision is realized through their diversified portfolio, which, as of September 30, 2025, included approximately $113.3 million in net real estate assets, encompassing office, industrial, retail, and 84 model homes leased back to homebuilders.

• Bring unique business environments to underserved locales.
• Be a leader in the commercial real estate sector by adapting to market conditions.
• Sustain presence in the industry through prudent asset management and operational excellence.

This commitment to finding value in non-mainstream assets is defintely a core differentiator. You can dive deeper into who is buying into this strategy at Exploring Presidio Property Trust, Inc. (SQFT) Investor Profile: Who's Buying and Why?

Presidio Property Trust, Inc. slogan/tagline

While an explicit, formal slogan isn't used in their filings, their entire business model is summarized by one core operational phrase:

• Finding opportunities in overlooked markets.

This mantra guides their acquisition strategy, where they pursue opportunities others may dismiss, avoiding markets with overheated demand that often lead to unrealistic pricing. For example, a registered direct offering in July 2025 raised approximately $2.05 million in gross proceeds, which the company intends to use for working capital and general corporate purposes-a clear action to fund their ongoing deep-value investment and management strategy.

Presidio Property Trust, Inc. (SQFT) How It Works

Presidio Property Trust, Inc. operates as a diversified Real Estate Investment Trust (REIT), generating income primarily by owning and managing a portfolio of commercial properties and, crucially, through a sale-leaseback model for residential model homes. The company's strategy balances traditional rental income from office and industrial assets with the unique, capital-light cash flow from its model home division.

Presidio Property Trust, Inc.'s Product/Service Portfolio

The company's revenue stream is segmented into two primary areas, with a clear emphasis on managing risk through portfolio diversification. For the last twelve months ending September 30, 2025, Presidio Property Trust, Inc. reported total revenues of approximately $17.53 million, highlighting the scale of these operations.

Presidio Property Trust, Inc.'s Operational Framework

The operational framework is built around a dual-track acquisition and disposition strategy, which is critical for managing capital and debt in the current interest rate environment. You can see the guiding principles that shape this strategy in the Mission Statement, Vision, & Core Values of Presidio Property Trust, Inc. (SQFT).

• Capital Recycling: The company actively sells mature commercial assets to fund new, higher-yield acquisitions and reduce debt. For example, in February 2025, the sale of two commercial properties generated a net gain of $4.2 million, which directly impacted the net real estate assets, bringing them to $113.3 million by September 30, 2025.
• Model Home Cycle Management: Presidio Property Trust, Inc. acquires model homes from builders, immediately leasing them back on a short-term basis (typically 1-3 years) until the builder sells the last home in the development. This creates predictable, high-yield rental income.
• Debt Management: The weighted average interest rate on the company's mortgage debt rose to 6.17% as of September 30, 2025, which means every new acquisition needs to defintely clear that hurdle to be accretive.
• Acquisition Focus: The Model Homes Division is strategically expanding in Sun Belt states (like Texas, Alabama, and Tennessee), acquiring 10 homes for approximately $5.2 million in Q2 2025 alone.

Here's the quick math: The Model Home segment's Q2 2025 sales of seven homes for $3.5 million, against an acquisition cost of $3.2 million, shows the business model generates modest capital gains alongside the primary rental income.

Presidio Property Trust, Inc.'s Strategic Advantages

Presidio Property Trust, Inc.'s market success hinges on its ability to execute a niche strategy that few other REITs replicate at scale. This dual-asset approach is the core differentiator.

• Niche Model Home Expertise: The sale-leaseback model homes segment provides a unique, counter-cyclical revenue stream. When the housing market is hot, the short lease terms allow for rapid disposition and capital recycling; when it cools, the lease income remains stable.
• Geographic Diversification and Focus: While the commercial portfolio is spread across multiple states, the strategic push into high-growth Sun Belt states for model homes targets markets with superior long-term population and job growth, aligning with the target of 5-7% annual property acquisition growth.
• Internal Management: Being an internally managed REIT means the company avoids the external management fees common in the industry, which can help preserve Funds From Operations (FFO) for shareholders.

What this estimate hides is the risk of rising interest rates, which pushed the weighted average rate on their $94.6 million mortgage debt up, pressuring the cost of capital and making new acquisitions harder to underwrite.

Presidio Property Trust, Inc. (SQFT) How It Makes Money

Presidio Property Trust, Inc. (SQFT) generates the majority of its revenue by operating as a diversified real estate investment trust (REIT), primarily through collecting rent from its commercial properties (office, industrial, and retail) and its portfolio of triple-net leased model homes.

The core of the business model is to acquire and manage a mix of properties that provide stable, recurring rental income, plus a secondary stream from the eventual sale of its model homes, which are typically leased back to homebuilders for several years.

Presidio Property Trust, Inc.'s Revenue Breakdown

For the third quarter ended September 30, 2025, Presidio Property Trust, Inc. reported total revenue of approximately $4.2 million, a decrease from the prior year due to strategic asset sales.

Here's the quick math: Commercial Property Rental revenue (Office/Industrial at $2,372,147 plus Retail at $93,574) totaled approximately $2.47 million, making up the largest single stream at nearly 59% of the $4.2 million total revenue in Q3 2025. The Model Home Rental Income contributed approximately $1.04 million, or about 25% of the total.

Business Economics

The underlying economics of Presidio Property Trust, Inc. are split between two distinct real estate strategies: traditional commercial net-lease and the niche model home sale-leaseback. This diversification helps manage risk, but also introduces complexity.

• Model Home Pricing Strategy: This segment uses a triple-net lease (NNN) structure, meaning the homebuilder (the tenant) is responsible for most property expenses, including real estate taxes, building insurance, and maintenance. This helps Presidio Property Trust, Inc. achieve predictable cash flow and minimize landlord operating costs.
• Commercial Portfolio Shift: The company is actively optimizing its commercial portfolio. The revenue decrease is deliberate, driven by the February 2025 sale of two commercial properties, which generated a significant gain but reduced the ongoing rental income base. This move signals a focus on higher-quality, core assets and a reduction in exposure to less desirable or non-core commercial holdings.
• Model Home Resale Tailwinds: While the rental income from model homes is stable, the resale side is seeing a positive trend. Management noted a 'slight uptick in resale activity' in Q3 2025 as mortgage rates have softened slightly, which is crucial because the Model Home segment is designed to generate capital gains upon eventual sale.
• Geographic Focus: The model home portfolio, which includes 84 homes as of September 30, 2025, is strategically concentrated in the growing Sun Belt states, while the commercial properties are primarily located in Colorado.

Presidio Property Trust, Inc.'s Financial Performance

As of the Q3 2025 report, the company's financial health shows a mixed picture: an improved bottom line due to cost control and asset gains, but continued negative core operating metrics.

• Net Loss Improvement: The net loss attributable to common stockholders for Q3 2025 significantly improved to approximately $1.9 million, down from a $6.6 million loss in the same period a year prior.
• Core Operating Metrics: Funds From Operations (FFO), a key measure of a REIT's operating performance, remained negative, sitting at approximately $(0.84) million for Q3 2025. Core FFO, which adjusts for non-recurring items, also deteriorated to approximately $(0.55) million. This shows the underlying portfolio is not yet generating positive operating cash flow.
• Debt and Interest Expense: Total mortgage debt stood at $94.6 million as of September 30, 2025. The weighted average interest rate on this debt rose to 6.17% in Q3 2025, up from 5.44% in the prior year, putting pressure on coverage metrics despite the debt balance decreasing.
• Cost Control: General and administrative (G&A) expenses as a percentage of total revenue decreased to 32.4% in Q3 2025, a notable improvement from 34.5% in Q3 2024, reflecting management's focus on cost discipline.

To fully understand the players driving these numbers, you should consider Exploring Presidio Property Trust, Inc. (SQFT) Investor Profile: Who's Buying and Why?

Presidio Property Trust, Inc. (SQFT) Market Position & Future Outlook

Presidio Property Trust operates as a nano-cap diversified Real Estate Investment Trust (REIT), maintaining a niche position by focusing on secondary and tertiary commercial markets plus its unique model home sale-leaseback portfolio. Despite facing significant headwinds in the broader commercial real estate sector, the company's strategy of asset recycling and high lease retention positions it for stability, though its tiny market capitalization of approximately $5.35 million as of November 2025 makes it highly vulnerable to market volatility.

Competitive Landscape

Presidio Property Trust competes in the highly fragmented diversified and net-lease REIT space, where it is dwarfed by most peers. To illustrate the scale difference, its market capitalization is less than 2% of larger, publicly-traded peers like Modiv Industrial, Inc. and Alpine Income Property Trust, Inc. The company's core competitive advantage is its contrarian focus on overlooked markets and its unique, high-yield model home division.

Opportunities & Challenges

The company's forward-looking strategy centers on exploiting its niche and improving its balance sheet, but the path is defintely narrow. Here's the quick map of what's ahead:

Industry Position

Presidio Property Trust is a micro-niche player, a nano-cap REIT that deliberately operates outside the primary institutional investment targets. This contrarian approach is its business model. They are not chasing the low-cap-rate deals in major metropolitan areas, but instead seek value in secondary and tertiary markets across the West and Midwest.

• Model Home Niche: The model home segment, which accounted for approximately 35% of net real estate assets as of Q3 2025, provides a unique, triple-net lease revenue stream with homebuilders, offering a distinct diversification advantage over pure-play commercial REITs.
• Financial Scale: The company's trailing twelve-month revenue of $17.53 million (ending September 30, 2025) confirms its small scale, placing it in the micro-cap category where liquidity is a constant concern.
• Innovation: The move to accept cryptocurrencies like Bitcoin and Ethereum from commercial tenants is a small, but forward-thinking step to attract a modern tenant base, differentiating them from traditional landlords.

The core challenge remains translating their contrarian value-add strategy into consistent, positive net income; for the trailing twelve months ending September 30, 2025, the company reported a net loss of -$9.1 million. You need to watch for sustained profitability, not just one-off asset sale gains. For a deeper dive into their long-term vision, review their Mission Statement, Vision, & Core Values of Presidio Property Trust, Inc. (SQFT).