Presidio Property Trust, Inc. · NASDAQ:SQFT
Presidio Property Trust — Q4 2022 Earnings Presentation
22 slides from Presidio Property Trust's earnings presentation, Dec 31, 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION © 2023 Presidio Property Trust, Inc. All rights reserved.
Slide 2: Important Notices and Disclaimers
IMPORTANT NOTICES AND DISCLAIMERS This press release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
Slide 3: Presidio Property Overview
PRESIDIO PROPERTY OVERVIEW DESCRIPTION ▪ Presidio Property Trust, Inc. (“Presidio” or the “Company”) was founded in 1999 as NetREIT ▪ Presidio is an internally-managed real estate company focused on commercial real estate opportunities in often-overlooked and regionally dominant markets ▪ The Compan
Slide 4: Presidio Property Overview (Cont'd)
PRESIDIO PROPERTY OVERVIEW (CONT’D) Corporate Information Headquarters San Diego, CA Founded 1999 Key Geographies CA, CO, MD, ND, & TX Employees 18 Portfolio Summary (Number / Square Footage) Office 8 properties / 606,166 sq. ft. Retail 3 properties / 65,242 sq. ft. Industrial 1 property / 150,099 s
Slide 5: Company Strategy
COMPANY STRATEGY ▪ Presidio acquires high-quality commercial properties in often overlooked and/or underserved markets ▪ Our target markets are regionally dominant, non-core cities with attractive growth dynamics driven by key economic factors ▪ Focus on $10 – $30 million property acquisitions that
Slide 6: High Quality Commercial Portfolio
HIGH QUALITY COMMERCIAL PORTFOLIO Fargo, ND Our commercial real estate portfolio as of December 2022, consisted of the following properties: Approximate Approximate Percent Percent Percent Percent Property Square Feet Property Square Feet Occupied Ownership Occupied Ownership (‘000’s) (‘000’s) Genes
Slide 7: Portfolio Makeup and Performance
PORTFOLIO MAKEUP AND PERFORMANCE COMMERCIAL SQUARE FOOTAGE BY REGION AS OF DECEMBER 31, 2022 TX, 1% CA, 7% ND, 48% CO, 39% MD, 4% CA CO MD ND TX Source: Company filings as of March 28, 2022, data as of December 31, 2022 7
Slide 8: Portfolio Makeup and Performance (Cont'd)
PORTFOLIO MAKEUP AND PERFORMANCE (CONT’D) Segments as a % of Net Portfolio Assets 70% 60% 50% 40% 30% 20% 10% 0% Office/Industrial Retail Model Home 12/31/2022 12/31/2021 Source: Company filings as of March 28, 2023, data as of December 31, 2022 8
Slide 9: Portfolio Makeup and Performance (Cont'd)
PORTFOLIO MAKEUP AND PERFORMANCE (CONT’D) Q4 2022 Segment Revenue and NOI 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Office/Industrial Retail Model Home % of Gross Revenue % of Total NOI 2022 Annual Segment Revenue and NOI 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Office/Industrial Re
Slide 10: Growth Strategy & Pipeline
GROWTH STRATEGY & PIPELINE ▪ We seek to invest in properties in regionally dominant markets that have attractive growth dynamics driven in part by economic factors such as strong office-using employment growth, net in-migration of a highly educated workforce, large student populations, the stability
Slide 11: Investment in Murphy Canyon Acquisition Corp
INVESTMENT IN MURPHY CANYON ACQUISITION CORP ▪ During January 2022, we announced the sponsorship of Special Purpose Acquisition Company (“SPAC”) through a wholly-owned subsidiary, Murphy Canyon Acquisition Sponsor, LLC (the “Sponsor”), of a special purpose acquisition company (“SPAC”) initial public
Slide 12: Ability to Add Value: Grand Pacific Center
ABILITY TO ADD VALUE Grand Pacific Center, Bismarck, North Dakota GRAND PACIFIC CENTER OVERVIEW Background ▪ The property was acquired in 2014 with an occupancy of approximately 85% ▪ Due to a combination of business consolidations by private and state-agency tenants, along with slow new leasing act
Slide 13: Ability to Add Value: The Presidio
ABILITY TO ADD VALUE The Presidio, Colorado Springs, Colorado THE PRESIDIO OVERVIEW Background ▪ Able to take advantage of the seller’s unique circumstance to purchase the property at an excellent in-place return, with additional value achievable through increasing occupancy and raising rents to mar
Slide 14: Ability to Add Value: Sparky's Self-Storage
ABILITY TO ADD VALUE Sparky’s Self-Storage, Inland Empire, California SPARKY’S SELF-STORAGE OVERVIEW Background ▪ Presidio acquired 7 individual self-storage properties throughout the Inland Empire region of Southern California between 2007 and 2013. These properties were either distressed and sold
Slide 15: Model Home Business
MODEL HOME BUSINESS ▪ Triple-net sale/leaseback transactions with homebuilders, to use as sales offices and model homes ▪ Operates independently in Houston, Texas, with minimal time commitment by senior management ▪ Homes are sold to homebuyers following subdivision close-out ▪ Property yields of ~1
Slide 16: Model Home Markets
MODEL HOME MARKETS Heatmap of Model Home Properties by Location Density Dallas-Fort Worth, TX Texas Overview ▪ The model home portfolio is concentrated in Texas, with 79 homes in Dallas-Fort Worth and its surrounding suburban areas. There are 9 homes in San Antonio and Houston. ▪ Presidio also owns
Slide 17: Core Funds Flow From Operations Towards Dividends
CORE FUNDS FLOW FROM OPERATIONS TOWARDS DIVIDENDS For the Three Months Ended December 31, 2022 2021 Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (780,067) $ (1,501,162) Adjustments: Income attributable to noncontrolling interests 579,841 402,533 Depreciation
Slide 18: Staggering of Our Debt Maturities
STAGGERING OF OUR DEBT MATURITIES As of December 31, 2022, weighted average interest rate on outstanding commercial debt is 4.53% and the weighted average remaining term is 3.9 years(1) Debt Maturity Schedule 35.0 30.0 28.9 25.0 20.0 $ Millions 16.7 15.1 15.0 10.5 10.7 10.0 6.8 7.3 5.0 1.5 - 0.4 - -
Slide 19: Board of Directors (Excluding Management)
BOARD OF DIRECTORS (EXCLUDING MANAGEMENT) Jennifer Barnes, Independent Director James Durfey, Independent Director ▪ Served as Director since 2020 and is a member of the ▪ Served as a director as of December 2019 and is a member Audit Committee of the Compensation Committee and the Nominating and ▪
Slide 20: Management Team
MANAGEMENT TEAM Key team members have 75+ combined years of real estate and public company experience Jack Heilbron, Chairman, Chief Executive Officer and President Gary Katz, Chief Investment Officer ▪ Founding officer, director, and stockholder of the former CI Holding ▪ Held positions with Legacy
Slide 21: Company Highlights
COMPANY HIGHLIGHTS High Quality Portfolio with Strong Fundamentals Poised to Grow Across In-Demand Experience and Space Depth of Management Differentiated Acquisition Strategy Source: Company filings as of March 28, 2023, data as of December 31, 2022 21
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS HIGH QUALITY PORTFOLIO WITH STRONG EXPERIENCE AND DEPTH OF MANAGEMENT FUNDAMENTALS ▪ 12 commercial properties with 821,104 square feet with an ▪ Chairman and CEO Jack Heilbron’s public REIT experience average occupancy rate of 85.3% ▪ Company formed in 1999; SEC reporting since
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