Presidio Property Trust, Inc. (SQFT): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Presidio Property Trust, Inc.'s (SQFT) business mix as of late 2025, so let's map their segments onto the four BCG quadrants. The story here is clear: the high-margin Model Home lease structure shines as a Star, backed by a 100% retention rate, while the Office/Industrial segment acts as the reliable Cash Cow, pumping out $1.30 million in NOI. Still, the Retail properties are lagging as a Dog with only $0.16 million in NOI, and those aggressive New Model Home buys are a capital-intensive Question Mark, currently only making up 21% of revenue. Dive in to see exactly where Presidio Property Trust, Inc. needs to invest or divest right now.

Background of Presidio Property Trust, Inc. (SQFT)

You're looking at Presidio Property Trust, Inc. (SQFT), which operates as an internally managed, diversified Real Estate Investment Trust, or REIT. Honestly, the company's focus has been on acquiring, owning, and managing a mix of properties across the United States. This portfolio generally includes model home properties, which are triple net leased to homebuilders, alongside office, industrial, and retail assets.

To give you a sense of where the revenue is coming from lately, we see that Office/Industrial Properties make up about 73.85% of the revenue, contributing $3.23M recently. Then you have the Model Home Properties, which account for roughly 23.29% or $1.02M, with retail bringing in the remaining small slice. The model homes are concentrated in the sun belt states, while the commercial properties are mostly situated in Colorado, though they have holdings elsewhere too.

Now, looking at the numbers as of the third quarter of 2025, the total revenue came in at $4.20M. That revenue figure reflects a strategic shift, as it's lower than the $4.72M seen in Q3 2024, primarily because Presidio Property Trust, Inc. sold two commercial properties back in February 2025. Still, the management team has been working hard on cost control, which helped narrow the net loss to common stockholders significantly to $(1.86)M for the quarter, a big improvement from the $(6.65)M loss year-over-year.

The cost of capital is definitely a factor you'll want to watch; the weighted average interest rate on their debt has crept up to 6.17% as of Q3 2025. Despite the challenges, management pointed to a slight uptick in model home resale activity as mortgage rates eased, which is an encouraging sign for that specific division. As of early December 2025, the company's overall market capitalization sits around $4.87 million.

Presidio Property Trust, Inc. (SQFT) - BCG Matrix: Stars

The model home triple-net lease structure, concentrated in the Sun Belt, represents the primary Star segment for Presidio Property Trust, Inc. This niche is characterized by high potential growth in housing markets and a structure that typically yields higher margins due to the tenant covering operating expenses. This segment is where Presidio Property Trust, Inc. is actively investing to secure a leading position, which is the definition of a Star in this matrix.

The relative market share and operational strength within this focused area are evidenced by key portfolio metrics as of the third quarter of 2025. You can see how this segment anchors a significant portion of the company's asset base and revenue stream.

Operational execution in this segment is demonstrating strong tenant commitment, a key indicator of high relative market share. Presidio Property Trust, Inc. achieved a 100% retention rate for all expiring leases during the first quarter of 2025. That level of retention suggests that the triple-net lease agreements with homebuilders are highly valued and that the underlying assets are strategically important to those tenants.

The high-growth characteristic of a Star is supported by the company's aggressive investment strategy, focusing capital deployment into new Sun Belt acquisitions. This is the necessary cash consumption required to maintain and grow market share in a growing market. For instance, activity shows a clear focus on expansion:

• In Q1 2025, Presidio Property Trust, Inc. acquired 12 new model homes for a total cost of $4.3 million.
• In Q2 2025, the company acquired 10 new homes for approximately $5.2 million, specifically targeting Texas, Alabama, and Tennessee.
• The President of the Model Homes Division noted this expands their geographical footprint and adds another nationally ranked builder to the portfolio.

Conversely, the company is also actively managing the asset base, selling mature assets to fund new growth and realize gains. During Q3 2025, Presidio Property Trust, Inc. sold 3 homes for a total of approximately $1.6 million, having acquired those same homes for about $1.7 million between 2022 and 2023. This constant cycle of acquisition and selective disposition is the active investment required to keep this segment positioned as a Star, aiming to transition it into a Cash Cow when the Sun Belt growth rate eventually moderates.

Presidio Property Trust, Inc. (SQFT) - BCG Matrix: Cash Cows

The Office/Industrial portfolio for Presidio Property Trust, Inc. represents the classic Cash Cow in the current structure, characterized by its high market share within the company's core income-producing assets and its role as a reliable generator of internal capital, despite the overall low growth environment typical of mature commercial real estate sectors.

This segment generated the highest segment Net Operating Income (NOI) of $1.30 million in the first quarter of 2025. This figure clearly establishes its dominance as the most profitable operational segment on an NOI basis for that period. This performance is particularly noteworthy given the strategic dispositions completed earlier in the year, such as the sale of two commercial properties for approximately $17.0 million in Q1 2025, which reduced the overall footprint but seemingly left the highest-quality, most stable assets in place.

The stability of the rental income stream is a defining feature of this Cash Cow segment. You can see the relative contribution of the core income segments in the table below:

The strength of the tenant base directly supports the high cash flow generation. Management highlighted significant success in maintaining occupancy and lease terms, which is crucial for predictable cash flow. This stability is quantified by the high lease retention rate achieved year-to-date through the third quarter of 2025.

Here are the key leasing statistics supporting the stability narrative:

• Leases expiring during 2025 extended through November: 91%.
• Commercial leasing year-to-date through Q3 2025 totaled approximately 115,000 square feet.
• Lease retention rate for expiring leases during Q1 2025 was 100%.

This segment is the primary source of operational cash flow, even after accounting for the strategic reduction in the commercial portfolio footprint. While total revenues for Presidio Property Trust, Inc. were $4.13 million in Q1 2025, the consistent NOI from the Office/Industrial properties provides the necessary foundation to cover corporate administrative costs and service debt, such as the mortgage notes payable of approximately $94.4 million as of March 31, 2025. Investments here should focus on maintaining current efficiency, perhaps through infrastructure upgrades that further reduce operating expenses, rather than aggressive growth spending.

Presidio Property Trust, Inc. (SQFT) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Presidio Property Trust, Inc. (SQFT), the assets categorized as Dogs are those with low relative performance, often characterized by low segment profitability or being actively pruned from the portfolio. You see this in the Q1 2025 results where certain asset classes barely contributed to operating income.

Retail properties, which delivered the lowest segment NOI of only $0.16 million in Q1 2025, fit this profile, showing minimal operational cash generation from that specific segment. This low figure stands in contrast to the Office/Industrial segment NOI of $1.30 million in the same period.

The strategy here is clearly divestiture, as evidenced by the sale of commercial assets. Divested commercial assets, like the two properties sold for $17.0 million in Q1 2025, are being removed from the core operating base. These sales were necessary to generate a $4.2 million net gain, masking negative core FFO of $(1.0) million. Honestly, that gain is what kept the GAAP net income positive at $1.7 million for the quarter.

The model home activity also shows characteristics of a low-return, high-turnover segment that might be managed for cash rather than growth. Existing model homes sold for a minimal gain of $0.2 million on $2.8 million in sales in Q1 2025. This is a clear example of liquidating assets that tie up capital.

Here's the quick math on the Q1 2025 asset dispositions that characterize the Dog strategy:

When you look at the cash flow metrics, the picture becomes clearer about why these assets are being shed:

• Core FFO for the quarter was negative at $(1.0) million, indicating that core operations were consuming cash, not generating it.
• The net gain on sales of $4.2 million was critical to offsetting this operational cash drain.
• The company sold 6 model homes for $2.8 million in revenue.
• The company also acquired 12 new model homes for $4.3 million post-quarter, which is a cash outlay that needs to be weighed against the minimal gains from sales.

Dogs should be avoided and minimized. Expensive turn-around plans usually do not help. For Presidio Property Trust, Inc. (SQFT), the action taken-selling the two commercial properties for $17.0 million-is the execution of this principle, aiming to free up capital tied in low-growth, low-share assets.

Finance: draft 13-week cash view by Friday.

Presidio Property Trust, Inc. (SQFT) - BCG Matrix: Question Marks

You're looking at the segment of Presidio Property Trust, Inc. (SQFT) that is burning cash now but operates in markets management views as high-growth-the Model Homes division.

This category is defined by high growth prospects but a low current market share within the overall Presidio Property Trust, Inc. (SQFT) portfolio. These units consume capital to fuel expansion, which is precisely what we see with the recent strategic moves in the Sun Belt.

Consider the New Model Home acquisitions. In the second quarter of 2025, Presidio Property Trust, Inc. (SQFT) acquired 10 homes totaling approximately $5.2 million, with these properties located in Texas, Alabama, and Tennessee. This activity directly feeds the high-growth Sun Belt market strategy, positioning these assets for future appreciation and rental income, but it requires immediate cash deployment.

The capital intensity of this strategy is clear when you look at the segment's relative contribution. As of June 30, 2025, model homes represented approximately 34% of Presidio Property Trust, Inc. (SQFT)'s net real estate assets, yet they accounted for only 24% of total rental revenue. This revenue share suggests a lower current return relative to the asset base, fitting the low market share characteristic.

The fundamental issue for Question Marks is cash flow generation from core operations. For the first quarter of 2025, the Core FFO (Funds From Operations) metric, which excludes one-time gains, remained negative, deteriorating to $(0.98) million from $(0.44) million in the first quarter of 2024. This negative Core FFO confirms that the underlying property operations are not self-funding the growth, meaning this expansion-like the $5.2 million acquisition in Q2 2025-defintely requires external funding or proceeds from asset sales to sustain itself.

Here's a quick look at the key metrics defining this segment's current state:

The strategy here is clear: Presidio Property Trust, Inc. (SQFT) is betting that the Sun Belt market growth will allow these assets to rapidly gain market share and transition into Stars. If they fail to gain traction quickly, these cash-consuming assets risk becoming Dogs.

The operational focus for these Question Marks includes:

• Targeting acquisitions in high-growth geographical areas like Texas, Alabama, and Tennessee.
• Balancing acquisitions with dispositions, such as the Q2 2025 sale of seven homes for approximately $3.5 million.
• Managing the portfolio to increase the revenue share relative to the asset base percentage.
• Securing external capital to cover the negative Core FFO trend.

What this estimate hides is the specific profitability of the model home segment excluding gains. While Q1 2025 Model Home Adjusted NOI was $1.08 million, this included a $0.24 million gain on sales, meaning the core rental operations within this segment were generating less cash flow than the Adjusted NOI suggests. The decision point is whether to heavily invest to drive that 24% revenue share up, or divest.