Presidio Property Trust, Inc. (SQFT): Business Model Canvas [Dec-2025 Updated]

You're digging into Presidio Property Trust, Inc. (SQFT), and honestly, mapping out their business model shows a REIT actively navigating a tricky landscape by balancing a diverse set of assets. We're talking about managing everything from 84 model homes under triple-net leases as of September 30, 2025, to commercial properties where they saw a 91% lease extension rate last year, all while managing debt costs that hit a 6.17% weighted average rate. It's a complex structure built on minimizing REIT operating costs through those leases while keeping the Nasdaq listing compliant after the May 2025 reverse split. Let's break down exactly how they generate that $4.20 million in revenue they reported for the third quarter of 2025, because the details in this Canvas tell the real story of their strategy.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Key Partnerships

Homebuilders for triple-net model home leases represent a core segment of Presidio Property Trust, Inc.'s operations.

As of March 31, 2025, Presidio Property Trust, Inc. had 84 model homes in its portfolio, which are triple-net leased to homebuilders. The average number of model homes held during the first three months of 2025 was 81. During the three months ended March 31, 2025, the Company sold six (6) model homes for approximately $2.8 million, recognizing a gain of approximately $0.2 million. The company also added to this segment, acquiring 12 new model homes for $4.3 million during Q1 2025. Presidio Property Trust, Inc. reported a 100% retention rate for expiring leases in Q1 2025.

Acorn Management Partners LLC was engaged by Presidio Property Trust, Inc. on December 1, 2025, for investor relations and communications services. The engagement aims to enhance visibility and expand access to high-quality investors.

Partnerships with lenders are critical for financing Presidio Property Trust, Inc.'s asset base. As of March 31, 2025, mortgage notes payable totaled approximately $94.4 million with a weighted average interest rate of 5.83%. A specific refinancing event occurred on September 4, 2025, for the One Park Center property in Westminster, Colorado, securing a loan agreement for $6.1 million with a five-year term and an interest rate of 6.83%.

The following table summarizes recent capital market activities involving A.G.P./Alliance Global Partners and related financing events for Presidio Property Trust, Inc. as of late 2025:

Commercial real estate brokers support Presidio Property Trust, Inc.'s non-model home portfolio, which includes office, industrial, and retail properties located mainly in Colorado. The company executed a significant disposition in this segment, selling two commercial properties in February 2025 for approximately $17.0 million, which was recognized as a net gain of approximately $4.2 million.

Key operational partners and their associated metrics include:

• Homebuilders: Portfolio included 84 model homes as of March 31, 2025.
• Investor Relations: Partnered with Acorn Management Partners LLC effective December 1, 2025.
• Capital Markets: A.G.P./Alliance Global Partners served as placement agent for a $2.05 million offering in July 2025.
• Financing: Secured a $6.1 million refinance on a Colorado property in September 2025.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Key Activities

You're managing a portfolio where model homes and office space are the core, so the day-to-day work is a mix of transactions and tenancy management. Here's the quick math on what Presidio Property Trust, Inc. (SQFT) was actively doing through late 2025.

Managing a diversified real estate portfolio

The activity here centers on maintaining and reporting on the composition of the assets you hold. As of September 30, 2025, the net real estate assets stood at approximately $113.3 million, which included 84 model homes. The model home segment is a significant piece of the puzzle, representing approximately 35% of net real estate assets and about 21% of the total rental income as of Q3 2025. You wholly owned 64 of the 84 model homes in the portfolio by September 30, 2025. The commercial properties are spread across Colorado, Maryland, North Dakota, Texas, and Southern California.

Acquiring and disposing of model homes and commercial assets

Transactions drive portfolio shape. In Q3 2025, Presidio Property Trust, Inc. sold three model homes, bringing in total revenue of approximately $1.6 million. These specific homes had a combined acquisition cost of about $1.7 million. For those three Q3 2025 sales, the net proceeds were approximately $1.5 million, with a recognized gain of about $19,685. For the full year 2024, you sold 51 model homes for $24.8 million, booking a gain of roughly $3.4 million. On the acquisition front in Q2 2025, you added 10 homes for about $5.2 million. For the year 2024, 19 model homes were acquired for a total purchase price of $9.7 million, financed with $3.0 million cash and $6.7 million in mortgage notes. On the commercial side, two properties were sold in February 2025, which impacted Q3 2025 revenue.

Securing and extending commercial property leases

Keeping the commercial space occupied is a constant focus, especially given office sector headwinds. Commercial leasing activity year-to-date through the third quarter of 2025 reached approximately 115,000 square feet. You managed to extend 91% of all leases that were set to expire in 2025, with extensions secured through November. To give you context on prior activity, in Q4 2024, 3 new leases were signed, covering nearly 23,000 square feet, and you renewed 83% of expiring square footage during that same period.

Refinancing debt, like the Denver office building in Q3 2025

Managing the capital structure meant navigating the debt markets. Presidio Property Trust, Inc. successfully refinanced two office buildings in 2025. Specifically, the One Park Center office building in suburban Denver, Colorado, was refinanced in Q3 2025. This refinance, announced on September 4, 2025, involved a new loan agreement for $6.1 million with a five-year term and an interest rate of 6.83%. That loan also included interest-only payments for the initial six months and carried no prepayment penalty. The weighted average interest rate across the portfolio rose to 6.17% as of Q3 2025, up from 5.44% year-over-year.

Maintaining Nasdaq listing compliance after the May 2025 reverse split

A critical administrative activity was ensuring the stock remained listed. Presidio Property Trust, Inc. executed a 1-for-10 reverse stock split of its Series A Common Stock, effective at market open on May 19, 2025. This move was explicitly to increase the per-share market price to regain compliance with the Nasdaq Capital Market's minimum bid price requirement. The company regained compliance with the minimum bid price rule by June 03, 2025. Post-split, the stock continued trading under the ticker SQFT, but with a new CUSIP number: 74102L501. The market capitalization was reported around $4.87 million in mid-November 2025.

• Reverse Split Ratio: 1-for-10
• Effective Date: May 19, 2025
• New CUSIP: 74102L501
• Compliance Regained Date: June 03, 2025

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Key Resources

You're mapping out the core assets Presidio Property Trust, Inc. relies on to execute its strategy. Honestly, for a REIT, the physical assets and the ability to tap the public markets are everything. Here's the breakdown of what they are holding as of the end of the third quarter of 2025.

Diversified real estate portfolio forms the bedrock of Presidio Property Trust's operations. This isn't a single-asset play; the company maintains interests across several property types, which helps spread risk, even though the focus has clearly shifted toward the model home segment recently. Their holdings include:

• Model home properties, triple-net leased to homebuilders.
• Office properties, with some located in suburban Denver, Colorado.
• Industrial properties.
• Retail properties.

The model home segment is a major component, accounting for approximately 35% of their net real estate assets and about 21% of their rental revenue as of September 30, 2025.

The quantitative snapshot of the physical assets and management structure as of September 30, 2025, looks like this. Here's the quick math on what they control:

The operational structure itself is a key resource. Presidio Property Trust, Inc. operates as an internally managed REIT structure. This means they use their own team for day-to-day operations, rather than paying external management fees, which can be a cost advantage if the team is efficient. Their team is actively managing leasing, including extending 91% of all leases expiring through November 2025.

Finally, access to capital markets is non-negotiable for a publicly traded REIT. Presidio Property Trust maintains this access through its listings on the NASDAQ under several symbols, which is critical for any future financing or equity needs. This access is represented by:

• Common Stock: SQFT
• Preferred Stock: SQFTP (specifically the 9.375% Series D)
• Warrants: SQFTW

Finance: draft 13-week cash view by Friday.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Value Propositions

You're looking at the core value Presidio Property Trust, Inc. (SQFT) delivers to its stakeholders, which is built on a specific, cost-advantaged real estate structure. This structure is designed to generate predictable income while minimizing the day-to-day operational burden on the REIT itself.

Triple-net lease structure for homebuilders, minimizing REIT operating costs

The model home division operates on a triple-net lease basis. This means the tenant-the homebuilder-is responsible for paying all operating expenses, maintenance costs, and real estate taxes associated with the leased property. This structure is key to minimizing Presidio Property Trust, Inc.'s (SQFT) direct operating costs, which is a major value driver for a net-lease focused REIT.

Diversification across commercial and residential model home sectors

Presidio Property Trust, Inc. (SQFT) maintains a diversified portfolio across its segments. As of September 30, 2025, the portfolio included 84 model homes. Here's how the model home segment contributed to the overall asset base and revenue as of the third quarter of 2025:

The overall portfolio segments include Office/Industrial Properties, Model Home Properties, and Retail Properties.

Stable commercial tenant base with a 91% 2025 lease extension rate

The commercial segment demonstrates strong tenant stickiness. Year-to-date through the third quarter of 2025, Presidio Property Trust, Inc. (SQFT) successfully extended 91% of all leases expiring during 2025 through November. This high retention signals a stable tenant base for the near term.

Exposure to Sun Belt residential growth markets

The model home investments are strategically concentrated. Presidio Property Trust, Inc. (SQFT)'s model homes are leased to homebuilders located primarily in the Sun Belt states. This geographical focus aligns the company with areas exhibiting strong residential growth potential.

Active asset management and portfolio optimization

Value is actively managed through strategic acquisitions and dispositions, which you can see in the recent activity. The company is focused on optimizing the portfolio based on current market conditions and strict investment criteria. Here are some concrete examples of recent asset management actions:

• Sold three homes in Q3 2025 for a total of approximately $1.6 million.
• The acquisition cost for those three homes was approximately $1.7 million.
• Refinanced the One Park Center office building in suburban Denver, Colorado, with a five-year loan during Q3 2025.
• In Q1 2025, two commercial properties were sold for $17.0 million, realizing a net gain of $4.2 million.

General and administrative (G&A) expenses were managed down to 32.4% of total revenue for the three months ended September 30, 2025, down from 34.5% for the same period in 2024.

Finance: draft 13-week cash view by Friday.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Customer Relationships

You're looking at how Presidio Property Trust, Inc. (SQFT) manages its connections with the different groups it serves. For a diversified REIT like Presidio Property Trust, Inc., the relationship style shifts significantly between its homebuilder partners and its commercial tenants, plus the investors who fund it all.

Direct, Long-term Relationships with National Homebuilders

The core of the model home business is built on direct, long-term relationships with homebuilders through triple-net leases. This structure shifts the operational costs-maintenance, taxes, and insurance-to the homebuilder, which alleviates significant risk for Presidio Property Trust, Inc.. The scale of this relationship is substantial; as of March 31, 2025, Presidio Property Trust, Inc. held 84 model homes. By the end of the second quarter of 2025, the portfolio stood at 87 model homes, with Presidio Property Trust, Inc. wholly owning 68 of them. This division is a key revenue driver, accounting for approximately 24% of rental revenue as of Q2 2025. The company also noted a strategic accomplishment in the first half of 2025 involving a nationally recognized builder, suggesting a focus on deepening ties with major industry players.

Here's a look at the transactional activity within this customer segment:

Dedicated Property Management for Commercial Tenants

For the office, industrial, and retail properties, the relationship structure is less explicitly detailed as dedicated, high-touch management, but the triple-net lease structure for model homes is a form of relationship management where the tenant handles day-to-day expenses. Presidio Property Trust, Inc. does accept cryptocurrency payments from commercial tenants via BitPay, which is a unique service touchpoint. The commercial portfolio is diversified across locations including Colorado, Maryland, North Dakota, Texas, and Southern California. Historically, as of March 31, 2021, the commercial base was highly diversified with approximately 187 individual commercial tenants.

High-Touch Investor Communication via Acorn Management Partners

Investor relationships are managed through a specialized firm. Presidio Property Trust, Inc. announced its engagement of Acorn Management Partners LLC for investor relations and communications services effective December 1, 2025. This partnership aims to enhance visibility and expand access to high-quality investors, focusing on reinforcing the long-term shareholder base. Acorn Management Partners specializes in disciplined, broker-driven distribution and fully integrated investor communications for micro-, small-, and mid-cap public companies, including REITs. The goal is to shift focus toward patient, value-aligned ownership by educating brokers on the company's long-term value model.

Focus on Tenant Retention to Stabilize Commercial Income

Tenant retention is a critical metric for stabilizing income, especially in the commercial sector. Presidio Property Trust, Inc. achieved a 100% retention rate for expiring leases in the first quarter of 2025. This is a significant improvement from the 83% tenant retention rate reported for the fourth quarter of 2024. For context on the broader market Presidio Property Trust, Inc. operates in, nationally, over 265 million square feet of commercial leases were set to expire in 2025, with industrial and office sectors being the most exposed.

Transactional for Model Home Sales Upon Lease Expiration

The model home segment features a clear transactional element tied to the lease cycle. The company actively engages in selling these assets, which are leased on a triple-net basis to homebuilders. In Q1 2025, Presidio Property Trust, Inc. sold 6 homes for $2.8 million. This transactional activity continued into Q2 2025, with 7 homes sold for approximately $3.5 million. For the full year 2024, the company completed 51 model home sales, realizing a total gain of $3.4 million. This shows a clear strategy of acquiring, leasing, and then selectively selling these assets to realize gains, which contributed to a net income of $1.7 million in Q1 2025, despite total revenues declining to $4.1 million from $4.8 million year-over-year.

The relationship with commercial tenants, outside of the model home division, historically showed a concentration risk, where the ten largest tenants accounted for approximately 28.83% of annualized base rent as of March 31, 2021.

Finance: draft 13-week cash view by Friday.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Channels

You're looking at how Presidio Property Trust, Inc. (SQFT) gets its product-real estate assets and equity-to the customer, which is a mix of direct interaction and public market access. Here's the breakdown of those channels as of late 2025.

Direct leasing and sales teams for commercial properties

The internal teams handle the leasing for the office, industrial, and retail properties, which are located primarily in Colorado, Maryland, North Dakota, Texas, and Southern California. For leasing activity year-to-date through the third quarter of 2025, the teams secured approximately 115,000 square feet of commercial space. That effort translated into extending 91% of all leases expiring during 2025 through November. The leasing channel is currently navigating office headwinds, though management noted expectations for demand to strengthen if mortgage rates continue to ease. The company also uses these teams to manage dispositions, having sold two commercial properties in February 2025, which contributed to a Q3 2025 revenue decline from prior periods.

Direct sales of model homes to end-buyers

The Model Home Division sells residential properties that are triple net leased to homebuilders, primarily in the sun belt states. In the third quarter ended September 30, 2025, Presidio Property Trust, Inc. sold three homes for a total of approximately $1.6 million. These specific homes had a total acquisition price of approximately $1.7 million when purchased between 2022 and 2023. As of September 30, 2025, the model home portfolio consisted of 84 homes, of which Presidio Property Trust, Inc. wholly owned 64. This segment remains a significant driver, accounting for approximately 21% of the company's rental revenue.

NASDAQ for common stock (SQFT) and preferred stock (SQFTP)

The equity channel is the NASDAQ stock market, where the Class A Common Stock trades under the ticker SQFT and the Series D Preferred Stock trades as SQFTP. As of the close on December 4, 2025, the common stock price was $3.96. The 52-week trading range for SQFT has been between a low of $3.75 and a high of $23.00. The market capitalization was reported as $6.0 million around that time, with a trading volume of 7,486 shares on December 4, 2025. The preferred stock channel provides a direct cash yield, as the board maintained monthly Series D preferred dividends at $0.19531 per share for the October through December 2025 period.

Mortgage and debt markets for capital raising

Presidio Property Trust, Inc. accesses capital through debt markets, which is critical for financing its real estate holdings. As of September 2025, the company's Long-Term Debt stood at $93.72 Million. The weighted average interest rate on outstanding debt rose to 6.17% as of the Q3 2025 reporting period. The company actively uses refinancing as a channel; for instance, during the third quarter of 2025, it refinanced its One Park Center office building with a five-year loan. Furthermore, equity capital was raised via the public markets, such as the registered direct offering in July 2025, which brought in gross proceeds of approximately $2.05 million.

Real estate listing services for property dispositions

While direct sales teams manage leasing, property dispositions rely on external market exposure, often facilitated through listing services and broker networks. The Q1 2025 activity showed the sale of two commercial properties for a total of $17.0 million, which resulted in a net gain of $4.2 million. The model home sales channel also uses this exposure, having sold three homes in Q3 2025 for $1.6 million. These sales are the realization of value from the underlying assets.

Here's a quick look at the key operational metrics tied to the real estate channels for the third quarter of 2025:

The direct sales and leasing efforts generated specific achievements during the reporting periods:

• Commercial lease extensions reached 91% of those expiring in 2025 through November.
• The company sold six model homes in Q1 2025 for $2.8 million.
• Two commercial properties sold in February 2025 generated a net gain of $4.2 million in Q1 2025.
• The Series D preferred stock dividend was maintained at $0.19531 per share for Oct-Dec 2025.

Finance: draft 13-week cash view by Friday.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Customer Segments

You're looking at the core groups Presidio Property Trust, Inc. (SQFT) serves across its diversified real estate investment trust (REIT) structure as of late 2025. This isn't a single-focus operation; it's a mix of leasing partners, property buyers, and capital providers.

Residential homebuilders (primarily Sun Belt states)

This group consists of homebuilders who lease Presidio Property Trust, Inc.'s model home properties, mainly in Sun Belt states like Arizona, Texas, and Florida. These are triple-net leases, meaning the builder covers most operating expenses. In the first quarter of 2025, the model home division saw activity with 6 homes sold for a total of $2.8 million, generating a $0.2 million gain. To support this, Presidio Property Trust, Inc. acquired 12 new model homes for $4.3 million during that same quarter. As of March 31, 2025, the company held 84 model homes in its portfolio. The average number of model homes held during the three months ended March 31, 2025, was 81.

• Model homes leased in Arizona, Texas, and Florida.
• Q1 2025 model home sales: 6 units.
• Q1 2025 model home acquisition: 12 units.
• Model homes held as of March 31, 2025: 84.

Commercial tenants (office, industrial, retail)

Presidio Property Trust, Inc. leases its commercial assets to a variety of tenants, from small businesses to large public companies. The office and industrial segment is the largest revenue contributor based on a recent breakdown, bringing in $3.23 million, which represented 73.85% of the reported segment revenue. The retail segment contributed $93.57K, or 2.14%. Geographically, these properties are primarily situated in Colorado, with additional locations in Maryland, North Dakota, Texas, and Southern California. The company actively manages this part of the portfolio; for instance, in Q1 2025, Presidio Property Trust, Inc. sold two commercial properties for $17.0 million, realizing a net gain of $4.2 million. The company reported a 100% retention rate for expiring leases in Q1 2025.

Here's a look at the revenue composition from a recent period:

Institutional and retail investors (common and preferred equity holders)

This segment provides the necessary capital to fund operations and acquisitions. As of mid-May 2025, the Market Cap stood at $4.71M. Institutional Ownership was reported at 17.56%. To raise capital, Presidio Property Trust, Inc. entered into a registered direct offering on July 14, 2025, selling 170,830 shares of common stock at $12.00 per share, generating gross proceeds of approximately $2.05 million. The company also announced an engagement with Acorn Management Partners LLC on December 1, 2025, to enhance visibility and expand access to high-quality investors.

• Market Capitalization (May 2025): $4.71M.
• Institutional Ownership: 17.56%.
• July 2025 offering price per share: $12.00.
• Gross proceeds from July 2025 offering: $2.05 million.

Individual home buyers of former model homes

These are the end-users who purchase the model homes after the homebuilder lease term concludes. In Q1 2025, Presidio Property Trust, Inc. completed the sale of 6 such homes, totaling $2.8 million in transaction value. This activity directly converts an asset from the leasing portfolio to a realized sale, contributing to the net gain of $0.2 million from that division in the quarter. It's a key part of the asset lifecycle management for the model home portfolio.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Cost Structure

The Cost Structure for Presidio Property Trust, Inc. centers heavily on servicing its debt obligations and the direct costs associated with managing its real estate portfolio. You'll see a clear focus on financing costs and the day-to-day running of the properties, especially the model home segment.

Interest expense remains a significant fixed cost, reflecting the company's leverage. As of September 30, 2025, the weighted average interest rate on outstanding debt stood at 6.17%. For the third quarter of 2025, the interest expense, which includes amortization of deferred finance charges, was approximately $1.5 million.

General and administrative (G&A) costs show management's effort to control overhead, especially following portfolio adjustments. For the three months ended September 30, 2025, G&A expenses totaled approximately $1.45 million. This represented 32.4% of the total revenue for that quarter.

The operational costs are broken down across the portfolio, which is now heavily weighted toward model homes triple-net leased to homebuilders. Property operating expenses and maintenance costs are captured in the rental operating costs line item. For Q3 2025, these Rental operating costs were reported as $1,534,563.

Non-cash charges related to asset devaluation also impact the cost base. During the three months ended September 30, 2025, Presidio Property Trust, Inc. recognized non-cash impairment charges of approximately $0.1 million, specifically related to four model home properties.

The table below summarizes key cost components for the third quarter ended September 30, 2025, based on the latest available data.

Beyond these direct and recurring costs, Presidio Property Trust, Inc. incurs necessary expenditures for external expertise to manage its capital structure and compliance. These costs are essential for maintaining market access and governance.

• Professional fees for legal counsel, accounting services, and capital markets advisory are embedded within the overall cost structure, though specific, isolated figures for these professional fees for Q3 2025 aren't explicitly broken out separately from the reported G&A in the immediate summary data.
• The company's geographically clustered real estate strategy aims to reduce operating costs through economies of scale from servicing several properties with less staff.

Presidio Property Trust, Inc. (SQFT) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive Presidio Property Trust, Inc.'s top line as of late 2025. Honestly, the revenue picture is a mix of steady real estate income and lumpy, significant gains from asset sales. It's not just one thing; it's a few distinct buckets.

The total top-line figure for the third quarter ending September 30, 2025, was reported at $4.20 million. This figure reflects a year-over-year decrease from the $4.72 million recorded in the third quarter of 2024. So, you see the impact of strategic portfolio adjustments already hitting the quarterly revenue line.

The revenue streams for Presidio Property Trust, Inc. are derived from two main operational areas-leasing and dispositions-which can be broken down like this:

• Rental income from commercial properties (office, industrial, retail).
• Rental income from model homes under triple-net leases.
• Gains recognized from the sale of real estate assets.
• Proceeds from the sale of model homes.

Let's look at the asset disposition side, which can really swing a quarter's results. You saw a major non-recurring event in the first quarter of 2025. Presidio Property Trust, Inc. sold two commercial properties, Union Town Center and Research Parkway, on February 7, 2025, which generated a net gain of approximately $4.2 million, net of closing costs. That's a big chunk of non-recurring revenue hitting the books early in the year.

The model home segment also contributes through sales proceeds. For the third quarter of 2025, Presidio Property Trust, Inc. sold three homes for a total of approximately $1.6 million. These specific homes had a total acquisition cost of approximately $1.7 million, meaning the gain recognized on these Q3 sales was relatively small, described as a small gain.

To give you context on the recurring rental revenue, here's how the model home portfolio stood as of September 30, 2025, which is key to understanding the base rental income:

The commercial portfolio, which includes office, industrial, and retail properties primarily in Colorado, Maryland, North Dakota, Texas, and Southern California, is the source of the larger portion of the rental revenue. The Q3 2025 revenue decline to $4.20 million was primarily driven by reduced commercial real estate rental income following those two commercial property sales in February 2025. Still, commercial leasing activity year-to-date through the third quarter totaled approximately 115,000 square feet, and the company reported extending 91% of all leases expiring through November 2025.

The recurring rental income streams are the foundation, even if asset sales provide the headline gains. For instance, in Q1 2025, the company sold six model homes for $2.8 million, recognizing a gain of $0.2 million, showing that sales velocity can vary significantly quarter-to-quarter. You need to watch the rental income trends closely, as the Q3 2025 revenue drop highlights the immediate impact of selling income-producing commercial assets.