Company: SQFTP
Filing Date: 2025-10-14
Form Type: 424B5
Source: 0001493152-25-018010
Chunk: 28

Company: Presidio Property Trust, Inc.
Filing Date: 2025-10-14
Form: 424B5
Chunk 28
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 property which generates such income and (B) new transactions entered into to hedge the income or loss from prior hedging transactions, where the property or indebtedness which was the subject of the prior hedging transaction was extinguished or disposed of. To the extent that we do not properly identify such transactions as hedges or we hedge with other types of financial instruments, the income from those transactions will not be treated as qualifying income for purposes of the gross income tests. We intend to structure any hedging transactions in a manner that does not jeopardize our status as a REIT.

To the extent our taxable REIT subsidiaries pay dividends or interest, our allocable share of such dividend or interest income will qualify under the 95%, but not the 75%, gross income test (except to the extent the interest is paid on a loan that is adequately secured by real property).

We will monitor the amount of the dividend and other income from our taxable REIT subsidiaries and will take actions intended to keep this income, and any other nonqualifying income, within the limitations of the gross income tests. Although we expect these actions will be sufficient to prevent a violation of the gross income tests, we cannot guarantee that such actions will in all cases prevent such a violation.

If we fail to satisfy one or both of the 75% or 95% gross income tests for any taxable year, we may nevertheless qualify as a REIT for the year if we are entitled to relief under certain provisions of the Code. We generally may make use of the relief provisions if:

| ● | following                                                                                                                         
 our identification of the failure to meet the 75% or 95% gross income tests for any taxable year, we file a schedule with the IRS 
 setting forth each item of our gross income for purposes of the 75% or 95% gross income tests for such taxable year in accordance 
 with Treasury Regulations to be issued; and                                                                                       |
| ● | our                                                                                                                               
 failure to meet these tests was due to reasonable cause and not due to willful neglect.                                           |

| S-18 |

It is not possible, however, to state whether in all circumstances we would be entitled to the benefit of these relief provisions. For example, if we fail to satisfy the gross income tests because nonqualifying income that we intentionally accrue or receive exceeds the limits on nonqualifying income, the IRS could conclude that our failure to satisfy the tests was not due to reasonable cause. If these relief provisions do not apply to a particular set of circumstances, we