Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1143

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1143
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2024 compared to approximately $5.0 million for the same period in 2023, an increase of  approximately $1.0 million, or 20.9%. The increase in mortgage interest expense relates to the increase in weighted average interest rate from 5.18% to 5.63% over the same time period.  With the sale of our commercial properties in 2025, we will expect interest expense to decrease.

Gain on Sale of Real Estate Assets. For the year ended December 31, 2024, the change in gain on sale relates to the mix and type of properties sold. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Significant Transactions in 2024 and 2023 above for further detail.

Income Tax Expense / Benefit. For the year ended December 31, 2023, the Company recorded a benefit of approximately $335,780 related to estimated refunds from federal and state taxes for capital gains from the sale of model homes held by the taxable REIT subsidiary.  For the year ended December 31, 2024, the Company recorded an expense of approximately $60,855 related to federal and state taxes for capital gains from the sale of model homes held by the taxable REIT subsidiary.

Income allocated to non-controlling interests. Income allocated to non-controlling interests for the years ended December 31, 2024 and 2023 totaled approximately $2.5 million, and $3.0 million, and was directly impacted by the sale of 18 and 13 model homes, during the years ended December 31, 2024 and 2023, respectively, held by our Model Home Partnerships. 

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Gain on deconsolidation of SPAC and  remeasurement.

On April 22, 2024, the Company entered into a lockup agreement with Conduit pursuant to which the Company agreed not to transfer or sell 2,700,000 of its 4,015,250 shares of Conduit common stock for a period of one year.  In consideration for entering into the lockup agreement, Conduit issued the Company warrants to purchase 540,000 shares of common stock at an exercise price of $3.12 per share, a two year term and  exercisable one year after the date of issue (the "Private CDT W