Company: SQFTP
Filing Date: 2025-08-14
Form Type: S-11
Source: 0001493152-25-011985
Chunk: 71

Company: Presidio Property Trust, Inc.
Filing Date: 2025-08-14
Form: S-11
Chunk 71
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— Asset Tests.”

Income Tests.

We must satisfy two gross income requirements annually to maintain our qualification as a REIT. First, in each taxable year we must derive directly or indirectly at least 75% of our gross income (excluding gross income from prohibited transactions, certain hedging transactions and certain foreign currency gains) from investments relating to real property or mortgages on real property, including “rents from real property,” dividends from other REITs and, in certain circumstances, interest, or certain types of temporary investments. Second, in each taxable year we must derive at least 95% of our gross income (excluding gross income from prohibited transactions, certain hedging transactions and certain foreign currency gains) from the real property investments described above or dividends, interest and gain from the sale or disposition of stock or securities, or from any combination of the foregoing. For these purposes, the term “interest” generally does not include any amount received or accrued, directly or indirectly, if the determination of all or some of the amount depends in any way on the income or profits of any person. However, an amount received or accrued generally will not be excluded from the term “interest” solely by reason of being based on a fixed percentage or percentages of receipts or sales.

Rents we receive from a tenant will qualify as “rents from real property” for the purpose of satisfying the gross income requirements for a REIT described above only if all of the following conditions are met:

| ● | The amount of rent is not                                                                                                                
 based in whole or in part on the income or profits of any person. However, an amount we receive or accrue generally will not be excluded 
 from the term “rents from real property” solely because it is based on a fixed percentage or percentages of receipts                     
 or sales or, if it is based on the net income of a tenant that derives substantially all of its income with respect to such property     
 from subleasing of substantially all of such property, to the extent that the rents paid by the subtenants would qualify as rents        
 from real property if we earned such amounts directly;                                                                                   |
| ● | Neither we nor an actual                                                                                                                 
 or constructive owner of 10% or more of our capital stock actually or constructively owns 10% or more of the interests in the assets     
 or net profits of a non-corporate tenant, or, if the tenant is a corporation, 10% or more of the total combined voting power of all      
 classes of stock entitled to vote or 10%