Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 952

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 952
---

     third-party leasing commissions. Management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of the tenants and economic and market conditions change. If management determines the estimated remaining life of the respective lease has changed, the amortization period is adjusted. At
      December 31, 2024 and
     2023, the Company had net deferred leasing costs of approximately 
     $1.7 million and 
     $1.7 million, respectively. Total amortization expense for the years ended
      December 31, 2024 and
     2023 was approximately 
     $0.5 million and 
     $0.5 million, respectively, and is included in the total for depreciation and amortization noted above.

   Deferred Financing Costs. Costs incurred, including legal fees, origination fees, and administrative fees, in connection with debt financing are capitalized as deferred financing costs, are amortized using the straight line method, which approximates the effective interest method, over the contractual term of the respective loans and recorded as an offset to the carrying value of the debt. At  December 31, 2024 and 2023, unamortized deferred financing costs related to mortgage notes payable were approximately $0.7 million and $0.8 million. For the years ended  December 31, 2024 and 2023, total amortization expense related to the mortgage notes payable deferred financing costs was approximately $0.4 million and $0.3 million, respectively. Amortization of deferred financing costs are included in interest expense in the accompanying consolidated statements of operations.
    
   Deferred Offering Costs. Deferred offering costs represent legal, accounting and other direct costs related to our offerings. As of  December 31, 2024 and 2023, we have incurred approximately zero and $5,000, respectively, in deferred offering costs as of the end of each period related to our registration statement on Form S-3.
    
   Income Taxes.  We have elected to be taxed as a REIT under Sections 856 through 860 of the Code, for federal income tax purposes. To maintain our qualification as a REIT, we are required to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings,