Company: SQFTP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016828
Chunk: 84

Company: Presidio Property Trust, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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The change in revenue is directly related to the decrease in model home rental income and transaction fees during the current period, and the sale of our two commercial properties on February 7, 2025.  

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 Rental Operating Costs. Rental operating costs totaled approximately $1.6 million for the three months ended March 31, 2025, compared to approximately $1.6 million for the same period in 2024. Rental operating costs as a percentage of total revenue was 39.1% and 32.6% for the three months ended March 31, 2025 and 2024, respectively.  We expect rental operating costs to go down in future quarters due to the sale of our retail properties UTC and Research Parkway during the three months ended March 31, 2025; however, if we purchase additional properties, our rental operating costs will increase. 

General and Administrative Expenses. G&A expenses for the three months ended March 31, 2025 and 2024 totaled approximately $1.7 million and $2.1 million, respectively. G&A expenses as a percentage of total revenue was 40.3% and 43.5% for the three months ended March 31, 2025 and 2024, respectively.  G&A expenses for the three months ended March 31, 2025 decreased by approximately $0.4 million  partially related to consulting fees in 2024 including a one-time payment for the setup of DMH 207, and additional legal fees related to Zuma Capital Management, LLC (Zuma Capital"), which was not repeated in 2025.  Additionally, stock compensation was down by approximately $0.3 million due to the reduction of new restricted stock grants in 2025, slightly offset by an increase in accrued board compensation of $0.1 million related to estimated cash payment in-lieu-of restricted stock grants.

Depreciation and Amortization. Depreciation and amortization expense was approximately $1.2 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively.

Asset Impairments. We review the carrying value of each of our real estate properties regularly to determine if circumstances indicate an impairment in the carrying value of these investments exists. During the three