Company: SQFTP
Filing Date: 2025-12-09
Form Type: S-8
Source: 0001493152-25-026716
Chunk: 9

Company: Presidio Property Trust, Inc.
Filing Date: 2025-12-09
Form: S-8
Chunk 9
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igration of highly educated workers, business friendly governmental policies, large university populations, accessible healthcare systems and available housing. We believe this quantitative approach will result in property acquisitions in markets with substantially higher demand for high quality commercial real estate. |
| ● | Real Estate Enhancement. We typically acquire properties where we believe market demand is such that values can be significantly enhanced through repositioning strategies, such as upgrading common areas and tenant spaces, re-tenanting and leasing vacant space. We expect that these strategies will increase rent and occupancy while enhancing long-term value.                                                                                                                                                                                                                               |
| ● | Portfolio Management. We believe our target markets have benefited from substantial economic growth, which provides us with opportunities to achieve long-term value and ultimately sell properties and recycle capital into properties offering a higher risk-adjusted return. We have achieved substantial returns in the past from the operation, repositioning, and sale of properties. We continue to actively manage our properties to maximize the opportunity to recycle capital.                                                                                                            |

Our Model Home Property Investment Approach.

Model homes are single-family
homes constructed by builders for the purpose of showcasing floor plans, elevations, optional features, and workmanship when marketing
the development where the homes are located. Each model home is designed to be held for a minimum lease term (usually three years), after
which the model home is listed for sale at the estimated fair market value. Our model home business operates independently in Houston,
Texas, with minimal time commitment by senior management. We seek to purchase model homes, at a 5% to 10% discount, that have a likelihood
of appreciation within the expected three-year term of the lease, and anticipate unlevered pro forma returns over 8% during our holding
period and expected lease term. Our model home leaseback agreements are triple-net, requiring the homebuilder/tenant to pay all operating
expenses. We seek model homes in a variety of locations, a variety of price ranges, and from a variety of builders and developers to diversify
the risk from economic conditions that may adversely affect a particular development or location.

During the nine months
ended September 30, 2025, we acquired 22 model homes for approximately $9.4 million. The purchase price was paid through cash
payments of approximately $2.8 million and mortgage notes of approximately $6.6 million. During that period, the Company sold 16
model homes for approximately $7.4 million, net of sales costs, and recognized a gain of approximately $0.6 million.