Company: SQFTP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016828
Chunk: 162

Company: Presidio Property Trust, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 162
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360-10 impairment of long-lived assets and for long-lived assets to be disposed of, to be in line with the current loan balance and estimated closing costs, which is the expected sales price.  As such, we recorded an impairment charge of approximately $0.7 million, as of December 31, 2024.  During December 2024, the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt.  As of
    March 31, 2025, the property was included in the real estate assets held for sale, net on the consolidated balance sheet.  Any purchase offers will be subject to lender approval. The loan is considered non-recourse and we will not be required to make up the difference if the property sells for less than the loan balance.

As of March 31, 2025, the Company had fixed-rate mortgage notes payable related to model homes in the aggregate principal amount of $27.1 million, collateralized by a total of 84 Model Homes.  These loans generally have a term at issuance of three to five years. As of March 31, 2025, the average loan balance per home outstanding and the weighted-average interest rate on these mortgage loans are approximately $322,340 and 6.97%, respectively. Our debt to estimated market value on all our model home properties is approximately 64.5%.  We have been able to refinance maturing mortgages to extend maturity dates and we have not experienced any notable difficulties financing our acquisitions.  The Company anticipates that any new mortgages used to acquire commercial properties or model homes in the near future will be at rates higher than our currently weighted average interest rate. 

Cash Flow for the three months ended March 31, 2025, and March 31, 2024

Operating Activities: Net cash used in operating activities for the three months ended March 31, 2025, totaled approximately $0.1 million, as compared to cash used in operating activities of $0.9 million for the three months ended March 31, 2024. The change in net cash used in operating activities is mainly due to changes in net income, which fluctuates due to new leases, leasing renewals, tenant move outs and model home sales and acquisitions, as well as changes in non-cash addbacks or subtractions such as straight