Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 65

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 65
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 property held for sale when the fair value less costs to sell is less than the carrying amount. The calculation of both discounted and undiscounted cash flows requires management to make estimates of future cash flows that are determined based on a number of inputs and assumptions such as the intended hold period, market rental rates, leasing assumptions, capitalization rates and discount rates. Actual results could be significantly different from the estimates. Although our strategy is to hold our properties over the long-term, if our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss  may be recognized to reduce the property to fair value and such loss could be material.

        F-
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   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 year ended  December 31, 2024, we recognized non-cash impairment charges of approximately $1.8 million, with approximately $0.4 million related to model homes and approximately $1.4 million related to our commercial properties Dakota Center and 300 NP.  
    
   The impairment on our commercial property, Dakota Center, was the result of the loan maturing in  July and the Company not being able to reach an agreement with the lenders regarding a loan modification or extension. In  October, the lender has agreed to a sale of the property to settle the balance of the non-recourse loan.  Due to the uncertainties in the Fargo market, we decided to impair the property’s book value, in accordance with ASC 360-10.  As such, for the year ended  December 31, 2024, we recorded an impairment charge of approximately $0.7 million. The impairment on 300 NP, totaling approximately $0.7 million, for the year ended  December 31, 2024, related to changing cap rates in the area and low historical occupancy.  This property is not listed for sale and has no debt.
    
   Intangible Assets.  Intangible assets, including goodwill and lease intangibles, are comprised of finite-lived and indefinite-lived assets. Lease intangibles represent the allocation of a portion of the purchase price of a property acquisition representing the estimated value of in-place leases, unamortized lease origination costs, tenant relationships and land purchase options. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated