Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 230

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 230
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 loss could be material.

        F-
       11

   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 useful lives. Indefinite-lived assets are not amortized. Amortization expense of intangible assets that are not deemed to have an indefinite useful life was approximately  and , respectively, for the years ended  December 31, 2024 and 2023 and is included in depreciation and amortization in the accompanying consolidated statements of operation.
    
   The Company is required to perform a test for impairment of goodwill and other definite and indefinite lived assets at least annually, and more frequently as circumstances warrant. Impairment is recognized only if the carrying amount of the intangible asset is considered