Company: SQFTP
Filing Date: 2025-04-07
Form Type: PRE 14A
Source: 0001641172-25-003040
Chunk: 74

Company: Presidio Property Trust, Inc.
Filing Date: 2025-04-07
Form: PRE 14A
Chunk 74
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 conditions, provide the Company with a lower cost of capital than alternative means of financing, which, in turn, can positively affect earnings available to our stockholders.

The overwhelming majority of publicly-traded real estate investment trusts (“REITs”) have the authority to issue blank check preferred stock, and a significant number of these REITs have issued multiple classes or series of stock. By way of example, the following REITs, among many others, have blank check preferred stock authorized under their charters:

| Acadia Realty Trust                   |     | Digital Realty Trust, Inc.       |     | Hudson Pacific Properties, Inc. |
| Alexandria Real Estate Equities, Inc. |     | Extra Space Storage Inc.         |     | UDR, Inc.                       |
| Arbor Realty Trust, Inc.              |     | Federal Realty Investment Trust  |     |                                 |
| COPT Defense Properties               |     | Franklin Street Properties Corp. |     |                                 |

The foregoing list includes industry-leading REITs. In competing for property acquisitions, the acquiror’s cost of capital is a critical element to success. As a result, we may be at a potential competitive disadvantage to other REITs due to our inability to issue shares of preferred stock as an additional financing tool to achieve the lowest possible overall cost of capital. Moreover, in order for the Company to maintain its qualification as a REIT under the Code, we must distribute annually at least 90% of our REIT taxable income. Therefore, the Company (like all REITs) must regularly access the capital markets to finance its growth since it is generally unable to do so by retaining earnings. As a result, due to the capital-intensive nature of the REIT industry, having the ability to issue new classes or series of stock is an important financing tool for many REITs.

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Terms

The Charter Amendment would grant the Board broad discretion with respect to designating the terms of each class and series of preferred stock prior to issuance. The following is a brief description of the terms, preferences, rights, limitations and restrictions that the Board will be entitled to designate with respect to any class or series preferred stock. The preferences and other terms of each class or series of preferred stock will be specified in the articles supplementary classifying and designating such class or series, which articles supplementary will be accepted for record by the SDAT prior to any issuance of the shares.

Number. The Company would be authorized to issue up to 2,000,000 shares