Company: SQFTP
Filing Date: 2025-10-14
Form Type: 424B5
Source: 0001493152-25-018010
Chunk: 105

Company: Presidio Property Trust, Inc.
Filing Date: 2025-10-14
Form: 424B5
Chunk 105
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 of customary or non-customary services to tenants of its parent REIT. A taxable REIT subsidiary is subject to U.S. federal income tax as a regular C corporation. A REIT’s ownership of securities of a taxable REIT subsidiary is not subject to the 5% or 10% asset test described below. See “— Asset Tests.”

Income Tests.

We must satisfy two gross income requirements annually to maintain our qualification as a REIT. First, in each taxable year we must derive directly or indirectly at least 75% of our gross income (excluding gross income from prohibited transactions, certain hedging transactions and certain foreign currency gains) from investments relating to real property or mortgages on real property, including “rents from real property,” dividends from other REITs and, in certain circumstances, interest, or certain types of temporary investments. Second, in each taxable year we must derive at least 95% of our gross income (excluding gross income from prohibited transactions, certain hedging transactions and certain foreign currency gains) from the real property investments described above or dividends, interest and gain from the sale or disposition of stock or securities, or from any combination of the foregoing. For these purposes, the term “interest” generally does not include any amount received or accrued, directly or indirectly, if the determination of all or some of the amount depends in any way on the income or profits of any person. However, an amount received or accrued generally will not be excluded from the term “interest” solely by reason of being based on a fixed percentage or percentages of receipts or sales.

Rents we receive from a tenant will qualify as “rents from real property” for the purpose of satisfying the gross income requirements for a REIT described above only if all of the following conditions are met:

| ● | The                                                                                                                                        
 amount of rent is not based in whole or in part on the income or profits of any person. However, an amount we receive or accrue generally  
 will not be excluded from the term “rents from real property” solely because it is based on a fixed percentage or percentages              
 of receipts or sales or, if it is based on the net income of a tenant that derives substantially all of its income with respect            
 to such property from subleasing of substantially all of such property, to the extent that the rents paid by the subtenants would          
 qualify as rents from real property if we earned such amounts directly;                                                                    |
| ● | Neither                                                                                                                                    
 we nor an actual or constructive owner of 10% or more