Company: SQFTP
Filing Date: 2025-12-09
Form Type: S-8
Source: 0001493152-25-026716
Chunk: 13

Company: Presidio Property Trust, Inc.
Filing Date: 2025-12-09
Form: S-8
Chunk 13
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 our stockholders in order to maintain our status as a REIT. We intend to continue to declare dividends,
however, we cannot provide any assurance as to the amount or timing of future dividends. Our goal is to make cash dividend distributions
out of our operating cash flow and proceeds from the sale of properties. During 2024 and the nine months ended September
30, 2025, we did not pay dividends to holders of our Common Stock. During 2023, we paid dividends to our holders of Common
Stock of approximately $1.2 million.

To the extent that we pay
dividends in excess of our earnings and profits, as computed for federal income tax purposes, these dividends will represent a return
of capital, rather than a dividend, for federal income tax purposes. Dividends that are treated as a return of capital for federal income
tax purposes generally will not be taxable as a dividend to a U.S. stockholder, but will reduce the stockholder’s basis in its shares
(but not below zero) and therefore can result in the stockholder having a higher gain upon a subsequent sale of such shares. Return of
capital dividends in excess of a stockholder’s basis generally will be treated as gain from the sale of such shares for federal
income tax purposes.

To the extent that we make
distributions in excess of our earnings and profits, as computed for federal income tax purposes, these distributions will represent a
return of capital, rather than a dividend, for federal income tax purposes. Distributions that are treated as a return of capital for
federal income tax purposes generally will not be taxable as a dividend to a U.S. stockholder, but will reduce the stockholder’s
basis in its shares (but not below zero) and therefore can result in the stockholder having a higher gain upon a subsequent sale of such
shares. Return of capital distributions in excess of a stockholder’s basis generally will be treated as gain from the sale of such
shares for federal income tax purposes.

We provide each of our stockholders
a statement detailing dividends paid during the preceding year and their characterization as ordinary income, capital gain or return
of capital annually. During the year ended December 31, 2023, all dividends to holders of our Common Stock were non-taxable as
they were considered return of capital to the stockholders.

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<div align='center'>Organizational Structure</div>

The following chart summarizes
our current ownership structure:

<div align='center