# EDGAR Filing Document

**Accession Number:** 0001080657
**File Stem:** 0001437749-26-017340
**Filing Date:** 2026-5
**Character Count:** 186154
**Document Hash:** ffc6ccdc920962de8e9502cfdd79f721
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-017340.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001437749-26-017340

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 78

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Presidio Property Trust, Inc.
- **CENTRAL INDEX KEY:** 0001080657
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 330841255
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34049
- **FILM NUMBER:** 26986035

**BUSINESS ADDRESS:**
- **STREET 1:** 4995 MURPHY CANYON ROAD
- **STREET 2:** SUITE 300
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92123
- **BUSINESS PHONE:** 760-471-8536

**MAIL ADDRESS:**
- **STREET 1:** 4995 MURPHY CANYON ROAD
- **STREET 2:** SUITE 300
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92123

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETREIT, INC.
- **DATE OF NAME CHANGE:** 20100903

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETREIT
- **DATE OF NAME CHANGE:** 19990225

?xml version='1.0' encoding='ASCII'? sqft20260331_10q.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**___________________________________________________________**

**FORM 10-Q** 

**___________________________________________________________**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended March 31, 2026**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the period from _____ to _____**

**001-34049**

**(Commission File No.)**

**___________________________________________________________**

## PRESIDIO PROPERTY TRUST, INC.
**(Exact name of registrant as specified in its charter)**

**___________________________________________________________**

---

| | |
|:---|:---|
| **Maryland** | **33-0841255** |
| **(State or other jurisdiction<br> of incorporation or organization** | **(I.R.S. employer<br> identification no.)** |

---

**4995 Murphy Canyon Road, Suite 300, San Diego, CA 92123** 

**(Address of principal executive offices)**

**(760) 471-8536** 

**(Registrant's telephone number, including area code)**

---

| | | |
|:---|:---|:---|
| **Title of each class of registered securities** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Series A Common Stock, | SQFT | The Nasdaq Stock Market LLC |
| $0.01 par value per share |  |  |
| 9.375% Series D Cumulative Redeemable Perpetual Preferred Stock, | SQFTP | The Nasdaq Stock Market LLC |
| $0.01 par value per share |  |  |
| Series A Common Stock Purchase Warrants to | SQFTW | The Nasdaq Stock Market LLC |
| Purchase Shares of Common Stock |  |  |

---

**________________________________________________**

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging Growth company | ☐ | | |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes No ☒

At May 14, 2026, registrant had issued and outstanding 1,437,030 shares of its Series A Common Stock, $0.01 par value per share.

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---

| | |
|:---|:---|
| **Index** | **Page** |
| [Part I. FINANCIAL INFORMATION:](#pone) | [5](#pone) |
| [**Item 1. FINANCIAL STATEMENTS:**](#pone) | [5](#pone) |
| [Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December 31, 2025](#pone) | [5](#pone) |
| [Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 (unaudited)](#statops) | [6](#statops) |
| [Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2026 and 2025 (unaudited)](#equity) | [7](#equity) |
| [Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (unaudited)](#cflows) | [9](#cflows) |
| [Notes to Consolidated Financial Statements (unaudited)](#notes) | [10](#notes) |
| [**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**](#item2) | [33](#item2) |
| [**Item 3. Quantitative and Qualitative Disclosures about Market Risk**](#quanqual) | [42](#quanqual) |
| [**Item 4. Controls and Procedures**](#conpro) | [42](#conpro) |
| [Part II. OTHER INFORMATION](#ptwo) | [43](#ptwo) |
| [Item 1. Legal Proceedings](#legal) | [43](#legal) |
| [Item 1A. Risk Factors](#risk) | [43](#risk) |
| [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#unreg) | [43](#unreg) |
| [Item 3. Defaults Upon Senior Securities](#defaults) | [44](#defaults) |
| [Item 4. Mine Safety Disclosures](#minesafe) | [44](#minesafe) |
| [Item 5. Other Information](#otherinfo) | [44](#otherinfo) |
| [Item 6. Exhibits](#exhibits) | [45](#exhibits) |
| [Signatures](#sigs) | [46](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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**CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING STATEMENTS**

*This report contains "forward-looking statements" within the meaning of the federal securities laws that involve risks and uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in this report and in our other filings with the Securities and Exchange Commission (the "SEC"). Forward-looking statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, financial condition, liquidity, capital resources, cash flows, results of operations and other financial and operating information. Forward-looking statements included in this report include, but are not limited to, statements regarding purchases and sales of properties, plans for financing and refinancing our properties, the adequacy of our capital resources, changes to the markets in which we operate, our business plans and strategies, and our payment of dividends. When used in this report, the words "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "should," "project," "plan," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Important factors that may cause actual results to differ from projections include, but are not limited to:*

• inherent risks associated with real estate investments and with the real estate industry;

• significant competition may decrease or prevent increases in our properties' occupancy and rental rates and may reduce the value of our properties;

• a decrease in demand for commercial space and model homes and/or an increase in operating costs;

• failure by any major tenant (or a substantial number of tenants) to make rental payments to us because of a deterioration of its financial condition, an early termination of its lease, a non-renewal of its lease, or a renewal of its lease on terms less favorable to us;

• challenging economic conditions facing us and our tenants may have a material adverse effect on our financial condition and results of operations;

• our failure to generate sufficient cash to pay dividends and to service or retire our debt obligations in a timely manner;

• our inability to borrow or raise sufficient capital to maintain or expand our real estate investment portfolio;

• adverse changes in the real estate financing markets, including potential increases in interest rates and/or borrowing costs;

• potential losses, including from adverse weather conditions, natural disasters and title claims, may not be covered by insurance;

• inability to complete acquisitions or dispositions and, even if these transactions are completed, failure to successfully operate acquired properties or sell properties without incurring significant defeasance costs;

• our reliance on third-party property managers to manage a substantial number of our properties and brokers and/or agents to lease our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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• decrease in supply and/or demand for single family homes, inability to acquire additional model homes and increased competition to buy such properties;

• failure to continue to qualify as a REIT;

• adverse results of any legal proceedings;

• changes in laws, rules and regulations affecting our business including related to taxation, tariffs, real estate and zoning laws, and increases in real property tax rates;

• the possibility that if any of the banking institutions in which we deposit funds ultimately fails, we may lose any amounts of our deposits over federally insured levels which could reduce the amount of cash we have available to distribute or invest and could result in a decline in our value;

• the possibility that we may not comply with the continued listing requirements of the Nasdaq Capital Market ("Nasdaq"), which may result in our common stock being delisted, which could affect our common stock's market price and liquidity and reduce our ability to raise capital;

• actions of activist stockholders may cause us to incur substantial costs, divert management's attention and resources, and have an adverse effect on our business;

• the potential adverse effects of a resurgence of the COVID-19 pandemic or of new epidemics, pandemics or public health crises and ensuing economic turmoil on our financial condition, results of operations, cash flows and performance, particularly our ability to collect rent, on the financial condition, results of operations, cash flows and performance of our tenants, and on the global economy and financial markets, adverse economic conditions in the real estate market and overall financial market fluctuations; and

• the other risks and uncertainties discussed in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in this Quarterly Report on Form 10-Q, any subsequent filings with the SEC, and in the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 27, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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**PART I — FINANCIAL INFORMATION**

**ITEM 1. Financial Statements**

**Presidio Property Trust, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | ***March 31,*** | ***December 31,*** |
|  | ***2026*** | ***2025*** |
|  | **(unaudited)** |  |
| **ASSETS** |  |  |
| Real estate assets and lease intangibles: |  |  |
| Land | $13789653 | $16390250 |
| Buildings and improvements | 82684544 | 101878107 |
| Tenant improvements | 11435230 | 17645103 |
| Lease intangibles | 1400602 | 3467798 |
| Real estate assets and lease intangibles held for investment, cost | 109310029 | 139381258 |
| Accumulated depreciation and amortization | (26266550) | (37536809) |
| Real estate assets and lease intangibles held for investment, net | 83043479 | 101844449 |
| Real estate assets held for sale, net | 17451127 | 6805255 |
| Real estate assets, net | 100494606 | 108649704 |
| Other assets: |  |  |
| Cash, cash equivalents and restricted cash | 5171903 | 7422359 |
| Deferred leasing costs, net | 1230452 | 1340853 |
| Goodwill | 1317000 | 1317000 |
| Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9) | 5885 | 3900 |
| Deferred tax asset | 223388 | 223388 |
| Other assets, net (see Note 6) | 2803541 | 3095670 |
| Total other assets | 10752169 | 13403170 |
| **TOTAL ASSETS (1)** | $111246775 | $122052874 |
| **LIABILITIES AND EQUITY** |  |  |
| Liabilities: |  |  |
| Mortgage notes payable, net | $64160535 | $81936586 |
| Mortgage notes payable related to real estate assets held for sale, net | 17473032 | 10137781 |
| Mortgage notes payable, total net | 81633567 | 92074367 |
| Accounts payable and accrued liabilities | 3044512 | 3302187 |
| Accrued real estate taxes | 1378644 | 1785029 |
| Dividends payable |  | 190220 |
| Lease liability, net | 33756 | 40108 |
| Below-market leases, net | 2073 | 3316 |
| Total liabilities | 86092552 | 97395227 |
| **Commitments and contingencies (see Note 10)** |  |  |
| Equity: |  |  |
| Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 973,736 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2026 and 973,736 shares issued and outstanding as of December 31, 2025 | 9737 | 9737 |
| Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,314,159 shares and 1,314,159 shares were issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 13142 | 13142 |
| Additional paid-in capital | 186954022 | 186762388 |
| Dividends and accumulated losses | (169504393) | (169945302) |
| Total stockholders' equity before noncontrolling interest | 17472508 | 16839965 |
| Noncontrolling interest | 7681715 | 7817682 |
| Total equity | 25154223 | 24657647 |
| **TOTAL LIABILITIES AND EQUITY** | $111246775 | $122052874 |

---

(1) As of March 31, 2026 and December 31, 2025, includes approximately $7.4 million and $8.6 million, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities.

*See Notes to Consolidated Financial Statements*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

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**Presidio Property Trust, Inc. and Subsidiaries**

**Consolidated Statements of Operations**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***For the Three Months Ended March 31,*** | ***For the Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| Revenues: |  |  |
| Rental income | $3684044 | $4032429 |
| Fees and other income | 88756 | 92755 |
| Total revenue | 3772800 | 4125184 |
| Costs and expenses: |  |  |
| Rental operating costs | 1544441 | 1612642 |
| General and administrative | 1673823 | 1661978 |
| Depreciation and amortization | 998969 | 1244104 |
| Impairment of goodwill and real estate assets | 524373 | 26943 |
| Total costs and expenses | 4741606 | 4545667 |
| Other income (expense): |  |  |
| Interest expense - mortgage notes | (2050074) | (1510470) |
| Net gain (loss) in Conduit Pharmaceuticals marketable securities (see Note 9) | 1985 | (176658) |
| Interest and other income, net | 5149 | 5149 |
| Gain on sales of real estate, net | 172096 | 4453968 |
| &nbsp;&nbsp;&nbsp; Gain on disposition of assets and liabilities, net | 3416501 |  |
| Income tax (expense) benefit | (18057) | 25409 |
| Total other income (expense), net | 1527600 | 2797398 |
| Net income | 558794 | 2376915 |
| Less: Income attributable to noncontrolling interests | (117885) | (111563) |
| Net income attributable to Presidio Property Trust, Inc. stockholders | $440909 | $2265352 |
| Less: Series D Preferred Stock declared dividends |  | (579575) |
| Less: Series D Preferred Stock undeclared dividends in arrears | (570541) |  |
| Net loss attributable to Presidio Property Trust, Inc. common stockholders | $(129632) | $1685777 |
| Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: |  |  |
| Basic & Diluted | $(0.10) | $1.31 |
| Weighted average number of common shares outstanding - basic & dilutive | 1314159 | 1283432 |

---

*See Notes to Consolidated Financial Statements*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

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**Presidio Property Trust, Inc. and Subsidiaries**

**Consolidated Statements of Changes in Equity**

**For the three months ended March 31, 2026 and 2025** 

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | ***Additional*** | ***Dividends and*** | ***Total*** | ***Non-*** |  |
|  | ***Series D Preferred Stock*** | ***Series D Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Paid-in*** | ***Accumulated*** | ***Stockholders'*** | ***controlling*** | ***Total*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Losses*** | ***Equity*** | ***Interests*** | ***Equity*** |
| **Balance, December 31, 2025** | 973736 | $9737 | 1314159 | $13142 | $186762388 | $(169945302) | $16839965 | $7817682 | $24657647 |
| Net income | *—* |  | *—* |  |  | 440909 | 440909 | 117885 | 558794 |
| Distributions | *—* |  | *—* |  |  |  |  | (253852) | (253852) |
| Restricted stock-based compensation | *—* | *—* | *—* | *—* | 191634 | *—* | 191634 |  | 191634 |
| **Balance, March 31, 2026** | 973736 | $9737 | 1314159 | $13142 | $186954022 | $(169504393) | $17472508 | $7681715 | $25154223 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7

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**Presidio Property Trust, Inc. and Subsidiaries**

**Consolidated Statements of Changes in Equity**

**For the three months ended March 31, 2026 and 2025** 

**(Unaudited) (Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | ***Additional*** | ***Dividends and*** | ***Total*** | ***Non-*** |  |
|  | ***Series D Preferred Stock*** | ***Series D Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Paid-in*** | ***Accumulated*** | ***Stockholders'*** | ***controlling*** | ***Total*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Losses*** | ***Equity*** | ***Interests*** | ***Equity*** |
| **Balance, December 31, 2024** | 997082 | 9971 | 1283432 | 128343 | 185770842 | (159374010) | 26535146 | 8410009 | 34945155 |
| Net (loss) income | *—* |  | *—* |  |  | 2265352 | 2265352 | 111563 | 2376915 |
| Dividends to Series D preferred stockholders | *—* |  | *—* |  |  | (579575) | (579575) |  | (579575) |
| Distributions | *—* |  | *—* |  |  |  |  | (216659) | (216659) |
| Restricted stock-based compensation | *—* | *—* | *—* | *—* | 229502 | *—* | 229502 |  | 229502 |
| Repurchase of Series D preferred stock, at cost | (12844) | (129) |  |  | (194843) |  | (194972) |  | (194972) |
| **Balance, March 31, 2025** | 984238 | $9842 | 1283432 | $128343 | $185805501 | $(157688233) | $28255453 | $8304913 | $36560366 |

---

*See Notes to Consolidated Financial Statements*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8

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**Presidio Property Trust, Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***For the Three Months Ended March 31,*** | ***For the Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| Cash flows from operating activities: |  |  |
| Net income | $558794 | $2376915 |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| Depreciation and amortization | 998969 | 1244104 |
| Stock compensation | 191634 | 229502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bad debt expense | 73000 |  |
| Gain on sale of real estate assets, net | (172096) | (4453968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposition of assets and liabilities, net | (3416501) |  |
| Net (gain) loss in Conduit Pharmaceuticals fair value marketable securities | (1985) | 176658 |
| Impairment of goodwill and real estate assets | 524373 | 26943 |
| Amortization of financing costs | 53987 | 68923 |
| Amortization of below-market leases | (1243) | (1022) |
| Straight-line rent adjustment | 2479 | (84822) |
| Changes in operating assets and liabilities: |  |  |
| Other assets | 88369 | 567686 |
| Accounts payable and accrued liabilities | 656426 | 532895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred leasing costs | (72834) | 99752 |
| Accrued real estate taxes | (440575) | (902471) |
| Net cash used in operating activities | (957203) | (118905) |
| Cash flows from investing activities: |  |  |
| Real estate acquisitions |  | (4270192) |
| Additions to buildings and tenant improvements | (165817) | (568555) |
| Proceeds from sales of real estate, net | 7052033 | 18391811 |
| Net cash provided by investing activities | 6886216 | 13553064 |
| Cash flows from financing activities: |  |  |
| Proceeds from mortgage notes payable, net of issuance costs |  | 2979052 |
| Payment of debt issuance costs |  | (61914) |
| Repayment of mortgage notes payable | (7721564) | (11379734) |
| &nbsp;&nbsp;&nbsp; Payment of deferred offering costs | (13833) | (60000) |
| &nbsp;&nbsp;&nbsp; Distributions to noncontrolling interests | (253852) | (216659) |
| &nbsp;&nbsp;&nbsp; Repurchase of Series D Preferred Stock, at cost |  | (194972) |
| Dividends paid to Series D Preferred Stockholders | (190220) | (579575) |
| Net cash used in financing activities | (8179469) | (9513802) |
| Net (decrease) increase in cash equivalents and restricted cash | (2250456) | 3920357 |
| Cash, cash equivalents and restricted cash - beginning of period | 7422359 | 8036496 |
| Cash, cash equivalents and restricted cash - end of period | $5171903 | $11956853 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Interest paid-mortgage notes payable | $2108796 | $1335280 |
| &nbsp;&nbsp;&nbsp; Income taxes paid | $78848 | $46511 |
| **Non-cash investing activities:** |  |  |
| Paid building and tenant improvements from prior year | $(361261) | $(207847) |
| &nbsp;&nbsp;&nbsp; Paid deferred offering costs from prior year | $6589 | $— |
| **Non-cash financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Unpaid deferred offering costs | $820 | $— |
| &nbsp;&nbsp;&nbsp; Unpaid building and tenant improvements | $262251 | $— |
| &nbsp;&nbsp;&nbsp; Dividends payable - Series D Preferred Stock | $— | $192232 |

---

*See Notes to Consolidated Financial Statements*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9

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**Presidio Property Trust, Inc. and Subsidiaries**

**Notes to Consolidated Financial Statements (unaudited)**

**March 31, 2026**

***1.* ORGANIZATION AND BASIS OF PRESENTATION**

***Organization.*** Presidio Property Trust, Inc. ("we", "our", "us" or the "Company") is an internally-managed real estate investment trust ("REIT"), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on *September 28, 1999,* and in *August 2010,* we reincorporated as a Maryland corporation. In *October 2017,* we changed our name from "NetREIT, Inc." to "Presidio Property Trust, Inc." Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 9 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in *September 2023)* as noted below.

The Company or *one* of its affiliates operates the following partnerships during the periods covered by these consolidated financial statements:

• The Company is the sole general partner and limited partner in two limited partnerships (NetREIT Palm Self-Storage LP and NetREIT Casa Grande LP), both of which, as of *March 31, 2026*, had ownership interests in an entity that owns income producing real estate. The Company refers to these entities collectively as the "NetREIT Partnerships".

• The Company is the general and limited partner in two limited partnerships that purchase model homes and lease them back to homebuilders as commercial tenants (Dubose Model Home Investors *#205,* LP, and Dubose Model Home Investors *#207,* LP). The Company refers to these entities collectively as the "Model Home Partnerships". As of *March 31, 2026*, Dubose Model Home Investors *#202,* LP, Dubose Model Home Investors *#203,* LP, Dubose Model Home Investors *#204,* LP, and Dubose Model Home Investors *#206,* LP had *no* remaining assets.

The Company has determined that the limited partnerships, in which it owns less than *100%,* should be included in the Company's consolidated financial statements as the Company directs their activities and has control of such limited partnerships.

We have elected to be taxed as a REIT under Sections *856* through *860* of the Internal Revenue Code of *1986,* as amended (the "Code"), for federal income tax purposes. To maintain our qualification as a REIT, we are required to distribute at least *90%* of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels, and diversity of stock ownership. Provided we maintain our qualification for taxation as a REIT, we are generally *not* subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to maintain our qualification as a REIT in any taxable year and are unable to avail ourselves of certain savings provisions set forth in the Code, all our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. We are subject to certain state and local income taxes.

We, together with *one* of our entities, have elected to treat certain subsidiaries as a taxable REIT subsidiary (a "TRS") for federal income tax purposes. Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our commercial tenants, and holding assets that we cannot hold directly. A TRS is subject to federal and state income taxes. The Company has concluded that there are *no* significant uncertain tax positions requiring recognition in its financial statements. Neither the Company nor its subsidiaries have been assessed any significant interest or penalties for tax positions by any tax jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

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Effective on *May 19, 2025,* the Company amended its charter by filing Articles of Amendment with the State Department of Assessments and Taxation of Maryland in order to effect a *1*-for-10 reverse stock split of its outstanding shares of common stock (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every *10* shares of the Company's common stock issued or outstanding were automatically reclassified into *one* new share of common stock, par value $0.10 per share, subject to the treatment of fractional shares as described below, without any action on the part of the holders. All historical share and per-share amounts reflected throughout the accompanying consolidated financial statements and other financial information in this Quarterly Report on Form *10*-Q have been retroactively adjusted to reflect the *2025* Reverse Stock Split as if the split occurred as of the earliest period presented. The Reverse Stock Split did *not* affect the number of authorized shares of common stock. *No* fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were rounded up to the nearest whole share. All equity awards and warrants outstanding immediately prior to the Reverse Stock Split were proportionately adjusted to reflect the Reverse Stock Split. Effective immediately after the Reverse Stock Split, the Company decreased the par value of the shares of Series A Common Stock from $0.10 per share back to $0.01 per share.

***Liquidity.*** The Company's anticipated future sources of liquidity *may* include existing cash and cash equivalents, cash flows from operations, refinancing of existing mortgages, future real estate sales, new borrowings, and the sale of equity or debt securities. Future capital needs include paying down existing borrowings, maintaining our existing properties, funding tenant improvements on our commercial buildings, paying lease commissions (to the extent they are *not* covered by lender-held reserve deposits), and the payment of dividends to our stockholders. The Company is also seeking investments that are likely to produce income and achieve long-term gains in order to pay dividends to our stockholders. To ensure that we can effectively execute these objectives, we routinely review our liquidity requirements and continually evaluate all potential sources of liquidity. If necessary, the Company *may* seek other short-term liquidity alternatives, such as bridge loans, refinancing property loans or a bank line of credit depending on the credit environment. See Note *11* Stockholders' Equity for additional information on sale of securities.

Short-term liquidity needs include paying our current operating costs, satisfying the debt service requirements of existing mortgages, completing *ten*ant improvements on our commercial buildings, paying leasing commissions, distributions to noncontrolling interests, and funding dividends, if any, to stockholders. Future principal payments due on mortgage notes payable, during the last *three* quarters of *2026* and in the year ending *December 31, 2027* total approximately $20.4 million and $2.4 million, respectively, of which $3.8 million in *2026* and $2.0 million in *2026* are related to model home properties. See Note *7.* Mortgage Notes Payable for additional information on the Dakota Center and Shea Center II loans. Management expects certain model home properties can be sold, and that the underlying mortgage notes will be paid off with sales proceeds while other mortgage notes can be refinanced, as the Company has historically been able to do in the past with all model home properties. Additional principal payments will be made with cash flows from ongoing operations.

As the Company continues its operations, it *may* re-finance or seek additional financing. However, there can be *no* assurance that any such re-financing or additional financing will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does *not* obtain additional funding, it will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on the Company's ability to achieve its intended business objectives. Management believes that the combination of working capital on hand and the ability to refinance commercial and model home mortgages will fund operations through at least the next *twelve* months from the date of the issuance of these unaudited interim financial statements.

***Segments.*** The Company acquires and operates income producing properties in three business segments including Office/Industrial Properties, Model Home Properties and Retail Properties. See Note *13.* "Segments".

***Concentration.*** Concentration of credit risk with respect to tenant receivables is limited due to the large number of tenants comprising the Company's rental revenue. We have three commercial properties located in Colorado, three in North Dakota, one in Southern California, one in Texas and one in Maryland. Our model home properties are concentrated in Texas with a few model homes in Alabama, Tennessee and Arizona. We had one of our homebuilders accounts for approximately 17.17% of our total revenue for the *three* months ended *March 31, 2026,* and accounted for 52 out of 75 of our model home leases as of *March 31, 2026.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

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***2.* SIGNIFICANT ACCOUNTING POLICIES**

There have been *no* significant changes to the Company's accounting policies since it filed its audited financial statements in the *2025* year end Annual Report. For further information about the Company's accounting policies, refer to the Company's consolidated financial statements and notes thereto for the year ended *December 31, 2025*, included in the Company's *2025* year end Annual Report.

***Basis of Presentation.*** The accompanying consolidated financial statements have been prepared by the Company's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and the instructions to Form *10*-Q and Article *8* of Regulation S-*X.* Certain information and footnote disclosures required for annual consolidated financial statements have been excluded pursuant to rules and regulations of the SEC. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of our financial position as of *March 31, 2026* and *December 31, 2025*, as well as results of our operations, and cash ****flows as of, and for the *three* months ended *March 31, 2026* and *2025*, respectively. However, the results of operations for the interim periods are *not* necessarily indicative of the results that *may* be expected for the year ending *December 31, 2026*, due to real estate market fluctuations, available mortgage lending rates and other unknown factors. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the *2025* year end Annual Report. The consolidated balance sheet ****as of *December 31, 2025* ****has been derived from the audited consolidated financial statements included in the *2025* year end Annual Report.

***Principles of Consolidation***. The accompanying consolidated financial statements include the accounts of Presidio Property Trust, Inc. and its subsidiaries, NetREIT Advisors, LLC and Dubose Advisors LLC (collectively, the "Advisors"). The consolidated financial statements also include the results of the NetREIT Partnerships and the Model Home Partnerships. As used herein, references to the "Company" include references to Presidio Property Trust, Inc., its subsidiaries, and the partnerships. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company classifies the noncontrolling interests in the NetREIT Partnerships as part of consolidated net (loss) income in *2026* and *2025* and has included the accumulated amount of noncontrolling interests as part of equity since inception in *February 2010.* If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interest will be remeasured, with the gain or loss reported in the consolidated statements of operations. Management has evaluated the noncontrolling interests and determined that they do *not* contain any redemption features.

***Use of Estimates***. The consolidated financial statements were prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include private warrants, the allocation of purchase price paid for property acquisitions between the components of land, building and intangible assets acquired including their useful lives, valuation of long-lived assets, and the allowance for doubtful accounts, which is based on an evaluation of the tenants' ability to pay. Actual results could differ from those estimates.

***Real Estate Assets and Lease Intangibles.*** Land, buildings and improvements are recorded at cost, including tenant improvements and lease acquisition costs (including leasing commissions, space planning fees, and legal fees). The Company capitalizes any expenditure that replaces, improves, or otherwise extends the economic life of an asset, while ordinary repairs and maintenance are expensed as incurred. The Company allocates the purchase price of acquired properties between the acquired tangible assets and liabilities (consisting of land, buildings, tenant improvements, and long-term debt) and identified intangible assets and liabilities (including the value of above-market and below-market leases, the value of in-place leases, unamortized lease origination costs and tenant relationships), in each case based on their respective fair values.

The Company allocates the purchase price to tangible assets of an acquired property based on the estimated fair values of those tangible assets, assuming the property was vacant. Estimates of fair value for land, building and building improvements are based on many factors, including, but *not* limited to, comparisons to other properties sold in the same geographic area and independent *third*-party valuations. In estimating the fair values of the tangible assets, intangible assets, and liabilities acquired, the Company also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities.

The value allocated to acquired lease intangibles is based on management's evaluation of the specific characteristics of each tenant's lease. Characteristics considered by management in allocating these values include, but are *not* limited, to the nature and extent of the existing business relationships with the tenant, growth prospects for developing new business with the tenant, the remaining term of the lease, the tenant's credit quality, and other factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

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The value attributable to the above-market or below-market component of an acquired in-place lease is determined based upon the present value (using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining term, and (ii) management's estimate of rents that would be paid using fair market rates over the remaining term of the l ease. The amounts allocated to above or below-market leases are amortized on a straight-line basis as an increase or reduction of rental income over the remaining non-cancelable term of the respective leases. Amortization of above and below-market rents resulted in a net increase in rental income of approximately $1,244 and $1,022 for the *three* months ended *March 31, 2026* and *2025,* respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The value of in-place leases and unamortized lease origination costs a re amortized to expenses over the remaining term of the respective leases, which range from less than a year to ten years. The amount allocated to acquired in-place leases is determined based on management's assessment of lost revenue and costs incurred for the period required to lease the "assumed vacant" property to the occupancy level when purchased. The amount allocated to unamortized lease origination costs is determined by what the Company would have paid to a *third*-party to secure a new tenant reduced by the expired term of the respective lease. The amount allocated to tenant relationships is the benefit resulting from the likelihood of a tenant renewing its lease. Amortization expense related to these assets was approximately $1,540 and $13,145, respectively, for the *three* months ended *March 31, 2026* and *2025.*

***Deferred Leasing Costs.*** Costs incurred in connection with successful property leases are capitalized as deferred leasing costs and amortized to leasing commission expense on a straight-line basis over the terms of the related leases which generally range from one to five years. Deferred leasing costs consist of third-party leasing commissions. Management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of the tenants and economic and market conditions change. If management determines the estimated remaining life of the respective lease has changed, the amortization period is adjusted. At *March 31, 2026* and *December 31, 2025*, the Company had net deferred leasing costs of approximately $1.2 million and $1.3 million, respectively. Total amortization expense for the *three* months ended *March 31, 2026* and *2025* was approximately $83,447 and $134,776, respectively.

***Cash, Cash Equivalents and Restricted Cash.*** At *March 31, 2026* and *December 31, 2025*, we had approximately $5.2 million and $7.4 million in cash, cash equivalents and restricted cash, respectively, of which approximately $3.6 million and $5.7 million represented restricted cash, respectively. The Company considers all short-term, highly liquid investments that are both readily convertible to cash and have an original maturity of *three* months or less at the date of purchase to be cash equivalents. Items classified as cash equivalents include money market funds and short-term bonds. Cash balances in individual banks *may* exceed the federally insured limit of *$250,000* by the Federal Deposit Insurance Corporation (the "FDIC"). *No* losses have been experienced related to such accounts. Restricted cash consists of cash held in escrow by lenders pursuant to certain loan agreements, which are for payment of property taxes, insurance, leasing costs, future debt payments, and capital expenditures.

***Real Estate Held for Sale and Discontinued Operations.*** We generally reclassify assets to "held for sale" when the disposition has been approved, it is available for immediate sale in its present condition, we are actively seeking a buyer, and the disposition is considered probable within *one* year. Additionally, real estate sold during the current period is classified as "real estate assets held for sale" for all prior periods presented in the accompanying consolidated financial statements. Mortgage notes payable related to the real estate sold during the current period are classified as "mortgage notes payable related to properties held for sale" for all prior periods presented in the accompanying consolidated financial statements. Additionally, we record the operating results related to real estate that has been disposed of as discontinued operations for all periods presented if the operations have been eliminated and represent a strategic shift and we will *not* have any significant continuing involvement in the operations of the property following the sale. As of *March 31, 2026*, four model homes were classified as "held for sale".

***Deferred Offering Costs.*** Deferred offering costs represent legal, accounting and other direct costs related to our offerings. As of *March 31, 2026* and *December 31, 2025* we had deferred offering costs of approximately $287,666 and $279,603, respectively.

***Impairments of Real Estate Assets.*** We regularly review for impairment on a property-by-property basis. Impairment is recognized on a property held for use when the expected undiscounted cash flows for a property are less than the carrying amount at which time the property is written-down to fair value. Impairment is recognized on a 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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 *three* months ended *March 31, 2026* and *2025*, we recognized non-cash impairment charges of approximately $524,373 and $26,943, respectively, related to commercial properties and model homes.

***Fair Value Measurements***. Certain assets and liabilities are required to be carried at fair value, or if long-lived assets are deemed to be impaired, to be adjusted to reflect this condition. The guidance requires disclosure of fair values calculated under each level of inputs within the following hierarchy:

• Level *1:* unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level *2:* quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are *not* active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

• Level *3:* prices or valuation techniques where little or *no* market data is available that requires inputs that are both significant to the fair value measurement and unobservable.

In instances where the market for a financial instrument is *not* active, regardless of the availability of a nonbinding quoted market price, observable inputs might *not* be relevant and could require us to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent *third*-party *may* rely more on models with inputs based on information available only to that independent *third*-party. When we determine the market for a financial instrument owned by us to be illiquid or when market transactions for similar instruments do *not* appear orderly, we use several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establish a fair value by assigning weights to the various valuation sources.

When determining the fair value of real estate assets, goodwill and other liabilities the Company refers to the guidance in ASC *820.* The term "Fair Value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (ASC *820*-*10*-*20*). In particular, ASC *820* prescribes that the measurement of the Fair Value of an asset or liability should be based on assumptions that market participants would use when pricing the asset or liability. Accordingly, the Company's determination of the Fair Value measurements detailed above is based on the price that would be received to sell an asset or transfer a liability at the measurement date, assuming a transaction takes place at that date (i.e., an exit price).

Additionally, in an inactive market, a market price quoted from an independent *third*-party *may* rely more on models with inputs based on information available only to that independent *third*-party. When we determine the market for a financial instrument owned by us to be illiquid or when market transactions for similar instruments do *not* appear orderly, we use several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establish a fair value by assigning weights to the various valuation sources. As of *March 31, 2026*, we did not hold any marketable securities, excluding our investments in common stock warrants of Conduit Pharmaceuticals, Inc. ("Conduit"). As of *December 31, 2025*, we did not hold any marketable securities (excluding our investments in Conduit's common stock and common stock warrants). There were no financial liabilities measured at fair value as of *March 31, 2026* and *December 31, 2025.*

As of *March 31, 2026* and *December 31, 2025*, the Private CDT Warrants fair value, using Level *3* inputs, was *zero* for both periods, and is included in the total Investment in Conduit Pharmaceuticals marketable securities on the consolidated balance sheets. Our investments in Conduit's public common stock warrants (CDTTW) presented on the consolidated balance sheets were measured at fair value using Level *1* market prices, taking into account the adoption of ASU *2022*-*03,* Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, and totaled approximately $5,885 and $3,900 as of *March 31, 2026* and *December 31, 2025*, respectively. The adjustments to the fair value of our investment in Conduit Pharmaceuticals marketable securities are recorded in net loss in Conduit Pharmaceuticals marketable securities on our consolidated statement of operations.

The following table presents as of *March 31, 2026* the Company's assets subject to measurement at fair value on a nonrecurring basis:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements as of March 31, 2026** | **Fair Value Measurements as of March 31, 2026** | **Fair Value Measurements as of March 31, 2026** | **Fair Value Measurements as of March 31, 2026** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets: |  |  |  |  |
| Certain Real Estate assets |  |  | 19106377 | 19106377 |
| Total Assets | $- | $- | $19106377 | $19106377 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements as of December 31, 2025** | **Fair Value Measurements as of December 31, 2025** | **Fair Value Measurements as of December 31, 2025** | **Fair Value Measurements as of December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets: |  |  |  |  |
| Goodwill for NTR Property Management | $— | $— | $194000 | $194000 |
| Certain Real Estate assets |  |  | 24499935 | 24499935 |
| Total Assets | $— | $— | $24693935 | $24693935 |

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***Earnings per share (***"***EPS***"***).*** The EPS on common stock has been computed pursuant to the guidance in FASB ASC Topic *260, Earnings Per Share*. The guidance requires the classification of the Company's unvested restricted stock, which contains rights to receive non-forfeitable dividends, as participating securities requiring the *two*-class method of computing net income per share of common stock. In accordance with the *two*-class method, earnings per share have been computed by dividing the net income less net income attributable to unvested restricted shares by the weighted average number of shares of common stock outstanding less unvested restricted shares. Diluted earnings per share is computed by dividing net income by the weighted average shares of common stock and potentially dilutive securities outstanding in accordance with the treasury stock method.

Dilutive common stock equivalents include the dilutive effect of in-the-money stock equivalents, which are calculated based on the average share price for each period using the treasury stock method, excluding any common stock equivalents if their effect would be anti-dilutive. In periods in which a net loss has been incurred, all potentially dilutive common stock shares are considered anti-dilutive and thus are excluded from the calculation. Securities that are excluded from the calculation of weighted average dilutive common stock, because their inclusion would have been antidilutive, are:

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| | | |
|:---|:---|:---|
|  | ***For the Three Months Ended March 31,*** | ***For the Three Months Ended March 31,*** |
|  | ***2026*** | ***2025*** |
| Common Stock Warrants | 200000 | 200000 |
| Placement Agent Warrants | 8000 | 8000 |
| Series A Warrants | 1445007 | 1445007 |
| Unvested Common Stock Grants | 127519 | 131972 |
| Total potentially dilutive shares | 1780526 | 1784979 |

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***Variable Interest Entity.*** We determine whether an entity is a Variable Interest Entity ("VIE") and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. Our determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether we participated in the design of the entity and whether the entity's total equity investment at risk upon inception is sufficient to finance the entity's activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based *first* on a qualitative analysis, and then a quantitative analysis, if necessary.

We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in the VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative approach focused on identifying which reporting entity has both: (i) the power to direct the activities of a VIE that most significantly impact such entity's economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment.

We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE's economic performance, including, but *not* limited to, the ability to direct operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually. We consolidate any VIE of which we are the primary beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

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***Reclassifications***. Certain prior year balance sheet, statement of operations and statement of cash flows accounts have been reclassified to conform with the current year presentation. The reclassifications did *not* affect net income in the prior year's consolidated statement of operations.

***Subsequent Events.*** We evaluate subsequent events up until the date the consolidated financial statements are issued.

***Recently Issued and Adopted Accounting Pronouncements.***

In *March 2024,* the SEC issued final climate-disclosure rules to enhance and standardize climate-related disclosures by public companies. With regards to financial statements, the rules requires disclosure of (i) capitalized costs, expenditures expensed, charges, and losses incurred as a result of severe weather events and other natural conditions, subject to applicable *one* percent and de minimis disclosure thresholds; (ii) capitalized costs, expenditures expensed, and losses related to carbon offsets and renewable energy credits or certificates (RECs) if used as a material component of a company's plans to achieve its disclosed climate-related targets or goals; and (iii) if the estimates and assumptions the company uses to produce the financial statements were materially impacted by risks and uncertainties associated with severe weather events and other natural conditions or any disclosed climate-related targets or transition plans, a qualitative description of how the development of such estimates and assumptions was impacted. The rules are effective for annual periods beginning *January 1, 2025* and are to be applied prospectively. On *April 4, 2024,* the SEC voluntarily stayed the rules pending judicial review as a result of litigation. On *March 27, 2025,* the SEC voted to end its defense of the rules requiring disclosure of climate-related risks and greenhouse gas emissions. However, the Eighth Circuit *may* still rule on the legal challenges to the rules, and if so could decide to uphold the rules in whole or in part or remand them to the SEC for further consideration.

In *November 2024,* the FASB issued Accounting Standards Update ASU *2024*-*03, Income Statement*—*Reporting Comprehensive, Income*—*Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses* ("ASU *2024*-*03"*). This ASU is to improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The amendments in this ASU are effective for annual reporting periods beginning after *December 15, 2026,* and interim reporting periods beginning after *December 15, 2027.* Early adoption is permitted. In *January 2025,* this was updated by ASU *2025*-*01—Income* Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic *220*-*40*): Clarifying the Effective Date. The amendment in this Update amends the effective date of Update *2024*-*03* to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after *December 15, 2026,* and interim periods within annual reporting periods beginning after *December 15, 2027.* Early adoption of Update *2024*-*03* is permitted. We have *not* yet adopted ASU *2024*-*03* and are currently evaluating the impact on our financial statement disclosures.

In *December 2025,* the FASB issued Accounting Standards Update *2025*-*11* - *Interim Reporting (Topic *270*),* which focuses on improving interim reporting guidance by clarifying requirements and enhancing navigability for entities preparing interim financial statements under GAAP. This aims to improve the guidance in Topic *270,* Interim Reporting, by enhancing the clarity and navigability of the required interim disclosures. This introduces the Disclosure Principle, requiring entities to disclose events that have a material impact on the entity since the end of the last annual reporting period. Additionally, ASU *2025*-*11* creates a comprehensive list of required interim disclosures, consolidating them into Topic *270* rather than having them dispersed across various Codification Topics. For public entities, the update is effective for interim reporting periods within annual reporting periods beginning after *December 15, 2027.* For all other entities, it is effective for interim reporting periods within annual reporting periods beginning after *December 15, 2028.* Early adoption is permitted for all entities. While we are currently evaluating the impact of this pronouncement, we do *not* expect it will have a material impact on our consolidated financial statements.

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***3.* RECENT REAL ESTATE TRANSACTIONS**

***Acquisitions during the *three* months ended *March 31, 2026******:***

• The Company acquired no model homes or commercial properties.

***Acquisitions during the *three* months ended *March 31, 2025*:***

• The Company acquired 12 model homes for approximately $4.3 million. The purchase price was paid through cash payments of approximately $3.0 million and mortgage notes of approximately $1.3 million.

***Dispositions during the *three* months ended *March 31, 2026******:***

• On *January 14, 2026,* the Company sold one commercial property, Dakota Center, to a single buyer for approximately $4.7 million, net of selling costs, and recognized a net gain on the disposition of the assets and liabilities of approximately $3.4 million.

• The Company sold 5 model homes for approximately $2.3 million, net of sales costs, and recognized a gain of approximately $0.2 million.

***Dispositions during the*** ****three* months ended *March 31, 2025*******:***

• The Company sold 6 model homes for approximately $2.8 million, net of sales costs, and recognized a gain of approximately $0.2 million. 

• On *February 6, 2025* the Company sold two commercial properties, Union Town Center and Research Parkway, to a single buyer for approximately $15.9 million, net of selling costs, and recognized a net gain of approximately $4.5 million net of closing costs

***4.* REAL ESTATE ASSETS**

The Company owns a diverse portfolio of real estate assets. The primary types of properties the Company invests in are office, industrial, retail, and triple-net leased model home properties. We have three commercial properties located in Colorado, three in North Dakota, one in Southern California, one in Texas and one in Maryland. Our model home properties are located in four states. As of *March 31, 2026*, the Company owned or had an equity interest in:

• Seven office buildings and one industrial property ("Office/Industrial Properties");

• One retail building ("Retail Property") with approximately 10,500 rentable square feet (unaudited); and

• 75 model home residential properties ("Model Homes" or "Model Home Properties"), all of which are owned by two affiliated limited partnerships and one wholly-owned corporation, all of which we control. As of *March 31, 2026*, all of the model homes in Dubose Model Home Investors *#202,* LP, Dubose Model Home Investors *#203,* LP, Dubose Model Home Investors *#204,* LP, and Dubose Model Home Investors *#206,* LP had been sold.

A summary of the properties owned by the Company, including their lease intangibles, as of *March 31, 2026* and *December 31, 2025* is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *17*

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|:---|:---|:---|:---|:---|
|  | ***Date*** |  | ***Real estate assets and lease intangibles, net*** | ***Real estate assets and lease intangibles, net*** |
| **Property Name** | ***Acquired*** | ***Location*** | ***March 31, 2026*** | ***December 31, 2025*** |
| Genesis Plaza (1) | *August 2010* | San Diego, CA | $7154860 | $7274600 |
| Dakota Center (2) | *May 2011* | Fargo, ND |  | 4861267 |
| Grand Pacific Center | *March 2014* | Bismarck, ND | 7991440 | 8082202 |
| Arapahoe Center | *December 2014* | Centennial, CO | 8752279 | 8874198 |
| West Fargo Industrial | *August 2015* | Fargo, ND | 6355397 | 6404774 |
| 300 N.P. | *August 2015* | Fargo, ND | 1925488 | 1949040 |
| One Park Center | *August 2015* | Westminster, CO | 5637002 | 5740065 |
| Shea Center II (3) | *December 2015* | Highlands Ranch, CO | 15978009 | 16249498 |
| Mandolin (4) | *August 2021* | Houston, TX | 4485923 | 4508851 |
| Baltimore | *December 2021* | Baltimore, MD | 7960570 | 8016747 |
| **Commercial properties** |  |  | 66240968 | 71961242 |
| **Model Home properties (5)** | *2019* - *2025* | AZ, TN, TX, AL | 34253639 | 36688462 |
| Total real estate assets and lease intangibles, net |  |  | $100494606 | $108649704 |

---

(*1*) Genesis Plaza is owned by *two* tenants-in-common, NetREIT Genesis and NetREIT Genessis II, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 92.0%, based on our ownership of each entity. We have 100% ownership of NetREIT Genesis and 81.5% ownership of NetREIT Genesis II, and we have control of both entities. During *July 2024,* the Company completed a minority ownership conversion option as result of a death in a noncontrolling trust within NetREIT Genesis II. The Company issued the trust 86,232 shares of SQFT Series A Common Stock in exchange for their 36.4% ownership in NetREIT Genesis II, as per the original exchange agreement.

(*2*) The non-recourse loan on the Dakota Center property matured on *July 6, 2024.* During *December 2024,* the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt. During *July 2025,* the lender approved a purchase offer from a *third* party for $5,125,000. On *January 14, 2026,* the Company completed the disposition of the Dakota Center property securing nonrecourse mortgage debt that had been in default. The lender controlled and approved the disposition process and accepted the proceeds from the sale in full satisfaction of the outstanding debt obligation. The Company recognized a gain on disposition of approximately $3.5 million, consisting primarily of the extinguishment of nonrecourse debt obligations and derecognition of the related net liabilities associated with the property

(*3*) During *January 2026,* the Company received notice that the Company's failure to repay in full by *January 5, 2026* the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. On *February 13, 2026,* the Company received notification that the Shea Center II property governed by the non-recourse loan agreement was moved into receivership and the lender has started the foreclosure process. The foreclosure sale and public auction is scheduled for *June 17, 2026.* The lender holds approximately $2.4 million in restricted cash, some of which is being utilized by the receiver to operate the property. Additionally, during the *three* months ended *March 31, 2026* and *2025,* Shea Center II was listed as held for sale, related to the foreclosure sale and impaired approximately *$0.4* million.

(*4*) A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section *1031* of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary, NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP.

(*5*) Includes Model Homes listed as held for sale as of *March 31, 2026* and *December 31, 2025*. During the *three* months ended *March 31, 2026*, we recorded an impairment charge for model homes totaling $524,373, which reflects the estimated sales prices for these specific model homes. The short hold period, less than *two* years, and the builder changing their model style after we purchased the homes, contributed to the lower-than-expected sales price.

For the *three* months ended *March 31, 2026* and *2025*, depreciation expense totaled approximately $0.9 million and $1.1 million, respectively.

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***5.* LEASE INTANGIBLES**

The following table summarizes the net value of other intangible assets acquired and the accumulated amortization for each class of intangible asset:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***March 31, 2026*** | ***March 31, 2026*** | ***March 31, 2026*** | ***December 31, 2025*** | ***December 31, 2025*** | ***December 31, 2025*** |
|  | ***Lease Intangibles*** | ***Accumulated Amortization*** | ***Lease Intangibles, net*** | ***Lease Intangibles*** | ***Accumulated Amortization*** | ***Lease Intangibles, net*** |
| In-place leases | $932175 | $(931029) | $1146 | $2377414 | $(2375580) | $1834 |
| Leasing costs | 468427 | (467006) | 1421 | 1090384 | (1088114) | 2270 |
|  | $1400602 | $(1398035) | $2567 | $3467798 | $(3463694) | $4104 |

---

At *March 31, 2026* and *December 31, 2025*, there were no gross lease intangible assets and accumulated amortization related to the lease intangible assets included in real estate assets held for sale.

The net value of acquired intangible liabilities was approximately $2,073 and $3,316 relating to below-market leases at *March 31, 2026* and *December 31, 2025*, respectively.

Future aggregate approximate amortization expense for the Company's lease intangible assets is as follows:

---

| | |
|:---|:---|
| Years ending December 31: |  |
| 2026 | $2567 |
| 2027 |  |
| Total | $2567 |

---

***6.* OTHER ASSETS**

Other assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | ***March 31,*** | ***December 31,*** |
|  | ***2026*** | ***2025*** |
| Deferred rent receivable | $1419694 | $1591206 |
| Prepaid expenses, deposits and other | 269770 | 477738 |
| Notes receivable | 316374 | 316374 |
| Accounts receivable, net | 476920 | 391281 |
| Deferred offering costs | 287666 | 279603 |
| Right-of-use assets, net | 33117 | 39468 |
| Total other assets | $2803541 | $3095670 |

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***7.* MORTGAGE NOTES PAYABLE**

Mortgage notes payable consist of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***Principal as of*** | ***Principal as of*** |  |  |  |
|  | ***March 31,*** | ***December 31,*** | ***Loan*** | ***Interest*** |  |
| **Mortgage note property** | ***2026*** | ***2025*** | ***Type*** | ***Rate (1)*** | ***Maturity*** |
| Dakota Center (2) | $- | $8739687 | *Fixed* | 4.74% | *7/6/2024* |
| Arapahoe Service Center | 8634969 | 8670000 | *Fixed* | 6.75% | *12/5/2029* |
| One Park Centre | 6096528 | 6096528 | *Fixed* | 6.83% | *9/1/2030* |
| Genesis Plaza | 6220513 | 6235986 | *Fixed* | 7.07% | *9/1/2029* |
| Shea Center II (3) | 16353296 | 16353296 | *Fixed* | 4.92% | *1/5/2026* |
| West Fargo Industrial | 5750000 | 5750000 | *Fixed* | 7.14% | *7/6/2029* |
| Grand Pacific Center | 6329102 | 6360819 | *Fixed* | 6.35% | *5/10/2033* |
| Baltimore | 5670000 | 5670000 | *Fixed* | 4.67% | *4/6/2032* |
| Mandolin | 3422936 | 3440873 | *Fixed* | 4.35% | *4/20/2029* |
| **Subtotal, Presidio Property Trust, Inc. Properties** | $58477344 | $67317189 |  |  |  |
| Model Home mortgage notes (4) | 23929551 | 25604494 | *Fixed* | 5.76% - 8.00% | *2026* - *2030* |
| **Mortgage Notes Payable** | $82406895 | $92921683 |  |  |  |
| Unamortized loan costs | (773328) | (847316) |  |  |  |
| **Mortgage Notes Payable, net** | $81633567 | $92074367 |  |  |  |

---

(*1*) Interest rates as of *March 31, 2026*. 

(*2*) The non-recourse loan on the Dakota Center property matured on *July 6, 2024.* During *December 2024,* the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt. During *July 2025,* the lender approved a purchase offer from a *third* party for $5,125,000. On *January 14, 2026,* the Company completed the disposition of Dakota Center property securing nonrecourse mortgage debt that had been in default. The lender controlled and approved the disposition process and accepted the proceeds from the sale in full satisfaction of the outstanding debt obligation. The Company recognized a gain on disposition of approximately $3.5 million, consisting primarily of the extinguishment of nonrecourse debt obligations and derecognition of the related net liabilities associated with the property 

(*3*) During *January 2026,* the Company received notice that the Company's failure to repay in full by *January 5, 2026* the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. On *February 13, 2026,* the Company received notification that the Shea Center II property governed by the non-recourse loan agreement was moved into receivership and the lender has started the foreclosure process. The foreclosure sale and public auction is scheduled for *June 17, 2026.* The lender holds approximately $2.4 million in restricted cash, some of which is being utilized by the receiver to operate the property. 

(*4*) As of *March 31, 2026*, there were four model homes included as real estate assets held for sale. Our model homes have stand-alone mortgage notes at interest rates ranging from 5.76% to 8.0% per annum as of *March 31, 2026*. 

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The loan agreement between NetREIT Model, Homes, Inc. ("NRMH") and its Lender has a covenant for a Fixed Charge Coverage Ratio ("FCCR") as defined for NRMH as of any date that equals (a) the sum of (i) EBITDA for the period ended as of such date minus (ii) distributions for the period ended as of such date divided by (b) the sum of (i) principal payments paid for the period ended as of such date plus (ii) interest expense for period ended as of such date. The FCCR is to be *no* less than 1.10 to *1.00,* tested at the end of each fiscal quarter. As of *March 31, 2026*, NRMH was in compliance with this covenant. The Company and standalone subsidiaries have other various quarterly and annual reporting requirements to the individual property lenders and the Company is in compliance with all material conditions and covenants on those mortgage notes payable as of *March 31, 2026*, with the exception for Dakota Center's loan maturity.

Scheduled principal payments of mortgage notes payable were as follows as of *March 31, 2026*:

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| | | | |
|:---|:---|:---|:---|
|  | ***Commercial*** | ***Model*** |  |
|  | ***Properties*** | ***Homes*** | ***Total Principal*** |
| Years ending December 31: | ***Notes Payable*** | ***Notes Payable*** | ***Payments*** |
| 2026 | $16676442 | $3768272 | $20444714 |
| 2027 | 463715 | 1963237 | 2426952 |
| 2028 | 454843 | 7325172 | 7780015 |
| 2029 | 23497306 | 5503504 | 29000810 |
| 2030 | 5812792 | 5369366 | 11182158 |
| Thereafter | 11572246 |  | 11572246 |
| Total | $58477344 | $23929551 | $82406895 |

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The Shea Center II non-recourse loan totaling $16,353,296 was due in *January 2026* and is included in the *2026* total for Commercial Properties Notes Payable listed above.

***8.* NOTES PAYABLE**

On *April 22, 2020,* the Company received an Economic Injury Disaster Loan of $10,000 from the Small Business Administration ("SBA") to provide economic relief during the COVID-*19* pandemic. This loan advance is *not* required to be repaid, has *no* stipulations on use, and has been recorded as fees and other income in the consolidated statements of operations during fiscal *2020.* On *August 17, 2020,* we received an additional Economic Injury Disaster Loan ("EIDL") of $150,000, for which principal and interest payments are deferred for *twelve* months from the date of issuance, and interest accrues at *3.75%* per year. The loan matures on *August 17, 2050.* We have used the funds for general corporate purposes to alleviate economic damage caused by the COVID-*19* pandemic, which economic injury included abating or deferring rent to certain tenants (primarily retail tenants). As of *March 31, 2026* and *December 31, 2025*, the principal balance on the SBA loan was approximately $139,797 and $140,674, respectively.

***9.* INVESTMENT IN CONDUIT PHARMACEUTICALS**

***Sponsorship of Special Purpose Acquisition Company***. As of *December 31, 2024,* the Company, through our wholly-owned subsidiary Murphy Canyon Acquisition Sponsor, LLC (the "Sponsor"), owned 2,944,514 shares ("CDT") of Conduit, a publicly traded company, 709,000 public common stock warrants ("CDTTW") and 540,000 of Conduit private warrants, with a combined value of approximately $3,900. On *January 22, 2025,* Conduit filed a certificate of amendment to the Company's Second Amended and Restated Certificate of Incorporation (the "Amendment") with the Secretary of State of the State of Delaware to effectuate a *1*-for-100 reverse stock split (the "Conduit Reverse Stock Split") of the outstanding shares of Conduit's common stock. The Conduit Reverse Stock Split became effective on *January 24, 2025* at *5:00* p.m., Eastern Time (the "Effective Time") and the new CDT shares began trading on The Nasdaq Global Market on a split-adjusted basis on *January 27, 2025* at market open under the existing ticker symbol, "CDT." As of the Effective Time, every *100* shares of the Conduit's issued and outstanding common stock was combined into *one* share of common stock. After the Conduit Reverse Stock Split, our remaining shares of CDT totaled 29,445, with the fractional shares being paid out in cash, totaling $0.63. During *May 2025,* the Company sold all the remaining shares of CDT common stock for $13,990.

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As of *March 31, 2026*, we held 709,000 public common stock warrants of CDTTW, and 540,000 private common stock warrants, with a combined value of approximately $5,885. Conduit's public common stock warrants (CDTTW) and Private CDT Warrants presented on the consolidated balance sheets were measured at fair value using Level *1* and Level *3* market prices, taking into account the adoption of ASU *2022*-*03 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.*

***10.* COMMITMENTS AND CONTINGENCIES**

The Company is obligated under certain tenant leases to fund tenant improvements and the expansion of the underlying leased properties. As of *March 31, 2026* , we committed approximately $0.3 million for capital expenditures, some of which *may* be covered by restricted cash, on existing properties net of any construction financing, through *December 31, 2026.*

 ***Litigation.*** From time to time, we *may* become involved in various lawsuits or legal proceedings which arise in the ordinary course of business. Neither the Company nor any of the Company's properties are presently subject to any material litigation nor, to the Company's knowledge, is there any material threatened litigation.

***Environmental matters.*** The Company monitors its properties for the presence of hazardous or toxic substances. While there can be *no* assurance that a material environmental liability does *not* exist, the Company is *not* currently aware of any environmental liability with respect to the properties that would have a material effect on the Company's financial condition, results of operations and cash flow. Further, the Company is *not* aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that the Company believes would require additional disclosure or recording of a loss contingency.

***Financial Markets.*** The Company monitors concerns over economic recession, interest rate increases, policy priorities of the U.S. presidential administration, trade wars, labor shortages, and inflation, any of which *may* contribute to increased volatility and diminished expectations for the economy and markets. Additionally, the economic and geopolitical ramifications of the military conflicts in the Middle East and Ukraine, including sanctions, retaliatory sanctions, nationalism, supply chain disruptions and other consequences, could impact commercial real estate fundamentals and result in lower occupancy, lower rental rates, and declining values in our real estate portfolio and in the collateral securing our loan investments. We have *not* currently experienced a direct material impact to our Company or operations; however, we will continue to monitor the financial markets for events that could impact our commercial real estate properties.

***11.* STOCKHOLDERS' EQUITY**

***Preferred Stock.*** The Company is authorized to issue up to 1,000,000 shares of Preferred Stock (the "Preferred Stock"). The Preferred Stock *may* be issued from time to time in *one* or more series. The Board of Directors is authorized to fix the number of shares of any series of the Preferred Stock, to determine the designation of any such series, and to set the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each series of Preferred Stock.

On *June 15, 2021,* the Company completed its secondary offering of 800,000 shares of our Series D Preferred Stock for cash consideration of $25.00 per share to a syndicate of underwriters led by The Benchmark Company, LLC, as representative, resulting in approximately $18.1 million in net proceeds, after deducting the underwriting discounts and commissions and the offering expenses paid by the Company. The Company granted the underwriters a 45-day option to purchase up to an additional 120,000 shares of Series D Preferred Stock to cover over-allotments, which they exercised on *June 17, 2021,* resulting in approximately $2.7 million in net proceeds, after deducting the underwriting discounts and commissions and the offering expenses paid by the Company. In total, the Company issued 920,000 shares of Series D Preferred Stock with net proceeds of approximately $20.5 million, after deducting the underwriting discounts and commissions and the offering expenses paid by the Company and deferred offering costs. The Series D Preferred Stock is listed for trading on The Nasdaq Capital Market under the symbol SQFTP. The Company has used these proceeds for general corporate and working capital purposes, including acquiring additional properties.

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On *June 20, 2024,* the Company entered into an underwriting agreement with The Benchmark Company, LLC pursuant to which the Company issued and sold in an underwritten public offering 109,054 shares of the Company's Series D Preferred Stock. The shares of Series D Preferred Stock were sold to the public at a price of $16.00 per share. The Company agreed to an underwriting discount of 7% of the public offering price of the shares of Series D Preferred Stock sold in the offering. The offering closed on *June 24, 2024,* generating gross proceeds of approximately $1.74 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company has used the net proceeds from the offering for general corporate and working capital purposes, including the acquisition of additional properties. Below are some of the key terms of the Series D Preferred Stock:

*Dividends:*

Holders of shares of the Series D Preferred Stock are entitled to receive cumulative cash dividends at a rate of 9.375% per annum of the $25.00 per share liquidation preference (equivalent to $2.34375 per annum per share). Dividends are payable monthly on the *15th* day of each month (each, a "Dividend Payment Date"), provided that if any Dividend Payment Date is *not* a business day, then the dividend that would otherwise have been payable on that Dividend Payment Date *may* be paid on the next succeeding business day without adjustment in the amount of the dividend. If the Company's Board of Directors does *not* declare a dividend in a given period, an accrual is *not* recorded on the balance sheet. However, undeclared preferred stock dividends are reflected in earnings per share as discussed in ASC *260*-*10*-*45*-*11.* Preferred stock dividends that are *not* declared accumulate and are added to the liquidation preference as of the scheduled payment date for the respective series of the preferred stock

*Voting Rights:*

Holders of shares of the Series D Preferred Stock will generally have *no* voting rights. However, if the Company does *not* pay dividends on the Series D Preferred Stock for *eighteen* or more monthly dividend periods (whether or *not* consecutive), the holders of the Series D Preferred Stock (voting separately as a class with the holders of all other classes or series of the Company's preferred stock it *may* issue upon which like voting rights have been conferred and are exercisable and which are entitled to vote as a class with the Series D Preferred Stock in the election referred to below) will be entitled to vote for the election of two additional directors to serve on the Company's Board of Directors until the Company pays, or declares and sets apart funds for the payment of, all dividends that it owes on the Series D Preferred Stock, subject to certain limitations.

In addition, the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series D Preferred Stock (voting together as a class with all other series of parity preferred stock the Company *may* issue upon which like voting rights have been conferred and are exercisable) is required at any time for the Company to (i) authorize or issue any class or series of its stock ranking senior to the Series D Preferred Stock with respect to the payment of dividends or the distribution of assets on liquidation, dissolution or winding up or (ii) to amend any provision of the Company charter so as to materially and adversely affect any rights of the Series D Preferred Stock or to take certain other actions.

*Liquidation Preference*:

In the event of the Company's voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series D Preferred Stock will be entitled to be paid out of the assets the Company has legally available for distribution to its stockholders, subject to the preferential rights of the holders of any class or series of its stock the Company *may* issue ranking senior to the Series D Preferred Stock with respect to the distribution of assets upon liquidation, dissolution or winding up, a liquidation preference of *$25.00* per share, plus any accumulated and unpaid dividends to, but *not* including, the date of payment, before any distribution of assets is made to holders of the Company's common stock or any other class or series of the Company's stock it *may* issue that ranks junior to the Series D Preferred Stock as to liquidation rights.

In the event that, upon any such voluntary or involuntary liquidation, dissolution or winding up, the Company's available assets are insufficient to pay the amount of the liquidating distributions on all outstanding shares of Series D Preferred Stock and the corresponding amounts payable on all shares of other classes or series of the Company's stock that it issues ranking on parity with the Series D Preferred Stock in the distribution of assets, then the holders of the Series D Preferred Stock and all other such classes or series of stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled.

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*Redemption:*

Commencing on or after *June 15, 2026,* the Company *may* redeem, at its option, the Series D Preferred Stock, in whole or in part, at a cash redemption price equal to $25.00 per share, plus any accumulated and unpaid dividends to, but *not* including the redemption date. Prior to *June 15, 2026,* upon a Change of Control (as defined in the Articles Supplementary), the Company *may* redeem, at its option, the Series D Preferred Stock, in whole or part, at a cash redemption price of *$25.00* per share, plus any accumulated and unpaid dividends to, but *not* including the redemption date. The Series D Preferred Stock has *no* stated maturity, will *not* be subject to any sinking fund or other mandatory redemption, and will *not* be convertible into or exchangeable for any of our other securities.

In accordance with the terms of the Series D Preferred Stock, the Series D monthly dividend has been approved by the Board of Directors through *December 31, 2025* in the amount of $0.19531 per share payable on the *15th* of every month to stockholders of record of Series D Preferred Stock as of the last day of the prior month. *No* dividends were declared or accrued for the Series D Preferred stockholders during the *three* months ended *March 31, 2026*, during the *three* months ended *March 31, 2025*, dividends paid to Series D Preferred stockholders totaled approximately $0.6 million.

***Common Stock.*** As of *March 31, 2026*, Mr. Heilbron beneficially owned approximately 15.3% of our outstanding shares of common stock, as set forth in the amendment to Schedule *13D* filed on *May 8th, 2026.*

The Company is authorized to issue up to 100,000,000 shares of Series A Common Stock, 1,000 shares of Series B Common Stock, and 9,000,000 shares of Series C Common Stock (collectively, the "Common Stock") each with $0.01 par value per share. Each class of Common Stock has identical rights, preferences, terms, and conditions except that the holders of Series B Common Stock are *not* entitled to receive any portion of Company assets in the event of the Company's liquidation. No shares of Series B or Series C Common Stock have been issued. Each share of Common Stock entitles the holder to one vote. Shares of our Common Stock are *not* subject to redemption and do *not* have any preference, conversion, exchange, or preemptive rights. The Company's charter contains restrictions on the ownership and transfer of the Common Stock that prevents *one* person from owning more than 9.8% of the outstanding shares of common stock. The Board of Directors granted our Chief Executive Officer, Jack Heilbron, and Chief Investment Officer, Gary Katz, an exception to the 9.8% ownership limit and established an excepted holder limit permitting each of Jack Heilbron and Gary Katz to beneficially or constructively own up to 19% of the outstanding shares of our common stock, including warrants, subject to compliance with Article VII of the Company's charter.

Effective on *May 19, 2025,* the Company amended its charter by filing Articles of Amendment with the State Department of Assessments and Taxation of Maryland in order to effect a *1*-for-10 reverse stock split of its outstanding shares of common stock (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every *10* shares of the Company's common stock issued or outstanding were automatically reclassified into *one* new share of common stock, par value $0.10 per share, subject to the treatment of fractional shares as described below, without any action on the part of the holders. All historical share and per-share amounts reflected throughout the accompanying consolidated financial statements and other financial information in this Quarterly Report on Form *10*-Q have been retroactively adjusted to reflect the *2025* Reverse Stock Split as if the split occurred as of the earliest period presented. The Reverse Stock Split did *not* affect the number of authorized shares of common stock. *No* fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were rounded up to the nearest whole share. All equity awards and warrants outstanding immediately prior to the Reverse Stock Split were proportionately adjusted to reflect the Reverse Stock Split. Effective immediately after the Reverse Stock Split, the Company decreased the par value of the shares of Series A Common Stock from $0.10 per share back to $0.01 per share.

On *July 14, 2025,* the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with an institutional investor (the "Purchaser") for the purpose of raising approximately $2.05 million in gross proceeds for the Company. Pursuant to the terms of the Purchase Agreement, the Company agreed to sell in a registered direct offering (the "Offering"), (i) 140,000 shares (the "Public Shares") of its Series A Common Stock and (ii) pre-funded warrants to purchase up to 30,830 shares (the "Pre-Funded Warrant Shares") of Series A Common Stock (the "Pre-Funded Warrants"). Each Public Share and accompanying Pre-Funded Warrant were sold together at a combined offering price of $12.00. The Pre-Funded Warrants were immediately exercisable at a nominal exercise price of $0.0001 and were exercised on *July 14, 2025* in full.

The closing of the sales of the Securities pursuant to the Purchase Agreement occurred on *July 15, 2025.* The net proceeds to the Company after deducting the Placement Agent's fees and the Company's offering expenses were approximately $1.7 million. The Company has used and intends to use the net proceeds from the offering for working capital and for other general corporate purposes including to potentially acquire additional properties.

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In addition, in connection with the Purchase Agreement, the Company and the Purchaser entered into an Amendment to Series A Common Stock Purchase Warrants (the "Amendment"). The Amendment amends certain warrants to purchase 200,000 shares of Series A Common Stock purchased by the Purchaser on *July 14, 2021* to (i) reduce the exercise price to $12.00 per share from $55 per share and (ii) extend the termination date to *July 16, 2030* from *July 16, 2026.* Pursuant to the Stock Purchase Agreement, the Company filed a resale registration statement to register the shares of Series A Common Stock underlying such warrants, which registration statement went effective on *August 22, 2025.*

The Company evaluated the accounting guidance in ASC *480* and ASC *815* regarding the classification of the Pre-Funded Warrant, Common Stock Warrants, and Placement Agent Warrants as equity or a liability and ultimately determined that it should be classified as permanent equity. As of *December 31, 2025,* none of the Common Stock Warrants and Placement Agent Warrants have been exercised.

Genesis Plaza is owned by *two* tenants-in-common, NetREIT Genesis and NetREIT Genessis II, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 92.0%, based on our ownership of each entity. We have 100% ownership of NetREIT Genesis and 81.5% ownership of NetREIT Genesis II, and we have control of both entities. During *July, 2024,* the Company completed a minority ownership conversion option as result of a death in a noncontrolling trust within NetREIT Genesis II. The Company issued the trust 78,215 shares of SQFT Series A Common Stock in exchange for their 36.4% ownership in NetREIT Genesis II, as per the original exchange agreement at $9.30 per share.

***Stock Repurchase Program***. While we will continue to pursue value creating investments, the Board of Directors believes there is significant embedded value in our assets that is yet to be realized by the market. Therefore, returning capital to stockholders through a repurchase program is an attractive use of capital currently. In *December 2024,* the Board of Directors authorized a stock repurchase program of up to $6.0 million of outstanding shares of our Series A Common Stock and up to $4.0 million of our Series D Preferred Stock, which the Board of Directors did *not* renew in *December 2025.* During the year ended *December 31, 2025,* we repurchased 16,080 shares of our Series A Common Stock, with an average price of $4.79 per share, including a commission of $0.025 per share, for a total cost of $77,092 for the Series A Common Stock. This does *not* include the shares repurchased in the fixed price self-tender offer (the "Tender Offer") during *April- May 2025.* During the year ended *December 31, 2025,* the Company repurchased 23,346 shares of our Series D Preferred Stock at an average price of approximately $14.76 per share, including a commission of $0.035 per share, for a total cost of $344,503 for the Series D Preferred Stock. Any repurchased shares are treated as authorized and unissued in accordance with Maryland law and shown as a reduction of stockholders' equity at cost. There were *no* repurchases of Series A Common Stock or Series D Preferred Stock during *three* months ended *March 31, 2026* as there were *no* repurchase plans in place.

***Cash Dividends on Common Stock and Preferred Stock.*** For the *three* months ended *March 31, 2026*, the Company did not declare a cash dividend on shares of Series A Common Stock. As of *January 28, 2026,* the Board of Directors has suspended the Company's monthly dividend on its Series D Preferred Stock commencing with the *January 2026* monthly dividend that would have been paid on *February 15, 2026.* In accordance with the terms of the Series D Preferred Stock, the unpaid monthly dividends will continue to accrue at $0.19531 per share each month. Under the guidance of ASC *260*-*10*-*45*-*11,* if the Company's Board of Directors do *not* declare a dividend in a given period, an accrual is *not* recorded on the balance sheet, however; undeclared preferred stock dividends are reflected in earnings per share. Preferred stock dividends that are *not* declared accumulate and are added to the liquidation preference as of the scheduled payment date for the respective series of the preferred stock. The Board and the Company intend to reassess, on a quarterly basis, when accrued dividends on the Series D Preferred Stock *may* be paid and when the monthly dividend payments can be reinstated. The Company has *not* decided when it will resume dividends to our common stockholders on a quarterly basis. As of *March 31, 2026* and *December 31, 2025*, the cumulative preferred dividends in arrears on the Series D preferred stock was $0.6 million and $0, respectively. The following is a summary of distributions declared per share of our Series D Preferred Stock for the *three* months ended *March 31, 2026* and *2025*.

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Series D Preferred Stock

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| | | |
|:---|:---|:---|
| **Month** | ***2026*** | ***2025*** |
|  | ***Distributions Declared*** | ***Distributions Declared*** |
| January | $— | $0.19531 |
| February |  | 0.19531 |
| March |  | 0.19531 |
| Total | $— | $0.58593 |

---

***Partnership Interests.*** Through the Company, its subsidiaries, and its partnerships, we own 8 commercial properties in fee interest, two of which we own partial interests in through our holdings in various affiliates in which we serve as general partner, member and/or manager. Each of the limited partnerships is referred to as a "DownREIT." In each DownREIT, we have the right, through put and call options, to require our co-investors to exchange their interests for shares of our Common Stock at a stated price after a defined period (generally *five* years from the date they *first* invested in the entity's real property), the occurrence of a specified event or a combination thereof. The Company is a limited partner in five partnerships and sole stockholder in *one* corporation, which entities purchase and leaseback model homes from homebuilders.

***12.* SHARE-BASED INCENTIVE PLAN**

The Company maintains a restricted stock incentive plan for the purpose of attracting and retaining officers, employees, and non-employee Board members. Share awards generally vest in equal annual installments over a three-to-ten-year period from date of issuance. Non-vested shares have voting rights and are eligible for any dividends paid on shares of common stock. The Company recognized compensation cost for these fixed awards over the service vesting period, which represents the requisite service period, using the straight-line method. Prior to our IPO, the value of non-vested shares was calculated based on the offering price of the shares in the most recent private placement offering of $20.00, adjusted for stock dividends since granted and assumed selling costs, which management believed approximated fair market value as of the date of grant. Upon our IPO, the value of non-vested shares granted is generally calculated based on the closing price of our common stock on the date of the grant.

During our Annual Meeting of Stockholders, held on *June 1, 2023,* the Company's *2017* Incentive Award Plan was amended to increase the available shares for issuance from 250,000 to 350,000 and add an evergreen provision to, on *April 1*<sup>st</sup> and *October 1*<sup>st</sup> of each year, automatically increase the maximum number of shares of common stock available under the plan to *15%* of the Company's outstanding shares of common stock, if on such date *350,000* (as adjusted for any reverse splits) is less than *15%* of the Company's then-outstanding shares of common stock. At the Company's *2025* Annual Meeting of Stockholders, held on *June 2, 2025,* the Company's *2017* Incentive Award Plan was amended and restated to (i) increase the number of shares available for issuance thereunder to 450,000 from *350,000* shares of common stock and (ii) revise the plan's evergreen provision to, on *April 1st* and *October 1st* of each year, automatically increase the maximum number of shares of common stock available under the plan to *15%* of the Company's outstanding shares of common stock, if on such date *450,000* shares constitute less than *15%* of the Company's then-outstanding shares of common stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A summary of the activity for the Company's restricted stock was as follows:

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| | | |
|:---|:---|:---|
| **Outstanding shares:** | ***Common Shares*** | ***Weighted-Average Grant Date Fair Value*** |
| Balance at December 31, 2025 | 104108 | $8.79 |
| Granted in January 2026 | 23411 | $3.69 |
| Balance at March 31, 2026 | 127519 | $7.87 |

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The non-vested restricted shares outstanding as of *March 31, 2026*, will vest over the next one to three years. As of *March 31, 2026*, there were approximately 23,411 shares available to grant under the Company's *2017* Incentive Award Plan. Share-based compensation expense was approximately $0.2 million and $0.2 million for the *three* months ended *March 31, 2026* and *2025*, respectively. As of *March 31, 2026 ,* future unrecognized stock compensation related to unvested shares totaled approximately $0.8 million.

***13.* SEGMENTS**

The Company's reportable segments consist of three types of real estate properties for which the Company's chief operating decision maker (CODM), which is our Chief Executive Officer, has the final decision when allocating capital and personnel to the various segments, internally evaluate operating performance and financial results: Office/Industrial Properties, Model Home Properties and Retail Properties. The Company also has certain corporate-level activities including accounting, finance, legal administration, and management information systems which are *not* considered separate operating segments. There is *no* material inter-segment activity.

The CODM evaluates the performance of our segments based upon an internal net operating income ("NOI"), which is a non-GAAP supplemental financial measure on a quarterly basis as disclosed in the *10*-Qs and *10*-Ks. We believe that NOI is a widely accepted measure of comparative operating performance in the real estate community. However, our use of the term NOI *may not* be comparable to that of other real estate companies as they *may* have different methodologies for computing this amount. The Company defines NOI for its segments as operating revenues (rental income, tenant reimbursements, parking income, and other operating income, net of provision for bad debt) less rental operating costs (property operating expenses, real estate taxes, insurance, utilities, repairs and maintenance, and asset management fees) excluding interest expense. NOI excludes certain items that are *not* considered to be controllable in connection with the management of an asset such as non-property income & expenses, depreciation & amortization, real estate acquisition fees & expenses, non-cash impairments and corporate general & administrative expenses. Quarterly, the Company reviews and tests for non-cash impairments, as required by GAAP, on all our properties (i.e., Office/Industrial Properties, Retail Properties, and Model Home Properties); however, the CODM does *not* consider those non-cash impairments with evaluating the segment's cash operations and NOI.

The CODM uses NOI to evaluate and assess each segments' performance and in deciding how to allocate resources. For Model Home performance, the CODM also includes the gain or loss on sale of real estate assets net of any impairments, because we believe that is a major component in the operating success of the segment and part of the business model for Model Homes. The gain on sale of model homes resulted in cash flows to the Company that the CODM can decide on how to allocate to future operations.

The following tables compare the Company's segment activity and NOI and adjusted NOI for Model Home income to its results of operations and financial position as of and for the *three* months ended *March 31, 2026* and *2025*, respectively. The line items listed in the below NOI tables include the significant expense considered by the CODM for cash allocations on future investments. The Other Non-Segment & Consolidating Items represent corporate activity, the investment in Conduit, and other eliminating items for consolidation. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is *not* considered a reportable segment. This includes the loss on Conduit marketable securities.

The following tables compare the Company's segment activity to its results of operations and financial position as of and for the *three* months ended *March 31, 2026*, and *March 31, 2025*:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** |
|  | ***Retail*** | ***Office/Industrial*** | ***Model Homes*** | ***Corporate and Other*** | ***Total*** |
| **Revenues:** |  |  |  |  |  |
| Rental income | $93574 | $2670580 | $919890 | $— | $3684044 |
| Fees and other income |  | 82800 | 5534 | 422 | 88756 |
| Total revenue | 93574 | 2753380 | 925424 | 422 | 3772800 |
| **Costs and expenses:** |  |  |  |  |  |
| Rental operating costs | 4832 | 1630837 | 48877 | (140105) | 1544441 |
| General and administrative |  | 17499 | 226882 | 1429442 | 1673823 |
| Depreciation and amortization | 22928 | 784276 | 191292 | 473 | 998969 |
| Impairment of goodwill and real estate assets |  | 448734 | 75639 |  | 524373 |
| Total costs and expenses | 27760 | 2881346 | 542690 | 1289810 | 4741606 |
| **Other income (expense):** |  |  |  |  |  |
| Interest expense - mortgage notes | (43117) | (1543083) | (462558) | (1316) | (2050074) |
| Interest and other income, net |  |  | 9 | 5140 | 5149 |
| Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9) |  |  |  | 1985 | 1985 |
| Gain on sales of real estate, net |  |  | 172096 |  | 172096 |
| Gain on disposition of assets and liabilities, net |  | 3416501 |  |  | 3416501 |
| Income tax (expense) benefit |  |  | (15657) | (2400) | (18057) |
| Total other income (expense), net | (43117) | 1873418 | (306110) | 3409 | 1527600 |
| **Net income (loss)** | 22697 | 1745452 | 76624 | (1285979) | 558794 |
| Less: Income attributable to noncontrolling interests |  | 2053 | (119938) |  | (117885) |
| **Net income (loss) attributable to Presidio Property Trust, Inc. stockholders** | $22697 | $1747505 | $(43314) | $(1285979) | $440909 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended March 31, 2025*** | ***For the Three Months Ended March 31, 2025*** | ***For the Three Months Ended March 31, 2025*** | ***For the Three Months Ended March 31, 2025*** | ***For the Three Months Ended March 31, 2025*** |
|  | ***Retail*** | ***Office/Industrial*** | ***Model Homes*** | ***Corporate and Other*** | ***Total*** |
| **Revenues:** |  |  |  |  |  |
| Rental income | $262878 | $2854030 | $915521 | $— | $4032429 |
| Fees and other income | 400 | 62362 | (1754) | 31747 | 92755 |
| Total revenue | 263278 | 2916392 | 913767 | 31747 | 4125184 |
| **Costs and expenses:** |  |  |  |  |  |
| Rental operating costs | 100568 | 1618365 | 48157 | (154448) | 1612642 |
| General and administrative |  | 16850 | 229961 | 1415167 | 1661978 |
| Depreciation and amortization | 31689 | 999169 | 212012 | 1234 | 1244104 |
| Impairment of goodwill and real estate assets |  |  | 26943 |  | 26943 |
| Total costs and expenses | 132257 | 2634384 | 517073 | 1261953 | 4545667 |
| **Other income (expense):** |  |  |  |  |  |
| Interest expense - mortgage notes | (158097) | (891330) | (459710) | (1333) | (1510470) |
| Interest and other income, net |  |  | 8 | 5141 | 5149 |
| Net gain in Conduit Pharmaceuticals marketable securities (see footnote 9) |  |  |  | (176658) | (176658) |
| Gain on sales of real estate, net | 4213068 |  | 240900 |  | 4453968 |
| Income tax (expense) benefit |  |  | (22171) | 47580 | 25409 |
| Total other income (expense), net | 4054971 | (891330) | (240973) | (125270) | 2797398 |
| **Net income (loss)** | 4185992 | (609322) | 155721 | (1355476) | 2376915 |
| Less: Income attributable to noncontrolling interests |  | (17959) | (93604) |  | (111563) |
| **Net income (loss) attributable to Presidio Property Trust, Inc. stockholders** | $4185992 | $(627281) | $62117 | $(1355476) | $2265352 |

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Since a significant portion of the total operating expense for Retail and Office/Industrial are recouped as part of recovery revenue, the CODM looks at NOI as a whole when reviewing the segments. For the Model Home segment, the properties are leased on a triple net basis and the tenants are responsible for a significant portion of the operating expenses. Therefore, the CODM focuses on Model Home revenue, any impairments and the gain on sale of model homes.

The CODM reviews on a regular basis the GAAP performance of each segment, including the significant segment expenses reported for GAAP shown in the table below. Our significant segment expenses include consolidated expense categories presented in our consolidated statements of operations, as well as rental operating costs. This information is provided to the CODM and factors into the CODM's decision making for company-wide strategy. The following tables compare the Company's segment activity and to its results of GAAP operations and financial position for the *three* months ended *March 31, 2026* and *2025*, respectively. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is *not* considered a reportable segment as noted above.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** | ***For the Three Months Ended March 31, 2026*** |
|  | ***Retail*** | ***Office/Industrial*** | ***Model Homes*** | ***Corporate and Other*** | ***Total*** |
| Rental revenue | $93574 | $2234494 | $919890 | $— | $3247958 |
| Recovery revenue |  | 436086 |  |  | 436086 |
| Other operating revenue |  | 82800 | 5534 | 422 | 88756 |
| Total revenues | 93574 | 2753380 | 925424 | 422 | 3772800 |
| Rental operating costs | 4832 | 1630837 | 48877 | (140105) | 1544441 |
| Net Operating Income (NOI) | 88742 | 1122543 | 876547 | 140527 | 2228359 |
| Gain on Sale - Model Homes | *—* | *—* | 172096 | *—* | 172096 |
| Impairment of Model Homes | *—* | *—* | (75639) | *—* | (75639) |
| Adjusted NOI | $88742 | $1122543 | $973004 | $140527 | $2324816 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31, 2025** | **For the Three Months Ended March 31, 2025** | **For the Three Months Ended March 31, 2025** | **For the Three Months Ended March 31, 2025** | **For the Three Months Ended March 31, 2025** |
|  | **Retail** | **Office/Industrial** | **Model Homes** | **Corporate and Other** | **Total** |
| Rental revenue | $206439 | $2467551 | $915521 | $— | $3589511 |
| Recovery revenue | 56439 | 386479 |  |  | 442918 |
| Other operating revenue | 400 | 62362 | (1754) | 31747 | 92755 |
| Total revenues | 263278 | 2916392 | 913767 | 31747 | 4125184 |
| Rental operating costs | 100568 | 1618365 | 48157 | (154448) | 1612642 |
| Net Operating Income (NOI) | 162710 | 1298027 | 865610 | 186195 | 2512542 |
| Gain on Sale - Model Home | *—* | *—* | 240899 | *—* | 240899 |
| Impairment of Model Homes | *—* | *—* | (26943) | *—* | (26943) |
| Adjusted NOI | $162710 | $1298027 | $1079566 | $186195 | $2726498 |

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| | | |
|:---|:---|:---|
|  | ***March 31,*** | ***December 31,*** |
| **Assets by Reportable Segment:** | ***2026*** | ***2025*** |
| **Office/Industrial Properties:** |  |  |
| Land, buildings and improvements, net (1) | $61748416 | $67445290 |
| Total assets (2) | $69016593 | $68980087 |
| **Model Home Properties:** |  |  |
| Land, buildings and improvements, net (1) | $34253639 | $36688462 |
| Total assets (2) | $34519643 | $37301777 |
| **Retail Properties:** |  |  |
| Land, buildings and improvements, net (1) | $4485923 | $4508851 |
| Total assets (2) | $4652651 | $4669852 |
| **Reconciliation to Total Assets:** |  |  |
| Total assets for reportable segments | $108188887 | $110951716 |
| Corporate and other assets: |  |  |
| Cash, cash equivalents and restricted cash | 116685 | 173621 |
| Other assets, net | 2941203 | 10927537 |
| Total Assets | $111246775 | $122052874 |

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(*1*) Includes lease intangibles.

(*2*) Includes land, buildings and improvements, cash, cash equivalents, and restricted cash, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis.

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| | | |
|:---|:---|:---|
|  | ***For the Three Months Ended March 31,*** | ***For the Three Months Ended March 31,*** |
| **Capital Expenditures by Reportable Segment** | ***2026*** | ***2025*** |
| **Office/Industrial Properties:** |  |  |
| Capital expenditures and tenant improvements, office | $66807 | $360708 |
| **Model Home Properties:** |  |  |
| Acquisition of operating properties, model home |  | 4270192 |
| **Retail Properties:** |  |  |
| Acquisition of operating properties |  |  |
| Capital expenditures and tenant improvements, retail |  |  |
| **Totals:** |  |  |
| Acquisition of operating properties, net |  | 4270192 |
| Capital expenditures and tenant improvements | 66807 | 360708 |
| Total real estate investments | $66807 | $4630900 |

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***14.* INCOME TAX PROVISION**

We have elected to be taxed as a REIT under the Internal Revenue Code of *1986,* as amended, commencing with the taxable year ended *December 31, 2000.* As a REIT, U.S. federal income tax law generally requires us to distribute annually at least *90%* of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that we pay tax at regular corporate rates to the extent that we annually distribute less than *100%* of our net taxable income. We are also subject to U.S. federal, state and local income taxes on our domestic taxable REIT subsidiaries ("TRS") based on the tax jurisdictions in which they operate.

During the *three* months ended *March 31, 2026* and *2025*, we recorded a current income tax provision(benefit) of $18,057 and $(25,409) related to activities of our taxable REIT subsidiaries. There was a $223,388 income tax asset related to the operating activities of our TRS entities as of *March 31, 2026* and *December 31, 2025*, respectively.

We have calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the projected full fiscal year to the TRS pretax income or loss excluding unusual or infrequently occurring discrete items for the reporting period, and have accounted for the REIT's minimum state income taxes as a discrete item in the reporting period.

In *December 2023,* the FASB issued ASU *2023*-*09* "Improvements to Income Tax Disclosures" ("ASU *2023*-*09"*). ASU *2023*-*09* intends to improve the transparency of income tax disclosures. ASU *2023*-*09* is effective for fiscal years beginning after *December 15, 2024* and is to be adopted on a prospective basis with the option to apply retrospectively. The Company adopted the disclosures on a prospective basis which did *not* create a material impact to our consolidated financial statements.

***15.* RELATED PARTY**

During the *three* months ended *March 31, 2026* and *three* months ended *March 31, 2025*, the Company leased portions of its corporate headquarters to Puppy Toes, Inc., a company owned by the Chief Executive Officer and his wife, and to Centurion Counsel, Inc., which is owned by Puppy Toes, Inc. Rent billed to these entities from the Company totaled $3,479 and $3,378 for *three* months ended *March 31, 2026* and *2025*, respectively.

Additionally, we received full payroll reimbursement for employee services provided to Centurion Counsel, Inc. and Puppy Toes, Inc. during the *three* months ended *March 31, 2026* and *2025*, which totaled approximately $3,944 and $23,640 respectively. These reimbursements were at cost and were *not* marked up or discounted. As of *March 31, 2026* and *December 31, 2025*, we had reimbursement receivable balances of approximately $1,163 and $1,524 which were paid in full during *January 2025* and *January 2026,* respectively.

For the *three* months ended *March 31, 2026* and *2025*, the Company paid a family member of the Board of Directors $20,403 and $16,280, respectively. For the *three* months ended *March 31, 2026*, these payments were a combination of consulting payments totaling $12,500, and distributions and return of capital in his trust's investments in Dubose Model Home Investors *#203,* LP, Dubose Model Home Investors *#204,* LP, Dubose Model Home Investors *#205,* LP, Dubose Model Home Investors *#206,* LP and Dubose Model Home Investors *#207,* LP, totaling $7,903. For the *three* months ended *March 31, 2025*, these payments were a combination of consulting payments totaling $12,500, and distributions and return of capital in his trust's investments in Dubose Model Home Investors *#205,* LP, and Dubose Model Home Investors *#207,* LP, totaling $3,780. We also recognized payments made to the Company's Chief Executive Officer, for his investment in Dubose Model Home Investors *#207,* LP. These payments were a combination of distributions and capital returns from *DMH#207* LP. For the *three* months ended *March 31, 2026* and *2025*, the payments were $370 and $390, respectively.

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***16.* SUBSEQUENT EVENTS**

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date the financial statements were issued. Based upon this review, except as disclosed below, the Company did *not* identify any subsequent events that would have required adjustment or disclosure in the financial statements other than those disclosed below.

As of *April 24, 2026,* the Company amended its agreement with Origin Bank (the lender) through its partnership with Dubose Model Home Investors *#207,* LP. The terms of the new amendment decrease the floor interest rate by 1.5 percentage points from its original value while requiring that the Company and *DMH#207* LP maintain liquid assets of $200,000 on a quarterly basis, starting *March 31, 2026.* 

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto appearing in Item 1 of this report and the more detailed information contained in our 2025 year end Annual Report .*

We may refer to the three months ended March 31, 2026 and March 31, 2025, as the "2026 Quarter" and the "2025 Quarter," respectively.

**Forward-Looking Statements**

This Form 10-Q contains forward-looking statements which involve risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" and/or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and also of which do not relate solely to historical matters. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Moreover, investors are cautioned to interpret many of the risks identified in the risk factors discussed in this 10-Q and our 2025 year end Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 27, 2026. Additional factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements include, but are not limited to, the risks associated with the ownership of real estate in general and our real estate assets in particular; the economic health of the metro regions where we conduct business; the risk of failure to enter into/and or complete contemplated acquisitions and dispositions, within the price ranges anticipated and on the terms and timing anticipated; changes in the composition of our portfolio; fluctuations in interest rates; reductions in or actual or threatened changes to the timing of federal government spending; the risks related to the use of third-party providers and joint venture partners; the ability to control our operating expenses; the economic health of our tenants; the supply of competing properties; shifts away from brick and mortar stores to e-commerce; the availability and terms of financing and capital and the general volatility of securities markets; compliance with applicable laws, including those concerning the environment and access by persons with disabilities; terrorist attacks or actions and/or risks relating to information technology and cybersecurity attacks, loss of confidential information and other related business disruptions; weather conditions, natural disasters and pandemics; ability to maintain key personnel; failure to qualify and maintain our qualification as a REIT and the risks of changes in laws affecting REITs; and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2025 year end Annual Report. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We undertake no obligation to update our forward-looking statements or risk factors to reflect new information, future events, or otherwise.

**OVERVIEW**

The Company operates as an internally managed, diversified REIT, with primary holdings in office, industrial, retail, and triple-net leased model home properties. In October 2017, we changed our name from "NetREIT, Inc." to "Presidio Property Trust, Inc." The Company acquires, owns, and manages a geographically diversified portfolio of real estate assets, including office, industrial, retail and model home residential properties leased to homebuilders located in the United States. As of March 31, 2026, the Company owned or had an equity interest in:

• Seven office buildings and one industrial property ("Office/Industrial Properties"), which total approximately 638,620 rentable square feet;

• One retail building ("Retail Property") with approximately 10,500 rentable square feet; and

• 75 model home residential properties ("Model Homes" or "Model Home Properties"), totaling approximately 223,260 square feet, leased back on a triple-net basis to homebuilders that are owned by four affiliated limited partnerships and one wholly-owned corporation, all of which we control.

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We own three commercial properties located in Colorado, three in North Dakota, one in Southern California, one in Texas and one in Maryland. Our model home properties are located in four states. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas. We do not develop properties but acquire properties that are stabilized or that we anticipate will be stabilized within two or three years of acquisition. We consider a property to be stabilized once it has achieved an 80% occupancy rate for a full year as of January 1 of such year or has been operating for three years.

Most of our office and retail properties are leased to a variety of tenants ranging from small businesses to large public companies, many of which are not investment grade. We have, in the past, entered into, and intend in the future to enter into, purchase agreements for real estate having net leases that require the tenant to pay all of the operating expenses or pay increases in operating expenses over specific base years. Most of our office leases are for terms of three to five years with annual rental increases. Our model homes are typically leased back for two to three years to the home builder on a triple-net lease. Under a triple-net lease, the tenant is required to pay all operating, maintenance and insurance costs and real estate taxes with respect to the leased property.

We seek to diversify our portfolio by commercial real estate segments, including office, industrial, retail and model home properties to reduce the adverse effect of a single under-performing segment and/or tenant. We further mitigate risk at the tenant level through our credit review process, which varies by tenant class. For example, our commercial and industrial tenants tend to be corporations or individually owned businesses. In these cases, we typically obtain financial records, including financial statements and tax returns (depending on the circumstance), and run credit reports for any prospective tenant to support our decision to enter into a rental arrangement. We also typically obtain security deposits from these commercial tenants. Our Model Home commercial tenants are well-known homebuilders with established credit histories. These tenants are subjected to financial review and analysis prior to us entering into a sales-leaseback transaction.

In June 2024, the Board of Directors established the Strategic Planning and Cyber Committee (the "Strategic Committee"). The purpose of the Strategic Committee is to: assist the Board in carrying out its responsibilities of oversight over the Company's business strategy, make recommendations to the Board on the Company's strategic direction and objectives and serve as a liaison between the Board and management, and assist the Board in fulfilling its responsibilities of oversight with regard to the Company's identification, assessment, and management of the Company's cybersecurity risks. There can be no assurance that the work of the Strategic Committee will result in any transaction being pursued or consummated. In addition, there is no formal timetable for the Strategic Committee's exploration of potential strategic alternatives, and the Company does not intend to disclose any developments with respect to the Strategic Committee's activities unless and until the Company determines that further disclosure is appropriate or required by law or regulation.

For additional information regarding our Common Stock activity, see Footnote 11. Stockholders' Equity in the Notes to the Consolidated Financial Statements in "Part I, Item 1. Financial Statements" of this Quarterly Report.

**SIGNIFICANT TRANSACTIONS IN 2026 AND 2025**

 ***Acquisitions during the three months ended March 31, 2026***

• The Company acquired no model homes or commercial properties.

 ***Acquisitions during the three months ended March 31, 2025***

• The Company acquired 12 model homes for approximately $4.3 million. The purchase price was paid through cash payments of approximately $3.0 million and mortgage notes of approximately $1.3 million.

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 ***Dispositions during the three months ended March 31, 2026***

• On January 14, 2026, the Company sold one commercial property, Dakota Center, to a single buyer for approximately $4.7 million, net of selling costs, and recognized a net gain on the disposition of the assets and liabilities of approximately $3.4 million.

• The Company sold 5 model homes for approximately $2.3 million, net of sales costs, and recognized a gain of approximately $0.2 million.

 ***Dispositions during the three months ended March 31, 2025***

• On February 6, 2025, the Company sold two commercial properties, Union Town Center and Research Parkway, to a single buyer for approximately $15.9 million, net of selling costs, and recognized a net gain of approximately $4.5 million net of closing costs

• The Company sold 6 model homes for approximately $2.8 million, net of sales costs, and recognized a gain of approximately $0.2 million.

**CRITICAL ACCOUNTING POLICIES**

There have been no material changes to our critical accounting policies as previously disclosed in our 2025 year-end Annual Report.

**MANAGEMENT EVALUATION OF RESULTS OF OPERATIONS**

Management's evaluation of operating results includes an assessment of our ability to generate the cash flow necessary to pay operating expenses, general and administrative expenses, debt service and to fund distributions to our stockholders. As a result, management's assessment of operating results gives less emphasis to the effects of unrealized gains and losses and other non-cash charges, such as depreciation and amortization and impairment charges, which may cause fluctuations in net income for comparable periods but have no impact on cash flows. Management's evaluation of our potential for generating cash flow includes assessments of our recently acquired properties, our non-stabilized properties, long-term sustainability of our real estate portfolio, our future operating cash flow from anticipated acquisitions, and the proceeds from the sales of our real estate assets.

In addition, management evaluates the results of the operations of our portfolio and individual properties with a primary focus on increasing and enhancing the value, quality and quantity of properties in our real estate holdings. Management focuses its efforts on improving underperforming assets through re-leasing efforts, including negotiation of lease renewals and rental rates. Properties are regularly evaluated for potential added value appreciation and cashflow and, if lacking such potential, are sold with the equity reinvested in new acquisitions or otherwise allocated in a manner we believe is accretive to our stockholders. Our ability to increase assets under management is affected by our ability to raise borrowings and/or capital, coupled with our ability to identify appropriate investments.

**RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED March 31, 2026 and 2025**

***Revenues.*** Total revenues were approximately $3.8 million for the three months ended March 31, 2026, compared to approximately $4.1 million for the same period in 2025. As of March 31, 2026, we had approximately $100.5 million in net real estate assets including 75 model homes, compared to approximately $117.4 million in net real estate assets, including 84 model homes at March 31, 2025. The average number of model homes held during the three months ended March 31, 2026 and 2025 was approximately 78 and 81, respectively. The change in revenue is directly related to the decrease in commercial real estate rental income during the current period from the sale of Dakota Center.

***Rental Operating Costs.*** Rental operating costs totaled approximately $1.5 million for the ****three months ended ****March 31, 2026, ****compared to approximately $1.6 million for the same period in 2025. Rental operating costs as a percentage of total revenue was approximately 35% and 39% for the three months ended March 31, 2026 and 2025, respectively.

***General and Administrative Expenses.*** G&A expenses for the ****three months ended March 31, 2026 and 2025 totaled approximately $1.7 million and $1.7 million, respectively. G&A expenses as a percentage of total revenue was 44.4% and 40.3% for the three months ended March 31, 2026 and 2025, respectively. G&A expenses for the three months ended March 31, 2026 remained constant compared to the same period ending in 2025; however, the Company is actively looking to reduce G&A expenses during the year. There has been a reduction of employee headcount during the first quarter of 2026 with more expected this year. Starting in April 2026, the Chief Executive Officer has agreed to a voluntary 5% reduction in his annual salary. Additionally, the Board of Directors have approved the reduction by one Director starting in June 2026, which will provide additional G&A savings.

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***Depreciation and Amortization.*** Depreciation and amortization expense was approximately $1.0 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in depreciation and amortization expense is directly related to the decrease in commercial real estate rental income during the current period, from the sale of Dakota Center and the placement of Shea Center into receivership and listed as held for sale.

***Asset Impairments***. 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 three months ended March 31, 2026 and 2025, we recognized non-cash impairment charges of approximately $524,373 and $26,943, respectively. Approximately $0.4 million of the impairment charge for the three months ended March 31, 2026 and 2025, was related to the Shea Center II.

***Interest Expense - mortgage notes.*** Interest expense, including amortization of deferred finance charges was approximately $2.1 million for the three months ended March 31, 2026, compared to approximately $1.5 million for the same period in 2025. The weighted average interest rate on our outstanding debt was 6.29% and 5.83% as of March 31, 2026 and 2025, respectively. Mortgage notes payable totaled approximately $82.4 million and $94.4 million as of March 31, 2026 and 2025, respectively. While mortgage interest expenses increased over the three months ended March 31, 2026 and 2025, approximately $0.7 million of the interest expense attributed to the three months ended March 31, 2026 was related to one-time charge for the default interest on the loan for Dakota Center. Management expects future interest expenses to continue to decrease going forward for the year ended 2026. Additionally, during the three months ended March 31, 2026, we recorded defaulted interest expense of approximately $0.1 million related to the Shea Center II loan.

***Gain (Loss) on Sale of Real Estate Assets, net.*** The change in gain or loss on the sale of real estate assets is dependent on the mix of properties sold and the market conditions at the time of the sale. See "Significant Transactions in 2026 and 2025" above for further detail.

***Income allocated to non-controlling interests.*** Income allocated to non-controlling interests for the three months ended March 31, 2026 and 2025 totaled approximately $0.1 million and $0.1 million, respectively. This was directly related to the gain on sales of model homes held by our affiliated limited partnerships.

***Loss on Conduit remeasurement***. As of March 31, 2026, we held 709,000 public common stock warrants of CDTTW, and 540,000 private common stock warrants, with a combined value of approximately $5,885. Conduit's public common stock warrants (CDTTW) and Private CDT Warrants presented on the consolidated balance sheets were measured at fair value using Level 1 and Level 3 market prices, taking into account the adoption of ASU 2022-03 *Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.*

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| | | |
|:---|:---|:---|
|  | **% of Gross Revenue for the three months ended March 31,** | **% of Gross Revenue for the three months ended March 31,** |
| **Segment** | **2026** | **2025** |
| Office/Industrial | 73.0% | 70.6% |
| Model Home | 24.5% | 22.2% |
| Retail | 2.5% | 6.4% |
| Other Non-Segment & Consolidating Items | 0.0% | 0.8% |

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| | | |
|:---|:---|:---|
|  | **% of Total Real Estate Assets as of** | **% of Total Real Estate Assets as of** |
| **Segment** | **March 31, 2026** | **December 31, 2025** |
| Office/Industrial | 61.4% | 62.1% |
| Model Home | 34.1% | 33.8% |
| Retail | 4.5% | 4.1% |

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The following table shows a list of our commercial properties owned by the Company grouped by state and geographic region as of March 31, 2026:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **State** | **No. of Properties** | **Aggregate Square Feet** | **Approximate % of Square Feet** | **Current Base Annual Rent** | **Approximate % of Aggregate Annual Rent** |
| California | 1 | 57807 | 8.9% | $1362123 | 14.4% |
| Colorado | 3 | 269502 | 41.5% | 4286922 | 45.3% |
| Maryland | 1 | 31752 | 4.9% | 753721 | 8.0% |
| North Dakota | 3 | 279559 | 43.1% | 2696307 | 28.5% |
| Texas | 1 | 10500 | 1.6% | 356537 | 3.8% |
| Total | 9 | 649120 | 100.0% | $9455610 | 100.0% |

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The following table shows a list of our Model Home properties by state and geographic region as of March 31, 2026:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **State** | **No. of Properties** | **Aggregate Square Feet** | **Approximate % of Square Feet** | **Current Base Annual Rent** | **Approximate of Aggregate % Annual Rent** |
| Alabama | 10 | 23835 | 10.7% | $61032 | 1.9% |
| Arizona | 1 | 3474 | 1.5% | $41508 | 1.2% |
| Tennessee | 2 | 5534 | 2.5% | $2271504 | 69.3% |
| Texas | 62 | 190417 | 85.3% | $903900 | 27.6% |
| Total | 75 | 223260 | 100.0% | $3277944 | 100.0% |

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**LIQUIDITY AND CAPITAL RESOURCES**

***Overview***

Our anticipated future sources of liquidity may include existing cash and cash equivalents, cash flows from operations, refinancing of existing mortgages, future real estate sales, new borrowings from our model home lines of credit, and the sale of our equity or issuance of debt securities or bonds. Our cash and restricted cash at March 31, 2026 was approximately $5.2 million. Our future capital needs include paying down existing borrowings, maintaining our existing properties, funding tenant improvements, paying lease commissions (to the extent they are not covered by lender-held reserve deposits), and the payment of dividends to our stockholders. We also are actively seeking model home investments that are likely to produce income and achieve long-term gains in order to pay dividends to our stockholders. To ensure that we can effectively execute these objectives, we routinely review our liquidity requirements and continually evaluate all potential sources of liquidity.

Our short-term liquidity needs include paying our current operating costs, satisfying the debt service requirements of our existing mortgages, completing tenant improvements, paying leasing commissions, and funding dividends to stockholders. Future principal payments due on mortgage notes payable, during the last three months of 2026 and in the year ending December 31, 2026 total approximately $20.4 million and $2.4 million, respectively, of which $3.8 million in 2025 and $2.0 million in 2026 are related to model home properties. The non-recourse loan for Shea Center matured on January 5, 2026. On January 14, 2026 the Dakota Center property sold to an unrelated third-party for approximately $4.7 million, net of selling costs. The lender received approximately $4.3 million from the sale of the property, which was applied to settle the net loan balance of approximately $8.9 million. The Company was not responsible for the remaining balance on this non-recourse loan, and the transaction resulted in a net gain of approximately $3.4 million. No other commercial property loans mature during 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On January 21, 2026, the Company and NetREIT SC II, LLC, a subsidiary of the Company (the "Borrower" or "Shea Center"), received a notice (the "Default Notice") from Wells Fargo Bank, National Association (the "Lender") alleging that the Borrower's failure to repay in full by January 5, 2026 the indebtedness owed under that certain promissory note dated as of December 24, 2015 issued to The Bancorp Bank (the "Original Lender") in the original principal amount of $17,727,500 (the "Note"), the related loan agreement, dated as of December 24, 2015 by and between Borrower and the Original Lender (the "Loan Agreement") and other related agreements (together with the Note and the Loan Agreement, the "Loan Documents"), constituted an event of default under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As a result of the alleged event of default, the entire unpaid amounts shall bear interest at the default interest rate equal to the lesser of (i) the maximum rate permitted by applicable law, or (ii) 5% above the original interest rate of 4.92% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition, the Lender has the right to foreclose or partially foreclose certain real and personal property that the Borrower had pledged as security for the Note located in Douglas County, Colorado, known as the "Shea Center II" (the "Property"). The Default Notice further states that the Lender revoked the Borrower's license under the Loan Documents to receive, collect and make use of rents, profits and income from the Property.

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On February 13, 2026, in connection with an *ex parte* motion brought by the Lender, the Borrower entered into a stipulation with the Lender to appoint Trigild IVL (the "Receiver") as receiver over the Property and for the entry of an Order for Appointment of Receiver (the "Order"). Pursuant to the Order, the Borrower, and certain defendant parties, which included the Company (the "Borrower Parties") were enjoined and restrained from collecting any rents or fees from or incident to the Property and from interfering with the Property. The Borrower Parties agreed to turn over to the Receiver all sums in existence as of the date of entry of the Order that are related or pertain to, or are derived from, the Property. In addition, the Receiver was given possession of the Property and has full power and authority to operate, manage, and preserve the Property.

In the case of our non-recourse loan for Shea Center II, our obligation will be settled through the foreclosure process with the lender.

While we will continue to pursue value creating investments, the Board of Directors believes there is significant embedded value in our assets that is yet to be realized by the market. In December 2024, the Board of Directors authorized a stock repurchase program of up to $6.0 million of outstanding shares of our Series A Common Stock and up to $4.0 million of our Series D Preferred Stock, which the Board of Directors did not renew in December 2025. During the year ended December 31, 2025, we repurchased 16,080 shares of our Series A Common Stock, with an average price of $4.79 per share, including a commission of $0.025 per share, for a total cost of $77,092 for the Series A Common Stock. This does not include the shares repurchased in the fixed price self-tender offer (the "Tender Offer") during April-May 2025. During the year ended December 31, 2025, the Company repurchased 23,346 shares of our Series D Preferred Stock at an average price of approximately $14.76 per share, including a commission of $0.035 per share, for a total cost of $344,503 for the Series D Preferred Stock. Any repurchased shares are treated as authorized and unissued in accordance with Maryland law and shown as a reduction of stockholders' equity at cost. There were no repurchases of Series A Common Stock or Series D Preferred Stock during three months ended March 31, 2026 as there were no repurchase plans in place.

There can be no assurance that the Company will refinance loans, take out additional financing or that capital will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does not obtain additional funding, it will most likely be required to reduce its plans, reduce certain discretionary spending or even sell properties, which could have a material adverse effect on the Company's ability to achieve its intended business objectives. We believe that cash on hand, cash flow from our existing portfolio, distributions from joint ventures in Model Home Partnerships and property sales during 2025 and 2026 will be sufficient to fund our operating costs, planned capital expenditures and required dividends for at least the next twelve months. If our cash flow from operating activities is not sufficient to fund our short-term liquidity needs, we plan to fund a portion of these needs from additional borrowings of secured or unsecured indebtedness, from real estate sales, issuance of debt instruments, additional investors, or we may reduce or suspend the rate of dividends to our stockholders.

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Our long-term liquidity needs include the capital necessary to grow and maintain our portfolio of investments. We believe that the potential financing capital available to us in the future is sufficient to fund our long-term liquidity needs. We are continually reviewing our existing portfolio to determine which properties have met our short- and long-term goals and while seeking to reinvest the proceeds in properties with better potential to increase performance. We expect to obtain additional cash in connection with refinancing of maturing mortgages and assumption of existing debt collateralized by some or all of our real property in the future to meet our long-term liquidity needs. If we are unable to arrange a line of credit, borrow on properties, privately place securities or sell securities to the public, we may not be able to acquire additional properties to meet our long-term objectives.

For the three months ended March 31, 2026, the Company did not declare a cash dividend on shares of Series A Common Stock. For the three months ended March 31, 2026, the Company did not declare and did not pay dividends on shares of Series D Preferred Stock. As of January 28, 2026, the Board of Directors has suspended the Company's monthly dividend on its Series D Preferred Stock commencing with the January 2026 monthly dividend that would have been paid on February 15, 2026. Since the Company's Board of Directors did not declare a dividend during the three months ended March 31, 2026, an accrual was not recorded on the balance sheet. However, undeclared preferred stock dividends are reflected in earnings per share as discussed in ASC 260-10-45-11. In accordance with the terms of the Series D Preferred Stock, Preferred stock dividends that are not declared accumulate and are added to the liquidation preference as of the scheduled payment date for the respective series of the preferred stock. No interest, or sum of money in lieu of interest, is payable in respect of any dividend payments on the Series D Preferred Stock that are in arrears. As of March 31, 2026 and December 31, 2025, the cumulative preferred dividends in arrears on the Series D preferred stock was $0.6 million and $0, respectively.

The Board and the Company intend to reassess, on a quarterly basis, when accrued dividends on the Series D Preferred Stock may be paid and when the monthly dividend payments can be reinstated. Under the guidance of ASC 260-10-45-11, if the Company's Board of Directors do not declare a dividend in a given period, an accrual is not recorded on the balance sheet, however; undeclared preferred stock dividends are reflected in earnings per share. Preferred stock dividends that are not declared accumulate and are added to the liquidation preference as of the scheduled payment date for the respective series of the preferred stock. Cash permitting, the Company intends to continue to pay dividends on a monthly basis to holders of our Series D Preferred Stock going forward, but there can be no guarantee the Board of Directors will approve any future dividends. The Company has not decided when it will resume dividends to our common stockholders on a quarterly basis. As of March 31, 2026 and December 31, 2025, the cumulative preferred dividends in arrears on the Series D preferred stock was $0.6 million and $0, respectively.

*Series D Preferred Stock:*

 

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| | | |
|:---|:---|:---|
| **Month** | **2026** | **2025** |
|  | **Distributions Declared** | **Distributions Declared** |
| January | $— | $0.19531 |
| February |  | 0.19531 |
| March |  | 0.19531 |
| Total | $— | $0.58593 |

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***Cash Equivalents and Restricted Cash***

At March 31, 2026 and December 31, 2025, we had approximately $5.2 million and $7.4 million in cash equivalents, respectively, including $3.6 million and $5.7 million of restricted cash, respectively. Our cash equivalents and restricted cash consist of invested cash, cash in our operating accounts, short-term bonds and cash held in bank accounts at third-party institutions. During 2026 and 2025, we did not experience any loss or lack of access to our cash or cash equivalents. Including any cash committed to current capital expenditures on our properties, the Company may spend approximately $0.6 million on capital expenditures, net of any construction financing (some of which is held in deposits reserve accounts by our lenders) during the rest of the year. We intend to use the remainder of our existing cash and cash equivalents for asset/property acquisitions, reduction of principal debt, general corporate purposes, common stock repurchases (if market conditions are met), or dividends to our stockholders.

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On July 14, 2025, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with an institutional investor (the "Purchaser") for the purpose of raising approximately $2.05 million in gross proceeds for the Company. Pursuant to the terms of the Purchase Agreement, the Company agreed to sell in a registered direct offering (the "Offering"), (i) 140,000 shares (the "Public Shares") of its Series A Common Stock and (ii) pre-funded warrants to purchase up to 30,830 shares (the "Pre-Funded Warrant Shares") of Series A Common Stock (the "Pre-Funded Warrants"). Each Public Share and accompanying Pre-Funded Warrant were sold together at a combined offering price of $12.00. The Pre-Funded Warrants were immediately exercisable at a nominal exercise price of $0.0001 and were exercised on July 14, 2025 in full.

The closing of the sales of the Securities pursuant to the Purchase Agreement occurred on July 15, 2025. The net proceeds to the Company after deducting the Placement Agent's fees and the Company's offering expenses were approximately $1.7 million. The Company has used and intends to use the net proceeds from the offering for working capital and for other general corporate purposes including to potentially acquire additional properties.

In addition, in connection with the Purchase Agreement, the Company and the Purchaser entered into an Amendment to Series A Common Stock Purchase Warrants (the "Amendment"). The Amendment amends certain warrants to purchase 200,000 shares of Series A Common Stock purchased by the Purchaser on July 14, 2021 to (i) reduce the exercise price to $12.00 per share from $55 per share and (ii) extend the termination date to July 16, 2030 from July 16, 2026. Pursuant to the Stock Purchase Agreement, the Company filed a resale registration statement to register the shares of Series A Common Stock underlying such warrants, which registration statement went effective on August 22, 2025.

 ***Secured Debt***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of March 31, 2026, all our commercial properties, except 300 N.P. which has no debt, had fixed-rate mortgage notes payable in the aggregate principal amount of $58.5 million, collateralized by a total of seven commercial properties with loan terms at issuance ranging from 5 to 10 years. The weighted-average interest rate on these mortgage notes payable as of March 31, 2026, was approximately 5.78%, and our debt to estimated market value for our commercial properties was approximately 72.0%. During the next 12 months, none of our commercial property loans will mature. The non-recourse loan on the Dakota Center property matured on July 6, 2024; during

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 2025, the lender approved a purchase offer from a third party for $5,125,000, and as of January 14, 2026, Dakota Center had sold for a value of $5,125,000. During January 2026, the Company received notice that the Company's failure to repay in full by January 5, 2026 the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. On February 13, 2026 the Company received notification that the Shea Center II property governed by the loan agreement was moved into receivership. The foreclosure sale and public auction is scheduled for June 17, 2026.

As of March 31, 2026, the Company had fixed-rate mortgage notes payable related to model homes in the aggregate principal amount of $23.9 million, collateralized by a total of 75 Model Homes. These loans generally have a term at issuance of three to five years. As of March 31, 2026, the average loan balance per home outstanding and the weighted-average interest rate on these mortgage loans are approximately $323,577 and 7.13%, respectively. Our debt to estimated market value on all our model home properties is approximately 59.0%. We have been able to refinance maturing mortgages to extend maturity dates and we have not experienced any notable difficulties financing our acquisitions. The Company anticipates that any new mortgages used to acquire commercial properties or model homes in the near future will be at rates higher than our currently weighted average interest rate.

***Cash Flow for the three months ended March 31, 2026, and March 31, 2025***

*Operating Activities:* Net cash used in operating activities for the three months ended March 31, 2026, totaled approximately $1.0 million, as compared to cash used in operating activities of $0.1 million for the three months ended March 31, 2025. The change in net cash used in operating activities is primarily due to the sale of Dakota Center, combined with other changes in net income, which fluctuates due to new leases, leasing renewals, tenant move outs and model home sales and acquisitions, as well as changes in non-cash addbacks or subtractions such as straight-line rent, are the primary drivers of the increase in cash used in operating activities.

*Investing Activities:* Net cash provided by investing activities for the three months ended March 31, 2026, was approximately $6.9 million compared to approximately $13.6 million used in investing activities during the same period in 2025. The change from each period was primarily related to the sale of our commercial properties in February 2025 for approximately $4.7 million, net of selling costs, and the sale of model home properties for approximately $7.4 million during the three months ended March 31, 2026. There were no similar commercial property sales during the three months ended March 31, 2025, however, model home sales during the three months ended March 31, 2025 totaled approximately $22.3 million. Cash used in real estate acquisition and capital improvement totaled approximately $0.2 million, for the three months ended March 31, 2026 compared to $4.8 million for the same period in 2025.

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We currently project that we could spend up to $0.6 million (some of which is held in deposits reserve accounts by our lenders) on capital improvements, tenant improvements and leasing costs for properties within our portfolio during the next 12 months. Capital expenditures may fluctuate in any given period subject to the nature, extent, and timing of improvements required to the properties. We may spend more on capital expenditures in the future due to rising construction costs. Tenant improvements and leasing costs may also fluctuate in any given year depending upon factors such as the property, the term of the lease, the type of lease, the involvement of external leasing agents and overall market conditions.

*Financing Activities:* Net cash used in financing activities during the three months ended March 31, 2026, was $8.2 million compared to $9.5 million provided by financing activities for the same period in 2025 and was primarily due to the following activities for the three months ended March 31, 2026:

• Repayment of mortgage notes payable totaled approximately $7.7 million for the three months ended March 31, 2026.

• Distributions to noncontrolling interest of approximately $0.3 million for the three months ended March 31, 2026.

***Off-Balance Sheet Arrangements***

On July 12, 2021, the Company entered into a securities purchase agreement with a single U.S. institutional investor for the purchase and sale of 100,000 shares of its Series A Common Stock, Common Stock Warrants to purchase up to 200,000 shares of Series A Common Stock and Pre-Funded Warrants to purchase up to 200,000 shares of Series A Common Stock. Each share of Common Stock and accompanying Common Stock Warrants were sold together at a combined offering price of $50.00, and each share of Common Stock and accompanying Pre-Funded Warrant were sold together at a combined offering price of $49.90. The Pre-Funded Warrants were exercised in full during August 2021 at a nominal exercise price of $0.10 per share. The Common Stock Warrants had an exercise price of $55.00 per share, exercisable upon issuance and will expire five years from the date of issuance. In July 2025 the exercise price was adjusted to $12.00 per share and the term of the warrants extended to July 16, 2030.

In connection with Series A Common Stock offering in July 2021, we agreed to issue the Placement Agent Warrants to purchase up to 8,000 shares of Series A Common Stock, representing 4.0% of the Series A Common Stock and shares of Series A Common Stock issuable upon exercise of the Pre-Funded Warrants. The Placement Agent Warrants were issued in August 2021, post exercise of the Pre-Funded Warrants with an exercise price of $62.50 and will expire five years from the date of issuance.

*Common Stock Warrants:*

If all the potential Common Stock Warrants outstanding at March 31, 2026, were exercised at the price of $12 per share, gross proceeds to us would be approximately $2.4 million and we would as a result issue an additional 200,000 shares of common stock.

*Placement Agent Warrants:*

If all the potential Placement Agent Warrants outstanding at March 31, 2026, were exercised at the price of $62.50 per share, gross proceeds to us would be approximately $0.5 million and we would as a result issue an additional 8,000 shares of common stock.

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January 14, 2022, was the record date with respect to the distribution of five-year listed warrants (the "Series A Warrants"). The Series A Warrants and the shares of common stock issuable upon the exercise of the Series A Warrants were registered on a registration statement that was filed with the SEC and was declared effective January 21, 2022. The Series A Warrants commenced trading on the Nasdaq Capital Market under the symbol "SQFTW" on January 24, 2022 and were distributed on that date to persons who held shares of common stock and existing outstanding warrants as of the January 14, 2022 record date, or who acquired shares of common stock in the market following the record date, and who continued to hold such shares at the close of trading on January 21, 2022. The Series A Warrants give the holder the right to purchase one share of common stock at $70.00 per share, for a period of five years. Should warrant holders not exercise the Series A Warrants during that holding period, the Series A Warrants will automatically convert to 1/100 of a common share at expiration, rounded down to the nearest number of whole shares.

*Series A Warrants:*

If all the potential Series A Warrants outstanding at March 31, 2026, were exercised at the price of $70.00 per share, gross proceeds to us would be approximately $101.2 million and we would as a result issue an additional 1,445,007 shares of common stock.

***Inflation***

Leases generally provide for limited increases in rent as a result of fixed increases, increases in the consumer price index (typically subject to ceilings), or increases in the clients' sales volumes. We expect that inflation will cause these lease provisions to result in rent increases over time. During times when inflation is greater than increases in rent, as provided for in the leases, rent increases may not keep up with the rate of inflation.

However, our use of net lease agreements tends to reduce our exposure to rising property expenses due to inflation because the client is responsible for property expenses. Inflation and increased costs may have an adverse impact on our clients if increases in their operating expenses exceed increases in revenue.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As a smaller reporting company, we are not required to provide disclosure pursuant to this item.

**ITEM 4. CONTROLS AND PROCEDURES**

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-14(c). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

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***Changes in Internal Control over Financial Reporting***

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II — OTHER INFORMATION**

**Item 1. Legal Proceedings.**

None.

**Item 1A. Risk Factors**

None.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

***Stock Repurchase Program***. While we will continue to pursue value creating investments, the Board of Directors believes there is significant embedded value in our assets that is yet to be realized by the market. Therefore, returning capital to stockholders through a repurchase program is an attractive use of capital currently. In December 2024, the Board of Directors authorized a stock repurchase program of up to $6.0 million of outstanding shares of our Series A Common Stock and up to $4.0 million of our Series D Preferred Stock, which the Board of Directors did not renew in December 2025. During the year ended December 31, 2025, we repurchased 16,080 shares of our Series A Common Stock, with an average price of $4.79 per share, including a commission of $0.025 per share, for a total cost of $77,092 for the Series A Common Stock. This does not include the shares repurchased in the fixed price self-tender offer (the "Tender Offer") during April-May 2025. During the year ended December 31, 2025, the Company repurchased 23,346 shares of our Series D Preferred Stock at an average price of approximately $14.76 per share, including a commission of $0.035 per share, for a total cost of $344,503 for the Series D Preferred Stock. Any repurchased shares are treated as authorized and unissued in accordance with Maryland law and shown as a reduction of stockholders' equity at cost. There were no repurchases of Series A Common Stock or Series D Preferred Stock during three months ended March 31, 2026 as there were no repurchase plans in place.

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**Item 3. Defaults Upon Senior Securities.**

During January 2026, the Company received notice that the Company's failure to repay in full by January 5, 2026 the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. On February 13, 2026, the Company received notification that the Shea Center II property governed by the non-recourse loan agreement was moved into receivership and the lender has started the foreclosure process. The foreclosure sale and public auction is scheduled for June 17, 2026. The lender holds approximately $2.4 million in restricted cash, some of which is being utilized by the receiver to operate the property. Additionally, during the three months ended March 31, 2026 and 2025, Shea Center II was listed as held for sale, related to the foreclosure sale and impaired approximately $0.4 million.

As of January 28, 2026, the Board of Directors has suspended the Company's monthly dividend on its Series D Preferred Stock commencing with the January 2026 monthly dividend that would have been paid on February 15, 2026. Since the Company's Board of Directors did not declare a dividend during the three months ended March 31, 2026, an accrual was not recorded on the balance sheet. However, undeclared preferred stock dividends are reflected in earnings per share as discussed in ASC 260-10-45-11. In accordance with the terms of the Series D Preferred Stock, Preferred stock dividends that are not declared accumulate and are added to the liquidation preference as of the scheduled payment date for the respective series of the preferred stock. No interest, or sum of money in lieu of interest, is payable in respect of any dividend payments on the Series D Preferred Stock that are in arrears. As of March 31, 2026 and December 31, 2025, the cumulative preferred dividends in arrears on the Series D preferred stock was $0.6 million and $0, respectively.

The Board and the Company intend to reassess, on a quarterly basis, when accrued dividends on the Series D Preferred Stock may be paid and when the monthly dividend payments can be reinstated. The Company has not decided when it will resume dividends to our common stockholders on a quarterly basis. As of the date of filing this quarterly report, $0.8 million in dividends are in arrears.

**Item 4. Mine Safety Disclosures**

None.

**Item *5.* Other Information.**

During the *three* months ended *March 31, 2026*, no director or officer of the Company adopted or terminated a "Rule *10b5*-*1* trading arrangement" or "non-Rule *10b5*-*1* trading arrangement," as each term is defined in Item *408*(a) of Regulation S-K.

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**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description** |
| 31.1 | [Certificate of the Company's Chief Executive Officer (Principal Executive Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's Quarterly Report on Form 10-Q for the three months ended March 31, 2026.](ex_941634.htm) |
| 31.2 | [Certification of the Company's Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's Quarterly Report on Form 10-Q for the three months ended March 31, 2026.](ex_941635.htm) |
| 32.1 | [Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_941636.htm) |

---

---

| | |
|:---|:---|
| 101.INS | Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | Presidio Property Trust, Inc. | Presidio Property Trust, Inc. |
|  | By: | */s/ Jack K. Heilbron* |
|  | Name: | Jack K. Heilbron |
|  | Title: | Chief Executive Officer |
|  | By: | */s/ Ed Bentzen* |
|  | Name: | Ed Bentzen |
|  | Title: | Chief Financial Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46

## Exhibit 31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY

ACT OF 2002

I, Jack K. Heilbron, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Presidio Property Trust, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has material affected, or is reasonably likely to materially effect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | By: | */s/ Jack K. Heilbron* |
|  |  | Jack K. Heilbron,<br> Chief Executive Officer |
|  |  | *(Principal Executive Officer)* |

---

## Exhibit 31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL

OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Ed Bentzen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Presidio Property Trust, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has material affected, or is reasonably likely to materially effect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | By: | /s/ *Ed Bentzen* |
|  |  | Ed Bentzen, |
|  |  | Chief Financial Officer |
|  |  | *(Principal Financial Officer)* |

---

## Exhibit 32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Presidio Property Trust, Inc (the "Company") on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, in their capacities as CEO and CFO, respectively, of the Company that, to the best of their knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | By: | */s/ Jack K. Heilbron* |
|  |  | Jack K. Heilbron<br> Chief Executive Officer<br> *(Principal Executive Officer)* |
| Date: May 15, 2026 | By: | */s/ Ed Bentzen* |
|  |  | Ed Bentzen<br> Chief Financial Officer<br> *(Principal Financial Officer)* |

---

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.