Presidio Property Trust Announces Acquisition of Houston Commercial Property

Rhea-AI Summary

Presidio Property Trust has completed an all-cash acquisition of a Kiddie Academy location in Houston, Texas. This strategic purchase aligns with the company’s growth objectives, leveraging non-discretionary spending trends in the area. The asset features a triple-net lease structure, ensuring steady cash flow with annual rent increases over a 15-year period. The recent construction of the property is anticipated to minimize future capital expenditures. The acquisition is expected to enhance Presidio's diversified real estate portfolio, focusing on stability and growth in a robust market.

Positive

• Acquisition of a newly-built Kiddie Academy location enhances stable cash flow.
• Triple-net lease structure ensures steady annual rent increases.
• Alignment with growth strategy by investing in fast-growing Houston.

Negative

• None.

SAN DIEGO, CA / ACCESSWIRE / August 18, 2021 / (NASDAQ:SQFT)(NASDAQ:SQFTP) Presidio Property Trust, Inc. ("Presidio" or the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today announced the closing of a commercial property in Houston, Texas in an all-cash acquisition.

"We are pleased to announce our acquisition of a newly-built franchised Kiddie Academy location in an affluent area of fast-growing Houston. Kiddie Academy is one of the leading childcare franchises in the country. This quality asset, which is driven by non-discretionary spending in a fast-growing city, fits well with our growth strategy," said Jack Heilbron, Chief Executive Officer and President of Presidio.

Gary Katz, Senior Vice President of Asset Management, added, "With a triple-net structure, steady annual rent increases, and credit enhancement over the 15-year lease, we expect to see a steady cash flow from this property. As the property was built this year, we also anticipate a relatively low level of capital expenditures while owning this property."

The property was sold by an affiliate of the Woodmont Company. Presidio was represented by Matt Burnett of Hanley Invest Group

About Presidio Property Trust

Presidio is an internally managed, diversified REIT with holdings in office, industrial, and retail properties, and model home properties which are triple-net leased to homebuilders. Presidio's model homes are leased to homebuilders located primarily in Texas and Florida and its office, industrial and retail properties are located primarily in Colorado, with properties also located in North Dakota and in Southern California. While geographical clustering of real estate enables Presidio to reduce its operating costs through economies of scale by servicing a number of properties with less staff, it makes Presidio susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. For more information on Presidio, please visit the Company's website at https://www.PresidioPT.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could." Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. Except as required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the Company's documents filed with the SEC, copies of which are available on the SEC's website, www.sec.gov.

Investor Relations Contact:

Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: (760) 471-8536 x1244

SOURCE: Presidio Property Trust, Inc.

View source version on accesswire.com:
https://www.accesswire.com/660158/Presidio-Property-Trust-Announces-Acquisition-of-Houston-Commercial-Property

FAQ

What is the significance of Presidio's acquisition of the Kiddie Academy location in Houston?

The acquisition supports Presidio's growth strategy by enhancing its portfolio with a stable asset in a fast-growing market.

What type of lease structure is associated with the Kiddie Academy property?

The property operates under a triple-net lease, which provides steady cash flow and annual rent increases.

When was the acquisition of the Houston commercial property announced?

The acquisition was announced on August 18, 2021.

What is the expected impact of the Kiddie Academy acquisition on Presidio's financial performance?

The acquisition is expected to improve cash flow and reduce capital expenditure due to the property's recent construction.

Which company sold the Kiddie Academy property to Presidio?

The property was sold by an affiliate of the Woodmont Company.