Presidio Property Trust Announces Closing of $1.74 Million Public Offering of Series D Preferred Stock
Presidio Property Trust (NASDAQ: SQFT) announced the successful closing of a public offering of 109,054 shares of its 9.375% Series D Cumulative Redeemable Perpetual Preferred Stock at $16.00 per share. The offering raised approximately $1.74 million in gross proceeds, before underwriting discounts and expenses. The Benchmark Company, acted as the sole bookrunning manager for this offering. The Series D Preferred Stock offering was registered with the SEC on April 26, 2024, and declared effective on May 17, 2024. Final prospectus supplements are available on the SEC's website or from The Benchmark Company.
- Raised approximately $1.74 million in gross proceeds.
- Successfully registered and declared effective by the SEC.
- Net proceeds will be lower after underwriting discounts and offering expenses.
Insights
Presidio Property Trust has raised
However, it's important to note the **risks associated with preferred stock**. While preferred shares typically have higher yields, they also come with higher risk compared to bonds. In the event of a company liquidation, preferred stockholders are paid after debt holders but before common stockholders. This places them in a middle risk tier. Additionally, the cumulative nature of these preferred shares means that if Presidio misses dividend payments, they must be paid in arrears before any dividends can be paid to common shareholders.
From a **financial health perspective**, raising capital through preferred stock can help improve liquidity without increasing the company’s debt load. But it also indicates a need for cash that could stem from operational or expansionary requirements. Investors should examine why the company opted for this route and assess whether it aligns with their risk tolerance and investment strategy.
The issuance of Series D Preferred Stock by Presidio Property Trust comes at a time of **diverse market conditions**. The **real estate investment trust (REIT) sector** is known for providing steady dividends, which aligns with this new preferred stock offering that promises a 9.375% yield. Yet, the underlying real estate market trends and economic factors should be examined closely.
Considering this offering, investors should think about the **current performance of the real estate market** where Presidio operates. Factors such as property occupancy rates, rental income stability and market demand for different property types (commercial, residential, etc.) are crucial. If the broader market is showing strength, the higher yield could be perceived as less risky. Conversely, if the market is unstable, the attractive dividend might come with heightened risk.
The relatively small size of the offering, **$1.74 million**, suggests it is not transformative for the company but could be part of a broader strategy to bolster its balance sheet or fund specific projects. Investors should consider this in the context of Presidio's overall capital position and strategic plans.
SAN DIEGO, June 24, 2024 (GLOBE NEWSWIRE) -- (NASDAQ: SQFT) Presidio Property Trust, an internally managed, diversified real estate investment trust ("REIT"), today announced the closing of its public offering of 109,054 shares of its
The Benchmark Company, LLC acted as sole bookrunning manager for the offering
A shelf registration statement on Form S-3 and an accompanying prospectus (File No. 333-278960), relating to the shares of Series D Preferred Stock to be issued in the proposed offering was filed with the Securities and Exchange Commission ("SEC") on April 26, 2024 and declared effective by the SEC on May 17, 2024. A preliminary prospectus supplement relating to the proposed offering has been filed with the SEC and is available on the SEC's website at http://www.sec.gov. A final prospectus supplement describing the terms of the proposed offering has been filed with the SEC. Copies of the final prospectus supplement and accompanying base prospectus relating to this offering may be obtained from The Benchmark Company, LLC, 150 East 58th Street, 17th floor, New York, NY 10155, by email at prospectus@benchmarkcompany.com, or by calling +1 (212)-312-6700.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Presidio Property Trust
Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio's model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. 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, including those that have developed as a result of COVID-19. Presidio owns approximately
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 final prospectus relating to the offering and in the Company's other documents filed with the SEC, copies of which are available on the SEC's website, www.sec.gov.
Investor Relations Contacts:
Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: (760) 471-8536 x1244
FAQ
What is the stock symbol for Presidio Property Trust?
How much did Presidio Property Trust raise in the public offering?
What type of stock was issued in this offering?
How many shares were issued in the offering by Presidio Property Trust?
At what price per share was the Series D Preferred Stock offered?
When was the registration statement for the Series D Preferred Stock declared effective by the SEC?
