Presidio Property Trust Announces Sale of World Plaza

Rhea-AI Summary

Presidio Property Trust announced the successful sale of World Plaza, a retail center in San Bernardino, California, completing its strategy to divest retail properties in the state. The property was fully occupied at the time of sale, following extensive renovations that increased its occupancy from 31% in 2018 to 100% in 2019. The company retains its last commercial property in California, Genesis Plaza, which houses its headquarters. Presidio operates a diversified portfolio primarily in Texas and Florida, with an eye on future investments through its SPAC, Murphy Canyon Acquisition Corp.

Positive

• Successful sale of World Plaza enhances liquidity and aligns with divestment strategy.
• Increase in occupancy from 31% to 100% prior to sale demonstrates effective asset management.
• Retains Genesis Plaza, maintaining strategic operational presence in California.

Negative

• None.

SAN DIEGO, CA / ACCESSWIRE / March 21, 2022 / (NASDAQ:SQFT)(NASDAQ:SQFTP) Presidio Property Trust, Inc. ("Presidio" or "Company"), an internally managed, diversified real estate investment trust ("REIT"), today announced the closing last week of the sale of World Plaza, a retail center located in San Bernardino, California.

"This sale completes the execution of our strategy of divesting from retail properties located in the State of California," said Jack Heilbron, President and Chief Executive Officer. "Our last remaining commercial property in California, Genesis Plaza, houses our San Diego headquarters, which we currently have no plans to sell."

"World Plaza is an example of Presidio's skill at repositioning assets," added Gary Katz, Chief Investment Officer. "We did extensive renovations to reposition the property and raised occupancy from 31% at the end of 2018 to 100% in 2019. The property remained fully occupied at the time of sale."

Presidio was represented by Matt Burnett of Hanley Investment Group.

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 primarily in Texas 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 a number of 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 is also the sponsor of the Special Purpose Acquisition Company (SPAC) Murphy Canyon Acquisition Corp. (MURFU), which currently holds approximately $140 million in trust. Murphy Canyon Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The SPAC intends to focus on companies in the real estate industry, including construction, homebuilding, real estate owners and operators, arrangers of financing, insurance, and other services for real estate, and adjacent businesses and technologies targeting the real estate space with an aggregate combined enterprise value of approximately $300 million to $1.2 billion. 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 Contacts:
Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: +1 (866) 781-7721 x244

SOURCE: Presidio Property Trust

View source version on accesswire.com:
https://www.accesswire.com/693443/Presidio-Property-Trust-Announces-Sale-of-World-Plaza

FAQ

What is the significance of the sale of World Plaza for SQFT and SQFTP?

The sale of World Plaza marks a strategic divestiture from California retail properties, enhancing liquidity for Presidio Property Trust.

How did Presidio increase occupancy at World Plaza?

Presidio completed extensive renovations that raised occupancy from 31% in 2018 to 100% in 2019.

What does the sale of World Plaza mean for Presidio's future plans?

The sale aligns with Presidio's strategy to focus on more profitable asset classes and markets, potentially increasing future investment opportunities.

What properties does Presidio own after the sale of World Plaza?

After the sale, Presidio retains Genesis Plaza, its headquarters in California, and holds diversified assets primarily in Texas and Florida.

What is the role of Murphy Canyon Acquisition Corp. for Presidio?

Murphy Canyon Acquisition Corp. is a SPAC sponsored by Presidio, aiming to focus on real estate investments and business combinations in the sector.