Presidio Property Trust Completes Extension of Line of Credit

Rhea-AI Summary

Presidio Property Trust (NASDAQ: SQFT; SQFTP) announced an amendment to its line of credit, allowing up to $30 million for model home acquisitions. The applicable interest rate is approximately 3.0%. CEO Jack Heilbron emphasized the credit line's importance in navigating real estate market cycles to enhance shareholder value. First Horizon Bank is the sole lender for this facility. Presidio Property Trust is a diversified REIT, primarily investing in office, industrial, and retail properties, along with model homes in Texas and Florida.

Positive

• Access to up to $30 million in funding for model home acquisitions.
• Interest rate set at approximately 3.0%, which is favorable for financing.
• Amendment supports strategic growth in the model home business segment.

Negative

• Dependence on geographic markets, making it vulnerable to local economic fluctuations.
• Potential risks due to ongoing market conditions related to COVID-19.

SAN DIEGO, CA / ACCESSWIRE / August 20, 2021 / (NASDAQ:SQFT; SQFTP) Presidio Property Trust, Inc. ("Presidio" or the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today announced that it has closed on an amendment to its guidance line of credit (as amended, "the facility").

The amendment provides for up to $30 million in funding for model home acquisitions, subject to various lender terms and conditions. The current applicable interest rate is approximately 3.0%.

"We are pleased to have a credit line available, to support property acquisitions in our model home business segment," said Jack Heilbron, President and Chief Executive Officer of Presidio Property Trust. "As residential property markets move through cycles of various levels of supply and demand, this access to funding is an important component of taking advantages of opportunities to create shareholder value," he added.

First Horizon Bank is acting as the sole lender for the facility.

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.

About First Horizon Bank

First Horizon Corp. (NYSE: FHN), with $87.9 billion in assets as of June 30, 2021, is a leading regional financial services company. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, mortgage, and title insurance services. More information is available at www.FirstHorizon.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

View source version on accesswire.com:
https://www.accesswire.com/660651/Presidio-Property-Trust-Completes-Extension-of-Line-of-Credit

FAQ

What is the recent news about Presidio Property Trust's credit facility?

Presidio Property Trust announced an amendment to its line of credit, providing up to $30 million for model home acquisitions.

What is the interest rate for Presidio's amended credit line?

The current applicable interest rate for the amended credit line is approximately 3.0%.

Who is the lender for Presidio Property Trust's credit facility?

First Horizon Bank is acting as the sole lender for Presidio Property Trust's credit facility.

How will the credit facility impact Presidio Property Trust's operations?

The credit facility will enhance Presidio's ability to acquire model homes, supporting growth in its business segment.

What geographical areas does Presidio Property Trust primarily operate in?

Presidio Property Trust's model homes are located mainly in Texas and Florida, with other properties in Colorado, North Dakota, and Southern California.