Presidio Property Trust Completes Extension of Line of Credit

Rhea-AI Summary

Presidio Property Trust has announced the amendment of its line of credit, extending it until October 12, 2023, which offers up to $30 million for model home acquisitions. The facility, provided by First Horizon Bank, aims to support the company's operations in challenging real estate markets. CEO Jack Heilbron expressed optimism about the model home segment's future and the company's ability to capitalize on market opportunities.

Positive

• Line of credit extended through October 12, 2023.
• Up to $30 million allocated for model home acquisitions.
• CEO expresses optimism about thriving model home business.

Negative

• Dependence on model home segment exposes business to real estate market fluctuations.

SAN DIEGO, CA / ACCESSWIRE / October 14, 2022 / (NASDAQ:SQFT)(NASDAQ:SQFTP)(NASDAQ:SQFTW) 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 extends the facility through October 12, 2023. The facility provides for up to $30 million in funding for model home acquisitions, subject to various lender terms and conditions.

"As real estate and capital markets are increasingly challenging to navigate, we are pleased to have our model home segment's facility renewed," said Jack Heilbron, President and Chief Executive Officer of Presidio Property Trust. "We believe that our model home business will continue to thrive, and look forward to taking advantage of market opportunities," 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 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. (MURF), 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. 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

View source version on accesswire.com:
https://www.accesswire.com/720399/Presidio-Property-Trust-Completes-Extension-of-Line-of-Credit

FAQ

What is the significance of Presidio Property Trust's line of credit extension?

The line of credit extension to October 12, 2023, is significant as it provides Presidio with up to $30 million for model home acquisitions, crucial for sustaining its operations in a challenging real estate market.

How much funding is available under the amended line of credit for Presidio Property Trust?

The amended line of credit provides Presidio Property Trust with up to $30 million for model home acquisitions.

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

First Horizon Bank is the sole lender for Presidio Property Trust's line of credit.

What challenges does Presidio Property Trust face in the real estate market?

Presidio Property Trust faces challenges due to its dependence on the model home segment, making it susceptible to fluctuations in the real estate market.

What does the future hold for Presidio's model home business?

The CEO believes the model home business will continue to thrive, suggesting potential for growth and market opportunities.