Presidio Property Trust Provides Update on Model Home Activity in Q3 2024
Presidio Property Trust (NASDAQ: SQFT) has provided an update on its Model Home activity for Q3 2024. The company, through its subsidiaries and affiliates, acquired seven newly constructed single-family model homes in Texas for approximately $4 million. This purchase involved $2.8 million in mortgage notes payable and $1.2 million in cash. These homes are leased back to homebuilders on a triple-net basis.
Additionally, Presidio sold four homes for approximately $2.4 million during the same quarter. These homes were originally purchased between 2019 and 2022 for about $2.1 million. Model homes now represent approximately 30% of Presidio's real estate assets. Steve Hightower, President of the Model Homes Division, emphasized the importance of strong builder relationships during challenging sales cycles.
- Acquisition of 7 new model homes in Texas for $4 million
- Sale of 4 homes for $2.4 million, generating approximately $300,000 in profit
- Model homes now represent 30% of the company's real estate assets
- Strong business partnerships with builder clients
- None.
Insights
The update from Presidio Property Trust reveals a strategic expansion of their model home portfolio in Q3 2024. The acquisition of seven new properties in Texas for
The company's ability to secure
Simultaneously, the sale of four homes for
The emphasis on "solid builder relationships" is crucial, as it may provide Presidio with a competitive edge in sourcing new properties and managing existing ones. Long-term partnerships could lead to preferential deals and more stable occupancy rates, which are vital for REITs focused on this niche market segment.
Presidio's update offers insights into the current state of the model home market and broader real estate trends. The company's continued investment in this sector, despite acknowledging "challenging sales cycles," suggests they see long-term value and potential countercyclical opportunities.
The focus on Texas properties aligns with broader migration trends towards Sun Belt states, which have seen increased housing demand. This geographic concentration could be a strategic move to capitalize on regional growth and potentially higher returns.
The "brisk activity" in resales is noteworthy, as it contrasts with the general slowdown in the housing market due to rising interest rates. This could indicate that Presidio's model home segment is somewhat insulated from broader market fluctuations, possibly due to the specialized nature of these assets and the company's established relationships with builders.
Investors should monitor how this model home strategy performs relative to Presidio's other real estate segments and broader REIT market trends. The
SAN DIEGO, Oct. 17, 2024 (GLOBE NEWSWIRE) -- (NASDAQ: SQFT; SQFTP; SQFTW) Presidio Property Trust, Inc. (“Presidio” or the “Company”), an internally managed, diversified real estate investment trust (“REIT”) announced that in third quarter of 2024, through subsidiary and affiliate entities, it acquired seven newly constructed single-family model home properties located in Texas. These seven homes were purchased for a total of approximately
“We continue to see brisk activity with our resale portfolio. Durning challenging sales cycles, like we have recently seen, its important to have solid builder relationships. We have been fortunate to have strong business partnerships with our builder clients, many of which have lasted decades,” said Steve Hightower, President of the Model Homes Division.
About Presidio Property Trust
Presidio is an internally managed real estate investment trust with holdings in model home properties, which are triple net leased to homebuilders, and office, industrial, and retail properties. Presidio’s model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Presidio’s office, industrial, and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. Presidio also 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 Presidio’s present expectations, but these statements are not guaranteed to occur. Except as required by law, Presidio 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 Presidio’s filings with the SEC, including those under “Risk Factors” therein, 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
This press release was published by a CLEAR® Verified individual.
FAQ
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