Presidio Property Trust Provides Update on Model Home Activity

Rhea-AI Summary

Presidio Property Trust (NASDAQ:SQFT) reported strong performance in January 2021, selling three model homes at an average price of $430,000. Eight additional homes are currently in escrow. The shift to higher-growth states like Florida and Texas marks a strategic transition for the company. Despite selling two homes below their original purchase prices, Presidio achieved overall positive returns, demonstrating resilience in their model home segment. The company continues to manage a diversified portfolio of approximately 120 model home properties across five states.

Positive

• Sold 3 model homes in January 2021, averaging $430,000 each.
• Eight model homes currently in escrow, indicating strong demand.
• Shift towards higher-growth markets like Florida and Texas enhances future growth potential.
• Overall positive returns achieved despite some sales below original purchase prices.

Negative

• Two model homes sold for less than their original purchase price, indicating potential valuation concerns.

SAN DIEGO, CA / ACCESSWIRE / February 17, 2021 / Presidio Property Trust, Inc. (NASDAQ:SQFT), an internally managed, diversified real estate investment trust, announced today that, in January of 2021, through its affiliated entities, it sold 3 model homes, and has eight homes for sale currently in escrow. The average sales price per model home sold was approximately $430,000, and the average holding period was approximately four years.

"2021 started off with another excellent month for our model home segment," said Jack Heilbron, President and Chief Executive Officer. "January's sale of the last model in Pennsylvania completes our model home business' shift to higher-growth states, such as Florida and Texas," said Heilbron.

"We achieved overall positive returns on the three homes sold in January 2021, even though we sold two models for less than their original purchase price," remarked Larry Dubose, President of Dubose Advisors, which manages and operates the purchase leaseback model home business. "The homebuilders' triple-net lease payments over the holding period can help smooth out market fluctuations and can typically provide us with an overall profit in most environments. January's sales demonstrate the strength of the program."

About Presidio Property Trust
Presidio is an internally managed, diversified REIT. We have interests in approximately 120 model home properties located in five states, with the majority located in Texas and Florida, which are leased back to homebuilders on a triple-net basis. Our commercial real estate portfolio consists of approximately 1.1 million square feet comprised of 14 properties: ten office properties, one industrial property and three retail properties. Our commercial portfolio is located in Southern California, Colorado, and North Dakota, and we are currently considering new commercial property acquisitions in a variety of additional markets across the United States. Our commercial property tenant base is diversified, which helps limit our exposure to any single industry in which our tenants operate. This geographical clustering of our real estate portfolio enables us to minimize operating costs and leverage efficiencies by managing a number of properties utilizing minimal overhead and staff. 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 may contain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including Presidio's plans and strategies as described herein. Readers are cautioned that forward-looking statements (which can be identified by words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters) are subject to numerous risks and conditions, many of which are beyond Presidio's control, including those set forth in the "Risk Factors" section of Presidio's registration statement and prospectus filed with the Securities and Exchange Commission (SEC). Copies are available on the SEC's website, www.sec.gov. The statements in this press release represent Presidio's views only as of the date they are made and should not be relied upon as representing Presidio's views as of any subsequent date. Presidio undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

Investor Relations Contacts:
Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: +1-760-471-8536 x1244

TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

MJ Clyburn
+1-917-327-6847
clyburn@tradigitalir.com

SOURCE: Presidio Property Trust

View source version on accesswire.com:
https://www.accesswire.com/630120/Presidio-Property-Trust-Provides-Update-on-Model-Home-Activity

FAQ

What were the sales figures for Presidio Property Trust's model homes in January 2021?

Presidio Property Trust sold three model homes in January 2021 at an average price of approximately $430,000.

How many model homes are currently in escrow for Presidio Property Trust?

Presidio Property Trust currently has eight model homes in escrow.

What strategic shift is Presidio Property Trust making in its model home business?

Presidio Property Trust is shifting its model home business focus to higher-growth states, particularly Florida and Texas.

Did Presidio Property Trust experience any losses in January 2021 sales?

Yes, two model homes were sold for less than their original purchase price, although the overall returns were positive.