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Presidio Property Trust (SQFT)
NASDAQ:SQFT

Presidio Property Trust (SQFT) AI Stock Analysis

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Presidio Property Trust

(NASDAQ:SQFT)

47Neutral
Presidio Property Trust's overall stock score reflects significant financial challenges, including declining revenues and high leverage, posing substantial risks. While the technical analysis indicates stable momentum, the negative P/E ratio and lack of dividend yield limit the stock's valuation appeal. Recent corporate events, however, show a positive strategic shift towards liquidity improvement, offering a glimmer of hope for recovery.

Presidio Property Trust (SQFT) vs. S&P 500 (SPY)

Presidio Property Trust Business Overview & Revenue Model

Company DescriptionThe Company is an internally managed, diversified REIT (formerly named NetREIT). The Company acquires, owns and manages a geographically diversified portfolio of real estate assets including office, industrial, retail and model home residential properties leased to homebuilders located throughout the United States. As of September 30, 2020, the Company owned or had an equity interest in: 128 Model Homes that are owned by six affiliated limited partnerships and one wholly-owned corporation; Ten office buildings and one industrial property, which totals approximately 998,016 rentable square feet; and Four retail shopping centers, which total approximately 131,722 rentable square feet.
How the Company Makes MoneyPresidio Property Trust generates revenue primarily through the leasing of its commercial properties. The company enters into lease agreements with tenants for its office, industrial, and retail spaces, earning rental income that constitutes the bulk of its revenue. Additionally, the company may engage in property sales, which can contribute to revenue, although such transactions may not occur regularly. Presidio Property Trust also focuses on maintaining high occupancy rates and optimizing lease terms to maximize rental income. The company's earnings are further supported by property management activities, which involve maintaining and enhancing the value of its real estate assets. Strategic partnerships and market conditions, including demand for commercial spaces and interest rate environments, can significantly influence its revenue generation.

Presidio Property Trust Financial Statement Overview

Summary
Presidio Property Trust is facing severe financial challenges, characterized by declining revenues, substantial losses, and negative cash flows. The company's current financial position is precarious, with high leverage and inadequate shareholder returns. These issues indicate potential risks, requiring strategic restructuring and improved financial management to stabilize the company's performance.
Income Statement
The income statement reveals a significant decline in financial performance over the years. The company's total revenue has been decreasing, with a drastic drop in the most recent period. Net income is negative, indicating substantial losses. The gross profit margin is high due to the recent data anomaly, but this does not reflect operational efficiency as the net profit margin is severely negative. The EBIT and EBITDA margins have also deteriorated, highlighting the company's inability to generate profits from operations.
Balance Sheet
40
The balance sheet shows a concerning financial structure with high liabilities and diminishing stockholders' equity over time. The debt-to-equity ratio has improved due to zero debt reported in the latest year, but historical data indicates reliance on debt financing. The equity ratio is low, reflecting a leveraged position, which poses financial risk. Return on equity has been negative in recent periods, further emphasizing the company's struggles to generate shareholder value.
Cash Flow
Cash flow analysis indicates significant challenges, with negative free cash flow and operating cash flow in the latest period. The free cash flow growth rate has been volatile, and cash flow from operations is insufficient to cover the company's needs. The operating cash flow to net income ratio is negative due to losses, highlighting cash management issues. These factors suggest liquidity concerns and potential difficulties in sustaining operations without external financing.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
17.64M17.76M19.23M24.35M28.64M
Gross Profit
11.67M11.92M13.05M15.53M18.23M
EBIT
46.63M2.33M1.42M2.98M5.87M
EBITDA
23.27M7.80M6.82M9.25M19.26M
Net Income Common Stockholders
10.15M1.49M-1.46M-6.26M772.93K
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.51M16.52M14.70M11.54M10.39M
Total Assets
175.96M291.35M161.20M185.57M220.78M
Total Debt
107.73M96.95M88.94M127.63M155.19M
Net Debt
101.22M80.43M74.23M116.09M144.80M
Total Liabilities
114.66M108.10M95.71M135.45M164.16M
Stockholders Equity
50.93M174.24M55.67M34.88M39.18M
Cash FlowFree Cash Flow
1.49M-1.18M777.76K859.04K-2.60M
Operating Cash Flow
1.49M928.82K2.37M3.69M3.79M
Investing Cash Flow
120.31M-126.38M24.20M27.68M11.98M
Financing Cash Flow
-131.81M127.26M-23.42M-30.22M-15.16M

Presidio Property Trust Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.63
Price Trends
50DMA
0.61
Negative
100DMA
0.67
Negative
200DMA
0.67
Negative
Market Momentum
MACD
<0.01
Positive
RSI
40.74
Neutral
STOCH
17.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SQFT, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.61, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SQFT.

Presidio Property Trust Risk Analysis

Presidio Property Trust disclosed 92 risk factors in its most recent earnings report. Presidio Property Trust reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Presidio Property Trust Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MDMDV
66
Neutral
$147.38M75.121.64%7.92%-4.13%82.65%
60
Neutral
$2.81B11.390.21%8508.43%6.31%-14.32%
FVFVR
53
Neutral
$208.49M-0.37%1.81%
47
Neutral
$8.92M-66.17%4.02%10.38%-430.18%
47
Neutral
$20.80M477.780.20%2.09%-3.42%89.29%
42
Neutral
$8.85M-79.15%28.36%27.91%29.34%
39
Underperform
$18.02M-23.71%52.17%38.79%-167.80%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SQFT
Presidio Property Trust
0.59
-0.25
-29.76%
MDRR
Medalist Diversified REIT
11.41
0.73
6.84%
GIPR
Generation Income Properties
1.60
-2.23
-58.22%
MDV
Modiv
14.62
0.82
5.94%
FVR
FrontView REIT, Inc.
11.69
-7.14
-37.92%
MKZR
MacKenzie Realty Capital, Inc.
1.11
1.06
2120.00%

Presidio Property Trust Corporate Events

Executive/Board Changes
Presidio Property Trust Director David Bruen Resigns
Neutral
Apr 16, 2025

On April 10, 2025, David Bruen resigned from his position as a director at Presidio Property Trust, Inc., effective immediately. His resignation was not due to any disagreements with the company’s operations, policies, or practices.

Spark’s Take on SQFT Stock

According to Spark, TipRanks’ AI Analyst, SQFT is a Neutral.

Presidio Property Trust presents a challenging investment opportunity. The company’s financial performance is weak, with declining revenues and negative cash flows. Technical analysis shows mixed signals with no clear momentum. Valuation metrics are concerning, particularly the negative P/E ratio. However, recent corporate events suggest a potential positive shift in strategy with asset sales and focus on new opportunities. Investors should be cautious and consider the high risks associated with the company’s current financial position.

To see Spark’s full report on SQFT stock, click here.

Business Operations and StrategyFinancial Disclosures
Presidio Property Trust Reports 2024 Financial Results
Neutral
Apr 1, 2025

Presidio Property Trust, Inc. reported its financial results for the year ended December 31, 2024, on March 31, 2025. The company saw a net loss of $27.9 million, attributed to increased general and administrative expenses and impairment charges on certain properties. Despite these challenges, Presidio achieved a revenue increase of 7.3% due to strong rent collections, new leases, and model home transactions. The company also acquired 19 model homes and sold 51, generating a gain of $3.4 million. The outlook for 2025 remains positive, with a focus on tenant retention and new acquisition opportunities.

Business Operations and Strategy
Presidio Property Trust Sells Model Homes and Properties
Positive
Feb 24, 2025

In January and February 2025, Presidio Property Trust sold two model homes for approximately $1.04 million and two commercial properties for $16.95 million. The sales reflect a cautious optimism about the recovery of the real estate market in 2025, with potential positive trends in office occupancy rates as companies end remote work programs. The company remains focused on identifying new purchasing opportunities while monitoring lending rates.

M&A Transactions
Presidio Property Trust Sells Colorado Retail Properties
Neutral
Feb 7, 2025

On February 7, 2025, Presidio Property Trust announced the sale of its Union Town Center and Research Parkway properties, which are multi-building retail centers in Colorado Springs, Colorado. The decision to sell was influenced by strong interest from capital markets and the location’s appeal in the growing region of north Colorado Springs. The Denver office of Jones Lang LaSalle Americas, Inc. represented Presidio in the transaction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.