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Presidio Property Trust's Q3 revenue declined to USD 4.2 million, impacted by the sale of two properties earlier this year, while net loss improved to USD 1.9 million from USD 6.6 million last year. Reduced commercial rental income drove the revenue fall, but cost management, including lower bonuses and stock compensation, limited losses. Slightly higher resale activity due to easing mortgage rates exceeded expectations, indicating improving market conditions. The company remains cautiously optimistic about future demand and is evaluating acquisition opportunities to selectively expand its property portfolio.
Presidio Property Trust reported a decline in third-quarter revenue, which fell to USD 4.2 million, primarily affected by the sale of two properties earlier this year. Despite lower revenue, the company improved its net loss to USD 1.9 million, down from USD 6.6 million in the same quarter last year. Advertisement
The revenue drop was mainly driven by reduced commercial real estate rental income following the February property sales. On the expense side, the company managed to control costs, with general and administrative expenses declining due to lower bonus payouts and stock compensation.
Resale activity in the market saw a modest increase as mortgage rates inched lower, surpassing the company's expectations. This development indicates some recovery in property demand, supporting Presidio's optimism about future market conditions.
Looking forward, the company expects demand for commercial properties to strengthen if mortgage rates continue to ease. It is also actively evaluating acquisition opportunities that meet its investment criteria, aiming to expand selectively and enhance its portfolio.
For the third quarter, the company reported earnings per share of negative USD 1.53 and net income of negative USD 1.9 million, slightly differing from consensus estimates, reflecting both challenges and cost management efforts.
Source Reuters
5th Jun, 2025
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