Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PRESIDIO PROPERTY TRUST, INC. | |
Entity Central Index Key | 1,080,657 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | SQFT | |
Entity Common Stock Shares Outstanding | 17,667,857 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Real estate assets and lease intangibles: | ||
Land | $ 47,116,093 | $ 45,723,707 |
Buildings and improvements | 184,162,974 | 182,040,843 |
Tenant improvements | 22,755,529 | 21,533,750 |
Lease intangibles | 7,754,781 | 9,096,794 |
Real estate assets and lease intangibles held for investment, cost | 261,789,377 | 258,395,094 |
Accumulated depreciation and amortization | (40,371,894) | (36,208,554) |
Real estate assets and lease intangibles held for investment, net | 221,417,483 | 222,186,540 |
Real estate assets held for sale, net | 17,035,208 | 12,347,404 |
Real estate assets, net | 238,452,691 | 234,533,944 |
Cash equivalents and restricted cash | 12,450,950 | 8,310,575 |
Deferred leasing costs, net | 1,937,874 | 1,892,066 |
Goodwill | 2,423,000 | 2,423,000 |
Other assets, net | 6,016,615 | 7,337,280 |
TOTAL ASSETS | 261,281,130 | 254,496,865 |
Liabilities: | ||
Mortgage notes payable, net | 156,516,517 | 154,452,779 |
Mortgage notes payable related to properties held for sale, net | 14,108,332 | 5,869,958 |
Mortgage notes payable, net | 170,624,849 | 160,322,737 |
Accounts payable and accrued liabilities | 7,680,233 | 7,142,720 |
Accrued real estate taxes | 1,513,928 | 3,013,993 |
Below-market leases, net | 1,267,252 | 1,390,372 |
Total liabilities | 211,709,512 | 202,454,697 |
Commitments and contingencies | ||
Equity: | ||
Additional paid-in capital | 151,121,902 | 151,121,902 |
Dividends and accumulated losses | (117,868,715) | (113,652,763) |
Total stockholders' equity before noncontrolling interest | 33,429,867 | 37,645,819 |
Noncontrolling interest | 16,141,751 | 14,396,349 |
Total equity | 49,571,618 | 52,042,168 |
TOTAL LIABILITIES AND EQUITY | 261,281,130 | 254,496,865 |
Redeemable Convertible Preferred Stock Series B [Member] | ||
Liabilities: | ||
Mandatorily redeemable Series B Preferred Stock, net | 30,623,250 | 30,584,875 |
Common Class A [Member] | ||
Equity: | ||
Common stock series A | $ 176,680 | $ 176,680 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Redeemable Convertible Preferred Stock Series B [Member] | |||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock liquidation preference value (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock shares authorized (in shares) | 35,000 | 35,000 | |
Preferred stock shares issued (in shares) | 30,700 | 30,700 | 35,000 |
Preferred stock shares outstanding (in shares) | 30,700 | 30,700 | |
Common Class A [Member] | |||
Common stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock shares issued (in shares) | 17,667,857 | 17,667,857 | |
Common stock shares outstanding (in shares) | 17,667,857 | 17,667,857 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Rental income | $ 7,843,654 | $ 7,794,585 | $ 15,789,760 | $ 15,809,218 |
Fee and other income | 320,762 | 723,489 | 599,490 | 955,383 |
Total revenue | 8,164,416 | 8,518,074 | 16,389,250 | 16,764,601 |
Costs and expenses: | ||||
Rental operating costs | 2,662,223 | 2,636,063 | 5,312,132 | 5,273,165 |
General and administrative | 1,357,578 | 1,439,820 | 2,692,672 | 2,629,837 |
Depreciation and amortization | 2,265,889 | 2,443,817 | 4,604,933 | 4,947,333 |
Total costs and expenses | 6,285,690 | 6,519,700 | 12,609,737 | 12,850,335 |
Other income (expense): | ||||
Interest expense-Series B preferred stock | (1,105,626) | (1,359,205) | (2,199,314) | (2,764,805) |
Interest expense-mortgage notes | (2,041,553) | (1,952,216) | (4,024,842) | (3,862,812) |
Interest and other income (expenses), net | 12,449 | 5,829 | (5,842) | 15,097 |
Gain on sales of real estate, net | 355,276 | 1,485,589 | 429,489 | 2,027,051 |
Deferred offering costs | (1,507,599) | (1,507,599) | ||
Income tax expense | (88,671) | (13,746) | (119,465) | (108,356) |
Total other expense, net | (4,375,724) | (1,833,749) | (7,427,573) | (4,693,825) |
Net (loss) income | (2,496,998) | 164,625 | (3,648,060) | (779,559) |
Less: Income attributable to noncontrolling interests | (400,762) | (145,313) | (567,892) | (214,828) |
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders | $ (2,897,760) | $ 19,312 | $ (4,215,952) | $ (994,387) |
Basic and diluted loss per common share | $ (0.16) | $ 0 | $ (0.24) | $ (0.06) |
Weighted average number of common shares outstanding - basic and diluted | 17,667,857 | 17,565,158 | 17,564,805 | 17,538,020 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Dividends and Accumulated Losses [Member] | Parent [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2017 | $ 52,042,168 | $ 176,680 | $ 151,121,902 | $ (113,652,763) | $ 37,645,819 | $ 14,396,349 |
Beginning balance (in shares) at Dec. 31, 2017 | 17,667,857 | |||||
Net (loss) income | (3,648,060) | (4,215,952) | (4,215,952) | 567,892 | ||
Contributions from noncontrolling interests, net of distributions paid | 1,177,510 | 1,177,510 | ||||
Ending balance at Jun. 30, 2018 | $ 49,571,618 | $ 176,680 | $ 151,121,902 | $ (117,868,715) | $ 33,429,867 | $ 16,141,751 |
Ending balance (in shares) at Jun. 30, 2018 | 17,667,857 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (3,648,060) | $ (779,559) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,604,933 | 4,947,333 |
Stock compensation | 286,182 | 273,840 |
Bad debt expense | 26,661 | 1,000 |
Gain on sale of real estate assets, net | (429,489) | (2,027,051) |
Amortization of financing costs | 272,989 | 743,291 |
Amortization of above-market leases | 37,401 | 55,663 |
Amortization of below-market leases | (123,120) | (167,763) |
Straight-line rent adjustment | (249,065) | (317,390) |
Changes in operating assets and liabilities: | ||
Other assets | 1,190,605 | 570,693 |
Accounts payable and accrued liabilities | 251,331 | (277,060) |
Accrued real estate taxes | (1,500,066) | (991,200) |
Net cash provided by operating activities | 720,302 | 2,031,797 |
Cash flows from investing activities: | ||
Real estate acquisitions | (10,196,098) | (9,694,785) |
Additions to buildings and tenant improvements | (1,808,140) | (1,819,591) |
Additions to deferred leasing costs | (348,579) | (233,069) |
Proceeds from sales of real estate, net | 4,215,867 | 13,942,848 |
Net cash (used in) provided by investing activities | (8,136,950) | 2,195,403 |
Cash flows from financing activities: | ||
Proceeds from mortgage notes payable, net of issuance costs | 18,169,709 | 9,063,146 |
Repayment of mortgage notes payable | (7,790,196) | (8,233,285) |
Series B preferred stock costs | (153,500) | |
Redemption of mandatorily redeemable preferred stock | (2,000,000) | |
Contributions from noncontrolling interests net of distributions paid | 1,177,510 | 1,004,164 |
Repurchase of common stock | (17,394) | |
Dividends paid to stockholders | (2,384,398) | |
Net cash provided by (used in) financing activities | 11,557,023 | (2,721,267) |
Net increase in cash equivalents and restricted cash | 4,140,375 | 1,505,933 |
Cash equivalents and restricted cash - beginning of period | 8,310,575 | 7,387,795 |
Cash equivalents and restricted cash - end of period | 12,450,950 | 8,893,728 |
Supplemental disclosure of cash flow information: | ||
Interest paid Series B preferred stock | 2,160,939 | 2,242,605 |
Interest paid-mortgage notes payable | $ 3,795,201 | 3,732,411 |
Non-cash investing and financing activities: | ||
Reinvestment of cash dividends | 1,107,870 | |
Accrual of dividends payable | $ 1,224,122 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION Organization . Presidio Property Trust, Inc. (“we”, “our”, “us” or the “Company”) is a self-managed real estate investment trust (“REIT”). We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from “NetREIT, Inc.” to “Presidio Property Trust, Inc.” The Company’s portfolio includes the following properties: • Fifteen office buildings and two industrial properties (“Office/Industrial Properties”) which total approximately 1,463,390 rentable square feet, • Five retail shopping centers (“Retail Properties”) which total approximately 228,260 rentable square feet, and • One hundred forty-five Model Homes owned through four affiliated limited partnerships and one wholly owned limited liability company (“Model Home Properties”). The Company operates in the following partnerships during the periods covered by these condensed consolidated financial statements: • The Company is the sole General Partner in two limited partnerships (NetREIT Palm Self-Storage LP and NetREIT Casa Grande LP), all with ownership in real estate income producing properties. The Company refers to these entities collectively, as the “NetREIT Partnerships”. • The Company is the general and limited partner in four partnerships that purchase Model Homes and lease them back to developers (“Dubose Model Home Investors #202, LP”, “Dubose Model Homes Investors #203, LP”, “Dubose Model Homes Investors #204, LP” and “NetREIT Dubose Model Home REIT, LP”). The Company refers to these entities collectively, as the “Model Home Partnerships”. The Company has determined that the entities described above, where it owns less than 100%, should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of these limited partnerships. We have elected to be taxed as a REIT under Sections 856 through 860 of the Code, for federal income tax purposes. To maintain our qualification as a REIT, we are required to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we maintain our qualification for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to maintain our qualification as a REIT in any taxable year and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. We are subject to certain state and local income taxes. We, together with one of our entities, have elected to treat such subsidiaries as taxable REIT subsidiaries (a “TRS”) for federal income tax purposes. Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to federal and state income taxes. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Neither the Company nor its subsidiaries have been assessed any significant interest or penalties for tax positions by any major tax jurisdictions. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2017. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 20, 2018. Basis of Presentation. The accompanying condensed consolidated financial statements have been prepared by the Company's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statement and the instructions to Form 10-Q and Article 8 of Regulation S-X. Certain information and footnote disclosures required for annual consolidated financial statements have been condensed or excluded pursuant to rules and regulations of the SEC. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of our financial position, results of our operations, and cash flows as of and for the three and six months ended June 30, 2018 and 2017, respectively. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The condensed consolidated balance sheet at year ended December 31, 2017 has been derived from the audited consolidated financial statements included in the Form 10-K filed with the SEC on March 20, 2018. Principles of Consolidation. The accompanying condensed consolidated financial statements include the accounts of the Company and its direct and indirect wholly-owned subsidiaries and entities the Company controls or of which it is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the allocation of purchase price paid for property acquisitions between land, building and intangible assets acquired including their useful lives; valuation of long-lived assets, and the allowance for doubtful accounts, which is based on an evaluation of the tenants’ ability to pay. Actual results may differ from those estimates. Cash Equivalents and Restricted Cash. At June 30, 2018 and December 31, 2017, we had approximately $6.1 million and $3.8 million in cash equivalents and $6.4 million and $4.5 million of restricted cash, respectively. Our cash equivalents and restricted cash consist of invested cash and cash in our operating accounts and are held in bank accounts at third party institutions Real Estate Held for Sale. Real estate held for sale during the current period is classified as “real estate held for sale” for all prior periods presented in the accompanying condensed consolidated financial statements. Mortgage notes payable related to the real estate held for sale during the current period is classified as “mortgage notes payable related to real estate held for sale, net” for all prior periods presented in the accompanying condensed consolidated financial statements. Asset Impairments. We review the carrying value of each of our real estate properties quarterly to determine if circumstances indicate an impairment in the carrying value of these investments exists. During the three and six months ended June 30, 2018, management did not believe any impairment was required. Reclassifications. Certain reclassifications have been made to the previously presented consolidated financial statements and condensed consolidated financial statements to conform to the current period presentation. These reclassifications had no effect on previously reported results of consolidated operations or equity. Subsequent Events. We evaluate subsequent events up until the date the consolidated financial statements are issued. Recently Issued Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-09, “Revenue From Contracts With Customers (ASC 606)," which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The standard states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While the standard specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate. The standard applies to the Company's recognition of gains on sale of real estate. The Company's adoption of the standard on January 1, 2018 did not have an impact on the pattern of revenue recognition for gains on sale of real estate. On November 17, 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires that the statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. This standard states that transfers between cash, cash equivalents, and restricted cash are not part of the entity’s operating, investing, and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. On January 1, 2018, the Company adopted the standard and retrospectively applied the guidance of the standard to the prior period presented, which resulted in an decrease of $1,225,000 in net cash provided by investing activities on its consolidated statements of cash flows for the six months ended June 30, 2017. In February 2016, the FASB issued ASU 2016-02, which sets out principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, certain of these costs are capitalizable and therefore this new standard may result in certain of these costs being expensed as incurred after adoption. Under the standard, lessees apply a dual approach, classifying leases as either finance or operating leases. A lessee is required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months, regardless of their lease classification. The Company is a lessee on ground leases at certain properties, on certain office space leases and on certain other improvements and equipment. The standard will impact the accounting and disclosure requirements for these leases. The standard is effective for the Company under a modified retrospective approach beginning January 1, 2019. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. On January 5, 2017, the FASB issued ASU 2017-01, “Business Combinations,” which clarifies the definition of a business. The objective of the standard is to add further guidance that assists entities in evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred assets and activities are not a business and should be treated as an asset acquisition. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The primary difference between business combinations and asset acquisitions is the recognition of transaction costs, which are expensed as period costs for business combinations and capitalized for asset acquisitions. The Company's adoption of this standard on January 1, 2018 did not have a significant impact on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The Company has concluded that property sales represent transactions with non-customers. Sales of property generally represent only one performance obligation and are recognized when an enforceable contract is in place, collectability is ensured and control is transferred to the buyer. The Company's adoption of this standard on January 1, 2018 did not have a significant impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities,” which aims to (i) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (ii) reduce the complexity of and simplify the application of hedge accounting by preparers. The standard is effective for the Company beginning January 1, 2019, with early adoption permitted. The Company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements. |
Recent Real Estate Transactions
Recent Real Estate Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Recent Real Estate Transactions | 3. RECENT REAL ESTATE TRANSACTIONS During the six months ended June 30, 2018, the Company acquired twenty-six Model Homes for approximately $10.2 million. The purchase price was paid through cash payments of approximately $3.1 million and mortgage notes of approximately $7.1 million. During the six months ended June 30, 2018, the Company disposed of thirteen model homes for approximately $4.6 million and recognized a gain of approximately $429,000 related to the sale of these Model Homes. On February 27, 2017, the Company sold the Rangewood Medical Building for approximately $2.2 million and recognized a loss of approximately $170,000. On March 31, 2017, the Company sold the Regatta Square Retail Center for approximately $3.0 million and recognized a gain of approximately $756,000. On April 7, 2017, the Company sold the Shoreline Medical Building for approximately $8.2 million and recognized a gain of approximately $1.3 million. During the six months ended June 30, 2017, the Company disposed of nine Model Homes for approximately $2.5 million and recognized a gain of approximately $141,000 related to the sale of these Model Homes. During the six months ended June 30, 2017, the Company acquired thirty model homes for approximately $9.7 million. The purchase price was paid through cash payments of $2.9 million and mortgage notes of $6.8 million. |
Real Estate Assets
Real Estate Assets | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate Assets [Abstract] | |
Real Estate Assets | 4. REAL ESTATE ASSETS A summary of the properties owned by the Company as of June 30, 2018 is as follows: Real estate Date assets, net Property Name Acquired Location (in thousands) Garden Gateway Plaza March 2007 Colorado Springs, Colorado $ 11,369 World Plaza September 2007 San Bernardino, California 5,781 Executive Office Park July 2008 Colorado Springs, Colorado 8,088 Waterman Plaza August 2008 San Bernardino, California 5,559 Pacific Oaks Plaza September 2008 Escondido, California 3,990 Morena Office Center January 2009 San Diego, California 4,775 Genesis Plaza August 2010 San Diego, California 8,497 Dakota Bank Buildings May 2011 Fargo, North Dakota 9,379 Yucca Valley Retail Center (1) September 2011 Yucca Valley, California 6,612 Port of San Diego Complex December 2011 San Diego, California 13,749 The Presidio November 2012 Aurora, Colorado 6,405 Bismarck March 2014 Fargo, ND 5,897 Union Terrace Building August 2014 Lakewood, Colorado 8,217 Centennial Tech Center December 2014 Colorado Springs, Colorado 13,162 Arapahoe Service Center (1) December 2014 Centennial, Colorado 10,423 Union Town Center December 2014 Colorado Springs, Colorado 10,058 West Fargo Industrial August 2015 Fargo, North Dakota 7,346 300 N.P. August 2015 Fargo, North Dakota 3,603 Research Parkway August 2015 Colorado Springs, Colorado 2,636 One Park Center August 2015 Westminster, Colorado 8,588 Highland Court August 2015 Centennial, Colorado 12,084 Shea Center II December 2015 Highlands Ranch, Colorado 23,097 Presidio Property Trust, Inc properties 189,315 Model Home properties 2010-2018 AZ, CA, FL, IL, NC, NJ, PA, SC, TX, UT 49,138 Total real estate assets and lease intangibles, net $ 238,453 (1) Properties held for sale as of June 30, 2018. Geographic Diversification Table The following tables show a list of properties owned by Presidio Property Trust, Inc. grouped by state location as of June 30, 2018: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Rent Approximate % of Aggregate Annual Rent California 7 420,927 24.9 % $ 5,256,291 24.5 % Colorado 11 873,684 51.6 % 12,545,307 58.5 % North Dakota 4 397,039 23.5 % 3,634,145 17.0 % Total 22 1,691,650 100.0 % $ 21,435,743 100.0 % Model Home properties: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Annual Rent Approximate of Aggregate % Annual Rent Southwest 85 260,289 62.6 % $ 2,372,004 56.6 % West 5 14,481 3.5 % 142,272 3.4 % Southeast 47 119,648 28.8 % 1,396,452 33.3 % Midwest 2 5,795 1.4 % 74,496 1.8 % East 6 15,338 3.7 % 203,140 4.9 % Total 145 415,551 100.0 % $ 4,188,364 100.0 % |
Lease Intangibles
Lease Intangibles | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Lease Intangibles | 5. LEASE INTANGIBLES The following table summarizes the net value of other intangible assets acquired and the accumulated amortization for each class of intangible asset: June 30, 2018 December 31, 2017 Lease Intangibles Accumulated Amortization Lease Intangibles, net Lease Intangibles Accumulated Amortization Lease Intangibles, net In-place leases $ 5,592,418 $ (3,850,869 ) $ 1,741,549 $ 5,592,418 $ (3,531,441 ) $ 2,060,977 Leasing costs 3,727,331 (2,315,851 ) 1,411,480 3,727,332 (2,088,799 ) 1,638,533 Above-market leases 743,550 (343,766 ) 399,784 784,404 (347,218 ) 437,186 $ 10,063,299 $ (6,510,486 ) $ 3,552,813 $ 10,104,154 $ (5,967,458 ) $ 4,136,696 As of June 30, 2018 and December 31, 2017, $2,308,518 and $1,007,360, respectively, of net lease intangible assets were included in real estate assets held for sale. The net value of acquired intangible liabilities was $1,267,252 and $1,390,372 relating to below-market leases as of June 30, 2018 and December 31, 2017, respectively. Aggregate approximate amortization expense for the Company's lease intangible assets is as follows: Six months remaining in 2018 $ 840,135 Years ending December 31: 2019 885,806 2020 696,573 2021 497,459 2022 369,255 Thereafter 263,585 Total $ 3,552,813 The weighted average remaining amortization period of the intangible assets as of June 30, 2018 is 3.1 years. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets | 6. OTHER ASSETS Other assets consist of the following: June 30, December 31, 2018 2017 Deferred rent receivable $ 3,531,121 $ 3,227,700 Raw land 900,000 900,000 Prepaid expenses, deposits and other 525,573 1,410,363 Other intangibles, net 409,261 1,108,110 Notes receivable 334,286 374,733 Accounts receivable, net 316,374 316,374 Total other assets $ 6,016,615 $ 7,337,280 As of December 31, 2017, there was $1.0 million of deferred offering costs related to the Company’s filing of a registration statement on Form S-11 included in other assets. Due to the uncertainty of the timing of the offering, we expensed all offering costs of approximately $1.5 million in the consolidated statements of operations for the three and six months ended June 30, 2018. |
Mortgage Notes Payable
Mortgage Notes Payable | 6 Months Ended |
Jun. 30, 2018 | |
Mortgage Loans On Real Estate [Abstract] | |
Mortgage Notes Payable | 7. MORTGAGE NOTES PAYABLE Mortgage notes payable consisted of the following: Principal as of June 30, December 31, Loan Interest Mortgage note property Notes 2018 2017 Type Rate (1) Maturity Port of San Diego Complex 9,432,077 9,575,508 Fixed 4.75 % 3/5/2020 Garden Gateway Plaza 6,351,160 6,445,300 Fixed 5.00 % 4/5/2020 World Plaza (6) 6,046,000 - Variable 4.83 % 6/5/2020 West Fargo Industrial 4,329,281 4,365,449 Fixed 4.79 % 8/4/2020 Morena Office Center 2,120,141 2,156,479 Fixed 4.30 % 6/1/2021 Waterman Plaza 3,806,950 3,850,365 Fixed 4.25 % 4/29/2021 Pacific Oaks Plaza 1,441,642 1,466,351 Fixed 4.50 % 6/1/2021 300 N.P. 2,362,903 2,380,703 Fixed 4.95 % 6/11/2022 Highland Court 6,626,699 6,695,541 Fixed 3.82 % 8/28/2022 Dakota Bank Buildings 10,394,947 10,492,904 Fixed 4.74 % 7/6/2024 Union Terrace Building 6,399,308 6,454,448 Fixed 4.50 % 9/5/2024 The Presidio 6,000,000 6,000,000 Fixed 4.54 % 12/1/2024 Centennial Tech Center 9,819,029 9,908,235 Fixed 4.43 % 1/5/2025 Research Parkway 1,884,737 1,909,012 Fixed 3.94 % 1/5/2025 Arapahoe Service Center (5) 8,292,356 8,364,088 Fixed 4.34 % 1/5/2025 Union Town Center 8,440,000 8,440,000 Fixed 4.28 % 1/5/2025 Yucca Valley Retail Center (5) 5,976,099 6,000,000 Fixed 4.30 % 4/11/2025 Executive Office Park (2) 4,991,389 4,151,161 Fixed 5.80 % 7/1/2025 Genesis Plaza 6,500,000 6,500,000 Fixed 4.65 % 8/25/2025 One Park Centre 6,610,000 6,610,000 Fixed 4.77 % 9/5/2025 Shea Center II 17,727,500 17,727,500 Fixed 4.92 % 1/5/2026 Bismarck Office Building (4) 4,005,584 4,057,752 Fixed 4.02 % 8/1/2037 Subtotal, Presidio Property Trust, Inc. Properties 139,557,802 133,550,796 4.71 % Model Home mortgage notes 32,827,388 28,454,883 Fixed (3) 2018-2021 Mortgage Notes Payable $ 172,385,190 $ 162,005,679 Unamortized loan costs (1,760,341 ) (1,682,942 ) Mortgage Notes Payable, net $ 170,624,849 $ 160,322,737 (1) Interest rates as of June 30, 2018. (2) Interest rate is subject to reset on June 1, 2021 and June 1, 2024. (3) Each Model Home has a stand-alone mortgage note at interest rates ranging from 3.8% to 5.5% per annum (at June 30, 2018 (4) Interest rate is subject to reset on September 1, 2023 and on September 1, 2030. (5) Properties held for sale as of June 30, 2018. (6) Interest rate is Libor plus 2.75% or 4.83% as of June 30, 2018. The Company is in compliance with all material conditions and covenants of its mortgage notes payable. Scheduled principal payments of mortgage notes payable were as follows as of June 30, 2018 Presidio Property Trust, Inc. Model Homes Principal Notes Notes Payable Payments Six months remaining in 2018 $ 1,048,481 $ 1,010,585 $ 2,059,066 Years ending December 31: 2019 2,307,005 14,296,636 $ 16,603,641 2020 27,222,208 11,069,378 $ 38,291,586 2021 14,514,159 6,450,789 $ 20,964,948 2022 10,154,598 - $ 10,154,598 Thereafter 84,311,351 - $ 84,311,351 Total $ 139,557,802 $ 32,827,388 $ 172,385,190 |
Series B Mandatorily Redeemable
Series B Mandatorily Redeemable Preferred Stock | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities And Shares Subject To Mandatory Redemption [Abstract] | |
Series B Mandatorily Redeemable Preferred Stock | 8. SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK In August 2014, the Company closed on a private placement offering of its mandatorily redeemable Series B Preferred Stock. The financing, was funded in installments and completed on December 24, 2015. As of December 31, 2015, the Company had issued 35,000 shares of its Series B Preferred Stock. The Company has classified the Series B Preferred Stock as a liability in accordance with ASC Topic No. 480, “ Distinguishing Liabilities from Equity The Series B preferred stock has a $0.01 par value and a $1,000 liquidation preference. The Series B preferred stock shall be redeemed through a cash payment of the face value of the shares outstanding at redemption. The preferred return on the funds invested is 14% and shall be paid on a monthly basis. The Series B Preferred Stock was scheduled to be redeemed on August 1, 2017; however, the Company had two one year options to extend the redemption date. On June 30, 2017, the Company exercised its option to extend the redemption date to August 1, 2018 and paid an extension fee of $153,500. The Company paid an additional $153,500 to exercise its option to extend the redemption date to August 1, 2019 in July 2018. The Company incurred approximately $3.1 million in legal and underwriting costs related to this transaction. These costs have been recorded as deferred financing costs on the accompanying consolidated balance sheets as a direct deduction from the carrying amount of that debt liability June 30, 2018 During 2016, the Company redeemed 300 shares in June, 1,000 shares in July and 1,000 shares in August for a total of $2.3 million. During 2017, the Company redeemed 1,000 shares in March and 1,000 shares in May for a total of $2.0 million. As of June 30, 2018 and December 31, 2017, the remaining outstanding number of shares was 30,700. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 9. STOCKHOLDERS' EQUITY Preferred Stock. The Company is authorized to issue up to 8,990,000 shares of preferred stock (the “Preferred Stock”). The Preferred Stock may be issued from time to time in one or more series. The Board of Directors is authorized to fix the number of shares of any series of the Preferred Stock, to determine the designation of any such series, and to determine or alter the rights granted to or imposed upon any wholly unissued series of preferred stock including the dividend rights, dividend rate, conversion rights, voting rights, redemption rights (including sinking fund provisions), redemption price, and liquidation preference. Common Stock. The Company is authorized to issue up to 100,000,000 shares of Series A Common Stock (“Common Stock”) $0.01 par value and 1,000 shares of Series B Common Stock $0.01 par value. The Common Stock and the Series B Common Stock have identical rights, preferences, terms and conditions except that the Series B Common Stockholders are not entitled to receive any portion of Company assets in the event of Company liquidation. There have been no Series B Common Stock shares issued. Each share of Common Stock entitles the holder to one vote. The Common Stock is not subject to redemption and it does not have any preference, conversion, exchange or pre-emptive rights. The articles of incorporation contain a restriction on ownership of the Common Stock that prevents one person from owning more than 9.8% of the outstanding shares of common stock. In October 2006, the Company commenced a private placement offering of its common stock. Through December 31, 2011 when the offering was closed, the Company conducted a self-underwritten private placement offering and sale of 20,000,000 shares of its common stock at a price of $10 per share. This offering was made only to accredited investors (and up to thirty-five non-accredited investors) pursuant to an exemption from registration provided by Section 4(2) and Rule 506 of Regulation D under the Securities Act of 1933, as amended. No active market currently exists for the securities sold under this offering. Cash Dividends. We suspended the payment of dividends during the third quarter of 2017 and no dividends were declared or paid during the fourth quarter of 2017 or first and second quarter of 2018. During the six months ended June 30, 2017 the Company paid cash dividends, net of reinvested stock dividends, of approximately $2,384,000 or at a rate of $0.10 per share on a quarterly basis. Dividend Reinvestment Plan. The Company has adopted a distribution reinvestment plan that allows stockholders to have dividends and other distributions otherwise distributable to them invested in additional shares of Company common stock. The Company has registered 3,000,000 shares of common stock pursuant to the dividend reinvestment plan. The dividend reinvestment plan became effective on January 23, 2012. The purchase price per share is 95% of the price the Company was formerly selling its shares or $9.50 per share. No sales commission or dealer manager fee will be paid on shares sold through the dividend reinvestment plan. The Company may amend, suspend or terminate the Plan at any time. Any such amendment, suspension or termination will be effective upon a designated dividend record date and notice of such amendment, suspension or termination will be sent to all Participants at least thirty (30) days prior to such record date. As of June 30, 2018 approximately $17.4 million or approximately 1,834,147 shares of common stock have been issued under the dividend reinvestment plan to date. No shares were issued under the dividend reinvestment plan during the six months ended June 30, 2018. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. RELATED PARTY TRANSACTIONS The Company leases a portion of its corporate headquarters at Pacific Oaks Plaza in Escondido, California to entities 100% owned by the Company’s Chairman and Chief Executive Officer. Rental income recorded for the three and six months ended June 30, 2018 and 2017 totaled $7,000 and $7,000, respectively and $14,000 and $14,000, respectively. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | 11. SEGMENTS The Company’s reportable segments consist of three types of commercial real estate properties for which the Company’s decision-makers internally evaluate operating performance and financial results: Office/Industrial Properties, Model Home Properties and Retail Properties. The Company also has certain corporate-level activities including accounting, finance, legal administration and management information systems which are not considered separate operating segments. The accounting policies of the reportable segments are the same as those described in Note 2. There is no inter segment activity. The Company evaluates the performance of its segments based upon net operating income (“NOI”), which is a non-GAAP supplemental financial measure. The Company defines NOI for its segments as operating revenues (rental income, tenant reimbursements and other operating income) less property and related expenses (property operating expenses, real estate taxes, insurance, asset management fees, impairments and provision for bad debt). NOI excludes certain items that are not considered to be controllable in connection with the management of an asset such as non-property income and expenses, depreciation and amortization, real estate acquisition fees and expenses and corporate general and administrative expenses. The Company uses NOI to evaluate the operating performance of the Company’s real estate investments and to make decisions about resource allocations. The following tables reconcile the Company’s segment activity to its results of operations and financial position as of and for the three and six months ended June 30, 2018 and 2017. For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Office/Industrial Properties: Rental, fee and other income $ 6,058,387 $ 6,535,722 $ 12,215,534 $ 12,779,101 Property and related expenses (2,306,483 ) (2,295,720 ) (4,657,093 ) (4,514,238 ) Net operating income, as defined 3,751,904 4,240,002 7,558,441 8,264,864 Model Home Properties: Rental, fee and other income 1,169,890 930,062 2,293,657 1,806,607 Property and related expenses (34,825 ) (35,038 ) (87,351 ) (73,995 ) Net operating income, as defined 1,135,065 895,024 2,206,306 1,732,612 Retail Properties: Rental, fee and other income 936,139 1,052,289 1,880,059 2,178,893 Property and related expenses (320,915 ) (305,304 ) (567,688 ) (684,933 ) Net operating income, as defined 615,224 746,985 1,312,371 1,493,960 Reconciliation to net loss: Total net operating income, as defined, for reportable segments 5,502,193 5,882,011 11,077,118 11,491,436 General and administrative expenses (1,357,578 ) (1,439,820 ) (2,692,672 ) (2,629,837 ) Depreciation and amortization (2,265,889 ) (2,443,817 ) (4,604,933 ) (4,947,333 ) Interest expense (3,147,179 ) (3,311,421 ) (6,224,156 ) (6,627,617 ) Other expense /(income) 12,449 5,829 (5,842 ) 15,097 Deferred offering costs (1,507,599 ) - (1,507,599 ) - Income tax expense (88,671 ) (13,746 ) (119,465 ) (108,356 ) Gain on sale of real estate 355,276 1,485,589 429,489 2,027,051 Net (loss) income $ (2,496,998 ) $ 164,625 $ (3,648,060 ) $ (779,559 ) June 30, December 31, Assets by Reportable Segment: 2018 2017 Office/Industrial Properties: Land, buildings and improvements, net (1) $ 158,668,576 $ 160,422,469 Total assets (2) $ 162,477,991 $ 163,041,049 Model Home Properties: Land, buildings and improvements, net (1) $ 49,137,958 $ 43,245,832 Total assets (2) $ 51,006,321 $ 44,782,943 Retail Properties: Land, buildings and improvements, net (1) $ 30,646,160 $ 30,865,644 Total assets (2) $ 32,355,214 $ 32,534,890 Reconciliation to Total Assets: Total assets for reportable segments $ 245,839,526 $ 240,358,882 Other unallocated assets: Cash equivalents and restricted cash 12,450,950 8,310,575 Other assets, net 2,990,654 5,827,408 Total Assets $ 261,281,130 $ 254,496,865 (1) Includes lease intangibles and the land purchase option related to property acquisitions. (2) Includes land, buildings and improvements, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis. Capital Expenditures by Reportable Segment For the Six Months Ended June 30, 2018 2017 Office/Industrial Properties: Capital expenditures and tenant improvements $ 1,788,880 $ 1,783,814 Model Home Properties: Acquisition of operating properties 10,196,098 9,694,785 Retail Properties: Capital expenditures and tenant improvements 19,260 35,777 Totals: Acquisition of operating properties, net 10,196,098 9,694,785 Capital expenditures and tenant improvements 1,808,140 1,819,591 Total real estate investments $ 12,004,238 $ 11,514,376 |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying condensed consolidated financial statements have been prepared by the Company's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statement and the instructions to Form 10-Q and Article 8 of Regulation S-X. Certain information and footnote disclosures required for annual consolidated financial statements have been condensed or excluded pursuant to rules and regulations of the SEC. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of our financial position, results of our operations, and cash flows as of and for the three and six months ended June 30, 2018 and 2017, respectively. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The condensed consolidated balance sheet at year ended December 31, 2017 has been derived from the audited consolidated financial statements included in the Form 10-K filed with the SEC on March 20, 2018. |
Principles of Consolidation | Principles of Consolidation. The accompanying condensed consolidated financial statements include the accounts of the Company and its direct and indirect wholly-owned subsidiaries and entities the Company controls or of which it is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the allocation of purchase price paid for property acquisitions between land, building and intangible assets acquired including their useful lives; valuation of long-lived assets, and the allowance for doubtful accounts, which is based on an evaluation of the tenants’ ability to pay. Actual results may differ from those estimates. |
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash. At June 30, 2018 and December 31, 2017, we had approximately $6.1 million and $3.8 million in cash equivalents and $6.4 million and $4.5 million of restricted cash, respectively. Our cash equivalents and restricted cash consist of invested cash and cash in our operating accounts and are held in bank accounts at third party institutions |
Real Estate Held for Sale | Real Estate Held for Sale. Real estate held for sale during the current period is classified as “real estate held for sale” for all prior periods presented in the accompanying condensed consolidated financial statements. Mortgage notes payable related to the real estate held for sale during the current period is classified as “mortgage notes payable related to real estate held for sale, net” for all prior periods presented in the accompanying condensed consolidated financial statements. |
Asset Impairments | Asset Impairments. We review the carrying value of each of our real estate properties quarterly to determine if circumstances indicate an impairment in the carrying value of these investments exists. During the three and six months ended June 30, 2018, management did not believe any impairment was required. |
Reclassifications | Reclassifications. Certain reclassifications have been made to the previously presented consolidated financial statements and condensed consolidated financial statements to conform to the current period presentation. These reclassifications had no effect on previously reported results of consolidated operations or equity. |
Subsequent Events | Subsequent Events. We evaluate subsequent events up until the date the consolidated financial statements are issued. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-09, “Revenue From Contracts With Customers (ASC 606)," which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The standard states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While the standard specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate. The standard applies to the Company's recognition of gains on sale of real estate. The Company's adoption of the standard on January 1, 2018 did not have an impact on the pattern of revenue recognition for gains on sale of real estate. On November 17, 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires that the statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. This standard states that transfers between cash, cash equivalents, and restricted cash are not part of the entity’s operating, investing, and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. On January 1, 2018, the Company adopted the standard and retrospectively applied the guidance of the standard to the prior period presented, which resulted in an decrease of $1,225,000 in net cash provided by investing activities on its consolidated statements of cash flows for the six months ended June 30, 2017. In February 2016, the FASB issued ASU 2016-02, which sets out principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, certain of these costs are capitalizable and therefore this new standard may result in certain of these costs being expensed as incurred after adoption. Under the standard, lessees apply a dual approach, classifying leases as either finance or operating leases. A lessee is required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months, regardless of their lease classification. The Company is a lessee on ground leases at certain properties, on certain office space leases and on certain other improvements and equipment. The standard will impact the accounting and disclosure requirements for these leases. The standard is effective for the Company under a modified retrospective approach beginning January 1, 2019. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. On January 5, 2017, the FASB issued ASU 2017-01, “Business Combinations,” which clarifies the definition of a business. The objective of the standard is to add further guidance that assists entities in evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred assets and activities are not a business and should be treated as an asset acquisition. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The primary difference between business combinations and asset acquisitions is the recognition of transaction costs, which are expensed as period costs for business combinations and capitalized for asset acquisitions. The Company's adoption of this standard on January 1, 2018 did not have a significant impact on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The Company has concluded that property sales represent transactions with non-customers. Sales of property generally represent only one performance obligation and are recognized when an enforceable contract is in place, collectability is ensured and control is transferred to the buyer. The Company's adoption of this standard on January 1, 2018 did not have a significant impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities,” which aims to (i) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (ii) reduce the complexity of and simplify the application of hedge accounting by preparers. The standard is effective for the Company beginning January 1, 2019, with early adoption permitted. The Company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements. |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate Assets [Abstract] | |
Real Estate Properties Owned | A summary of the properties owned by the Company as of June 30, 2018 is as follows: Real estate Date assets, net Property Name Acquired Location (in thousands) Garden Gateway Plaza March 2007 Colorado Springs, Colorado $ 11,369 World Plaza September 2007 San Bernardino, California 5,781 Executive Office Park July 2008 Colorado Springs, Colorado 8,088 Waterman Plaza August 2008 San Bernardino, California 5,559 Pacific Oaks Plaza September 2008 Escondido, California 3,990 Morena Office Center January 2009 San Diego, California 4,775 Genesis Plaza August 2010 San Diego, California 8,497 Dakota Bank Buildings May 2011 Fargo, North Dakota 9,379 Yucca Valley Retail Center (1) September 2011 Yucca Valley, California 6,612 Port of San Diego Complex December 2011 San Diego, California 13,749 The Presidio November 2012 Aurora, Colorado 6,405 Bismarck March 2014 Fargo, ND 5,897 Union Terrace Building August 2014 Lakewood, Colorado 8,217 Centennial Tech Center December 2014 Colorado Springs, Colorado 13,162 Arapahoe Service Center (1) December 2014 Centennial, Colorado 10,423 Union Town Center December 2014 Colorado Springs, Colorado 10,058 West Fargo Industrial August 2015 Fargo, North Dakota 7,346 300 N.P. August 2015 Fargo, North Dakota 3,603 Research Parkway August 2015 Colorado Springs, Colorado 2,636 One Park Center August 2015 Westminster, Colorado 8,588 Highland Court August 2015 Centennial, Colorado 12,084 Shea Center II December 2015 Highlands Ranch, Colorado 23,097 Presidio Property Trust, Inc properties 189,315 Model Home properties 2010-2018 AZ, CA, FL, IL, NC, NJ, PA, SC, TX, UT 49,138 Total real estate assets and lease intangibles, net $ 238,453 (1) Properties held for sale as of June 30, 2018. |
Geographic Locations of Real Estate Properties Owned | The following tables show a list of properties owned by Presidio Property Trust, Inc. grouped by state location as of June 30, 2018: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Rent Approximate % of Aggregate Annual Rent California 7 420,927 24.9 % $ 5,256,291 24.5 % Colorado 11 873,684 51.6 % 12,545,307 58.5 % North Dakota 4 397,039 23.5 % 3,634,145 17.0 % Total 22 1,691,650 100.0 % $ 21,435,743 100.0 % Model Home properties: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Annual Rent Approximate of Aggregate % Annual Rent Southwest 85 260,289 62.6 % $ 2,372,004 56.6 % West 5 14,481 3.5 % 142,272 3.4 % Southeast 47 119,648 28.8 % 1,396,452 33.3 % Midwest 2 5,795 1.4 % 74,496 1.8 % East 6 15,338 3.7 % 203,140 4.9 % Total 145 415,551 100.0 % $ 4,188,364 100.0 % |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Net Value of Other Intangible Assets | The following table summarizes the net value of other intangible assets acquired and the accumulated amortization for each class of intangible asset: June 30, 2018 December 31, 2017 Lease Intangibles Accumulated Amortization Lease Intangibles, net Lease Intangibles Accumulated Amortization Lease Intangibles, net In-place leases $ 5,592,418 $ (3,850,869 ) $ 1,741,549 $ 5,592,418 $ (3,531,441 ) $ 2,060,977 Leasing costs 3,727,331 (2,315,851 ) 1,411,480 3,727,332 (2,088,799 ) 1,638,533 Above-market leases 743,550 (343,766 ) 399,784 784,404 (347,218 ) 437,186 $ 10,063,299 $ (6,510,486 ) $ 3,552,813 $ 10,104,154 $ (5,967,458 ) $ 4,136,696 |
Amortization Expense for the Company Lease Intangible Assets | Aggregate approximate amortization expense for the Company's lease intangible assets is as follows: Six months remaining in 2018 $ 840,135 Years ending December 31: 2019 885,806 2020 696,573 2021 497,459 2022 369,255 Thereafter 263,585 Total $ 3,552,813 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets | Other assets consist of the following: June 30, December 31, 2018 2017 Deferred rent receivable $ 3,531,121 $ 3,227,700 Raw land 900,000 900,000 Prepaid expenses, deposits and other 525,573 1,410,363 Other intangibles, net 409,261 1,108,110 Notes receivable 334,286 374,733 Accounts receivable, net 316,374 316,374 Total other assets $ 6,016,615 $ 7,337,280 |
Mortgage Notes Payable (Tables)
Mortgage Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Mortgage Loans On Real Estate [Abstract] | |
Mortgage Notes Payable | Mortgage notes payable consisted of the following: Principal as of June 30, December 31, Loan Interest Mortgage note property Notes 2018 2017 Type Rate (1) Maturity Port of San Diego Complex 9,432,077 9,575,508 Fixed 4.75 % 3/5/2020 Garden Gateway Plaza 6,351,160 6,445,300 Fixed 5.00 % 4/5/2020 World Plaza (6) 6,046,000 - Variable 4.83 % 6/5/2020 West Fargo Industrial 4,329,281 4,365,449 Fixed 4.79 % 8/4/2020 Morena Office Center 2,120,141 2,156,479 Fixed 4.30 % 6/1/2021 Waterman Plaza 3,806,950 3,850,365 Fixed 4.25 % 4/29/2021 Pacific Oaks Plaza 1,441,642 1,466,351 Fixed 4.50 % 6/1/2021 300 N.P. 2,362,903 2,380,703 Fixed 4.95 % 6/11/2022 Highland Court 6,626,699 6,695,541 Fixed 3.82 % 8/28/2022 Dakota Bank Buildings 10,394,947 10,492,904 Fixed 4.74 % 7/6/2024 Union Terrace Building 6,399,308 6,454,448 Fixed 4.50 % 9/5/2024 The Presidio 6,000,000 6,000,000 Fixed 4.54 % 12/1/2024 Centennial Tech Center 9,819,029 9,908,235 Fixed 4.43 % 1/5/2025 Research Parkway 1,884,737 1,909,012 Fixed 3.94 % 1/5/2025 Arapahoe Service Center (5) 8,292,356 8,364,088 Fixed 4.34 % 1/5/2025 Union Town Center 8,440,000 8,440,000 Fixed 4.28 % 1/5/2025 Yucca Valley Retail Center (5) 5,976,099 6,000,000 Fixed 4.30 % 4/11/2025 Executive Office Park (2) 4,991,389 4,151,161 Fixed 5.80 % 7/1/2025 Genesis Plaza 6,500,000 6,500,000 Fixed 4.65 % 8/25/2025 One Park Centre 6,610,000 6,610,000 Fixed 4.77 % 9/5/2025 Shea Center II 17,727,500 17,727,500 Fixed 4.92 % 1/5/2026 Bismarck Office Building (4) 4,005,584 4,057,752 Fixed 4.02 % 8/1/2037 Subtotal, Presidio Property Trust, Inc. Properties 139,557,802 133,550,796 4.71 % Model Home mortgage notes 32,827,388 28,454,883 Fixed (3) 2018-2021 Mortgage Notes Payable $ 172,385,190 $ 162,005,679 Unamortized loan costs (1,760,341 ) (1,682,942 ) Mortgage Notes Payable, net $ 170,624,849 $ 160,322,737 (1) Interest rates as of June 30, 2018. (2) Interest rate is subject to reset on June 1, 2021 and June 1, 2024. (3) Each Model Home has a stand-alone mortgage note at interest rates ranging from 3.8% to 5.5% per annum (at June 30, 2018 (4) Interest rate is subject to reset on September 1, 2023 and on September 1, 2030. (5) Properties held for sale as of June 30, 2018. (6) Interest rate is Libor plus 2.75% or 4.83% as of June 30, 2018. The Company is in compliance with all material conditions and covenants of its mortgage notes payable. |
Scheduled Principal Payments of Mortgage Notes Payable | Scheduled principal payments of mortgage notes payable were as follows as of June 30, 2018 Presidio Property Trust, Inc. Model Homes Principal Notes Notes Payable Payments Six months remaining in 2018 $ 1,048,481 $ 1,010,585 $ 2,059,066 Years ending December 31: 2019 2,307,005 14,296,636 $ 16,603,641 2020 27,222,208 11,069,378 $ 38,291,586 2021 14,514,159 6,450,789 $ 20,964,948 2022 10,154,598 - $ 10,154,598 Thereafter 84,311,351 - $ 84,311,351 Total $ 139,557,802 $ 32,827,388 $ 172,385,190 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Net Operating Income by Segment | The following tables reconcile the Company’s segment activity to its results of operations and financial position as of and for the three and six months ended June 30, 2018 and 2017. For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Office/Industrial Properties: Rental, fee and other income $ 6,058,387 $ 6,535,722 $ 12,215,534 $ 12,779,101 Property and related expenses (2,306,483 ) (2,295,720 ) (4,657,093 ) (4,514,238 ) Net operating income, as defined 3,751,904 4,240,002 7,558,441 8,264,864 Model Home Properties: Rental, fee and other income 1,169,890 930,062 2,293,657 1,806,607 Property and related expenses (34,825 ) (35,038 ) (87,351 ) (73,995 ) Net operating income, as defined 1,135,065 895,024 2,206,306 1,732,612 Retail Properties: Rental, fee and other income 936,139 1,052,289 1,880,059 2,178,893 Property and related expenses (320,915 ) (305,304 ) (567,688 ) (684,933 ) Net operating income, as defined 615,224 746,985 1,312,371 1,493,960 Reconciliation to net loss: Total net operating income, as defined, for reportable segments 5,502,193 5,882,011 11,077,118 11,491,436 General and administrative expenses (1,357,578 ) (1,439,820 ) (2,692,672 ) (2,629,837 ) Depreciation and amortization (2,265,889 ) (2,443,817 ) (4,604,933 ) (4,947,333 ) Interest expense (3,147,179 ) (3,311,421 ) (6,224,156 ) (6,627,617 ) Other expense /(income) 12,449 5,829 (5,842 ) 15,097 Deferred offering costs (1,507,599 ) - (1,507,599 ) - Income tax expense (88,671 ) (13,746 ) (119,465 ) (108,356 ) Gain on sale of real estate 355,276 1,485,589 429,489 2,027,051 Net (loss) income $ (2,496,998 ) $ 164,625 $ (3,648,060 ) $ (779,559 ) |
Reconciliation of Assets by Segment to Total Assets | June 30, December 31, Assets by Reportable Segment: 2018 2017 Office/Industrial Properties: Land, buildings and improvements, net (1) $ 158,668,576 $ 160,422,469 Total assets (2) $ 162,477,991 $ 163,041,049 Model Home Properties: Land, buildings and improvements, net (1) $ 49,137,958 $ 43,245,832 Total assets (2) $ 51,006,321 $ 44,782,943 Retail Properties: Land, buildings and improvements, net (1) $ 30,646,160 $ 30,865,644 Total assets (2) $ 32,355,214 $ 32,534,890 Reconciliation to Total Assets: Total assets for reportable segments $ 245,839,526 $ 240,358,882 Other unallocated assets: Cash equivalents and restricted cash 12,450,950 8,310,575 Other assets, net 2,990,654 5,827,408 Total Assets $ 261,281,130 $ 254,496,865 (1) Includes lease intangibles and the land purchase option related to property acquisitions. (2) Includes land, buildings and improvements, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis. |
Reconciliation of Capital Expenditures by Segment to Total Real Estate Investments | Capital Expenditures by Reportable Segment For the Six Months Ended June 30, 2018 2017 Office/Industrial Properties: Capital expenditures and tenant improvements $ 1,788,880 $ 1,783,814 Model Home Properties: Acquisition of operating properties 10,196,098 9,694,785 Retail Properties: Capital expenditures and tenant improvements 19,260 35,777 Totals: Acquisition of operating properties, net 10,196,098 9,694,785 Capital expenditures and tenant improvements 1,808,140 1,819,591 Total real estate investments $ 12,004,238 $ 11,514,376 |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2018USD ($)ft²PropertyCounterparty_Investment | |
Real Estate Properties [Line Items] | |
Number of limited partnerships in which the company is sole General Partner | Counterparty_Investment | 2 |
Number of partnerships that purchase and lease back model homes from developers in which the company is the general and limited partner | Counterparty_Investment | 4 |
Key Provisions of Operating or Partnership Agreement, Description | The Company operates in the following partnerships during the periods covered by these condensed consolidated financial statements: The Company is the sole General Partner in two limited partnerships (NetREIT Palm Self-Storage LP and NetREIT Casa Grande LP), all with ownership in real estate income producing properties. The Company refers to these entities collectively, as the “NetREIT Partnerships”. The Company is the general and limited partner in four partnerships that purchase Model Homes and lease them back to developers (“Dubose Model Home Investors #202, LP”, “Dubose Model Homes Investors #203, LP”, “Dubose Model Homes Investors #204, LP” and “NetREIT Dubose Model Home REIT, LP”). The Company refers to these entities collectively, as the “Model Home Partnerships”. The Company has determined that the entities described above, where it owns less than 100%, should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of these limited partnerships. |
Income Tax Examination Description | We have elected to be taxed as a REIT under Sections 856 through 860 of the Code, for federal income tax purposes. To maintain our qualification as a REIT, we are required to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. |
Percentage of distributed taxable income to qualify as REIT | 90.00% |
Uncertain tax position requiring recognition | $ | $ 0 |
Model Home Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 145 |
Area of Real Estate Property | ft² | 415,551 |
Number of limited partnerships in which the company is sole General Partner | Counterparty_Investment | 4 |
Office, Industrial Properties And Medical Building [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 17 |
Area of Real Estate Property | ft² | 1,463,390 |
Retail Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 5 |
Area of Real Estate Property | ft² | 228,260 |
Significant Accounting Polici25
Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Significant Account Policies [Line Items] | |||
Cash equivalents | $ 6,100,000 | $ 3,800,000 | |
Restricted cash | 6,400,000 | $ 4,500,000 | |
Decrease in net cash provided by investing activities due to adoption of standard | $ 8,136,950 | $ (2,195,403) | |
ASU 2016-18 [Member] | |||
Significant Account Policies [Line Items] | |||
Decrease in net cash provided by investing activities due to adoption of standard | $ 1,225,000 |
Recent Real Estate Transactio26
Recent Real Estate Transactions (Disposals of Properties) (Details) | Apr. 07, 2017USD ($) | Mar. 31, 2017USD ($) | Feb. 27, 2017USD ($) | Jun. 30, 2018USD ($)Property | Jun. 30, 2017USD ($)Property | Dec. 31, 2017USD ($) |
Real Estate Properties [Line Items] | ||||||
Mortgage notes issued for property acquired | $ 170,624,849 | $ 160,322,737 | ||||
Residential Properties [Member] | Twenty-Six Dubose Model Homes [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties | Property | 26 | |||||
Purchase price of property acquired | $ 10,200,000 | |||||
Cash payment for the properties acquired | 3,100,000 | |||||
Mortgage notes issued for property acquired | $ 7,100,000 | |||||
Residential Properties [Member] | Thirteen Dubose Model Homes [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties | Property | 13 | |||||
Proceeds from sale of property | $ 4,600,000 | |||||
Gain (loss) on sale of property | $ 429,000 | |||||
Residential Properties [Member] | Rangewood Medical Office Building [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of property | $ 2,200,000 | |||||
Gain (loss) on sale of property | $ (170,000) | |||||
Residential Properties [Member] | Regatta Square Retail Center [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of property | $ 3,000,000 | |||||
Gain (loss) on sale of property | $ 756,000 | |||||
Residential Properties [Member] | Shoreline Medical Building [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of property | $ 8,200,000 | |||||
Gain (loss) on sale of property | $ 1,300,000 | |||||
Residential Properties [Member] | Nine Dubose Model Homes [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties | Property | 9 | |||||
Proceeds from sale of property | $ 2,500,000 | |||||
Gain (loss) on sale of property | $ 141,000 | |||||
Residential Properties [Member] | Thirty Dubose Model Homes [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties | Property | 30 | |||||
Purchase price of property acquired | $ 9,700,000 | |||||
Cash payment for the properties acquired | 2,900,000 | |||||
Mortgage notes issued for property acquired | $ 6,800,000 |
Real Estate Assets (Summary of
Real Estate Assets (Summary of Properties Owned) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Real Estate Assets Owned | $ 238,453 | |
Garden Gateway Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Mar. 1, 2007 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 11,369 | |
World Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Sep. 1, 2007 | |
Location | San Bernardino, California | |
Real Estate Assets Owned | $ 5,781 | |
Executive Office Park [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Jul. 1, 2008 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 8,088 | |
Waterman Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2008 | |
Location | San Bernardino, California | |
Real Estate Assets Owned | $ 5,559 | |
Pacific Oaks Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Sep. 1, 2008 | |
Location | Escondido, California | |
Real Estate Assets Owned | $ 3,990 | |
Morena Office Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Jan. 1, 2009 | |
Location | San Diego, California | |
Real Estate Assets Owned | $ 4,775 | |
Genesis Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2010 | |
Location | San Diego, California | |
Real Estate Assets Owned | $ 8,497 | |
Dakota Bank Buildings [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | May 1, 2011 | |
Location | Fargo, North Dakota | |
Real Estate Assets Owned | $ 9,379 | |
Yucca Valley Retail Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Sep. 1, 2011 | [1] |
Location | Yucca Valley, California | [1] |
Real Estate Assets Owned | $ 6,612 | [1] |
Port of San Diego Complex [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2011 | |
Location | San Diego, California | |
Real Estate Assets Owned | $ 13,749 | |
The Presidio [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Nov. 1, 2012 | |
Location | Aurora, Colorado | |
Real Estate Assets Owned | $ 6,405 | |
Bismarck Office Building [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Mar. 1, 2014 | |
Location | Fargo, ND | |
Real Estate Assets Owned | $ 5,897 | |
Union Terrace Building [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2014 | |
Location | Lakewood, Colorado | |
Real Estate Assets Owned | $ 8,217 | |
Centennial Tech Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2014 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 13,162 | |
Arapahoe Service Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2014 | [1] |
Location | Centennial, Colorado | [1] |
Real Estate Assets Owned | $ 10,423 | [1] |
Union Town Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2014 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 10,058 | |
One Park Centre [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Westminster, Colorado | |
Real Estate Assets Owned | $ 8,588 | |
West Fargo Industrial [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Fargo, North Dakota | |
Real Estate Assets Owned | $ 7,346 | |
300 N.P. [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Fargo, North Dakota | |
Real Estate Assets Owned | $ 3,603 | |
Research Parkway [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 2,636 | |
Presidio Property Trust, Inc Properties [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Real Estate Assets Owned | $ 189,315 | |
Highland Court [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Centennial, Colorado | |
Real Estate Assets Owned | $ 12,084 | |
Shea Center II [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2015 | |
Location | Highlands Ranch, Colorado | |
Real Estate Assets Owned | $ 23,097 | |
Model Home Properties [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Real Estate Assets Owned | $ 49,138 | |
Model Home Properties [Member] | Minimum [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Jan. 1, 2010 | |
Model Home Properties [Member] | Maximum [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Jan. 1, 2018 | |
[1] | Properties held for sale as of June 30, 2018. |
Real Estate Assets (Geographic
Real Estate Assets (Geographic Locations of Real Estate Properties Owned) (Details) | 6 Months Ended |
Jun. 30, 2018USD ($)ft²Property | |
NetREIT, Inc. Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 22 |
Aggregate Square Feet | ft² | 1,691,650 |
Approximate % of Square Feet | 100.00% |
Current Base Annual Rent | $ | $ 21,435,743 |
Approximate of Aggregate % Annual Rent | 100.00% |
NetREIT, Inc. Properties [Member] | California [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 7 |
Aggregate Square Feet | ft² | 420,927 |
Approximate % of Square Feet | 24.90% |
Current Base Annual Rent | $ | $ 5,256,291 |
Approximate of Aggregate % Annual Rent | 24.50% |
NetREIT, Inc. Properties [Member] | Colorado [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 11 |
Aggregate Square Feet | ft² | 873,684 |
Approximate % of Square Feet | 51.60% |
Current Base Annual Rent | $ | $ 12,545,307 |
Approximate of Aggregate % Annual Rent | 58.50% |
NetREIT, Inc. Properties [Member] | North Dakota [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 4 |
Aggregate Square Feet | ft² | 397,039 |
Approximate % of Square Feet | 23.50% |
Current Base Annual Rent | $ | $ 3,634,145 |
Approximate of Aggregate % Annual Rent | 17.00% |
Model Home Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 145 |
Aggregate Square Feet | ft² | 415,551 |
Approximate % of Square Feet | 100.00% |
Current Base Annual Rent | $ | $ 4,188,364 |
Approximate of Aggregate % Annual Rent | 100.00% |
Model Home Properties [Member] | Southwest [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 85 |
Aggregate Square Feet | ft² | 260,289 |
Approximate % of Square Feet | 62.60% |
Current Base Annual Rent | $ | $ 2,372,004 |
Approximate of Aggregate % Annual Rent | 56.60% |
Model Home Properties [Member] | West [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 5 |
Aggregate Square Feet | ft² | 14,481 |
Approximate % of Square Feet | 3.50% |
Current Base Annual Rent | $ | $ 142,272 |
Approximate of Aggregate % Annual Rent | 3.40% |
Model Home Properties [Member] | Southeast [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 47 |
Aggregate Square Feet | ft² | 119,648 |
Approximate % of Square Feet | 28.80% |
Current Base Annual Rent | $ | $ 1,396,452 |
Approximate of Aggregate % Annual Rent | 33.30% |
Model Home Properties [Member] | Midwest [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 2 |
Aggregate Square Feet | ft² | 5,795 |
Approximate % of Square Feet | 1.40% |
Current Base Annual Rent | $ | $ 74,496 |
Approximate of Aggregate % Annual Rent | 1.80% |
Model Home Properties [Member] | East [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 6 |
Aggregate Square Feet | ft² | 15,338 |
Approximate % of Square Feet | 3.70% |
Current Base Annual Rent | $ | $ 203,140 |
Approximate of Aggregate % Annual Rent | 4.90% |
Lease Intangibles (Net Value of
Lease Intangibles (Net Value of Other Intangible Assets and Amortization by Class) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | $ 10,063,299 | $ 10,104,154 |
Accumulated amortization | (6,510,486) | (5,967,458) |
Lease intangibles, net | 3,552,813 | 4,136,696 |
Leases, Acquired-in-Place [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | 5,592,418 | 5,592,418 |
Accumulated amortization | (3,850,869) | (3,531,441) |
Lease intangibles, net | 1,741,549 | 2,060,977 |
Leasing Cost [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | 3,727,331 | 3,727,332 |
Accumulated amortization | (2,315,851) | (2,088,799) |
Lease intangibles, net | 1,411,480 | 1,638,533 |
Above Market Leases [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | 743,550 | 784,404 |
Accumulated amortization | (343,766) | (347,218) |
Lease intangibles, net | $ 399,784 | $ 437,186 |
Lease Intangibles - Additional
Lease Intangibles - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Below-market leases, net | $ 1,267,252 | $ 1,390,372 |
Lease intangibles, net | $ 3,552,813 | 4,136,696 |
Weighted average [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, remaining amortization period | 3 years 1 month 6 days | |
Real Estate Assets Held for Sale [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles, net | $ 2,308,518 | $ 1,007,360 |
Lease Intangibles (Amortization
Lease Intangibles (Amortization Expense for the Company Lease Intangible Assets) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Six months remaining in 2018 | $ 840,135 | |
2,019 | 885,806 | |
2,020 | 696,573 | |
2,021 | 497,459 | |
2,022 | 369,255 | |
Thereafter | 263,585 | |
Lease intangibles, net | $ 3,552,813 | $ 4,136,696 |
Other Assets (Details)
Other Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Other Assets [Line Items] | ||
Raw land | $ 47,116,093 | $ 45,723,707 |
Other intangibles, net | 409,261 | 1,108,110 |
Total other assets | 6,016,615 | 7,337,280 |
Other Assets [Member] | ||
Other Assets [Line Items] | ||
Deferred rent receivable | 3,531,121 | 3,227,700 |
Raw land | 900,000 | 900,000 |
Prepaid expenses, deposits and other | 525,573 | 1,410,363 |
Notes receivable | 334,286 | 374,733 |
Accounts receivable, net | $ 316,374 | $ 316,374 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Other Assets [Line Items] | |||
Offering costs | $ 1,507,599 | $ 1,507,599 | |
Other Assets [Member] | |||
Other Assets [Line Items] | |||
Deferred Offering Costs | $ 1,000,000 |
Mortgage Notes Payable (Details
Mortgage Notes Payable (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 172,385,190 | $ 162,005,679 | |
Unamortized loan costs | (1,760,341) | (1,682,942) | |
Mortgage notes payable, net | 170,624,849 | 160,322,737 | |
Bismarck Office Building [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [1] | $ 4,005,584 | 4,057,752 |
Fixed interest rate on mortgage (in hundredths) | [1],[2] | 4.02% | |
Maturity date | [1] | Aug. 1, 2037 | |
World Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [3] | $ 6,046,000 | |
Maturity date | [3] | Jun. 5, 2020 | |
Variable interest rate on mortgage (in hundredths) | [2],[3] | 4.83% | |
Port of San Diego Complex [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 9,432,077 | 9,575,508 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.75% | |
Maturity date | Mar. 5, 2020 | ||
Garden Gateway Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,351,160 | 6,445,300 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 5.00% | |
Maturity date | Apr. 5, 2020 | ||
West Fargo Industrial [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 4,329,281 | 4,365,449 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.79% | |
Maturity date | Aug. 4, 2020 | ||
Morena Office Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 2,120,141 | 2,156,479 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.30% | |
Maturity date | Jun. 1, 2021 | ||
Waterman Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 3,806,950 | 3,850,365 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.25% | |
Maturity date | Apr. 29, 2021 | ||
Pacific Oaks Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 1,441,642 | 1,466,351 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.50% | |
Maturity date | Jun. 1, 2021 | ||
Highland Court [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,626,699 | 6,695,541 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 3.82% | |
Maturity date | Aug. 28, 2022 | ||
Dakota Bank Buildings [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 10,394,947 | 10,492,904 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.74% | |
Maturity date | Jul. 6, 2024 | ||
Union Terrace Building [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,399,308 | 6,454,448 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.50% | |
Maturity date | Sep. 5, 2024 | ||
The Presidio [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,000,000 | 6,000,000 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.54% | |
Maturity date | Dec. 1, 2024 | ||
Research Parkway [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 1,884,737 | 1,909,012 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 3.94% | |
Maturity date | Jan. 5, 2025 | ||
Centennial Tech Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 9,819,029 | 9,908,235 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.43% | |
Maturity date | Jan. 5, 2025 | ||
Arapahoe Service Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 8,292,356 | 8,364,088 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.34% | |
Maturity date | Jan. 5, 2025 | ||
Union Town Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 8,440,000 | 8,440,000 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.28% | |
Maturity date | Jan. 5, 2025 | ||
Yucca Valley Retail Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [4] | $ 5,976,099 | 6,000,000 |
Fixed interest rate on mortgage (in hundredths) | [2],[4] | 4.30% | |
Maturity date | [4] | Apr. 11, 2025 | |
Executive Office Park [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [5] | $ 4,991,389 | 4,151,161 |
Fixed interest rate on mortgage (in hundredths) | [2],[5] | 5.80% | |
Maturity date | [5] | Jul. 1, 2025 | |
Genesis Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,500,000 | 6,500,000 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.65% | |
Maturity date | Aug. 25, 2025 | ||
One Park Centre [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,610,000 | 6,610,000 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.77% | |
Maturity date | Sep. 5, 2025 | ||
Shea Center II [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 17,727,500 | 17,727,500 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.92% | |
Maturity date | Jan. 5, 2026 | ||
300 N.P. [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 2,362,903 | 2,380,703 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.95% | |
Maturity date | Jun. 11, 2022 | ||
Presidio Property Trust, Inc Properties [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 139,557,802 | 133,550,796 | |
Fixed interest rate on mortgage (in hundredths) | [2] | 4.71% | |
Model Home Properties [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 32,827,388 | $ 28,454,883 | |
Model Home Properties [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on mortgage (in hundredths) | 3.80% | ||
Maturity date | [6] | Jan. 1, 2018 | |
Model Home Properties [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on mortgage (in hundredths) | 5.50% | ||
Maturity date | [6] | Jan. 1, 2021 | |
[1] | Interest rate is subject to reset on September 1, 2023 and on September 1, 2030. | ||
[2] | Interest rates as of June 30, 2018. | ||
[3] | Interest rate is Libor plus 2.75% or 4.83% as of June 30, 2018. | ||
[4] | Properties held for sale as of June 30, 2018. | ||
[5] | Interest rate is subject to reset on June 1, 2021 and June 1, 2024 | ||
[6] | Each Model Home has a stand-alone mortgage note at interest rates ranging from 3.8% to 5.5% per annum (at June 30, 2018). |
Mortgage Notes Payable (Parenth
Mortgage Notes Payable (Parenthetical) (Details) | 6 Months Ended | |
Jun. 30, 2018 | ||
Executive Office Park [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate Terms | Interest rate is subject to reset on June 1, 2021 and June 1, 2024 | |
Fixed interest rate on mortgage (in hundredth) | 5.80% | [1],[2] |
Model Home Properties [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate on mortgage (in hundredth) | 3.80% | |
Model Home Properties [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate on mortgage (in hundredth) | 5.50% | |
Bismarck Office Building [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate Terms | Interest rate is subject to reset on September 1, 2023 and on September 1, 2030. | |
Fixed interest rate on mortgage (in hundredth) | 4.02% | [2],[3] |
World Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on mortgage (in hundredth) | 4.83% | [2],[4] |
Debt instrument, variable interest rate basis | Libor | |
World Plaza [Member] | Libor [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on mortgage (in hundredth) | 2.75% | |
[1] | Interest rate is subject to reset on June 1, 2021 and June 1, 2024 | |
[2] | Interest rates as of June 30, 2018. | |
[3] | Interest rate is subject to reset on September 1, 2023 and on September 1, 2030. | |
[4] | Interest rate is Libor plus 2.75% or 4.83% as of June 30, 2018. |
Mortgage Notes Payable (Schedul
Mortgage Notes Payable (Scheduled Principal Payments of Mortgage Notes Payable) (Details) | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
Six months remaining in 2018 | $ 2,059,066 |
2,019 | 16,603,641 |
2,020 | 38,291,586 |
2,021 | 20,964,948 |
2,022 | 10,154,598 |
Thereafter | 84,311,351 |
Total | 172,385,190 |
Presidio Property Trust, Inc. [Member] | |
Debt Instrument [Line Items] | |
Six months remaining in 2018 | 1,048,481 |
2,019 | 2,307,005 |
2,020 | 27,222,208 |
2,021 | 14,514,159 |
2,022 | 10,154,598 |
Thereafter | 84,311,351 |
Total | 139,557,802 |
Model Home [Member] | |
Debt Instrument [Line Items] | |
Six months remaining in 2018 | 1,010,585 |
2,019 | 14,296,636 |
2,020 | 11,069,378 |
2,021 | 6,450,789 |
Total | $ 32,827,388 |
Series B Mandatorily Redeemab37
Series B Mandatorily Redeemable Preferred Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | May 31, 2017 | Mar. 31, 2017 | Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||||||||
Interest expense | $ 3,147,179 | $ 3,311,421 | $ 6,224,156 | $ 6,627,617 | |||||||||
Preferred stock extend redemption date | Aug. 1, 2018 | ||||||||||||
Preferred stock redemption extension fee paid | $ 153,500 | ||||||||||||
Preferred stock redemption extension additional fee paid | $ 153,500 | ||||||||||||
Redeemable Convertible Preferred Stock Series B [Member] | |||||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||||||||
Preferred stock shares issued (in shares) | 30,700 | 30,700 | 30,700 | 35,000 | |||||||||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||
Financial Instruments Subject to Mandatory Redemption, Return On Funds Invested | 14.00% | 14.00% | |||||||||||
Deferred financing costs | $ 3,100,000 | $ 3,100,000 | |||||||||||
Interest expense | 19,000 | $ 254,000 | |||||||||||
Total unamortized deferred stock costs | $ 77,000 | $ 77,000 | $ 115,000 | ||||||||||
Number of shares redeemed | 1,000 | 1,000 | 1,000 | 1,000 | 300 | ||||||||
Number of shares redeemed, value | $ 2,000,000 | $ 2,300,000 | |||||||||||
Preferred stock shares outstanding (in shares) | 30,700 | 30,700 | 30,700 |
Stockholders' Equity (Common an
Stockholders' Equity (Common and Preferred Stock) (Details) | 6 Months Ended | ||
Jun. 30, 2018Vote$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2011$ / sharesshares | |
Private Placement [Member] | |||
Common Stock [Abstract] | |||
Common stock shares issued (in shares) | 20,000,000 | ||
Sale of Stock, Price Per Share | $ / shares | $ 10 | ||
Preferred Stock [Member] | |||
Preferred Stock [Abstract] | |||
Preferred shares authorized (in shares) | 8,990,000 | ||
Preferred shares issued (in shares) | 0 | ||
Common Class A [Member] | |||
Common Stock [Abstract] | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Common stock shares issued (in shares) | 17,667,857 | 17,667,857 | |
Number of votes holder is entitled to | Vote | 1 | ||
Maximum individual common stock ownership (in hundredths) | 9.80% | ||
Common Class B [Member] | |||
Common Stock [Abstract] | |||
Common stock, shares authorized (in shares) | 1,000 | ||
Par value (in dollars per share) | $ / shares | $ 0.01 | ||
Common stock shares issued (in shares) | 0 | ||
Number of votes holder is entitled to | Vote | 1 | ||
Maximum individual common stock ownership (in hundredths) | 9.80% |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends) (Details) - USD ($) | Jan. 23, 2012 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Cash Dividends [Abstract] | ||||||
Payments of dividends | $ 0 | $ 0 | $ 0 | |||
Dividends declared | $ 0 | $ 0 | $ 0 | |||
Cash dividends paid, net of reinvested stock dividends | $ 2,384,000 | |||||
Annualized dividend rate (in dollars per share) | $ 0.10 | |||||
Dividend Reinvestment Plan [Abstract] | ||||||
Registered shares of common stock pursuant to dividend reinvestment plan (in shares) | 3,000,000 | |||||
Percentage of purchase price per share (in hundredths) | 95.00% | |||||
Former sales price per share (in dollars per share) | $ 9.50 | |||||
Payment of sales commission or dealer manager fee | $ 0 | |||||
Notice period for amendments to Dividend Reinvestment Plan | 30 days | |||||
Common stock issued under dividend reinvestment plan | $ 17,400,000 | |||||
Common stock issued under dividend reinvestment plan (in shares) | 1,834,147 | 1,834,147 | ||||
Stock issued during period, shares dividend reinvestment plan | 0 |
Related Party Transaction (Narr
Related Party Transaction (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pacific Oaks Plaza [Member] | Chairman and Chief Executive Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rent revenue from an entity 100% owned by the Company's Chairman and Chief Executive Officer | $ 7,000 | $ 7,000 | $ 14,000 | $ 14,000 |
Segments (Net Operating Income
Segments (Net Operating Income by Segment) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Operating Income [Abstract] | ||||
Rental, fee and other income | $ 7,843,654 | $ 7,794,585 | $ 15,789,760 | $ 15,809,218 |
Property and related expenses | (2,662,223) | (2,636,063) | (5,312,132) | (5,273,165) |
Net operating income, as defined | 5,502,193 | 5,882,011 | 11,077,118 | 11,491,436 |
General and administrative expenses | (1,357,578) | (1,439,820) | (2,692,672) | (2,629,837) |
Depreciation and amortization | (2,265,889) | (2,443,817) | (4,604,933) | (4,947,333) |
Interest expense | (3,147,179) | (3,311,421) | (6,224,156) | (6,627,617) |
Other expense /(income) | 12,449 | 5,829 | (5,842) | 15,097 |
Deferred offering costs | (1,507,599) | (1,507,599) | ||
Income tax expense | (88,671) | (13,746) | (119,465) | (108,356) |
Gain on sale of real estate | 355,276 | 1,485,589 | 429,489 | 2,027,051 |
Net (loss) income | (2,496,998) | 164,625 | (3,648,060) | (779,559) |
Office/Industrial Properties [Member] | ||||
Net Operating Income [Abstract] | ||||
Rental, fee and other income | 6,058,387 | 6,535,722 | 12,215,534 | 12,779,101 |
Property and related expenses | (2,306,483) | (2,295,720) | (4,657,093) | (4,514,238) |
Net operating income, as defined | 3,751,904 | 4,240,002 | 7,558,441 | 8,264,864 |
Model Home Properties [Member] | ||||
Net Operating Income [Abstract] | ||||
Rental, fee and other income | 1,169,890 | 930,062 | 2,293,657 | 1,806,607 |
Property and related expenses | (34,825) | (35,038) | (87,351) | (73,995) |
Net operating income, as defined | 1,135,065 | 895,024 | 2,206,306 | 1,732,612 |
Retail/Mixed Use Properties [Member] | ||||
Net Operating Income [Abstract] | ||||
Rental, fee and other income | 936,139 | 1,052,289 | 1,880,059 | 2,178,893 |
Property and related expenses | (320,915) | (305,304) | (567,688) | (684,933) |
Net operating income, as defined | $ 615,224 | $ 746,985 | $ 1,312,371 | $ 1,493,960 |
Segments (Assets) (Details)
Segments (Assets) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | $ 245,839,526 | $ 240,358,882 | |||
Cash equivalents and restricted cash | 12,450,950 | 8,310,575 | $ 8,893,728 | $ 7,387,795 | |
Other assets, net | 6,016,615 | 7,337,280 | |||
TOTAL ASSETS | 261,281,130 | 254,496,865 | |||
Significant Reconciling Items [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Other assets, net | 2,990,654 | 5,827,408 | |||
Office/Industrial Properties [Member] | Operating Segments [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | [1] | 158,668,576 | 160,422,469 | ||
TOTAL ASSETS | [2] | 162,477,991 | 163,041,049 | ||
Model Home Properties [Member] | Operating Segments [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | [1] | 49,137,958 | 43,245,832 | ||
TOTAL ASSETS | [2] | 51,006,321 | 44,782,943 | ||
Retail/Mixed Use Properties [Member] | Operating Segments [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | [1] | 30,646,160 | 30,865,644 | ||
TOTAL ASSETS | [2] | $ 32,355,214 | $ 32,534,890 | ||
[1] | Includes lease intangibles and the land purchase option related to property acquisitions. | ||||
[2] | Includes land, buildings and improvements, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis. |
Segments (Capital Expenditures)
Segments (Capital Expenditures) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Acquisition of operating properties | $ 10,196,098 | $ 9,694,785 |
Capital expenditures and tenant improvements | 1,808,140 | 1,819,591 |
Total real estate investments | 12,004,238 | 11,514,376 |
Office/Industrial Properties [Member] | ||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Capital expenditures and tenant improvements | 1,788,880 | 1,783,814 |
Model Home Properties [Member] | ||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Acquisition of operating properties | 10,196,098 | 9,694,785 |
Retail/Mixed Use Properties [Member] | ||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Capital expenditures and tenant improvements | $ 19,260 | $ 35,777 |