Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 13, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PRESIDIO PROPERTY TRUST, INC. | |
Entity Central Index Key | 0001080657 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Trading Symbol | SQFT | |
Entity Common Stock Shares Outstanding | 17,733,947 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Real estate assets and lease intangibles: | ||
Land | $ 29,067,893 | $ 29,850,681 |
Buildings and improvements | 148,339,806 | 152,642,115 |
Tenant improvements | 16,613,335 | 15,457,302 |
Lease intangibles | 6,552,142 | 6,552,142 |
Real estate assets and lease intangibles held for investment, cost | 200,573,176 | 204,502,240 |
Accumulated depreciation and amortization | (33,087,311) | (31,732,241) |
Real estate assets and lease intangibles held for investment, net | 167,485,865 | 172,769,999 |
Real estate assets held for sale, net | 34,720,372 | 38,338,066 |
Real estate assets, net | 202,206,237 | 211,108,065 |
Cash equivalents and restricted cash | 12,839,227 | 9,776,215 |
Deferred leasing costs, net | 2,042,461 | 2,096,553 |
Goodwill | 2,423,000 | 2,423,000 |
Other assets, net | 5,555,299 | 7,646,207 |
TOTAL ASSETS | 225,066,224 | 233,050,040 |
Liabilities: | ||
Mortgage notes payable, net | 119,470,892 | 123,039,215 |
Mortgage notes payable related to properties held for sale, net | 26,384,990 | 26,674,961 |
Mortgage notes payable, net | 145,855,882 | 149,714,176 |
Accounts payable and accrued liabilities | 5,056,822 | 5,751,245 |
Accrued real estate taxes | 2,153,246 | 3,094,380 |
Dividends payable | 1,075,371 | |
Lease liability | 514,015 | |
Below-market leases, net | 448,328 | 495,927 |
Total liabilities | 169,967,242 | 176,908,997 |
Commitments and contingencies (Note 8) | ||
Equity: | ||
Additional paid-in capital | 151,760,626 | 151,582,017 |
Dividends and accumulated losses | (113,072,382) | (111,343,840) |
Total stockholders' equity before noncontrolling interest | 38,865,585 | 40,415,393 |
Noncontrolling interest | 16,233,397 | 15,725,650 |
Total equity | 55,098,982 | 56,141,043 |
TOTAL LIABILITIES AND EQUITY | 225,066,224 | 233,050,040 |
Redeemable Convertible Preferred Stock Series B [Member] | ||
Liabilities: | ||
Mandatorily redeemable Series B Preferred Stock, net | 15,938,949 | 16,777,898 |
Common Class A [Member] | ||
Equity: | ||
Common stock series A | $ 177,341 | $ 177,216 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 | 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) | 16,000 | 16,900 | 35,000 |
Preferred stock shares outstanding (in shares) | 16,000 | 16,900 | |
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) | 17,733,947 | 17,721,422 | |
Common stock shares outstanding (in shares) | 17,733,947 | 17,721,422 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Rental income | $ 6,895,180 | $ 7,946,106 |
Fees and other income | 284,084 | 278,728 |
Total revenue | 7,179,264 | 8,224,834 |
Costs and expenses: | ||
Rental operating costs | 2,763,550 | 2,649,909 |
General and administrative | 1,760,703 | 1,333,465 |
Depreciation and amortization | 2,210,081 | 2,339,044 |
Total costs and expenses | 6,734,334 | 6,322,418 |
Other income (expense): | ||
Interest expense-Series B preferred stock | (648,451) | (1,093,687) |
Interest expense-mortgage notes | (1,896,752) | (1,983,289) |
Interest and other income (expense), net | 5,524 | (18,291) |
Gain on sales of real estate, net | 1,214,242 | 74,213 |
Income tax expense | (81,430) | (32,423) |
Total other expense, net | (1,406,867) | (3,053,477) |
Net loss | (961,937) | (1,151,061) |
Less: Income attributable to noncontrolling interests | (766,455) | (167,130) |
Net loss attributable to Presidio Property Trust, Inc. common stockholders | $ (1,728,392) | $ (1,318,191) |
Basic and diluted loss per common share | $ (0.10) | $ (0.07) |
Weighted average number of common shares outstanding - basic and diluted | 17,734,797 | 17,667,857 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Equity (Unaudited) - 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 | (1,151,061) | (1,318,191) | (1,318,191) | 167,130 | ||
Dividends paid | 0 | |||||
Contributions received from noncontrolling interests, net of distributions paid | 1,017,739 | 1,017,739 | ||||
Ending balance at Mar. 31, 2018 | 51,908,846 | $ 176,680 | 151,121,902 | (114,970,954) | 36,327,628 | 15,581,218 |
Ending balance (in shares) at Mar. 31, 2018 | 17,667,857 | |||||
Beginning balance at Dec. 31, 2018 | 56,141,043 | $ 177,216 | 151,582,017 | (111,343,840) | 40,415,393 | 15,725,650 |
Beginning balance (in shares) at Dec. 31, 2018 | 17,721,422 | |||||
Net loss | (961,937) | (1,728,392) | (1,728,392) | 766,455 | ||
Dividends paid | (150) | (150) | (150) | |||
Contributions received from noncontrolling interests, net of distributions paid | (258,708) | (258,708) | ||||
Repurchase of common stock, value | (52,149) | $ (143) | (52,006) | (52,149) | ||
Repurchase of common stock (in shares) | (14,322) | |||||
Vesting of restricted stock, value | 230,883 | $ 268 | 230,615 | 230,883 | ||
Vesting of restricted stock (in shares) | 26,847 | |||||
Ending balance at Mar. 31, 2019 | $ 55,098,982 | $ 177,341 | $ 151,760,626 | $ (113,072,382) | $ 38,865,585 | $ 16,233,397 |
Ending balance (in shares) at Mar. 31, 2019 | 17,733,947 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (961,937) | $ (1,151,061) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,210,081 | 2,339,044 |
Stock compensation | 433,285 | 171,840 |
Bad debt expense | 18,139 | 1,919 |
Gain on sale of real estate assets, net | (1,214,242) | (74,213) |
Amortization of financing costs | 227,374 | 136,170 |
Amortization of above-market leases | 17,455 | 21,480 |
Amortization of below-market leases | (47,599) | (63,592) |
Straight-line rent adjustment | (14,856) | (112,556) |
Changes in operating assets and liabilities: | ||
Other assets | 2,051,150 | 348,615 |
Accounts payable and accrued liabilities | (459,901) | (100,175) |
Accrued real estate taxes | (941,134) | (781,793) |
Net cash provided by operating activities | 1,317,815 | 735,678 |
Cash flows from investing activities: | ||
Real estate acquisitions | (7,284,141) | |
Additions to buildings and tenant improvements | (2,696,422) | (1,204,778) |
Additions to deferred leasing costs | (151,903) | (167,412) |
Proceeds from sales of real estate, net | 10,836,118 | 853,608 |
Net cash provided by (used in) investing activities | 7,987,793 | (7,802,723) |
Cash flows from financing activities: | ||
Proceeds from mortgage notes payable, net of issuance costs | 3,674,303 | 5,091,811 |
Repayment of mortgage notes payable | (7,682,670) | (1,251,678) |
Redemption of mandatorily redeemable preferred stock | (900,000) | |
Contributions from noncontrolling interests net of distributions paid | (258,708) | 1,017,739 |
Dividends paid to stockholders | (1,075,521) | |
Net cash (used in) provided by financing activities | (6,242,596) | 4,857,872 |
Net increase (decrease) in cash equivalents and restricted cash | 3,063,012 | (2,209,173) |
Cash equivalents and restricted cash - beginning of period | 9,776,215 | 8,310,575 |
Cash equivalents and restricted cash - end of period | 12,839,227 | 6,101,402 |
Supplemental disclosure of cash flow information: | ||
Interest paid Series B preferred stock | 580,650 | 1,074,500 |
Interest paid-mortgage notes payable | $ 1,727,008 | $ 1,857,578 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
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: • Thirteen office buildings and one industrial property (“Office/Industrial Properties”) which total approximately 1,273,788 rentable square feet; • Four retail shopping centers (“Retail Properties”) which total approximately 129,254 rentable square feet; and • 129 model home residential properties (“Model Homes”) leased back to homebuilders owned through four affiliated limited partnerships and one wholly-owned corporation (“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 is the general and limited partner in five limited partnerships that purchase Model Homes and lease them back to homebuilders (“Dubose Model Home Investors #202, LP”, “Dubose Model Homes Investors #203, LP”, “Dubose Model Homes Investors #204, LP”, “Dubose Model Homes Investors #205, 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 limited partnerships in which 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 such limited partnerships. We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (“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. We, together with one of our entities, have elected to treat our subsidiaries as a taxable REIT subsidiary (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. Liquidity. The Company’s 16,000 shares of Series B Preferred Stock are mandatorily redeemable by the Company on August 1, 2019 (“Mandatory Redemption Date”) for $16.0 million in cash. It is management’s intent to obtain additional borrowings under secured or unsecured indebtedness, sell properties, or reduce the rate of distributions to the stockholders in order to obtain proceeds sufficient to settle this obligation. Under the terms of our Series B Preferred Stock financing, if there is an event of default, the investor may exercise various remedies, including a change of control via replacing a majority of the Board of Directors. If we fail to comply with the payment obligations, then we may trigger an event of default. The terms of our Series B Preferred Stock financing provide that, upon the occurrence of an event of default, the investor will have the right to take the unilateral action to, or cause the Company to, among other things: • Replace property managers and leasing agents; • Following 180 days after the Mandatory Redemption Date, sell any property of the Company, except as otherwise required under applicable law and subject to senior liens; • Implement all major decisions listed above and in the Investor Agreement, except as otherwise required under applicable law; • Refinance, repay or prepay any senior loans of the Company; • Cure any default under any senior loans of the Company; and • Elect six individuals to serve as members of the Board of Directors of the Company. The ability of our investor to replace a majority of our board of directors upon an event of default would give control of the Company to the investor. Such a change of control, or the exercise of other rights upon an event of default, could result in a material adverse effect on us, including our business, results of operations and financial condition. For the nine months remaining in 2019 and the year ending December 31, 2020, we have $6.3 million and $12.3 million of mortgage notes payable maturing, respectively, related to the model home properties. We plan to refinance a significant portion of the mortgage notes payable or sell the model home properties to repay the mortgage notes payable. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018. 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, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2019. 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 months ended March 31, 2019 and 2018, 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, 2019. 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, 2018. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated financial statements included in the Form 10-K filed with the SEC on March 22, 2019. 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 March 31, 2019 and December 31, 2018, we had approximately $5.5 million and $5.8 million in cash equivalents, respectively and $7.3 million and $4.0 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. Restricted cash consists of funds used for property taxes, insurance, capital expenditures and leasing commission. 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. Impairments of Real Estate Asset. We review for impairment on a property by property basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. The calculation of both discounted and undiscounted cash flows requires management to make estimates of future cash flows including revenues, operating expenses, required maintenance and development expenditures, market conditions, demand for space by tenants and rental rates over long periods. Since our properties typically have a long life, the assumptions used to estimate the future recoverability of book value requires significant management judgment. Actual results could be significantly different from the estimates. These estimates have a direct impact on net income because recording an impairment charge results in a negative adjustment to net income. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. Although our strategy is to hold our properties over the long-term, if our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized to reduce the property to fair value and such loss could be material. During the three months ended March 31, 2019, the Company determined that no impairment existed, and no impairment charge was recorded for the three months ended March 31, 2019. Fair Value Measurements . Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, we utilize quoted market prices from independent third-party sources to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require us to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When we determine the market for a financial instrument owned by us to be illiquid or when market transactions for similar instruments do not appear orderly, we use several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establish a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of a liability in circumstances in which a quoted price in an active market for an identical liability is not available, we measure fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. 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. The Board of Directors of the Company declared a $0.06 per share of Series A Common Stock dividend payable on May 31, 2019 to holders of record as of April 1, 2019. Recently Issued Accounting Pronouncements. In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) , which amended the existing accounting standards for lease accounting to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet. We adopted the standard effective January 1, 2019 and have elected to use January 1, 2019 as our date of initial application. Consequently, financial information will not be updated and disclosures required under the new standard will not be provided for periods presented before January 1, 2019 as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. We evaluated all leases within this scope under existing accounting standards and under the new ASU lease standard recognized approximately $514,000 of right-of-use assets and lease liabilities. As a lessor, our rental revenue remained mainly consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. The new standard defines initial direct costs as only the incremental costs of signing a lease. As such, certain compensation and certain external legal fees related to the execution of successful lease agreements no longer meet the definition of initial direct costs under the new standard and will be accounted for in the line item General and Administrative Expense Leases - Targeted Improvements . • The new standard provided a practical expedient, which allows lessors to combine non-lease components with the related lease components if both the timing and pattern of transfer are the same for the non-lease components(s) and the related lease components, and the lease components would be classified as an operating lease. Lessors are permitted to apply the practical expedient to all existing leases on a retrospective or prospective basis. We elected the practical expedient to combine our lease and non-lease components that meet the defined criteria. The non-lease components of our leases primarily consist of common area maintenance reimbursements from our tenants. • The new standard requires our expected credit loss related to the collectability of lease receivables to be reflected as an adjustment to the line item Rental Income Rental Operating Expense In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Revenue from Contracts with Customers In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement |
Recent Real Estate Transactions
Recent Real Estate Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Recent Real Estate Transactions | 3. RECENT REAL ESTATE TRANSACTIONS On January 15, 2019, the Company sold the Morena Office Center for approximately $5.6 million and recognized a gain of approximately $700,000. During the three months ended March 31, 2019, the Company disposed of 15 model homes for approximately $5.8 million and recognized a gain of approximately $514,000 related to the sale of these Model Homes. During the three months ended March 30, 2018, the Company acquired 19 model homes for approximately $7.3 million. The purchase price was paid through cash payments of approximately $2.2 million and mortgage notes of approximately $5.1 million. During the three months ended March 31, 2018, the Company disposed of two model homes for approximately $905,000 and recognized a gain of approximately $74,000 related to the sale of these Model Homes. |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Assets [Abstract] | |
Real Estate Assets | 4. REAL ESTATE ASSETS A summary of the properties owned by the Company as of March 31, 2019 is as follows: Real estate Date assets, net Property Name Acquired Location (in thousands) Garden Gateway Plaza March 2007 Colorado Springs, Colorado $ 11,362 World Plaza (1) September 2007 San Bernardino, California 7,310 Executive Office Park July 2008 Colorado Springs, Colorado 7,914 Waterman Plaza August 2008 San Bernardino, California 4,955 Genesis Plaza August 2010 San Diego, California 8,683 Dakota Center May 2011 Fargo, North Dakota 9,036 The Presidio (1) November 2012 Colorado Springs, Colorado 6,509 Grand Pacific Center March 2014 Bismarck, North Dakota 5,846 Union Terrace (1) August 2014 Lakewood, Colorado 8,076 Centennial Tech Center (1) December 2014 Colorado Springs, Colorado 12,826 Arapahoe Center December 2014 Centennial, Colorado 10,122 Union Town Center December 2014 Colorado Springs, Colorado 9,826 West Fargo Industrial August 2015 West Fargo, North Dakota 7,285 300 N.P. August 2015 Fargo, North Dakota 3,509 Research Parkway August 2015 Colorado Springs, Colorado 2,567 One Park Center August 2015 Westminster, Colorado 8,508 Highland Court August 2015 Centennial, Colorado 11,724 Shea Center II December 2015 Highlands Ranch, Colorado 22,524 Presidio Property Trust, Inc. properties 158,582 Model Home properties 2010-2018 AZ, CA, FL, IL, PA, SC, TX, WI 43,624 Total real estate assets and lease intangibles, net $ 202,206 (1) Properties held for sale as of March 31, 2019. Geographic Diversification Table The following tables show a list of properties owned by Presidio Property Trust, Inc. grouped by state location as of March 31, 2019: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Rent Approximate % of Aggregate Annual Rent California 3 132,319 9.4 % $ 1,810,437 10.0 % Colorado 11 873,684 62.3 % 12,660,021 69.9 % North Dakota 4 397,039 28.3 % 3,632,796 20.1 % Total 18 1,403,042 100.0 % $ 18,103,254 100.0 % Model Home properties: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Annual Rent Approximate of Aggregate % Annual Rent Southwest 89 347,482 77.7 % $ 2,520,600 67.6 % West 2 4,563 1.0 % 42,456 1.1 % Southeast 29 68,188 15.2 % 807,204 21.6 % Midwest 3 9,458 2.1 % 131,916 3.5 % East 3 8,295 1.9 % 113,016 3.0 % Northeast 3 9,271 2.1 % 121,020 3.2 % Total 129 447,257 100.0 % $ 3,736,212 100.0 % |
Lease Intangibles
Lease Intangibles | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Lease Intangibles Accumulated Amortization Lease Intangibles, net Lease Intangibles Accumulated Amortization Lease Intangibles, net In-place leases $ 4,958,477 $ (3,590,585 ) $ 1,367,892 $ 4,958,477 $ (3,467,781 ) $ 1,490,696 Leasing costs 3,628,080 (2,496,491 ) 1,131,589 3,628,080 (2,405,514 ) 1,222,566 Above-market leases 439,878 (309,121 ) 130,757 439,878 (291,666 ) 148,212 $ 9,026,435 $ (6,396,197 ) $ 2,630,238 $ 9,026,435 $ (6,164,961 ) $ 2,861,474 As of March 31, 2019 and December 31, 2018, $953,062 and $1,000,618, of net lease intangible assets were included in real estate assets held for sale, respectively. The net value of acquired intangible liabilities was $448,328 and $495,927 relating to below-market leases as of March 31, 2019 and December 31, 2018, respectively. Future aggregate approximate amortization expense for the Company's lease intangible assets is as follows: Nine months remaining in 2019 $ 645,431 Years ending December 31: 2020 687,974 2021 488,320 2022 378,394 2023 173,785 Thereafter 256,334 Total $ 2,630,238 The weighted average remaining amortization period of the intangible assets as of March 31, 2019 is 3.4 years. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | 6. OTHER ASSETS Other assets consist of the following: March 31, December 31, 2019 2018 Deferred rent receivable $ 2,816,360 $ 2,883,581 Prepaid expenses, deposits and other 231,195 407,106 Tenant receivable, net 503,747 2,845,314 Raw land 900,000 900,000 Right-of-use asset 514,015 - Other intangibles, net 273,608 293,832 Notes receivable 316,374 316,374 Total other assets $ 5,555,299 $ 7,646,207 |
Mortgage Notes Payable
Mortgage Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Mortgage Loans On Real Estate [Abstract] | |
Mortgage Notes Payable | 7. MORTGAGE NOTES PAYABLE Mortgage notes payable consisted of the following: Principal as of March 31, December 31, Loan Interest Mortgage note property Notes 2019 2018 Type Rate (1) Maturity Garden Gateway Plaza 6,221,930 6,270,896 Fixed 5.00 % 2/5/2020 World Plaza (3)(4) 4,652,783 3,350,539 Variable 5.10 % 7/5/2020 West Fargo Industrial 4,273,389 4,292,809 Fixed 4.79 % 9/6/2020 Morena Office Center (2) - 1,567,358 Fixed 4.30 % 6/1/2021 Waterman Plaza 3,342,821 3,369,960 Fixed 5.78 % 4/29/2021 300 N.P. 2,339,040 2,348,443 Fixed 4.95 % 6/11/2022 Highland Court 6,532,844 6,568,320 Fixed 3.82 % 9/1/2022 Dakota Center 10,263,049 10,314,520 Fixed 4.74 % 7/6/2024 Union Terrace Building (3) 6,325,217 6,354,153 Fixed 4.50 % 8/5/2024 The Presidio (3) 5,976,369 5,992,905 Fixed 4.54 % 12/1/2021 Centennial Tech Center (3) 9,699,063 9,745,811 Fixed 4.43 % 12/5/2024 Research Parkway 1,851,618 1,864,139 Fixed 3.94 % 1/5/2025 Arapahoe Service Center 8,195,988 8,233,567 Fixed 4.34 % 1/5/2025 Union Town Center 8,440,000 8,440,000 Fixed 4.28 % 1/5/2025 Executive Office Park 4,921,238 4,947,808 Fixed 4.83 % 6/1/2027 Genesis Plaza 6,450,941 6,476,032 Fixed 4.71 % 8/25/2025 One Park Centre 6,560,690 6,585,922 Fixed 4.77 % 9/5/2025 Shea Center II 17,727,500 17,727,500 Fixed 4.92 % 1/5/2026 Grand Pacific Center (5) 3,934,379 3,961,304 Fixed 4.02 % 8/1/2037 Subtotal, Presidio Property Trust, Inc. Properties 117,708,859 118,411,986 Model Home mortgage notes 29,423,690 32,728,930 Fixed (6) 2019-2021 Mortgage Notes Payable $ 147,132,549 $ 151,140,916 Unamortized loan costs (1,276,667 ) (1,426,740 ) Mortgage Notes Payable, net $ 145,855,882 $ 149,714,176 (1) Interest rates as of March 31, 2019. (2) Morena Office Center was sold on January 15, 2019. (3) Properties held for sale as of March 31, 2019. (4) Interest on this loan is ABR plus 0.75% and LIBOR plus 2.75%. For the 3 months ended March 31, 2019, the weighted average interest rate was 5.38%. ( 5 ) Interest rate is subject to reset on September 1, 2023. ( 6 ) Each model home has a stand-alone mortgage note at interest rates ranging from 3.7% to 5.75% per annum (at March 31, 2019). 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 March 31, 2019 Presidio Property Trust, Inc. Model Homes Principal Notes Payable Notes Payable Payments Nine months remaining in 2019 $ 1,496,106 $ 6,253,663 $ 7,749,769 Years ending December 31: 2020 16,537,438 12,314,258 $ 28,851,696 2021 10,756,794 10,855,769 $ 21,612,563 2022 10,055,656 - $ 10,055,656 2023 1,783,291 - $ 1,783,291 Thereafter 77,079,574 - $ 77,079,574 Total $ 117,708,859 $ 29,423,690 $ 147,132,549 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES The Company is obligated under certain tenant leases to fund tenant improvements and the expansion of the underlying leased properties. Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment, a current or previous owner or operator of real estate may be liable for the cost of removal or remediation of certain hazardous or toxic substances disposed, stored, generated, released, manufactured or discharged from, on, at, under, or in a property. As such, the Company may be potentially liable for costs associated with any potential environmental remediation at any of its formerly or currently owned properties. The Company believes that it is in compliance in all material respects with all federal, state and local ordinances and regulations regarding hazardous or toxic substances. Management is not aware of any environmental liability that it believes would have a material adverse impact on the Company’s financial position or results of operations. Management is unaware of any instances in which the Company would incur significant environmental costs if any or all properties were sold, disposed of or abandoned. However, there can be no assurance that any such non-compliance, liability, claim or expenditure will not arise in the future. The Company is involved from time to time in lawsuits and other disputes which arise in the ordinary course of business. As of March 31, 2019, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations. |
Series B Mandatorily Redeemable
Series B Mandatorily Redeemable Preferred Stock | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities And Shares Subject To Mandatory Redemption [Abstract] | |
Series B Mandatorily Redeemable Preferred Stock | 9. 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 (“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. As of March 31, 2019 and December 31, 2018, the outstanding number of shares was 16,000 and 16,900, respectively. 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 March 31, 2019 During the three months ended March 31, 2019, the Company redeemed 900 shares of its Series B Preferred Stock for $900,000. During the year ended December 31, 2018, the Company redeemed 13,800 shares of its Series B Preferred Stock for $13.8 million. As of March 31, 2019 and December 31, 2018, the outstanding number of shares was 16,000 and 16,900, respectively, and redeemable for $16 million and $16.9 million in cash, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 10. 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. The Board of Directors authorized the original issuance of 1,000,000 shares of the Preferred Stock as Series AA Convertible Preferred Stock (“Series AA”). Each share of Series AA (i) is non-voting, except under certain circumstances as provided in the Articles of Incorporation; (ii) is entitled to annual cash dividends of 7% which are cumulative and payable quarterly; (iii) ranks senior, as to the payment of dividends and distributions of assets upon liquidation, to common stock or any other series of Preferred Stock that is not senior to or on parity with the Series AA; (iv) is entitled to receive $25.00 plus accrued dividends upon liquidation; (v) may be redeemed by the Company prior to the mandatory conversion date at a price of $25.00 plus accrued dividends, and (vi) may be converted into two shares of common stock at the option of the holder prior to the mandatory conversion date. The conversion price is subject to certain anti-dilution adjustments. The Company has not issued any shares of this Series AA Preferred Stock. Common Stock. The Company is authorized to issue up to 100,000,000 shares of Series A Common Stock $0.01 par value (“Series A Common Stock”) and 1,000 shares of Series B Common Stock $0.01 par value (“Series B Common Stock”). The Series A Common Stock and the Series B Common Stock have identical rights, preferences, terms and conditions except that the holders of Series B Common Stock are not entitled to receive any portion of Company assets in the event of Company liquidation. There have been no shares of Series B Common Stock issued. Each share of Series A Common Stock and Series B Common Stock entitles the holder to one vote. The Series A Common Stock and Series B Common Stock is not subject to redemption and 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. Cash Dividends. During the three months ended March 31, 2019 the Company paid a cash dividend of approximately $1,075,000 or $0.06 per share. During the three months ended March 31, 2018 the Company suspended the payment of dividends and no dividends were declared or paid. Dividend Reinvestment Plan. The Company has adopted a distribution reinvestment plan (“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 Plan. The Plan became effective on January 23, 2012 and was suspended on December 7, 2018. The purchase price per share used in the past was 95% of the price the Company sold its shares or $9.50 per share. No sales commission or dealer manager fee were paid on shares sold through the 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 March 31, 2019 approximately $17.4 million or approximately 1,834,147 shares of common stock have been issued under the Plan. No shares were issued under the Plan during the three months ended March 31, 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS The Company leases a portion of its corporate headquarters in San Diego, California to entities 100% owned by the Company’s Chairman and Chief Executive Officer. Rental income recorded for the three months ended March 31, 2019 and 2018 totaled $1,000 and $7,000, respectively. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments | 12. 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 months ended March 31, 2019 and 2018. For the Three Months Ended March 31, 2019 2018 Office/Industrial Properties: Rental, fees and other income $ 5,454,153 $ 6,157,147 Property and related expenses (2,504,787 ) (2,350,611 ) Net operating income, as defined 2,949,366 3,806,536 Model Home Properties: Rental, fees and other income 1,081,684 1,123,767 Property and related expenses (50,422 ) (52,526 ) Net operating income, as defined 1,031,262 1,071,241 Retail Properties: Rental, fees and other income 643,427 943,920 Property and related expenses (208,341 ) (246,772 ) Net operating income, as defined 435,086 697,148 Reconciliation to net loss: Total net operating income, as defined, for reportable segments 4,415,714 5,574,925 General and administrative expenses (1,760,703 ) (1,333,465 ) Depreciation and amortization (2,210,081 ) (2,339,044 ) Interest expense (2,545,203 ) (3,076,976 ) Other income (expense) 5,524 (18,291 ) Income tax expense (81,430 ) (32,423 ) Gain on sale of real estate 1,214,242 74,213 Net loss $ (961,937 ) $ (1,151,061 ) March 31, December 31, Assets by Reportable Segment: 2019 2018 Office/Industrial Properties: Land, buildings and improvements, net (1) $ 133,923,477 $ 138,694,773 Total assets (2) $ 138,049,968 $ 143,620,315 Model Home Properties: Land, buildings and improvements, net (1) $ 43,624,148 $ 48,762,869 Total assets (2) $ 47,453,048 $ 48,864,060 Retail Properties: Land, buildings and improvements, net (1) $ 24,658,611 $ 23,650,423 Total assets (2) $ 26,209,214 $ 27,702,384 Reconciliation to Total Assets: Total assets for reportable segments $ 211,712,230 $ 220,186,759 Other unallocated assets: Cash equivalents and restricted cash 12,839,227 9,776,215 Other assets, net 514,767 3,087,066 Total Assets $ 225,066,224 $ 233,050,040 (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. For the Three Months Ended March 31, Capital Expenditures by Reportable Segment 2019 2018 Office/Industrial Properties: Capital expenditures and tenant improvements $ 2,696,422 $ 1,185,518 Model Home Properties: Acquisition of operating properties - 7,284,141 Retail Properties: Capital expenditures and tenant improvements - 19,260 Totals: Acquisition of operating properties, net - 7,284,141 Capital expenditures and tenant improvements 2,696,422 1,204,778 Total real estate investments $ 2,696,422 $ 8,488,919 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018, 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, 2019. 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, 2018. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated financial statements included in the Form 10-K filed with the SEC on March 22, 2019. |
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 March 31, 2019 and December 31, 2018, we had approximately $5.5 million and $5.8 million in cash equivalents, respectively and $7.3 million and $4.0 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. Restricted cash consists of funds used for property taxes, insurance, capital expenditures and leasing commission. |
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. |
Impairments of Real Estate Asset | Impairments of Real Estate Asset. We review for impairment on a property by property basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. The calculation of both discounted and undiscounted cash flows requires management to make estimates of future cash flows including revenues, operating expenses, required maintenance and development expenditures, market conditions, demand for space by tenants and rental rates over long periods. Since our properties typically have a long life, the assumptions used to estimate the future recoverability of book value requires significant management judgment. Actual results could be significantly different from the estimates. These estimates have a direct impact on net income because recording an impairment charge results in a negative adjustment to net income. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. Although our strategy is to hold our properties over the long-term, if our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized to reduce the property to fair value and such loss could be material. During the three months ended March 31, 2019, the Company determined that no impairment existed, and no impairment charge was recorded for the three months ended March 31, 2019. |
Fair Value Measurements | Fair Value Measurements . Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, we utilize quoted market prices from independent third-party sources to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require us to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When we determine the market for a financial instrument owned by us to be illiquid or when market transactions for similar instruments do not appear orderly, we use several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establish a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of a liability in circumstances in which a quoted price in an active market for an identical liability is not available, we measure fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. |
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. The Board of Directors of the Company declared a $0.06 per share of Series A Common Stock dividend payable on May 31, 2019 to holders of record as of April 1, 2019. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements. In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) , which amended the existing accounting standards for lease accounting to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet. We adopted the standard effective January 1, 2019 and have elected to use January 1, 2019 as our date of initial application. Consequently, financial information will not be updated and disclosures required under the new standard will not be provided for periods presented before January 1, 2019 as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. We evaluated all leases within this scope under existing accounting standards and under the new ASU lease standard recognized approximately $514,000 of right-of-use assets and lease liabilities. As a lessor, our rental revenue remained mainly consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. The new standard defines initial direct costs as only the incremental costs of signing a lease. As such, certain compensation and certain external legal fees related to the execution of successful lease agreements no longer meet the definition of initial direct costs under the new standard and will be accounted for in the line item General and Administrative Expense Leases - Targeted Improvements . • The new standard provided a practical expedient, which allows lessors to combine non-lease components with the related lease components if both the timing and pattern of transfer are the same for the non-lease components(s) and the related lease components, and the lease components would be classified as an operating lease. Lessors are permitted to apply the practical expedient to all existing leases on a retrospective or prospective basis. We elected the practical expedient to combine our lease and non-lease components that meet the defined criteria. The non-lease components of our leases primarily consist of common area maintenance reimbursements from our tenants. • The new standard requires our expected credit loss related to the collectability of lease receivables to be reflected as an adjustment to the line item Rental Income Rental Operating Expense In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Revenue from Contracts with Customers In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Assets [Abstract] | |
Real Estate Properties Owned | A summary of the properties owned by the Company as of March 31, 2019 is as follows: Real estate Date assets, net Property Name Acquired Location (in thousands) Garden Gateway Plaza March 2007 Colorado Springs, Colorado $ 11,362 World Plaza (1) September 2007 San Bernardino, California 7,310 Executive Office Park July 2008 Colorado Springs, Colorado 7,914 Waterman Plaza August 2008 San Bernardino, California 4,955 Genesis Plaza August 2010 San Diego, California 8,683 Dakota Center May 2011 Fargo, North Dakota 9,036 The Presidio (1) November 2012 Colorado Springs, Colorado 6,509 Grand Pacific Center March 2014 Bismarck, North Dakota 5,846 Union Terrace (1) August 2014 Lakewood, Colorado 8,076 Centennial Tech Center (1) December 2014 Colorado Springs, Colorado 12,826 Arapahoe Center December 2014 Centennial, Colorado 10,122 Union Town Center December 2014 Colorado Springs, Colorado 9,826 West Fargo Industrial August 2015 West Fargo, North Dakota 7,285 300 N.P. August 2015 Fargo, North Dakota 3,509 Research Parkway August 2015 Colorado Springs, Colorado 2,567 One Park Center August 2015 Westminster, Colorado 8,508 Highland Court August 2015 Centennial, Colorado 11,724 Shea Center II December 2015 Highlands Ranch, Colorado 22,524 Presidio Property Trust, Inc. properties 158,582 Model Home properties 2010-2018 AZ, CA, FL, IL, PA, SC, TX, WI 43,624 Total real estate assets and lease intangibles, net $ 202,206 (1) Properties held for sale as of March 31, 2019. |
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 March 31, 2019: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Rent Approximate % of Aggregate Annual Rent California 3 132,319 9.4 % $ 1,810,437 10.0 % Colorado 11 873,684 62.3 % 12,660,021 69.9 % North Dakota 4 397,039 28.3 % 3,632,796 20.1 % Total 18 1,403,042 100.0 % $ 18,103,254 100.0 % Model Home properties: State No. of Properties Aggregate Square Feet Approximate % of Square Feet Current Base Annual Rent Approximate of Aggregate % Annual Rent Southwest 89 347,482 77.7 % $ 2,520,600 67.6 % West 2 4,563 1.0 % 42,456 1.1 % Southeast 29 68,188 15.2 % 807,204 21.6 % Midwest 3 9,458 2.1 % 131,916 3.5 % East 3 8,295 1.9 % 113,016 3.0 % Northeast 3 9,271 2.1 % 121,020 3.2 % Total 129 447,257 100.0 % $ 3,736,212 100.0 % |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Lease Intangibles Accumulated Amortization Lease Intangibles, net Lease Intangibles Accumulated Amortization Lease Intangibles, net In-place leases $ 4,958,477 $ (3,590,585 ) $ 1,367,892 $ 4,958,477 $ (3,467,781 ) $ 1,490,696 Leasing costs 3,628,080 (2,496,491 ) 1,131,589 3,628,080 (2,405,514 ) 1,222,566 Above-market leases 439,878 (309,121 ) 130,757 439,878 (291,666 ) 148,212 $ 9,026,435 $ (6,396,197 ) $ 2,630,238 $ 9,026,435 $ (6,164,961 ) $ 2,861,474 |
Amortization Expense for the Company Lease Intangible Assets | Future aggregate approximate amortization expense for the Company's lease intangible assets is as follows: Nine months remaining in 2019 $ 645,431 Years ending December 31: 2020 687,974 2021 488,320 2022 378,394 2023 173,785 Thereafter 256,334 Total $ 2,630,238 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other assets consist of the following: March 31, December 31, 2019 2018 Deferred rent receivable $ 2,816,360 $ 2,883,581 Prepaid expenses, deposits and other 231,195 407,106 Tenant receivable, net 503,747 2,845,314 Raw land 900,000 900,000 Right-of-use asset 514,015 - Other intangibles, net 273,608 293,832 Notes receivable 316,374 316,374 Total other assets $ 5,555,299 $ 7,646,207 |
Mortgage Notes Payable (Tables)
Mortgage Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Mortgage Loans On Real Estate [Abstract] | |
Mortgage Notes Payable | Mortgage notes payable consisted of the following: Principal as of March 31, December 31, Loan Interest Mortgage note property Notes 2019 2018 Type Rate (1) Maturity Garden Gateway Plaza 6,221,930 6,270,896 Fixed 5.00 % 2/5/2020 World Plaza (3)(4) 4,652,783 3,350,539 Variable 5.10 % 7/5/2020 West Fargo Industrial 4,273,389 4,292,809 Fixed 4.79 % 9/6/2020 Morena Office Center (2) - 1,567,358 Fixed 4.30 % 6/1/2021 Waterman Plaza 3,342,821 3,369,960 Fixed 5.78 % 4/29/2021 300 N.P. 2,339,040 2,348,443 Fixed 4.95 % 6/11/2022 Highland Court 6,532,844 6,568,320 Fixed 3.82 % 9/1/2022 Dakota Center 10,263,049 10,314,520 Fixed 4.74 % 7/6/2024 Union Terrace Building (3) 6,325,217 6,354,153 Fixed 4.50 % 8/5/2024 The Presidio (3) 5,976,369 5,992,905 Fixed 4.54 % 12/1/2021 Centennial Tech Center (3) 9,699,063 9,745,811 Fixed 4.43 % 12/5/2024 Research Parkway 1,851,618 1,864,139 Fixed 3.94 % 1/5/2025 Arapahoe Service Center 8,195,988 8,233,567 Fixed 4.34 % 1/5/2025 Union Town Center 8,440,000 8,440,000 Fixed 4.28 % 1/5/2025 Executive Office Park 4,921,238 4,947,808 Fixed 4.83 % 6/1/2027 Genesis Plaza 6,450,941 6,476,032 Fixed 4.71 % 8/25/2025 One Park Centre 6,560,690 6,585,922 Fixed 4.77 % 9/5/2025 Shea Center II 17,727,500 17,727,500 Fixed 4.92 % 1/5/2026 Grand Pacific Center (5) 3,934,379 3,961,304 Fixed 4.02 % 8/1/2037 Subtotal, Presidio Property Trust, Inc. Properties 117,708,859 118,411,986 Model Home mortgage notes 29,423,690 32,728,930 Fixed (6) 2019-2021 Mortgage Notes Payable $ 147,132,549 $ 151,140,916 Unamortized loan costs (1,276,667 ) (1,426,740 ) Mortgage Notes Payable, net $ 145,855,882 $ 149,714,176 (1) Interest rates as of March 31, 2019. (2) Morena Office Center was sold on January 15, 2019. (3) Properties held for sale as of March 31, 2019. (4) Interest on this loan is ABR plus 0.75% and LIBOR plus 2.75%. For the 3 months ended March 31, 2019, the weighted average interest rate was 5.38%. ( 5 ) Interest rate is subject to reset on September 1, 2023. ( 6 ) Each model home has a stand-alone mortgage note at interest rates ranging from 3.7% to 5.75% per annum (at March 31, 2019). |
Scheduled Principal Payments of Mortgage Notes Payable | Scheduled principal payments of mortgage notes payable were as follows as of March 31, 2019 Presidio Property Trust, Inc. Model Homes Principal Notes Payable Notes Payable Payments Nine months remaining in 2019 $ 1,496,106 $ 6,253,663 $ 7,749,769 Years ending December 31: 2020 16,537,438 12,314,258 $ 28,851,696 2021 10,756,794 10,855,769 $ 21,612,563 2022 10,055,656 - $ 10,055,656 2023 1,783,291 - $ 1,783,291 Thereafter 77,079,574 - $ 77,079,574 Total $ 117,708,859 $ 29,423,690 $ 147,132,549 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018. For the Three Months Ended March 31, 2019 2018 Office/Industrial Properties: Rental, fees and other income $ 5,454,153 $ 6,157,147 Property and related expenses (2,504,787 ) (2,350,611 ) Net operating income, as defined 2,949,366 3,806,536 Model Home Properties: Rental, fees and other income 1,081,684 1,123,767 Property and related expenses (50,422 ) (52,526 ) Net operating income, as defined 1,031,262 1,071,241 Retail Properties: Rental, fees and other income 643,427 943,920 Property and related expenses (208,341 ) (246,772 ) Net operating income, as defined 435,086 697,148 Reconciliation to net loss: Total net operating income, as defined, for reportable segments 4,415,714 5,574,925 General and administrative expenses (1,760,703 ) (1,333,465 ) Depreciation and amortization (2,210,081 ) (2,339,044 ) Interest expense (2,545,203 ) (3,076,976 ) Other income (expense) 5,524 (18,291 ) Income tax expense (81,430 ) (32,423 ) Gain on sale of real estate 1,214,242 74,213 Net loss $ (961,937 ) $ (1,151,061 ) |
Reconciliation of Assets by Segment to Total Assets | March 31, December 31, Assets by Reportable Segment: 2019 2018 Office/Industrial Properties: Land, buildings and improvements, net (1) $ 133,923,477 $ 138,694,773 Total assets (2) $ 138,049,968 $ 143,620,315 Model Home Properties: Land, buildings and improvements, net (1) $ 43,624,148 $ 48,762,869 Total assets (2) $ 47,453,048 $ 48,864,060 Retail Properties: Land, buildings and improvements, net (1) $ 24,658,611 $ 23,650,423 Total assets (2) $ 26,209,214 $ 27,702,384 Reconciliation to Total Assets: Total assets for reportable segments $ 211,712,230 $ 220,186,759 Other unallocated assets: Cash equivalents and restricted cash 12,839,227 9,776,215 Other assets, net 514,767 3,087,066 Total Assets $ 225,066,224 $ 233,050,040 (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 | For the Three Months Ended March 31, Capital Expenditures by Reportable Segment 2019 2018 Office/Industrial Properties: Capital expenditures and tenant improvements $ 2,696,422 $ 1,185,518 Model Home Properties: Acquisition of operating properties - 7,284,141 Retail Properties: Capital expenditures and tenant improvements - 19,260 Totals: Acquisition of operating properties, net - 7,284,141 Capital expenditures and tenant improvements 2,696,422 1,204,778 Total real estate investments $ 2,696,422 $ 8,488,919 |
Organization (Details)
Organization (Details) | Aug. 01, 2019USD ($)shares | Mar. 31, 2019USD ($)ft²PropertyCounterpartyshares | Dec. 31, 2018USD ($)shares |
Real Estate Properties [Line Items] | |||
Number of limited partnerships in which the company is sole general partner | Counterparty | 2 | ||
Number of partnerships that purchase and lease back model homes from homebuilders in which the company is the general and limited partner | Counterparty | 5 | ||
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 is the general and limited partner in five limited partnerships that purchase Model Homes and lease them back to homebuilders (“Dubose Model Home Investors #202, LP”, “Dubose Model Homes Investors #203, LP”, “Dubose Model Homes Investors #204, LP”, “Dubose Model Homes Investors #205, 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 limited partnerships in which 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 such limited partnerships. | ||
Income Tax Examination Description | We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (“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% | ||
Long-term maturity debt, remaining in 2019 | $ 7,749,769 | ||
Long-term maturity debt, in 2020 | 28,851,696 | ||
Model Home [Member] | |||
Real Estate Properties [Line Items] | |||
Long-term maturity debt, remaining in 2019 | 6,253,663 | ||
Long-term maturity debt, in 2020 | 12,314,258 | ||
Mortgage Notes Payable [Member] | Model Home [Member] | |||
Real Estate Properties [Line Items] | |||
Long-term maturity debt, remaining in 2019 | 6,300,000 | ||
Long-term maturity debt, in 2020 | $ 12,300,000 | ||
Redeemable Convertible Preferred Stock Series B [Member] | |||
Real Estate Properties [Line Items] | |||
Number of shares redeemed | shares | 900 | 13,800 | |
Redeemable preferred stock | $ 16,000,000 | $ 16,900,000 | |
Redeemable Convertible Preferred Stock Series B [Member] | Scenario Forecast [Member] | |||
Real Estate Properties [Line Items] | |||
Number of shares redeemed | shares | 16,000 | ||
Redeemable preferred stock | $ 16,000,000 | ||
Industrial Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Number of properties | Property | 1 | ||
Office Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Number of properties | Property | 13 | ||
Office/Industrial Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Area of Real Estate Property | ft² | 1,273,788 | ||
Retail Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Number of properties | Property | 4 | ||
Area of Real Estate Property | ft² | 129,254 | ||
Residential Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Number of properties | Property | 129 | ||
Number of Limited Liability Companies | Property | 1 | ||
Number of limited partnerships in which the company is sole general partner | Counterparty | 4 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 13, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Significant Account Policies [Line Items] | ||||
Cash equivalents | $ 5,500,000 | $ 5,800,000 | ||
Restricted cash | 7,300,000 | $ 4,000,000 | ||
Asset impairment charge | 0 | |||
Lease liabilities | $ 514,015 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Significant Account Policies [Line Items] | ||||
Right-of-use assets | $ 514,000 | |||
Lease liabilities | $ 514,000 | |||
Common Class A [Member] | Subsequent Event [Member] | ||||
Significant Account Policies [Line Items] | ||||
Dividend per share declared | $ 0.06 | |||
Dividend payable, date | May 31, 2019 | |||
Dividends payable, date of record | Apr. 1, 2019 |
Recent Real Estate Transactio_2
Recent Real Estate Transactions (Disposals of Properties) (Details) | Jan. 15, 2019USD ($) | Mar. 31, 2019USD ($)Property | Mar. 31, 2018USD ($)Property | Mar. 30, 2018USD ($)Property | Dec. 31, 2018USD ($) |
Real Estate Properties [Line Items] | |||||
Mortgage notes issued for property acquired | $ 145,855,882 | $ 149,714,176 | |||
Residential Properties [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of properties | Property | 15 | 2 | 19 | ||
Proceeds from sale of property | $ 5,800,000 | $ 905,000 | |||
Gain (loss) on sale of property | $ 514,000 | $ 74,000 | |||
Purchase price of property acquired | $ 7,300,000 | ||||
Cash payment for the properties acquired | 2,200,000 | ||||
Mortgage notes issued for property acquired | $ 5,100,000 | ||||
Residential Properties [Member] | Morena Office Center [Member] | |||||
Real Estate Properties [Line Items] | |||||
Proceeds from sale of property | $ 5,600,000 | ||||
Gain (loss) on sale of property | $ 700,000 |
Real Estate Assets (Summary of
Real Estate Assets (Summary of Properties Owned) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Real Estate Assets Owned | $ 202,206 | |
Garden Gateway Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Mar. 1, 2007 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 11,362 | |
World Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Sep. 1, 2007 | [1] |
Location | San Bernardino, California | [1] |
Real Estate Assets Owned | $ 7,310 | [1] |
Executive Office Park [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Jul. 1, 2008 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 7,914 | |
Waterman Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2008 | |
Location | San Bernardino, California | |
Real Estate Assets Owned | $ 4,955 | |
Genesis Plaza [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2010 | |
Location | San Diego, California | |
Real Estate Assets Owned | $ 8,683 | |
Dakota Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | May 1, 2011 | |
Location | Fargo, North Dakota | |
Real Estate Assets Owned | $ 9,036 | |
The Presidio [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Nov. 1, 2012 | [1] |
Location | Colorado Springs, Colorado | [1] |
Real Estate Assets Owned | $ 6,509 | [1] |
Grand Pacific Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Mar. 1, 2014 | |
Location | Bismarck, North Dakota | |
Real Estate Assets Owned | $ 5,846 | |
Union Terrace [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2014 | [1] |
Location | Lakewood, Colorado | [1] |
Real Estate Assets Owned | $ 8,076 | [1] |
Centennial Tech Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2014 | [1] |
Location | Colorado Springs, Colorado | [1] |
Real Estate Assets Owned | $ 12,826 | [1] |
Arapahoe Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2014 | |
Location | Centennial, Colorado | |
Real Estate Assets Owned | $ 10,122 | |
Union Town Center [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2014 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 9,826 | |
West Fargo Industrial [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | West Fargo, North Dakota | |
Real Estate Assets Owned | $ 7,285 | |
300 N.P. [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Fargo, North Dakota | |
Real Estate Assets Owned | $ 3,509 | |
Research Parkway [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Colorado Springs, Colorado | |
Real Estate Assets Owned | $ 2,567 | |
One Park Centre [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Westminster, Colorado | |
Real Estate Assets Owned | $ 8,508 | |
Highland Court [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Aug. 1, 2015 | |
Location | Centennial, Colorado | |
Real Estate Assets Owned | $ 11,724 | |
Shea Center II [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Date acquired | Dec. 1, 2015 | |
Location | Highlands Ranch, Colorado | |
Real Estate Assets Owned | $ 22,524 | |
Presidio Property Trust, Inc Properties [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Real Estate Assets Owned | 158,582 | |
Model Home Properties [Member] | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Real Estate Assets Owned | $ 43,624 | |
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 March 31, 2019. |
Real Estate Assets (Geographic
Real Estate Assets (Geographic Locations of Real Estate Properties Owned) (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)ft²Property | |
NetREIT, Inc. Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 18 |
Aggregate Square Feet | ft² | 1,403,042 |
Approximate % of Square Feet | 100.00% |
Current Base Annual Rent | $ | $ 18,103,254 |
Approximate of Aggregate % Annual Rent | 100.00% |
NetREIT, Inc. Properties [Member] | California [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 3 |
Aggregate Square Feet | ft² | 132,319 |
Approximate % of Square Feet | 9.40% |
Current Base Annual Rent | $ | $ 1,810,437 |
Approximate of Aggregate % Annual Rent | 10.00% |
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 | 62.30% |
Current Base Annual Rent | $ | $ 12,660,021 |
Approximate of Aggregate % Annual Rent | 69.90% |
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 | 28.30% |
Current Base Annual Rent | $ | $ 3,632,796 |
Approximate of Aggregate % Annual Rent | 20.10% |
Model Home Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 129 |
Aggregate Square Feet | ft² | 447,257 |
Approximate % of Square Feet | 100.00% |
Current Base Annual Rent | $ | $ 3,736,212 |
Approximate of Aggregate % Annual Rent | 100.00% |
Model Home Properties [Member] | Southwest [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 89 |
Aggregate Square Feet | ft² | 347,482 |
Approximate % of Square Feet | 77.70% |
Current Base Annual Rent | $ | $ 2,520,600 |
Approximate of Aggregate % Annual Rent | 67.60% |
Model Home Properties [Member] | West [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 2 |
Aggregate Square Feet | ft² | 4,563 |
Approximate % of Square Feet | 1.00% |
Current Base Annual Rent | $ | $ 42,456 |
Approximate of Aggregate % Annual Rent | 1.10% |
Model Home Properties [Member] | Southeast [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 29 |
Aggregate Square Feet | ft² | 68,188 |
Approximate % of Square Feet | 15.20% |
Current Base Annual Rent | $ | $ 807,204 |
Approximate of Aggregate % Annual Rent | 21.60% |
Model Home Properties [Member] | Midwest [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 3 |
Aggregate Square Feet | ft² | 9,458 |
Approximate % of Square Feet | 2.10% |
Current Base Annual Rent | $ | $ 131,916 |
Approximate of Aggregate % Annual Rent | 3.50% |
Model Home Properties [Member] | East [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 3 |
Aggregate Square Feet | ft² | 8,295 |
Approximate % of Square Feet | 1.90% |
Current Base Annual Rent | $ | $ 113,016 |
Approximate of Aggregate % Annual Rent | 3.00% |
Model Home Properties [Member] | Northeast [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | Property | 3 |
Aggregate Square Feet | ft² | 9,271 |
Approximate % of Square Feet | 2.10% |
Current Base Annual Rent | $ | $ 121,020 |
Approximate of Aggregate % Annual Rent | 3.20% |
Lease Intangibles (Net Value of
Lease Intangibles (Net Value of Other Intangible Assets and Amortization by Class) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | $ 9,026,435 | $ 9,026,435 |
Accumulated amortization | (6,396,197) | (6,164,961) |
Lease intangibles, net | 2,630,238 | 2,861,474 |
Leases, Acquired-in-Place [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | 4,958,477 | 4,958,477 |
Accumulated amortization | (3,590,585) | (3,467,781) |
Lease intangibles, net | 1,367,892 | 1,490,696 |
Leasing Cost [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | 3,628,080 | 3,628,080 |
Accumulated amortization | (2,496,491) | (2,405,514) |
Lease intangibles, net | 1,131,589 | 1,222,566 |
Above Market Leases [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles | 439,878 | 439,878 |
Accumulated amortization | (309,121) | (291,666) |
Lease intangibles, net | $ 130,757 | $ 148,212 |
Lease Intangibles - Additional
Lease Intangibles - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles, net | $ 2,630,238 | $ 2,861,474 |
Below-market leases, net | $ 448,328 | 495,927 |
Weighted average [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, remaining amortization period | 3 years 4 months 24 days | |
Real Estate Assets Held for Sale [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Lease intangibles, net | $ 953,062 | $ 1,000,618 |
Lease Intangibles (Amortization
Lease Intangibles (Amortization Expense for the Company Lease Intangible Assets) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Nine months remaining in 2019 | $ 645,431 | |
2020 | 687,974 | |
2021 | 488,320 | |
2022 | 378,394 | |
2023 | 173,785 | |
Thereafter | 256,334 | |
Lease intangibles, net | $ 2,630,238 | $ 2,861,474 |
Other Assets (Details)
Other Assets (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Other Assets [Line Items] | ||
Raw land | $ 29,067,893 | $ 29,850,681 |
Other intangibles, net | 273,608 | 293,832 |
Total other assets | 5,555,299 | 7,646,207 |
Other Assets [Member] | ||
Other Assets [Line Items] | ||
Deferred rent receivable | 2,816,360 | 2,883,581 |
Prepaid expenses, deposits and other | 231,195 | 407,106 |
Tenant receivable, net | 503,747 | 2,845,314 |
Raw land | 900,000 | 900,000 |
Right-of-use asset | 514,015 | |
Notes receivable | $ 316,374 | $ 316,374 |
Mortgage Notes Payable (Details
Mortgage Notes Payable (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 147,132,549 | $ 151,140,916 | |
Unamortized loan costs | (1,276,667) | (1,426,740) | |
Mortgage notes payable, net | 145,855,882 | 149,714,176 | |
Garden Gateway Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,221,930 | 6,270,896 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 5.00% | |
Maturity date | Feb. 5, 2020 | ||
World Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [2],[3] | $ 4,652,783 | 3,350,539 |
Maturity date | [2],[3] | Jul. 5, 2020 | |
Variable interest rate on mortgage (in hundredths) | [1],[2],[3] | 5.10% | |
West Fargo Industrial [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 4,273,389 | 4,292,809 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 4.79% | |
Maturity date | Sep. 6, 2020 | ||
Morena Office Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [4] | 1,567,358 | |
Fixed interest rate on mortgage (in hundredths) | [1],[4] | 4.30% | |
Maturity date | [4] | Jun. 1, 2021 | |
Waterman Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 3,342,821 | 3,369,960 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 5.78% | |
Maturity date | Apr. 29, 2021 | ||
300 N.P. [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 2,339,040 | 2,348,443 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 4.95% | |
Maturity date | Jun. 11, 2022 | ||
Highland Court [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,532,844 | 6,568,320 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 3.82% | |
Maturity date | Sep. 1, 2022 | ||
Dakota Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 10,263,049 | 10,314,520 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 4.74% | |
Maturity date | Jul. 6, 2024 | ||
Union Terrace Buildings [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [3] | $ 6,325,217 | 6,354,153 |
Fixed interest rate on mortgage (in hundredths) | [1],[3] | 4.50% | |
Maturity date | [3] | Aug. 5, 2024 | |
The Presidio [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [3] | $ 5,976,369 | 5,992,905 |
Fixed interest rate on mortgage (in hundredths) | [1],[3] | 4.54% | |
Maturity date | [3] | Dec. 1, 2021 | |
Centennial Tech Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [3] | $ 9,699,063 | 9,745,811 |
Fixed interest rate on mortgage (in hundredths) | [1],[3] | 4.43% | |
Maturity date | [3] | Dec. 5, 2024 | |
Research Parkway [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 1,851,618 | 1,864,139 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 3.94% | |
Maturity date | Jan. 5, 2025 | ||
Arapahoe Service Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 8,195,988 | 8,233,567 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 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) | [1] | 4.28% | |
Maturity date | Jan. 5, 2025 | ||
Executive Office Park [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 4,921,238 | 4,947,808 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 4.83% | |
Maturity date | Jun. 1, 2027 | ||
Genesis Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,450,941 | 6,476,032 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 4.71% | |
Maturity date | Aug. 25, 2025 | ||
One Park Centre [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 6,560,690 | 6,585,922 | |
Fixed interest rate on mortgage (in hundredths) | [1] | 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) | [1] | 4.92% | |
Maturity date | Jan. 5, 2026 | ||
Grand Pacific Center [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | [5] | $ 3,934,379 | 3,961,304 |
Fixed interest rate on mortgage (in hundredths) | [1],[5] | 4.02% | |
Maturity date | [5] | Aug. 1, 2037 | |
Presidio Property Trust, Inc Properties [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 117,708,859 | 118,411,986 | |
Model Home Properties [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage notes payable | $ 29,423,690 | $ 32,728,930 | |
Model Home Properties [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on mortgage (in hundredths) | 3.70% | ||
Maturity date | Jan. 1, 2019 | ||
Model Home Properties [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on mortgage (in hundredths) | 5.75% | ||
Maturity date | Jan. 1, 2021 | ||
[1] | Interest rates as of March 31, 2019. | ||
[2] | Interest on this loan is ABR plus 0.75% and LIBOR plus 2.75%. For the 3 months ended March 31, 2019, the weighted average interest rate was 5.38%. | ||
[3] | Properties held for sale as of March 31, 2019. | ||
[4] | Morena Office Center was sold on January 15, 2019. | ||
[5] | Interest rate is subject to reset on September 1, 2023. |
Mortgage Notes Payable (Parenth
Mortgage Notes Payable (Parenthetical) (Details) | 3 Months Ended | |
Mar. 31, 2019 | ||
World Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable interest rate basis | LIBOR | |
Weighted average interest rate | 5.38% | |
World Plaza [Member] | ABR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on mortgage (in hundredth) | 0.75% | |
World Plaza [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on mortgage (in hundredth) | 2.75% | |
Grand Pacific Center [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate Terms | Interest rate is subject to reset on September 1, 2023. | |
Fixed interest rate on mortgage (in hundredth) | 4.02% | [1],[2] |
Model Home Properties [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate on mortgage (in hundredth) | 3.70% | |
Model Home Properties [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate on mortgage (in hundredth) | 5.75% | |
[1] | Interest rate is subject to reset on September 1, 2023. | |
[2] | Interest rates as of March 31, 2019. |
Mortgage Notes Payable (Schedul
Mortgage Notes Payable (Scheduled Principal Payments of Mortgage Notes Payable) (Details) | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Nine months remaining in 2019 | $ 7,749,769 |
2020 | 28,851,696 |
2021 | 21,612,563 |
2022 | 10,055,656 |
2023 | 1,783,291 |
Thereafter | 77,079,574 |
Total | 147,132,549 |
Presidio Property Trust, Inc. [Member] | |
Debt Instrument [Line Items] | |
Nine months remaining in 2019 | 1,496,106 |
2020 | 16,537,438 |
2021 | 10,756,794 |
2022 | 10,055,656 |
2023 | 1,783,291 |
Thereafter | 77,079,574 |
Total | 117,708,859 |
Model Home [Member] | |
Debt Instrument [Line Items] | |
Nine months remaining in 2019 | 6,253,663 |
2020 | 12,314,258 |
2021 | 10,855,769 |
Total | $ 29,423,690 |
Series B Mandatorily Redeemab_2
Series B Mandatorily Redeemable Preferred Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2015 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||
Interest expense | $ 2,545,203 | $ 3,076,976 | ||||
Preferred stock extend redemption date | Aug. 1, 2019 | 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) | 16,000 | 16,900 | 35,000 | |||
Preferred stock shares outstanding (in shares) | 16,000 | 16,900 | ||||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | ||||
Financial instruments subject to mandatory redemption, preferred return on funds invested | 14.00% | |||||
Deferred financing costs | $ 3,100,000 | |||||
Interest expense | 61,000 | $ 19,000 | ||||
Total unamortized deferred costs | $ 61,000 | $ 122,000 | ||||
Number of shares redeemed | 900 | 13,800 | ||||
Number of shares redeemed, value | $ 900,000 | $ 13,800,000 | ||||
Redeemable preferred stock | $ 16,000,000 | $ 16,900,000 |
Stockholders' Equity (Common an
Stockholders' Equity (Common and Preferred Stock) (Details) | 3 Months Ended | |
Mar. 31, 2019Vote$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Preferred Stock [Member] | ||
Preferred Stock [Abstract] | ||
Preferred shares authorized (in shares) | 8,990,000 | |
Preferred shares issued (in shares) | 0 | |
Convertible Series AA Preferred Stock [Member] | ||
Preferred Stock [Abstract] | ||
Preferred shares authorized (in shares) | 1,000,000 | |
Annual cash dividend rate (in hundredths) | 7.00% | |
Liquidation preference per share (in dollars per share) | $ / shares | $ 25 | |
Initial conversion price (in dollars per share) | $ / shares | $ 25 | |
Total number of common shares issuable upon conversion of outstanding shares of preferred stock (in shares) | 2 | |
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) | 17,733,947 | 17,721,422 |
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 | Mar. 31, 2019 | Mar. 31, 2018 |
Cash Dividends [Abstract] | |||
Cash dividend paid | $ 1,075,000 | $ 0 | |
Dividend payable to holders, per share | $ 0.06 | ||
Dividends declared | $ 150 | $ 0 | |
Dividend Reinvestment Plan [Abstract] | |||
Registered shares of common stock pursuant to Plan (in shares) | 3,000,000 | ||
Percentage of purchase price per share (in hundredths) | 95.00% | ||
Sales price per share (in dollars per share) | $ 9.50 | ||
Payment of sales commission or dealer manager fee | $ 0 | ||
Notice period for amendments to Plan | 30 days | ||
Common stock issued under plan | $ 17,400,000 | ||
Common stock issued under plan (in shares) | 1,834,147 | ||
Stock issued during period, shares plan | 0 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | $ 1,000 | $ 7,000 |
Segments (Net Operating Income
Segments (Net Operating Income by Segment) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Operating Income [Abstract] | ||
Rental, fees and other income | $ 7,179,264 | $ 8,224,834 |
Property and related expenses | (2,763,550) | (2,649,909) |
Net operating income, as defined | 4,415,714 | 5,574,925 |
General and administrative expenses | (1,760,703) | (1,333,465) |
Depreciation and amortization | (2,210,081) | (2,339,044) |
Interest expense | (2,545,203) | (3,076,976) |
Other income (expense) | 5,524 | (18,291) |
Income tax expense | (81,430) | (32,423) |
Gain on sale of real estate | 1,214,242 | 74,213 |
Net loss | (961,937) | (1,151,061) |
Office/Industrial Properties [Member] | ||
Net Operating Income [Abstract] | ||
Rental, fees and other income | 5,454,153 | 6,157,147 |
Property and related expenses | (2,504,787) | (2,350,611) |
Net operating income, as defined | 2,949,366 | 3,806,536 |
Model Home Properties [Member] | ||
Net Operating Income [Abstract] | ||
Rental, fees and other income | 1,081,684 | 1,123,767 |
Property and related expenses | (50,422) | (52,526) |
Net operating income, as defined | 1,031,262 | 1,071,241 |
Retail/Mixed Use Properties [Member] | ||
Net Operating Income [Abstract] | ||
Rental, fees and other income | 643,427 | 943,920 |
Property and related expenses | (208,341) | (246,772) |
Net operating income, as defined | $ 435,086 | $ 697,148 |
Segments (Assets) (Details)
Segments (Assets) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | $ 211,712,230 | $ 220,186,759 | |||
Cash equivalents and restricted cash | 12,839,227 | 9,776,215 | $ 6,101,402 | $ 8,310,575 | |
Other assets, net | 5,555,299 | 7,646,207 | |||
TOTAL ASSETS | 225,066,224 | 233,050,040 | |||
Significant Reconciling Items [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Other assets, net | 514,767 | 3,087,066 | |||
Office/Industrial Properties [Member] | Operating Segments [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | [1] | 133,923,477 | 138,694,773 | ||
TOTAL ASSETS | [2] | 138,049,968 | 143,620,315 | ||
Model Home Properties [Member] | Operating Segments [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | [1] | 43,624,148 | 48,762,869 | ||
TOTAL ASSETS | [2] | 47,453,048 | 48,864,060 | ||
Retail/Mixed Use Properties [Member] | Operating Segments [Member] | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Land, buildings and improvements, net | [1] | 24,658,611 | 23,650,423 | ||
TOTAL ASSETS | [2] | $ 26,209,214 | $ 27,702,384 | ||
[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 ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Capital expenditures and tenant improvements | $ 2,696,422 | $ 1,204,778 |
Acquisition of operating properties | 7,284,141 | |
Total real estate investments | 2,696,422 | 8,488,919 |
Office/Industrial Properties [Member] | ||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Capital expenditures and tenant improvements | $ 2,696,422 | 1,185,518 |
Model Home Properties [Member] | ||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Acquisition of operating properties | 7,284,141 | |
Retail/Mixed Use Properties [Member] | ||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Abstract] | ||
Capital expenditures and tenant improvements | $ 19,260 |