Presidio Property Trust announces self-tender offer and potential reverse stock split

SAN DIEGO, CA – Presidio Property Trust, Inc. (SQFT), a Maryland-based real estate investment trust with a market capitalization of $6.6 million, announced today a self-tender offer to repurchase up to 2 million shares of its Series A Common Stock at $0.68 per share, representing a 17% premium to the current trading price of $0.58. The offer, which also extends to Odd Lot Holders—beneficial or record holders of less than 100 shares—will expire at 11:59 P.M., New York City time, on May 5, 2025, unless extended or withdrawn.

The company plans to fund the purchase with available cash and may buy additional shares up to 2% of its outstanding stock without amending or extending the offer, as per SEC rules. According to InvestingPro analysis, management has been aggressively buying back shares, and the company maintains a healthy current ratio of 1.47, indicating sufficient liquidity to meet short-term obligations. This buyback represents a strategic move by Presidio's board of directors, which approved the offer but has not advised shareholders on whether to tender their shares.

In a related matter, Presidio is considering a reverse stock split to comply with Nasdaq's minimum bid price requirement. The company's common stock failed to meet the $1.00 minimum bid price for continued listing on the Nasdaq Capital Market, prompting a compliance period that ends on June 2, 2025. The stock has faced significant headwinds, declining 49% over the past year and currently trading at just 0.26 times book value. A reverse stock split, expected to be between five-to-one and six-to-one, could be implemented by May 15, 2025, to address this issue.

Shareholders looking for more information or assistance regarding the tender offer can contact Broadridge Corporate Issuer Solutions, LLC, the Information Agent for the offer.

The company's forward-looking statements, including those related to the tender offer and potential reverse stock split, are subject to risks and uncertainties. These may include changes in market conditions, regulatory requirements, and other factors that could affect the company's financial performance and stock price.

This news is based on a press release statement and has not been independently verified. The information provided does not constitute an offer to buy or a solicitation to sell securities. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional exclusive ProTips available to subscribers. Discover more detailed insights and Fair Value estimates by visiting our Most Undervalued Stocks analysis.

In other recent news, Presidio Property Trust, Inc. has encountered a financial challenge related to a loan default. The company was informed of a maturity date default on a loan originally amounting to $11.1 million, secured by the Dakota Center in Fargo, North Dakota. This development has led to an increased default interest rate, which is 5% higher than the original rate, and Presidio must also cover the lender's related expenses, including fees for third-party reports, legal services, and loan servicing. Presidio is currently working with the lender and a special servicer to facilitate the sale of the property and address the non-recourse debt. This financial obligation was detailed in a recent 8-K filing with the Securities and Exchange Commission. The company has not provided additional information on how this might affect its financial position or operations. Investors are closely monitoring the situation as the resolution of the property sale and debt settlement could impact the company's financial stability.

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