SQ

Presidio Property Trust Inc

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Presidio Property Trust Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-26

Snapshot

  • Debt/Equity of 4.4x with interest expense (6.2M TTM) exceeding operating income (320K TTM) by 19x - severe debt service burden.[Debt to Equity]
  • Net margin -38.7% TTM vs industry median +14.7% - losing 39 cents per dollar of revenue while peers profit.[Net Margin TTM]
  • FCF negative (-450K TTM) with net debt of 89.5M against 21M equity - no internal funding capacity.[Free Cash Flow TTM]

Watch Triggers

  • Interest Expense TTM: Exceeds 20x operating incomeWould signal imminent covenant breach or liquidity crisis requiring emergency action
  • Issuance of Capital Stock: Exceeds 3M in next quarterAccelerating dilution indicates management sees no path to organic recovery
  • Total Assets: Declines >10% from 127.8MAsset sales to service debt would confirm distressed liquidation scenario

Bull Case

Gross margin 64.6% TTM exceeds industry median 61% - core property operations remain viable if debt restructured.

Gross Margin TTM

Working capital 13.3M provides 2.8x current liability coverage - near-term liquidity buffer exists.

Working CapitalCurrent Liabilities

Bear Case

ROE -26.8% and ROIC -5.5% TTM destroying shareholder value - capital structure unsustainable at current rates.

ROE TTMROIC TTM

Revenue declined -5.8% over 5 years while gross profit fell -14.8% YoY - shrinking top line accelerating.

Total Revenue 5yr GrowthGross Profit 1yr Growth

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Interest coverage crisis likely forces asset sales or dilutive equity raise within 12 months

3-12mhigh
  • Interest expense 19x operating income
  • Negative FCF prevents debt paydown
  • Already issued 1.7M equity TTM
Interest expense 6.2M vs Op Inc 320K TTMFCF -450K TTMIssuance of capital stock 1.7M TTM

Valuation Context

Caveats

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