SAN DIEGO - Presidio Property Trust, Inc. (NASDAQ:SQFT), a diversified real estate investment trust (REIT), has set the price for its public offering of preferred stock. The company has announced the pricing of 109,054 shares of its 9.375% Series D Cumulative Redeemable Perpetual Preferred Stock at $16.00 per share, with expected gross proceeds of approximately $1.74 million before deductions for underwriting discounts and offering expenses.
The offering is anticipated to close around Monday, June 24, 2024, subject to customary closing conditions. The Benchmark Company, LLC is serving as the sole bookrunning manager for the offering.
Presidio Property Trust operates as an internally managed REIT with a portfolio that includes model home properties leased to homebuilders, as well as office, industrial, and retail properties. The company's real estate assets are mainly located in Colorado, with additional properties in Maryland, North Dakota, Texas, Southern California, Arizona, Illinois, Wisconsin, and Florida.
The offering follows the effective declaration of a shelf registration statement on Form S-3 and an accompanying prospectus filed with the Securities and Exchange Commission (SEC) on April 26, 2024, and declared effective on May 17, 2024. A preliminary prospectus supplement has been filed with the SEC and is publicly available on their website. The final prospectus supplement, which will describe the terms of the proposed offering, will be filed with the SEC.
This press release is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Investors are advised that this article is based on a press release statement and to exercise caution regarding forward-looking statements, as actual results may differ materially from those expressed or implied by such statements. Presidio Property Trust has also noted the potential impact of market conditions, including those resulting from the COVID-19 pandemic, on its geographically clustered properties.
In other recent news, Presidio Property Trust, a diversified real estate investment trust, has announced the expansion of its board with the appointment of Elena Piliptchak. The new director, who is the Managing Member of Ouray Capital Management, LLC, joins the Board as a part of a cooperation agreement with Zuma Capital Management, LLC, and other associated parties, collectively known as the Zuma Investor Group. The group, which holds approximately 7.6% of Presidio's outstanding common stock, has withdrawn its director nominations and agreed to support Presidio's slate of directors at the 2024 Annual Meeting of Stockholders. Additionally, the Zuma Investor Group has agreed to certain standstill provisions and voting commitments. Piliptchak, with her extensive experience in investment and portfolio management, is expected to be a valuable asset for Presidio. Her appointment is set to last until the company's 2026 Annual Meeting of Stockholders. These are among the recent developments for the company.
InvestingPro Insights
As Presidio Property Trust (NASDAQ:SQFT) ventures into the public offering of its preferred stock, potential investors might be interested in the company's current financial health and market performance. According to InvestingPro data, Presidio Property Trust has a market capitalization of approximately $9.32 million and is trading at a notably low price-to-book multiple of 0.21, which might indicate that the company's stock is undervalued relative to its assets.
The REIT's price-to-earnings (P/E) ratio stands at 2.37, suggesting that the stock could be attractive compared to earnings. However, it's important to note that the adjusted P/E ratio for the last twelve months as of Q1 2024 is -12.58, reflecting a more complex financial situation. Despite recent challenges, as indicated by a 5-year price total return of -6.15%, Presidio Property Trust has managed to remain profitable over the last twelve months.
InvestingPro Tips highlight that the company pays a significant dividend to shareholders, with a robust dividend yield of 12.35% as of the most recent year. For investors seeking income-generating investments, this could be a compelling factor. Additionally, the stock's volatility and recent price performance may present opportunities for investors with a higher risk tolerance.
For those looking to delve deeper into Presidio Property Trust's metrics and uncover additional insights, InvestingPro offers more tips to guide investment decisions. Interested investors can access these additional tips and enhance their market analysis by visiting InvestingPro and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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