Exhibit 99.2

 

 

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

As of June 30, 2025

 

 

 

 

FORWARD-LOOKING STATEMENTS

 

This presentation contains “forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Quarterly Report on Form 10-Q. Forward-looking statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, financial condition, liquidity, capital resources, cash flows, dividends, results of operations and other financial and operating information. When used in this presentation, the words “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “should,” “project,” “plan,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

 

The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to it and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described in the Annual Report on Form 10-K, as filed March 31, 2025 (“Annual Report”) and the Company’s Quarterly Report on Form 10-Q filed with the SEC on the date hereof (“Quarterly Report”), changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in the “Risk Factors” section of the Annual Report and the Quarterly Report, many of which are beyond our control. Should one or more of these risks or uncertainties materialize or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

 

 

 

 

COMPANY OVERVIEW

 

 

Presidio Property Trust, Inc. (“Presidio” or the “Company”) was founded in 1999 as NetREIT
   
Presidio is an internally managed real estate company focused on commercial real estate opportunities in often overlooked and regionally dominant markets
   
The Company acquires, owns, and manages office and industrial real estate assets in markets with strong demographic and economic drivers with attractive going-in cap rates
   
Presidio’s commercial portfolio currently includes 10 commercial properties with a book value of approximately $78.5 million
   
In addition to its commercial real estate holdings, Presidio generates fees and rental income from affiliated entities, which manage and/or own a portfolio of model homes (1)

 

Corporate Information
Headquarters San Diego, CA
Founded 1999
Key Geographies CA, CO, MD, ND & TX
Employees 14

 

Portfolio Summary (Number / Square Footage)
Office 8 properties / 608,076 sqft.
Retail 1 properties / 10,500 sqft.
Industrial 1 property / 150,099 sqft.
Model Homes (1) 87 homes / 260,227 sqft

 

Portfolio Value & Debt
Book Value $114.6 million (2)
Existing Secured Debt $94.6 million

 

(1)

The Company holds partial ownership interests in several entities which own model home properties

   
(2) Includes book value of model homes

 

 

 

 

 

COMMERCIAL PORTFOLIO

  

   Date      Real estate assets and lease
intangibles, net
 
Property Name  Acquired   Location  June 30, 2025   December 31, 2024 
Genesis Plaza (1)   August 2010   San Diego, CA  $7,274,090   $            7,363,571 
Dakota Center (2)   May 2011   Fargo, ND   4,838,139    8,154,951 
Grand Pacific Center   March 2014   Bismarck, ND   8,332,564    8,413,926 
Arapahoe Center   December 2014   Centennial, CO   9,058,658    9,298,534 
Union Town Center (3)   December 2014   Colorado Springs, CO       8,922,943 
West Fargo Industrial   August 2015   Fargo, ND   6,469,043    6,599,953 
300 N.P.   August 2015   Fargo, ND   1,990,914    1,963,000 
Research Parkway (3)   August 2015   Colorado Springs, CO       2,220,284 
One Park Center (4)   August 2015   Westminster, CO   5,482,703    5,580,950 
Shea Center II (5)   December 2015   Highlands Ranch, CO   17,595,866    18,820,370 
Mandolin (6)   August 2021   Houston, TX   4,554,707    4,600,562 
Baltimore   December 2021   Baltimore, MD   8,129,102    8,241,456 
Commercial properties           73,725,786    90,180,500 
Model Home properties (7)   2019 - 2025   AZ, TN, TX, AL   40,850,511    37,416,000 
Total real estate assets and lease intangibles, net          $114,576,297   $127,596,500 

  

(1)

Genesis Plaza is owned by two tenants-in-common, NetREIT Genesis and NetREIT Genessis II, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 92.0%, based on our ownership of each entity. We have 100% ownership of NetREIT Genesis and 81.5% ownership of NetREIT Genesis II, and we have control of both entities. During July 2024, the Company completed a minority ownership conversion option as result of a death in a noncontrolling trust within NetREIT Genesis II. The Company issued the trust 78,215 shares of SQFT Series A Common Stock in exchange for their 36.4% ownership in NetREIT Genesis II, as per the original exchange agreement.

   
(2)

The non-recourse loan on the Dakota Center property matured on July 6, 2024. During October 2024, management has agreed with the lender to sell the property to settle the loan balance. Due to the uncertainties in the Fargo market, we have impaired the property’s book value and recorded an impairment charge of approximately $0.7 million as of September 30, 2024. During December 2024, the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt. As of June 30, 2025, the property was included in the real estate assets held for sale, net on the consolidated balance sheet. During July 2025, the lender approved a purchase offer from a third party for $5,125,000. In connection with the pending sale, we have impaired the property’s book value and recorded an impairment charge of approximately $3.3 million as of June 30, 2025. The sale is expected to take place during the third quarter 2025.

   
(3)

During February 2025, Union Town Center and Research Parkway were sold to a single buyer for a combined $16.95 million and recorded a net gain of approximately $4.2 million, net of closing costs.

   
(4)

During the year ended December 31, 2023, we recorded a $2.0 million impairment charge for One Park Center that reflects management’s revised estimate of the fair market value based on sales comparable of like properties in the same geographical area as well as an evaluation of future cash flows or an executed purchase sale agreement. No additional impairment was deemed necessary during the six months ended June 30, 2025.

   
(5)

On December 31, 2022, the lease for our largest tenant, Halliburton, expired. Halliburton was located in our Shea Center II property in Colorado, and made up approximately $536,080 of our annual base rent. Halliburton did not renew the lease and we placed approximately $1.1 million in a reserve account with our lender to cover future mortgage payments, if necessary, none of which has been used as of June 30, 2025. Our management team is working to fill the 45,535 square foot space and has leased approximately 54% of the space to other tenants and has reviewed various proposals for the remaining 46%. As of June 30, 2025, management is pursuing third party tenants who fit into our long-term plans, however, there is no guarantee we will be successful in signing new tenants. During the three months ended June 30, 2025, we have reassessed the value of the property and recorded an impairment charge of approximately $0.9 million.

   
(6)

A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary, NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP.

   
(7) Includes Model Homes listed as held for sale as of June 30, 2025 and December 31, 2024. During the three and six months ended June 30, 2025, we recorded an impairment charge for model homes totaling $0.1 million, which reflects the estimated sales prices for these specific model homes. The short hold period, less than two years, and the builder changing their model style after we purchased the homes, contributed to the lower than expected sales price.

 

 

 

 

MODEL HOMES PORTFOLIO

 

State  No. of Properties  Aggregate Square Feet   Approximate % of Square Feet   Current Base Annual Rent   Approximate of Aggregate % Annual Rent 
Alabama  10   23,835    9.2%  $347,064    9.2%
Arizona  2   6,822    2.6%  $149,196    3.9%
Tennessee  2   5,534    2.1%  $89,304    2.4%
Texas  73   224,036    86.1%  $3,207,360    84.5%
Total  87   260,227    100.0%  $3,792,924    100.0%

 

 

 

 

CONSOLIDATED BALANCE SHEET

 

Presidio Property Trust, Inc. and Subsidiaries

Consolidated Balance Sheets

 

   June 30,   December 31, 
   2025   2024 
   (unaudited)     
ASSETS          
Real estate assets and lease intangibles:          
Land  $16,833,321   $15,983,323 
Buildings and improvements   106,094,790    102,862,977 
Tenant improvements   16,505,440    16,488,066 
Lease intangibles   3,475,531    3,776,654 
Real estate assets and lease intangibles held for investment, cost   142,909,082    139,111,020 
Accumulated depreciation and amortization   (35,619,708)   (33,700,262)
Real estate assets and lease intangibles held for investment, net   107,289,374    105,410,758 
Real estate assets held for sale, net   7,286,923    22,185,742 
Real estate assets, net   114,576,297    127,596,500 
Other assets:          
Cash, cash equivalents and restricted cash   7,285,089    8,036,496 
Deferred leasing costs, net   1,425,887    1,666,135 
Goodwill   1,389,000    1,389,000 
Investment in Conduit Pharmaceuticals marketable securities   7,728    206,177 
Deferred tax asset   298,645    298,645 
Other assets, net   3,417,767    3,376,697 
Total other assets   13,824,116    14,973,150 
TOTAL ASSETS  $128,400,413   $142,569,650 
LIABILITIES AND EQUITY          
Liabilities:          
Mortgage notes payable, net  $84,003,364   $80,977,448 
Mortgage notes payable related to properties held for sale, net   10,600,440    21,116,646 
Mortgage notes payable, total net   94,603,804    102,094,094 
Accounts payable and accrued liabilities   3,037,530    3,290,170 
Accrued real estate taxes   1,133,318    1,972,477 
Dividends payable   190,393    194,784 
Lease liability, net   52,552    64,345 
Below-market leases, net   5,803    8,625 
Total liabilities   99,023,400    107,624,495 
           
Commitments and contingencies (see Note 10)          
Equity:          
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 974,823 shares issued and outstanding (liquidation preference $25.00 per share) as of June 30, 2025 and 997,082 shares issued and outstanding as of December 31, 2024   9,748    9,971 
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,071,760 shares and 1,283,432 shares were issued and outstanding at June 30, 2025 and December 31, 2024, respectively   10,718    128,343 
Additional paid-in capital   184,578,728    185,770,842 
Dividends and accumulated losses   (163,538,854)   (159,374,010)
Total stockholders’ equity before noncontrolling interest   21,060,340    26,535,146 
Noncontrolling interest   8,316,673    8,410,009 
Total equity   29,377,013    34,945,155 
TOTAL LIABILITIES AND EQUITY  $128,400,413   $142,569,650 

 

 

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

Presidio Property Trust, Inc. and Subsidiaries

Consolidated Statements of Operations

 

   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2025   2024   2025   2024 
Revenues:                    
Rental income  $4,281,753   $4,474,198   $8,314,182   $9,113,925 
Fees and other income   96,987    112,343    189,743    262,678 
Total revenue   4,378,740    4,586,541    8,503,925    9,376,603 
Costs and expenses:                    
Rental operating costs   1,462,605    1,492,495    3,075,248    3,056,072 
General and administrative   1,223,658    2,202,916    2,885,634    4,287,366 
Depreciation and amortization   1,211,691    1,351,370    2,455,796    2,702,388 
Impairment of goodwill and real estate assets   4,317,389    101,245    4,344,332    196,793 
Total costs and expenses   8,215,343    5,148,026    12,761,010    10,242,619 
Other income (expense):                    
Interest expense - mortgage notes   (1,477,870)   (1,525,845)   (2,988,341)   (3,041,051)
Interest and other income, net   5,206    5,206    10,354    9,852 
Gain on sales of real estate, net   323,359    811,903    4,777,327    2,829,998 
Net loss in Conduit Pharmaceuticals marketable securities (see Note 9)   (7,802)   (10,027,433)   (184,459)   (13,888,667)
Income tax expense   (53,910)   (81,021)   (28,501)   (160,586)
Total other income (expense), net   (1,211,017)   (10,817,190)   1,586,380    (14,250,454)
Net loss   (5,047,620)   (11,378,675)   (2,670,705)   (15,116,470)
Less: Income attributable to noncontrolling interests   (228,905)   (469,365)   (340,468)   (1,973,233)
Net loss attributable to Presidio Property Trust, Inc. stockholders  $(5,276,525)  $(11,848,040)  $(3,011,173)  $(17,089,703)
Less: Series D Preferred Stock dividends   (574,096)   (543,331)   (1,153,671)   (1,065,363)
Net loss attributable to Presidio Property Trust, Inc. common stockholders  $(5,850,621)  $(12,391,371)  $(4,164,844)  $(18,155,066)
                     
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:                    
Basic & Diluted  $(5.13)  $(9.97)  $(3.42)  $(14.69)
                     
Weighted average number of common shares outstanding - basic & dilutive   1,139,437    1,242,879    1,217,332    1,236,099 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

Presidio Property Trust, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

   For the Six Months Ended June 30, 
   2025   2024 
Cash flows from operating activities:          
Net loss  $(2,670,705)  $(15,116,470)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   2,455,796    2,702,388 
Stock compensation   544,376    885,029 
Gain on sale of real estate assets, net   (4,777,327)   (2,829,998)
Net loss in Conduit Pharmaceuticals fair value marketable securities   184,459    13,888,667 
Net loss (gain) in fair value marketable securities       560 
Impairment of goodwill and real estate assets   4,344,332    196,793 
Amortization of financing costs   137,749    214,071 
Amortization of below-market leases   (2,266)   (2,487)
Straight-line rent adjustment   (27,948)   (95,602)
Changes in operating assets and liabilities:          
Other assets   36,322    588,866 
Accounts payable and accrued liabilities   (397,856)   (877,612)
Accrued real estate taxes   (839,159)   (855,233)
Net cash used in operating activities   (1,012,227)   (1,301,028)
Cash flows from investing activities:          
Real estate acquisitions   (9,444,465)   (5,740,918)
Additions to buildings and tenant improvements   (741,071)   (1,417,990)
Proceeds from sale of marketable securities   13,990    60,467 
Proceeds from sales of real estate, net   21,544,343    20,058,923 
Net cash provided by investing activities   11,372,797    12,960,482 
Cash flows from financing activities:          
Proceeds from mortgage notes payable, net of issuance costs   6,592,396    10,663,089 
Payment of debt issuance costs   (247,882)   (182,798)
Repayment of mortgage notes payable   (14,014,678)   (17,282,249)
Payment of deferred offering costs       (349,589)
Distributions to noncontrolling interests   (433,804)   (2,806,333)
Contributions from noncontrolling interests       200,000 
Issuance of Series D Preferred Stock, net of offering costs       1,195,855 
Repurchase of Series A Common Stock, at cost   (1,526,551)   (7,613)
Repurchase of Series D Preferred Stock, at cost   (327,787)    
Dividends paid to Series D Preferred Stockholders   (1,153,671)   (1,065,363)
Net cash used in financing activities   (11,111,977)   (9,635,001)
Net (decrease) increase in cash equivalents and restricted cash   (751,407)   2,024,453 
Cash, cash equivalents and restricted cash - beginning of period   8,036,496    6,510,428 
Cash, cash equivalents and restricted cash - end of period  $7,285,089   $8,534,881 
Supplemental disclosure of cash flow information:          
Income taxes paid  $46,511   $ 
Interest paid-mortgage notes payable  $2,998,056   $2,810,393 
Non-cash financing activities:          
Paid building and tenant improvements from prior year  $(207,847)  $(295,567)
Unpaid building and tenant improvements  $176,307   $91,513 
Dividends payable - Series D Preferred Stock  $190,393   $195,310 

 

 

 

 

EBITDAre RECONCILIATION

 

  

For the Three Months

Ended June 30,

  

For the Six

Months Ended June,

 
   2025   2024   2025   2024 
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders  $(5,850,621)  $(12,391,371)  $(4,164,844)  $(18,155,066)
Adjustments                    
Interest Expense   1,477,870    1,525,845    2,988,341    3,041,051 
Depreciation and Amortization   1,210,447    1,350,126    2,453,531    2,699,901 
Asset Impairment   4,317,389    101,245    4,344,332    196,793 
Net loss (gain) on sale of real estate   (323,359)   (811,903)   (4,777,327)   (2,829,998)
Net change in marketable securities   7,802    10,027,433    184,459    13,889,227 
Income Taxes   53,910    81,021    28,501    160,586 
                     
EBITDAre  $893,438   $(117,604)  $1,056,993   $(997,506)

 

 

 

 

FFO AND CORE FFO RECONCILIATION

 

  

For the Three Months

Ended June 30,

  

For the Six

Months Ended June,

 
   2025   2024   2025   2024 
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders  $(5,850,621)  $(12,391,371)  $(4,164,844)  $(18,155,066)
Adjustments:                    
Income attributable to noncontrolling interests   228,905    469,365    340,468    1,973,233 
Depreciation and amortization   1,211,691    1,351,370    2,455,796    2,702,388 
Amortization of above and below market leases, net   (1,244)   (1,244)   (2,265)   (2,487)
Impairment of real estate assets   4,317,389    101,245    4,344,332    196,793 
Net change in Conduit marketable securities   7,802    10,027,433    184,459    13,889,227 
Loss (gain) on sale of real estate assets, net   (323,359)   (811,903)   (4,777,327)   (2,829,998)
FFO  $(409,437)  $(1,255,105)  $(1,619,381)  $(2,225,910)
Restricted stock compensation   314,874    343,107    544,376    885,029 
Cost associated with Zuma Capital Management   -    469,552    -    565,534 
Core FFO  $(94,563)  $(442,446)  $(1,075,005)  $(775,347)
                     
Weighted average number of common shares outstanding - basic and diluted   1,139,437    1,242,879    1,217,332    1,236,099 
                     
Core FFO / Wgt Avg Share  $(0.08)  $(0.36)  $(0.88)  $(0.63)
                     
Quarterly Dividends / Share  $   $   $   $ 

 

 

 

 

SEGMENT DATA

 

The following tables compare the Company’s segment activity and NOI and adjusted NOI for Model Home income to its results of operations and financial position and the Company’s segment activity and to its results of GAAP operations and financial position as of and for the six months ended June 30, 2025. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment.

 

   For the Six Months Ended June 30, 2025 
                     
   Retail   Office/Industrial   Model Homes   Corporate and Other   Total 
                     
Rental revenue  $300,013   $4,920,507   $1,934,822   $   $7,155,342 
Recovery revenue   56,439    1,102,401            1,158,840 
Other operating revenue   400    127,255    (1,326)   63,414    189,743 
Total revenues   356,852    6,150,163    1,933,496    63,414    8,503,925 
                          
Rental operating costs   105,392    3,167,862    98,097    (296,103)   3,075,248 
Net Operating Income (NOI)   251,460    2,982,301    1,835,399    359,517    5,428,677 
                          
Gain on Sale - Model Homes           564,258        564,258 
Impairment of Model Homes           (117,712)       (117,712)
                          
Adjusted NOI  $251,460   $2,982,301   $2,281,945   $359,517   $5,875,223 

 

   For the Six Months Ended June 30, 2025 
                     
   Retail   Office/Industrial   Model Homes   Corporate and Other   Total 
Revenues:                         
Rental income  $356,452   $6,022,908   $1,934,822   $   $8,314,182 
Fees and other income   400    127,255    (1,326)   63,414    189,743 
Total revenue   356,852    6,150,163    1,933,496    63,414    8,503,925 
Costs and expenses:                         
Rental operating costs   105,392    3,167,862    98,097    (296,103)   3,075,248 
General and administrative       16,850    417,895    2,450,889    2,885,634 
Depreciation and amortization   54,617    1,954,744    443,967    2,468    2,455,796 
Impairment of goodwill and real estate assets       4,226,620    117,712        4,344,332 
Total costs and expenses   160,009    9,366,076    1,077,671    2,157,254    12,761,010 
Other income (expense):                         
Interest expense - mortgage notes   (198,039)   (1,813,284)   (974,346)   (2,672)   (2,988,341)
Interest and other income, net           15    10,339    10,354 
Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9)               (184,459)   (184,459)
Gain on sales of real estate, net   4,213,068        564,259        4,777,327 
Income tax (expense) benefit           (52,481)   23,980    (28,501)
Total other income (expense), net   4,015,029    (1,813,284)   (462,553)   (152,812)   1,586,380 
Net income (loss)   4,211,872    (5,029,197)   393,272    (2,246,652)   (2,670,705)
Less: Income attributable to noncontrolling interests       (29,614)   (310,854)       (340,468)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders  $4,211,872   $(5,058,811)  $82,418   $(2,246,652)  $(3,011,173)


 

   June 30,   December 31, 
Assets by Reportable Segment:  2025   2024 
Office/Industrial Properties:          
Land, buildings and improvements, net (1)  $69,162,017   $74,425,180 
Total assets (2)  $70,228,381   $76,292,662 
Model Home Properties:          
Land, buildings and improvements, net (1)  $40,850,511   $37,416,000 
Total assets (2)  $41,464,138   $38,166,964 
Retail Properties:          
Land, buildings and improvements, net (1)  $4,554,707   $15,743,789 
Total assets (2)  $4,703,901   $16,673,605 
Reconciliation to Total Assets:          
Total assets for reportable segments  $116,396,420   $131,133,231 
Corporate and other assets:          
Cash, cash equivalents and restricted cash   1,243,312    564,922 
Other assets, net   10,760,681    10,871,497 
Total Assets  $128,400,413   $142,569,650 

 

(1) Includes lease intangibles and the land purchase option related to property acquisitions.

 

(2) Includes land, buildings and improvements, cash, cash equivalents, and restricted cash, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis.

 

 

 

 

DEFINITIONS – NON-GAAP MEASUREMENTS

 

EBITDAre - EBITDAre is defined by NAREIT as earnings before interest, taxes, depreciation, and amortization, gain or loss on disposal of depreciated assets, and impairment write-offs.

 

Funds from Operations (FFO) – The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO, a non-GAAP measure, as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

 

However, because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s properties that result from use or market conditions, each of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

 

Core Funds from Operations (Core FFO) – We calculate Core FFO by using FFO as defined by NAREIT and adjusting for certain other non-core items. We exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration, non-cash warrant dividends, other non-recuring expenses, and the amortization of stock-based compensation.

 

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s Core FFO may not be comparable to such other REITs’ Core FFO.