Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the
“Trust”), with a focused “Triple Bottom Line” strategy and a
commitment to people, planet, and profit, today announced that it
is providing an update that includes highlights of the Trust’s
financial and operating results for the three and twelve months
ended December 31, 2021.
FINANCIAL HIGHLIGHTS
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Three Months Ended December 31, |
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Year Ended December 31, |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenue |
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$ |
1,785,809 |
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$ |
1,394,613 |
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$ |
8,457,914 |
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$ |
4,272,709 |
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Net Income Attributable to Common Shareholders |
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$ |
670,730 |
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$ |
863,970 |
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$ |
4,491,656 |
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$ |
1,891,644 |
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Net Income per Common Share (basic) |
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0.21 |
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0.42 |
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1.41 |
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0.99 |
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Core FFO Available to Common Shareholders |
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$ |
1,115,079 |
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$ |
973,578 |
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$ |
6,139,903 |
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$ |
2,560,225 |
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Core FFO per Common Share |
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0.35 |
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0.51 |
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1.93 |
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1.34 |
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Growth Rates: |
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Revenue |
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28 |
% |
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98 |
% |
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Net Income Attributable to Common Shareholders |
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-22 |
% |
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|
137 |
% |
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Net Income per Common Share (basic) |
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-49 |
% |
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42 |
% |
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Core FFO Available to Common Shareholders |
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15 |
% |
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|
140 |
% |
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Core FFO per Common Share |
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-31 |
% |
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44 |
% |
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During the year, Power REIT deployed all of the
approximately $37 million of the capital raised in the Rights
Offering which was completed in February 2021. During the fourth
quarter of 2021, the Trust reported a Quarterly FFO Per Share of
$0.35. During the fourth quarter, the Trust recorded two one-time
write-offs for the termination of leases with Cloud Nine LLC and
The Grail Project LLC. Additionally, straight-line rent for the
Michigan property starting in Q4 2021 was omitted from
straight-line rent and created a one-time write-off to adjust for
the straight-line that was recorded during the third quarter of
2021. These three one-time adjustments combined reduced FFO by
$0.16 per share. We anticipate resuming straight-line rent for the
Michigan property once there is a clearer sense of timing with
respect to licensing and commencement of operations. Had the
straight-lined rent for the Michigan property been included in the
fourth quarter 2021 calculation, the incremental FFO would add
approximately $0.38 per share per quarter. On an adjusted basis, if
we did not make these three one-time adjustments, and did not omit
straight-line rent from the Michigan property in Q4, our Quarterly
FFO Per Share for the fourth quarter of 2021 would have been
$0.89.
Commenting on the Trust’s financial and
operating results, David Lesser, Chief Executive Officer
stated, “We are pleased with our external growth activity
last year. We invested approximately $48 million in 9 greenhouse
properties primarily from the funds generated through our
non-dilutive rights offering completed in February of 2021. These
acquisitions are consistent with our business strategy that we
commenced in 2019, positioning ourselves as an emerging technology
company that focuses on real estate for greenhouse plant
cultivation. With a focus on environmental sustainability across
our entire platform, greenhouses provide superior sustainable
farming alternatives for the future. Our goal moving into 2022 and
beyond is to continue our growth efforts and generate long-term
cash flow from our portfolio.”
Mr. Lesser concluded, “From an
earnings perspective, we increased our Core FFO per common share by
44% year over year. We remain confident in our long-term strategy
that greenhouses provide the most economically and environmentally
sustainable path for cultivation and focused on managing our
existing portfolio in lockstep with accretive acquisitions.”
PORTFOLIO
Power REIT’s portfolio currently comprises:
- 21 Controlled Environment
Agriculture (CEA) properties (greenhouses) totaling more than
1,000,000 square feet;
- 7 solar farm ground leases totaling
601 acres; and
- 112 miles of railroad
property.
During 2021 the Trust acquired 9 greenhouse
properties at an average unlevered yield of approximately 18%. This
is indicative of the current market conditions where the Trust
seeks to acquire and expand its greenhouse portfolio.
LEASING ACTIVITY
PSP – Tamarack 13 and 14On
August 11, 2021, our wholly owned subsidiary, PW CO CanRe MF LLC
(“CanRe MF”), filed a breach of contract claim against PSP
Management LLC (“PSP”) related to the lease (the “PSP Lease”) for
property (the MF Property) owned by CanRe MF. As a result, PSP was
evicted on November 1, 2021. Currently, this space is being
marketed to a variety of prospective tenants.
Golden Leaf Lane – Maverick 5On
November 5, 2021, our wholly owned subsidiary, PW CO CanRe Mav 5
LLC (“CanRe Mav 5”), terminated its lease (the “OCG Lease”) with
Original Cannabis Growers of Ordway LLC (“OCG”) which was executed
on March 19, 2020. On November 5, 2021, Green Leaf Lane LLC (“Green
Leaf”) signed a 20-year lease with 2, 5-year renewal options at an
Unleveraged FFO Yield of 18.5%. Construction was complete at the
property and Green Leaf was able to commence cultivation
immediately.
The Sandlot – Tamarack 4 and
5On December 8, 2021, our wholly owned subsidiary, PW CO
CanRE Grail, LLC (“CanRE Grail”), terminated its lease (the “Grail
Lease”) with The Grail Project LLC (“Grail”) which was executed on
January 1, 2021. On January 1, 2022, The Sandlot LLC (“Sandlot”)
signed a 20-year lease with 4, 5-year renewal options at an
Unleveraged FFO Yield of 18.6%. Sandlot will complete the remaining
construction and improvements at the property.
STRATEGIC ALLIANCE
In 2021, Power REIT embarked on a strategic
alliance with Millennium Sustainable Ventures Corp. (“MILC”)
(ticker: MILC). The goal of the strategic alliance was to create a
more scalable operating and acquisition platform between the two
public companies of which David Lesser is CEO. The Trust’s
Declaration permits this type of business relationship, and going
forward, a majority of the members of the Special Committee –
Related Party Transactions, which is comprised entirely of
independent trustees must approve Power REIT’s involvement in any
transactions related to MILC to address any inherent conflicts of
interest between Power REIT, MILC, and their CEO, Mr. Lesser or his
affiliates. The Trust believes that this alleviates any unilateral
decisions made by Mr. Lesser and/or his affiliates. These potential
risk factors, or conflicts of interest are outlined in detail in
both companies’ public filings. Further, both companies also have
favorable governance structures with a non-insider ratio of 4:1 at
Power REIT and a 3:1 ratio at MILC.
CAPITAL MARKETS ACTIVITY
Cash and Cash Equivalents totaled approximately
$3.2 million as of December 31, 2021, a decrease of approximately
2.4 million from December 31, 2020. The primary use of cash was for
working capital requirements and investment activities including
$30.9 million paid for land and greenhouse cultivation facilities
with $11.2 paid for construction and improvements for these
facilities.
On December 21, 2021, Power REIT obtained a $20
million debt facility which has a 12-month draw period before
converting to a five-year term loan. The interest rate on the debt
facility is 5.42%, which creates a meaningful investment spread
based on the yields Power REIT is investing at.
On June 21, 2021, the SEC declared Power REIT’s
shelf registration effective. Power REIT continues to focus on
non-dilutive capital to fund its growth including debt alternatives
and potentially the issuance of Preferred Stock.
On February 5, 2021, Power REIT closed on its
Rights Offering, generating proceeds of approximately $37 million
and issued an additional 1,383,394 common shares. Through this
investor friendly, shareholders of record as of December 28, 2020,
were offered the opportunity to purchase additional shares at
$26.50 per share
On February 3, 2021, Power REIT issued 192,308
additional shares of Power REIT’s Series A Preferred Stock (ticker:
PW.PRA) as part of a transaction to acquire a property located in
Riverside County, CA (the “Canndescent Property”) through a newly
formed wholly owned subsidiary (“PW Canndescent”).
DISTRIBUTIONS
During the twelve months ended December 31,
2021, the Trust paid quarterly dividends of approximately $653,000
($0.484375 per share) on Power REIT’s 7.75% Series A Cumulative
Redeemable Perpetual Preferred Stock.
UPDATED INVESTMENT
PRESENTATION
Power REIT has posted an updated investor
presentation which is available using the following link:
https://www.pwreit.com/investors
STATEMENT ON SUSTAINABILITY
Power REIT owns real estate related to
infrastructure assets including properties for Controlled
Environment Agriculture facilities with a focus on greenhouses,
Renewable Energy and Transportation.
CEA facilities in the form of greenhouses,
provide an extremely environmentally friendly solution, which
consume approximately 70% less energy than indoor growing
operations that do not benefit from “free” sunlight. greenhouses
use 90% less water than field grown plants, and all of Power REIT’s
greenhouse properties operate without the use of pesticides and
avoid agricultural runoff of fertilizers and pesticides. These
facilities cultivate medical Cannabis, which has been recommended
to help manage a myriad of medical symptoms, including seizures and
spasms, multiple sclerosis, post-traumatic stress disorder,
migraines, arthritis, Parkinson's disease, and Alzheimer’s.
Renewable Energy assets are
comprised of land and infrastructure associated with utility scale
solar farms. These projects produce power without the use of fossil
fuels thereby lowering carbon emissions. The solar farms produce
approximately 50,000,000 kWh of electricity annually which is
enough to power approximately 4,600 homes on a carbon free
basis.
Transportation assets are
comprised of land associated with a railroad, an environmentally
friendly mode of bulk transportation.
ABOUT POWER REITPower REIT,
with a focus on the “Triple Bottom Line” and a commitment to
people, planet and profit, is a specialized real estate investment
trust (REIT) that owns sustainable real estate related to
infrastructure assets including properties for Controlled
Environment Agriculture, Renewable Energy and Transportation. Power
REIT is actively seeking to expand its real estate portfolio
related to Controlled Environment Agriculture in the form of
greenhouses for the cultivation of food and cannabis.
Additional information about Power REIT can be
found on its website: www.pwreit.com
Cautionary Statement About
Forward-Looking StatementsThis document includes
forward-looking statements within the meaning of the U.S.
securities laws. Forward-looking statements are those that predict
or describe future events or trends and that do not relate solely
to historical matters. You can generally identify forward-looking
statements as statements containing the words "believe," "expect,"
"will," "anticipate," "intend," "estimate," "project," "plan,"
"assume", "seek" or other similar expressions, or negatives of
those expressions, although not all forward-looking statements
contain these identifying words. All statements contained in this
document regarding our future strategy, future operations, future
prospects, the future of our industries and results that might be
obtained by pursuing management's current or future plans and
objectives are forward-looking statements. You should not place
undue reliance on any forward-looking statements because the
matters they describe are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond our control. Our forward-looking statements are based on the
information currently available to us and speak only as of the date
of the filing of this document. Over time, our actual results,
performance, financial condition or achievements may differ from
the anticipated results, performance, financial condition or
achievements that are expressed or implied by our forward-looking
statements, and such differences may be significant and materially
adverse to our security holders.
Contact:
David H. Lesser, Chairman & CEO |
Mary Jensen, Investor Relations |
dlesser@pwreit.com |
mary@irrealized.com |
917-881-3142 |
310-526-1707 |
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301 Winding RoadOld Bethpage, NY
11804 |
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www.pwreit.com |
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