Acquisitions Drive Year-Over-Year Growth
5/7/21, 7:38 AM
Net Income Per Share Increased 267% - Core FFO Per Share Increased 142%
Old Bethpage – New York, May 07, 2021 (GLOBE NEWSWIRE) -- Power REIT (NYSE - AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”), Power REIT with a focused “Triple Bottom Line” strategy and a commitment to profit, planet, and people, today announced that it is providing an update that includes highlights of the Trust’s financial and operating results for the three months ended March 31, 2021.
1Q-2021 HIGHLIGHTS
Three Months Ended March 31,
2021 2020
Revenue $ 1,820,927 $ 787,388
Net Income Attributable to Common Shareholders $ 944,918 $ 182,029
Net Income per Common Share (diluted) 0.33 0.09
Core FFO Available to Common Shareholders $ 1,274,939 $ 351,650
Core FFO per Common Share 0.46 0.19
Growth Rates:
Revenue 131 %
Net Income Attributable to Common Shareholders 419 %
Net Income per Common Share (diluted) 267 %
Core FFO Available to Common Shareholders 263 %
Core FFO per Common Share 142 %
*See Net Income to Core FFO Reconciliation at the end of this release.
? Raised over $36.6 million in an investor friendly Rights Offering that was launched at the end of December 2020 and closed in February 2021.
? Acquired 5 CEA facilities in Colorado and California totaling approximately 110,000 square feet of greenhouse and cultivation/processing space.
? Entered into 3 new triple-net leases, one lease amendment and was assigned an existing lease with state-licensed cannabis operator.
Commenting on the results and Q1-2021 achievements, David Lesser, Chief Executive Officer stated, “Power REIT made significant progress during the quarter by completing a Rights Offering that allowed existing investors to participate at an attractive stage of our growth trajectory. Existing investors were offered the right to purchase additional shares at $26.50. With the common stock trading at $43.98, these investors have generated gains exceeding 66% within a few months. As we deploy the capital raised in additional accretive acquisitions, we also continue to explore non-dilutive capital sources to fund our growth in an effort to create ongoing shareholder value.”
Mr. Lesser continued, “The updated business plan that Power REIT put into motion in the second half of 2019 is driving substantial growth. This is reflected in our first quarter 2021 Core FFO per common share of $0.46, which increased 142% year over year. Our dynamic growth is a function of the attractive yields Power REIT can achieve with its strategic CEA investments coupled with our relatively small size which amplifies the impact of these transactions. With the current stock price at $43.98 and a forward Core FFO run rate of $3.18 per share, Power REIT trades at a 13.8x multiple. We believe our potential growth rate driven by acquisitions combined with a relatively low forward Core FFO multiple provides a compelling value proposition for investors. We have an active pipeline of acquisitions and hope to announce additional activity in the near future.”
FORWARD CORE FFO PER SHARE
Power REIT has now deployed approximately $10 million of the capital raised in its recently closed Rights Offering across several transactions. This leaves approximately $26.5 million to deploy. Power REIT’s current run-rate of Core FFO based solely on transactions closed and not taking into account deployment of additional capital is approximately $6.6 million as described in our most recently published Investor Presentation which is available at: www.pwreit.com/investors
Reflecting on the impact of Power REIT’s recent Rights Offering and assuming the full deployment of its remaining proceeds into additional acquisitions at an average 16% yield to common equity, the Trust estimates a forward Core FFO per share run rate of $3.18. However, it is important to understand that near-term quarterly results could be below this run-rate due to uncertainty of transaction timing and dilution from the additional shares issued pursuant to the Rights Offering that generated the available cash on Power REIT’s balance sheet for investment.
The following table provides a roadmap and sensitivity analysis for forward Core FFO per share:
Common Shares Outstanding (Pre Rights Offering) 1,916,139
Shares Sold in Rights Offering 1,383,394
Total Shares Outstanding (Post Rights Offering) 3,299,533
Rights Offering Price $ 26.50
Rights Offering Capital Raise – Gross $ 36,659,941
Proceeds Net of Costs (est.) 0.25 % $ 36,568,291
Announced Transactions Using Proceeds from Rights Offering:
Apotheke 1,813,398
Canndescent 2,685,000
Grail Project Expansion 517,663
Gas Station 2,118,717
Cloud Nine 2,947,905
Total 10,082,683
Remaining Rights Offering Proceeds for Investment $ 26,485,608
Unleveraged FFO Yield on Investments (Net) 14.0 % 16.0 % 18.0 %
Annualized Run Rate Core FFO Guidance (existing portfolio) $ 6,558,874 $ 6,558,874 $ 6,558,874
Incremental FFO from Acquisitions with remaining RO Proceeds 3,707,985 4,237,697 4,767,409
Incremental G&A to expand Power REIT team (300,000 ) (300,000 )
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