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.
Three Months Ended March 31,
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
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:
Grail Project Expansion 517,663
Gas Station 2,118,717
Cloud Nine 2,947,905
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 )
Power REIT Acquires Greenhouse Cannabis Cultivation Facility in Highly Accretive Transaction
2/4/21, 7:16 AM
Old Bethpage, New York, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”) today announced that it has acquired a 37,000 square foot state-of-the art greenhouse cannabis cultivation facility located in Riverside County, California (the “Property”) through a wholly owned subsidiary (“PropCo”) for $7.685 million. Power REIT funded the transaction using $2.685 million of cash on hand and the issuance of 192,308 shares of Power REIT’s Series A Preferred Stock (NYSE American ticker: PW.PRA), which had a closing price of $26.00 per share on February 2, 2021.
The property is leased to Canndescent (“Canndescent”), the #1 selling flower brand for luxury cannabis, with over 50% store penetration in California. Canndescent offers ultra-premium products grown through a proprietary cultivation process. The lease provides straight-line annual rent of approximately $1,074,000 which represents an unleveraged CORE FFO yield to the Common Shares of Power REIT of greater than 26%. The transaction increases Power REIT’s CORE FFO on a run rate basis by approximately $0.21 per share relative to the prior run rate guidance. This increase in CORE FFO is based on using proceeds from the pending Rights Offering that Power REIT is conducting in order to fund the acquisition. Accordingly, such calculation is based on adding approximately 101,000 common shares in order to provide an indication of the pro-forma impact from the acquisition.
David Lesser, Power REIT’s Chairman and CEO, commented, “This transaction demonstrates Power REIT’s ability to source and close accretive real estate acquisitions that we believe should result in the creation of significant shareholder value. This acquisition expands our national footprint into the California market, which is the largest cannabis market in the United States. The acquisition provides attractive valuation metrics including a discount to replacement cost and a lower price than recent comparable property sales in the market. We are also pleased to establish a relationship with Canndescent which is a sophisticated cannabis operator with premier brands and significant customer loyalty.”
Adrian Sedlin, Founder and CEO of Canndescent, commented, “We are excited to partner with Power REIT and are already exploring additional pipeline and business opportunities that could be mutually beneficial to us and Power REIT as we both continue to expand our respective businesses.”
Mr. Lesser concluded, “In addition, we believe that our previously announced Rights Offering is a very investor friendly component of our capital plan that should allow shareholders the opportunity to participate in our immediate growth plans. As previously announced, we have extended the closing on the Rights Offering to February 5, 2021. This was in response to the significant interest we have received and to allow as many shareholders as possible to participate. We are optimistic about our acquisition pipeline and hope to announce additional acquisitions in the near future.”
UPDATED INVESTOR PRESENTATION
Power REIT has posted an updated investor presentation which is available using the following link: https://www.pwreit.com/investors
Fidelity now cancelled my rights exercise. Said they can’t process it because PW is a marijuana company. It’s a violation of some SEC regulation. I wrote the company and the CEO responded with this:
“You should receive a package in the mail any day explaining how to exercise your Rights but it is correct that it will not be done directly with your broker. You will need to follow the instructions which contemplate a physical subscription sent to Power REIT.”
I give the company credit- David responded to my email very quickly. I’m waiting to get the package and find out how these rights are properly exercised. But as you said you exercised yours by Fidelity too - you probably haven’t. Mine went through yesterday and was canceled today. Call your broker.
I exercised my rights in my Fidelity 401k without issue. However, TD Ameritrade just told me I needed to go through PW’s transfer agent to exercise. Anyone had similar problems or did I just talk to the wrong person at TD?
I believe though I could be wrong that they need to be exercised by January 22nd.
I'm assuming it will cause a drop in prices early on because this is basically a doubling of the outstanding shares.
But the cashed raise is very important as they continue to expand in hopefully a similar fashion to IIPR
Yes, mine arrived today as well. Thanks for the follow up.
Do we know the terms yet as to when we can exercise them, and over what time period we can exercise them? Do you anticipate a price hit with flipping shares bought at discount or is there a restriction on that? Any understanding you have about these would be most appreciated. I haven’t had rights assigned before.
Power REIT Announces Rights Offering To Existing Common Shareholders To Raise Capital For Acquisitions
12/18/20, 7:34 AM
December 18, 2020 07:34 AM ET (BZ Newswire) -- News
Old Bethpage, New York, Dec. 18, 2020 (GLOBE NEWSWIRE) -- Power REIT (AMEX:PW) ("Power REIT" or the "Trust") today announced that it intends to conduct a rights offering (the "Rights Offering"). Power REIT is conducting the Rights Offering to offer existing holders of its Common Shares the ability to participate in providing capital to the Power REIT on a non-dilutive basis. The proceeds are intended to be used primarily to finance acquisitions of real property assets, in particular real estate within the Controlled Environment Agriculture ("CEA") sector, and to fund our subsidiaries. In addition, the proceeds may be used to retire all or a portion of any debt, to redeem any outstanding preferred stock, or for working capital purposes, including the payment of distributions, interest and operating expenses.
BREAKING NEWS: $PW Power REIT Acquires Properties for Cannabis Greenhouse Cultivation and Processing Enters Option to Acquire Additional Land in Highly Accretive Transaction
Old Bethpage, New York, Oct. 16, 2020 (GLOBE NEWSWIRE) -- Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”) today announced that it acquired two parcels in Crowley County, Colorado (the “Properties”) for $150,000 through a wholly o...
Got this from PW - Power REIT Acquires Properties for Cannabis Greenhouse Cultivation and Processing Enters Option to Acquire Additional Land in Highly Accretive Transaction
JUST IN: $PW Power REIT Acquires Property for Cannabis Processing and Expansion of Existing Property in Highly Accretive Transactions
Old Bethpage, New York, Sept. 18, 2020 (GLOBE NEWSWIRE) -- Power REIT (NYSE-AMEX: PW) (“Power REIT” or the “Trust”) today announced that it has acquired a 3.0 acre property in York County, Maine (the “505 Property”) for $400,000 through a wholly own...
In case you are interested PW - Power REIT Acquires Property for Cannabis Processing and Expansion of Existing Property in Highly Accretive Transactions
Power REIT acquires property for cannabis processing
Sep. 18, 2020 6:16 AM ETPower REIT (PW)By: Gaurav Batavia, SA News Editor5 Comments
Power REIT (NYSEMKT:PW) to acquire a 3.0-acre property in York County, Maine, for $400K through a wholly owned subsidiary, PropCo.
In acquiring the Property, PropCo exercised an option it received at the time of the acquisition of the 495 Property (adjacent property, acquired in May 2020).
Concurrent with the acquisition, PropCo amended the lease with Sweet Dirt whereby the lease will cover both properties and PropCo will fund the construction of an additional approximately 9,900 square feet of processing space and the renovation of an existing ~2,738-square-foot building on the 505 Property.
As part of the acquisition, the existing triple net lease is being amended whereby PropCo will fund approximately $1.56M of costs to complete the construction. Accordingly, the company's total investment in the 505 Property is ~$1.96M.
The acquisition and expansion transactions are immediately accretive to CORE FFO by adding ~$402,000 of straight-line rent that translates to incremental CORE FFO of ~$0.21/share p.a. on a run rate basis.
Recent transactions should add ~1.76/share on a run rate basis to Core FFO.
Assuming the company deploys its existing available capital prior to the end of the year, the year-end “run-rate” for FFO should be in excess of $2/share.
Source: Press Release
Today and next week should be exciting. We had a one-day mass consolidation yesterday. Weak hands gone - new highs likely in the near future.
well I am loaded since I called it at $8 , yesterday a blip on way to 50-100+ , they doubted me at 8 , watch the next act . you always chime in on bad days it seems ha
long and strong , they continue to execute 50-100+ like IIPR imo
More so for others than myself. I sold a bunch in the low 20s, and sitting on like 1/6 of my original position that I don’t watch too much
400k trades. Crazy.
you know I agree !
yep, she's strong. doesn't look like under 18s anytime soon
looks like we headed to new highs .... valuation case can be made much higher imo
That’s a shame. This has been a monster. The good news is that this still has plenty of room to run. Once we start paying dividends like IIPR, we’ll match their FFO multiple- or exceed it as we are our perming them. Great vehicle who’s success is completely isolated from Covid uncertainties.
For comparison, during the last year $IIPR has had an FFO multiple range of 25-50X. Apply that to $PW with this first deployment and $1.90+ FFO and you get a share price for $PW of $47.50-$95.00 !!! The crazy thing is then they can keep the accretive process going like $IIPR did.
Old story but helpful for those (of us/me) who've known virtually nothing pertaining to MJ REITs....
Evidently some of these REITs have been exceeding "expectations".....
Where "estimators" who're consistently wrong should be canned.
That was June 2019 to Jan 2020 timeframe