Net Income Per Share Increased 148%
Core FFO Per Common Share Increased 102%
Old Bethpage – New York, Aug. 09, 2021 (GLOBE NEWSWIRE) — Power REIT (NYSE – AMERICAN: 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 and six months ended June 30, 2021.
2Q-2021 PORTFOLIO HIGHLIGHTS (3 months ended June 30, 2021)
|●||Acquired 4 Controlled Environmental Agriculture (“CEA”) facilities in Colorado and Oklahoma totaling approximately 206,000 square feet of greenhouse and cultivation/processing space.|
|○||Approximately $12.4 million was committed to these acquisitions, which includes the purchase price and development costs, but excludes transaction costs.|
|○||Entered into 4 new long-term triple-net leases.|
|○||Leasing activity is expected to generate straight-line annualized rent of approximately $2.3 million, representing more than an 18% unleveraged yield on invested capital.|
1H-2021 PORTFOLIO HIGHLIGHTS (6 months ended June 30, 2021)
|●||Grew the CEA portfolio by 8 properties, or approximately 317,000 square feet through accretive acquisitions, which should generate straight-line annualized rent of approximately $4.6 million, representing more than a 17% yield on invested capital.|
|●||Completed Rights Offering that generated approximately $37 million. Existing common stockholders were offered the right to purchase additional shares at $26.50.|
|●||Shelf Registration Statement filed and declared effective, which will provide the Trust with better access to capital sources.|
Commenting on the 2021 second quarter and first half activities, David Lesser, Chief Executive Officer stated, “We continued to make significant progress on our external growth strategy during the first half of 2021. In addition to completing approximately $26 million of accretive acquisitions, we successfully completed an investor friendly Rights Offering, which generated approximately $37 million and allowed existing investors the opportunity to benefit from our attractive growth trajectory. This capital fueled our accretive acquisition strategy. To date, we have deployed approximately $20 million of the Rights Offerings proceeds into accretive acquisitions so we still have additional capital to deploy that should drive further growth including the potential to close on the previously announced acquisition in Michigan. In addition, we continue to explore non-dilutive capital sources to fund our continued growth while creating shareholder value.”
FORWARD CORE FFO PER SHARE GUIDANCE
Power REIT has now deployed approximately $20 million of the capital raised in its recently closed Rights Offering across several transactions. This leaves approximately $17 million to deploy. Assuming the full deployment of its remaining proceeds into additional acquisitions at an average 16% yield to common equity (i.e. a lower yield than recent transactions), the Trust estimates a forward Core FFO per share run rate of $3.24 as described in our most recently published Investor Presentation which is available at: www.pwreit.com/investors. 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.
Full earnings here.