Power REIT, a Maryland-domiciled real estate investment trust (REIT) focused on transportation, energy infrastructure, and Controlled Environment Agriculture (CEA), reported significant financial developments in its 10-Q filing for the quarter ended September 30, 2024. The company experienced a notable increase in revenue, with total revenue for the three months reaching $1,426,112, up from $488,531 in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $2,480,073, compared to $1,684,559 for the same period in 2023.
Despite the revenue growth, Power REIT reported a net loss of $(325,015) for the third quarter of 2024, a substantial improvement from a net loss of $(10,022,736) in the same quarter of 2023. However, the net loss attributable to common shareholders for the nine months ended September 30, 2024, was $(22,036,803), compared to $(13,042,842) for the same period in 2023, indicating a worsening financial position over the longer term.
The company’s total assets decreased to $48,438,349 as of September 30, 2024, down from $70,210,240 at the end of 2023. Total equity also fell significantly from $30,770,044 to $9,773,225 during the same period. The accumulated deficit increased from $(25,793,958) to $(46,525,104), reflecting ongoing financial challenges.
Power REIT's cash and cash equivalents stood at $2,232,240, with restricted cash of $163,402, marking a decrease in total cash and cash equivalents and restricted cash from $4,104,884 at the end of 2023. The company expressed substantial doubt about its ability to continue as a going concern due to current liabilities exceeding current assets, net losses, and increased property expenses.
Strategically, Power REIT sold several properties in early 2024, generating approximately $662,000 in unrestricted cash and retiring $456,000 in loan liabilities. The company also sold two cannabis-related greenhouse properties for $1,325,000 and a ground lease for a solar farm for $1.2 million. However, the Greenhouse Loan, amounting to approximately $16.3 million, is currently in default, prompting a forbearance agreement extended to January 31, 2025.
The Trust's management is actively seeking to improve liquidity through property sales, new leases, and capital raising efforts, while also exploring strategic transactions to enhance shareholder value.
About Power REIT
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