UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 001-36312 (Commission file number) POWER REIT (Exact name of registrant as specified in its charter) Maryland 45-3116572 (State or other jurisdiction of incorporation or organization) 301 Winding Road ...

Financial Performance - Total revenue for the year ended December 31, 2024, was $3,049,875, an increase of 37.2% compared to $2,222,483 in 2023[300] - The net loss for 2024 was $(24,710,741), compared to $(14,365,513) in 2023, indicating a decline in profitability[342] - Net loss attributable to common shareholders increased to $25,363,569 in 2024 from $15,018,342 in 2023, representing an increase of 68.8%[303] - Core Funds From Operations (Core FFO) available to common shares for 2024 was $(3,884,098), compared to $(4,173,118) in 2023, showing an improvement[342] - Core FFO per common share for 2024 was $(1.15), slightly better than $(1.23) in 2023[342] Asset and Impairment - A non-cash impairment charge of approximately $20 million was recorded in 2024, compared to $8.2 million in 2023, primarily related to greenhouse properties[301] - Impairment expense recorded in 2024 was approximately $19,954,260, significantly higher than the $8,235,136 recorded in 2023[342] - The company anticipates potential future impairment charges if estimated fair values of assets decline further[337] Debt and Liabilities - Current loan liabilities totaled approximately $17.4 million as of December 31, 2024, including $16.7 million from a bank loan secured by the greenhouse portfolio, which is in default[307] - Total debt as of December 31, 2024, is approximately $37,400,000, with $14,500,000 related to PWV, $6,700,000 to PWRS, and $16,700,000 to the Greenhouse Loan[312] - The total principal payments remaining on consolidated debt as of December 31, 2024, is $37,889,917, with $17,468,764 due in 2025[328] - The Greenhouse Loan is currently in default with an outstanding balance of approximately $16,720,000, and the lender has initiated litigation seeking foreclosure[326] - The Trust is exploring options to resolve the Greenhouse Loan, which is in default and subject to potential foreclosure actions starting in Q1 2026[308] Cash and Liquidity - The Trust's cash and cash equivalents decreased by $1,873,298 to $2,231,586 as of December 31, 2024, primarily due to expenses related to vacant greenhouse properties[306] - The Trust's ability to raise capital through the sale of securities may be limited until the market value of its voting securities held by non-affiliates reaches $75 million or more[286] - A forbearance agreement was effective on May 10, 2024, extending the original expiration date from September 30, 2024, to January 31, 2025, but has since terminated, putting the greenhouse portfolio at risk[326] - The maturity date of the Greenhouse Loan has been changed to December 21, 2025, with a required minimum liquidity amount of $1 million[327] Revenue Sources - Approximately 88% of consolidated revenue in 2024 was generated from three tenants: Norfolk Southern Railway (32%), Regulus Solar LLC (28%), and Marengo Cannabis LLC (28%)[305] - Power REIT anticipates generating approximately $1,700,000 in cash rent from existing leases as of December 31, 2024[312] Asset Sales - The Trust completed sales of assets for total gross proceeds of approximately $9.89 million in 2023 and 2024, including $2.1 million of seller financing provided to buyers[296] - The Trust sold four properties in 2024 for approximately $2.6 million, receiving unrestricted net proceeds of approximately $662,000[312] Stockholder Equity - The Trust's stockholders' equity was reported at $322,626 as of June 30, 2024, below the NYSE American requirement of greater than $2 million[317] - The Trust concluded that its Preferred Shares should be treated as Equity rather than Mezzanine Equity, leading to a restatement of financial statements[318] Other Financial Metrics - Interest expense related to amortization of debt costs was $31,391 in 2024, a decrease from $290,554 in 2023[342] - The company recorded stock-based compensation of $693,575 in 2024, down from $885,314 in 2023[342] - The weighted average shares outstanding (basic) remained constant at 3,389,661 for both 2024 and 2023[342] - The debt service related to PWV and PWRS loans is anticipated to be approximately $750,000 over the next twelve months[312] - The Greenhouse Loan's interest rate was modified to the greater of 1% above the Prime rate or 8.75%[327]

Revenue and Income - Total revenue for the three months ended September 30, 2024, was $1,426,112, a significant increase from $488,531 in the same period of 2023, representing a growth of 192%[12] - Rental income from related parties amounted to $785,000 for the nine months ended September 30, 2024, compared to $0 in the same period of 2023, indicating a new revenue stream[12] - Rental income for the three months ended September 30, 2024, was $1,138,504, a decrease from $233,152 in the same period in 2023, while for the nine months ended September 30, 2024, it was $1,628,922, compared to $857,459 in 2023[51] - For the nine months ended September 30, 2024, total revenue from leases was approximately $2.32 million, compared to $1.54 million for the same period in 2023[99] - The Trust recognized a gain on the sale of properties amounting to $394,394 for the nine months ended September 30, 2024, compared to $1,040,452 in the same period of 2023[12] - The Trust recognized a gain on the sale of two greenhouse properties in Colorado of approximately $213,000[93] Expenses and Losses - The net loss attributable to common shareholders for the three months ended September 30, 2024, was $(488,222), a reduction from $(10,185,943) in the same period of 2023, showing an improvement of 95%[12] - For the nine months ended September 30, 2024, the net loss was $21,547,182, compared to a net loss of $12,553,221 for the same period in 2023, representing an increase of 71.5% in losses year-over-year[16] - The net loss for the three months ended September 30, 2024, was $325,015, compared to a net loss of $10,022,736 for the same period in 2023, resulting in a basic and diluted loss per common share of $0.14, down from $3.01[33] - Total expenses for Q3 2024 were $2,101,831, down from $10,511,267 in Q3 2023, reflecting a reduction of approximately 80%[12] - The total impairment charge expense for the nine months ended September 30, 2024, was approximately $18,194,000, compared to $8,235,000 for the same period in 2023, indicating a significant increase of approximately 121%[46] Assets and Liabilities - Total assets decreased from $70,210,240 as of December 31, 2023, to $48,438,349 as of September 30, 2024, reflecting a decline of approximately 31%[9][11] - Total liabilities decreased from $39,440,196 as of December 31, 2023, to $38,665,124 as of September 30, 2024, a reduction of about 2%[10] - As of September 30, 2024, total shareholders' equity was $9,773,225, down from $30,770,044 at December 31, 2023, indicating a decrease of approximately 68.3%[13] - The accumulated deficit increased from $(24,977,922) as of December 31, 2023, to $(46,525,104) as of September 30, 2024, reflecting a worsening financial position[11] - The total liabilities held for sale as of September 30, 2024 are approximately $1,508,210, down from $3,219,337 as of December 31, 2023[116] Cash Flow and Financial Position - The company reported a cash and cash equivalents balance of $2,232,240 as of September 30, 2024, compared to $2,202,632 as of December 31, 2023, indicating a slight increase[9] - Cash and cash equivalents at the end of the period were $2,395,642, down from $3,605,689 at the end of September 2023, a decline of 33.5%[16] - The Trust's cash and cash equivalents decreased by $1.71 million to $2.40 million as of September 30, 2024, compared to December 31, 2023[85] - The net cash used in operating activities for the nine months ended September 30, 2024, was $(1,105,439), an improvement compared to $(2,006,221) for the same period in 2023[16] - The Trust's management expressed substantial doubt about its ability to continue as a going concern due to current liabilities exceeding current assets[87] Stock and Equity - The weighted average number of shares outstanding remained constant at 3,389,661 for both September 30, 2024, and December 31, 2023[12] - The Trust's total common stock equivalents as of September 30, 2024, were 192,778, compared to 197,500 as of September 30, 2023[31] - The total number of shares of Common Stock that may be issued pursuant to outstanding awards is 1,925,002[119] - The balance of stock options as of September 30, 2024, is 192,778, with 140,694 options exercisable[122] - The total amount of undeclared dividends related to the Series A Preferred Stock as of September 30, 2024, is approximately $1.3 million[125] General and Administrative Expenses - General and administrative expenses decreased from $439,046 in Q3 2023 to $338,008 in Q3 2024, a reduction of approximately 23%[12] - General and Administrative Expenses for the three months ended September 30, 2024, were approximately $338,000, a decrease of approximately 23% from $439,000 in the same period in 2023[68] - Stock-based compensation for Q3 2024 was $143,212, contributing to the overall equity adjustments during the period[13] - The company reported stock-based compensation of $550,363 for the nine months ended September 30, 2024, compared to $668,840 for the same period in 2023, reflecting a decrease of 17.6%[16] Debt and Financing - Current loan liabilities totaled approximately $17.0 million as of September 30, 2024, including $16.3 million for the Greenhouse Loan, which is in default[86] - The outstanding balance on the Greenhouse Loan is approximately $16,276,000, with the lender declaring a default on the loan[111] - The Greenhouse Loan's interest rate was modified to the greater of 1% above the Prime rate or 8.75% following amendments made on March 13, 2023[109] - A forbearance agreement for the Greenhouse Loan was extended to January 31, 2025, allowing additional time to address the loan[89] Impairment and Adjustments - The Trust recorded an impairment expense of $18,194,384 for the nine months ended September 30, 2024, compared to $8,235,136 for the same period in 2023, indicating a significant increase in impairment losses[16] - The Trust recorded a non-cash impairment charge of approximately $195,000 for the three months ended September 30, 2024, compared to $8.2 million for the same period in 2023[113] - The total assets held for sale as of September 30, 2024, amount to $27,520,099, a decrease from $48,481,255 as of December 31, 2023[116] Compliance and Regulatory Issues - The Trust received a deficiency letter from NYSE American due to non-compliance with listing requirements, necessitating total equity greater than $2 million[72] - The Trust's net operating loss as of December 31, 2023, was $30.8 million, which may impact its REIT qualification requirements[25] - The Trust does not expect the recent accounting guidance on segment reporting to have a material impact on its financial statements[70]

Core Viewpoint - Power REIT has successfully addressed its compliance issues with the NYSE American by restating its financials, which has resulted in an increase in total equity to approximately $10 million, thus meeting the required listing standards [2][4]. Financial Compliance - The NYSE American rescinded its Deficiency Letter after Power REIT demonstrated compliance with the equity requirements based on the restated financial statements [4]. - The Trust's Preferred Shares were reclassified from Mezzanine Equity to Equity, leading to a significant increase in total equity on the balance sheet [2]. Financial Reporting - Power REIT filed a Form 10-Q/A with the SEC for the quarter ended June 30, 2024, which included the restated equity balance and an explanatory note [3]. - The change in accounting treatment for the Preferred Shares is non-cash and does not impact revenue, gross margin, net income, or income per share [2]. Company Overview - Power REIT focuses on sustainable real estate investments related to infrastructure assets, including Controlled Environment Agriculture, Renewable Energy, and Transportation [5].

Core Points - Power REIT has received a notice from NYSE Regulation indicating non-compliance with continued listing standards due to insufficient stockholders' equity of $322,626 as of June 30, 2024, which is below the required $2.0 million [1] - The Trust must submit a compliance plan by October 3, 2024, detailing actions to regain compliance by March 3, 2026, or face potential delisting [2] - The notice does not immediately impact the trading status of Power REIT's common and preferred shares, which will continue to trade under the symbol "PW" with an added designation of ".BC" indicating below compliance status [3] Company Overview - Power REIT is a specialized real estate investment trust (REIT) focused on sustainable real estate related to infrastructure assets, including Controlled Environment Agriculture, Renewable Energy, and Transportation [4]

Revenue and Loss - Total revenue for the three months ended June 30, 2024, was $519,349, compared to $217,898 for the same period in 2023, representing a 138% increase[7] - For the six months ended June 30, 2024, Power REIT reported a net loss of $21,222,167, compared to a net loss of $2,530,485 for the same period in 2023[9] - For the three months ended June 30, 2024, the net loss was $19,145,169 compared to a net loss of $2,191,439 for the same period in 2023, representing an increase of approximately 775%[24] - The basic and diluted loss per common share for the six months ended June 30, 2024, was $(6.36), compared to $(0.84) for the same period in 2023, indicating a significant decline in performance[24] - The net loss attributable to common shareholders for the three months ended June 30, 2024, was $(19,308,376), compared to $(2,354,646) for the same period in 2023, indicating a significant increase in losses[7] Assets and Liabilities - Total assets decreased from $70,210,240 as of December 31, 2023, to $49,789,487 as of June 30, 2024, a decline of approximately 29%[6] - Total liabilities increased slightly from $39,440,196 as of December 31, 2023, to $39,834,459 as of June 30, 2024[6] - The company’s total real estate assets decreased from $27,655,547 as of December 31, 2023, to $23,442,758 as of June 30, 2024, a decline of about 15%[6] - The accumulated deficit increased to $(47,342,539) as of June 30, 2024, compared to $(25,793,958) as of December 31, 2023[6] - As of June 30, 2024, total shareholders' equity was $322,626, a significant decrease from $21,464,056 at December 31, 2023[8] Cash and Cash Equivalents - Cash and cash equivalents increased to $2,455,133 as of June 30, 2024, from $2,202,632 as of December 31, 2023, reflecting a growth of about 11%[6] - Cash and cash equivalents and restricted cash decreased to $2,935,628 at June 30, 2024, down from $4,104,884 at December 31, 2023[20] - As of June 30, 2024, the Trust's cash and cash equivalents totaled $2,935,628, a decrease of $1,169,256 from December 31, 2023[57] Impairment and Expenses - The company reported an impairment expense of $17,449,424 for the three months ended June 30, 2024, compared to no impairment expense in the same period of 2023[7] - During the six months ended June 30, 2024, the Trust recognized an impairment expense of $17,998,981[9] - The Trust recorded approximately $17,999,000 in impairment charges for the six months ended June 30, 2024, compared to no impairment charges during the same period in 2023[35] - General and administrative expenses decreased to $359,474 for the three months ended June 30, 2024, down from $464,504 in the same period of 2023, a reduction of approximately 23%[7] - General and Administrative Expenses for the six months ended June 30, 2024, were approximately $813,000, compared to $892,000 for the same period in 2023[54] Debt and Financing - Principal payments on long-term debt totaled $1,096,246 during the six months ended June 30, 2024[9] - Current loan liabilities amounted to approximately $16.4 million, including about $15.7 million for the Greenhouse Loan, which is in default and non-recourse to the Trust[58] - The total long-term debt of Power REIT as of June 30, 2024, is approximately $37,381,420, with principal payments remaining totaling $16,211,049 for the remainder of 2024[81] - The Greenhouse Loan's total commitment was reduced from $20 million to $16 million, with an amended interest rate structure[77] Property and Assets Held for Sale - As of June 30, 2024, the Trust has nine properties classified as assets held for sale[31] - The assets held for sale as of June 30, 2024, total approximately $17,812,866, down from $34,363,172 as of December 31, 2023[84] - The total assets of the greenhouse cultivation and processing facilities, net of accumulated depreciation, decreased from $31,532,816 as of December 31, 2023, to $16,171,777 as of June 30, 2024[84] Strategic Alternatives and Future Outlook - The Trust is exploring strategic alternatives for its cannabis-related assets due to significant financial distress among tenants[70] - The Trust's management has substantial doubt about its ability to continue as a going concern due to current liabilities exceeding current assets and increased property expenses[58] Stock and Equity - The aggregate number of shares of Common Stock that may be issued pursuant to outstanding awards under the 2020 Equity Incentive Plan is currently 1,925,002[85] - As of June 30, 2024, the Trust has 197,500 stock options outstanding with a weighted average exercise price of $13.44 and 126,181 options exercisable[89] - The Trust accrued approximately $326,000 in dividends to holders of Series A Preferred Stock during the six months ended June 30, 2024[92] - The Trust's balance of restricted stock as of June 30, 2024, is 7,221 shares with a weighted average grant date fair value of $13.44[90] Other Income and Expenses - Other income for the six months ended June 30, 2024, included approximately $106,000, primarily from interest income[53] - The Trust recognized a gain on the sale of two greenhouse properties in Colorado of approximately $213,000[64] - The Trust sold three properties in early 2024, generating approximately $662,000 of unrestricted cash and retiring a $456,000 loan[59]

Revenue and Financial Performance - Revenue for the three months ended March 31, 2024, was $534,612, a decrease of 46.9% from $1,004,732 in the same period of 2023, primarily due to a $434,053 decrease in rental income from cannabis tenants [123]. - For the three months ended March 31, 2024, the Trust reported revenue of $534,612, a decrease of approximately 47% compared to $1,004,732 in the same period of 2023 [135]. - The net loss attributable to common shares for the three months ended March 31, 2024, was $2,240,205, an increase of 346.5% compared to a net loss of $502,253 in the same period of 2023 [123]. - The net loss for the three months ended March 31, 2024, was $2,076,998, compared to a net loss of $339,046 for the same period in 2023, indicating a significant increase in losses [135]. - Core Funds From Operations (Core FFO) available to common shares for the three months ended March 31, 2024, was $(1,315,621), compared to $(632,641) for the same period in 2023 [135]. - Core FFO per common share for the three months ended March 31, 2024, was $(0.39), compared to $(0.19) for the same period in 2023, reflecting worsening operational performance [135]. - The impairment expense for the three months ended March 31, 2024, was $549,557, indicating potential asset value declines [135]. Cash and Liquidity - As of March 31, 2024, the Trust's cash and cash equivalents totaled $4,421,788, an increase of $316,904 from December 31, 2023, primarily due to property sales [125]. - The Trust sold three properties in early 2024, generating net proceeds of approximately $662,000 in unrestricted cash and $53,000 in restricted cash, which should help improve liquidity [128]. - The Trust's current liabilities far exceed current assets, raising substantial doubt about its ability to continue as a going concern [127][130]. - The Trust's cash outlays primarily consist of professional fees, legal expenses, and property-related costs, with no assurance that favorable financing will be available when needed [131]. - The Trust's plan includes selling properties, entering new leases, and improving cash collections to generate liquidity, but the outcome remains uncertain [130]. Debt and Liabilities - The Trust's current loan liabilities totaled approximately $15 million as of March 31, 2024, including approximately $14.4 million secured by the greenhouse portfolio [126]. - The Greenhouse Loan is currently in default, and a forbearance agreement was established on May 10, 2024, providing additional time until September 30, 2024, to address the loan [129]. Asset Management and Strategy - The Trust completed asset sales in 2023 and 2024 for total gross proceeds of approximately $9.81 million, which included $2.1 million of seller financing [115]. - A 20-year triple-net lease was entered into for the MillPro Facility with an initial rent of $1 million per year after a 6-month deferred rent period [113]. - The Trust's total portfolio (real estate owned) had a gross book value of $86,668,864 as of March 31, 2024 [121]. - The Trust is focused on reducing debt and leverage while maintaining liquidity through various strategies, including selling non-core properties and improving operating performance [114][116]. - The Trust's business strategy includes seeking acquisition opportunities for properties with strong potential for increased cash flows and appreciation in value [120].

Financial Performance - Total revenue for the year ended December 31, 2023, was $2,357,695, a decrease of 72.3% compared to $8,517,720 in 2022, primarily due to a $5,884,400 decrease in rental income from unrelated parties [290]. - The net loss attributable to common shareholders for the year ended December 31, 2023, was $15,018,342, an increase of $112,032 from a net loss of $14,906,310 in 2022 [290]. - Revenue for 2023 was $2,357,695, a significant decrease from $8,517,720 in 2022, representing a decline of approximately 72.3% [331]. - The net loss for 2023 was $14,365,513, compared to a net loss of $14,253,483 in 2022, indicating a slight increase in losses [331]. - Core FFO available to common shares was $(4,173,118) in 2023, down from $4,449,917 in 2022, reflecting a negative shift in financial performance [331]. - Core FFO per common share decreased to $(1.23) in 2023 from $1.32 in 2022, highlighting a decline in profitability on a per-share basis [331]. Cash and Assets - Cash and cash equivalents totaled $4,104,884 as of December 31, 2023, an increase of $257,013 from the previous year [294]. - The Trust completed asset sales in 2023 for total gross proceeds of approximately $7.3 million, including the sale of a cannabis-related greenhouse for $4,787,000 [282][281]. - Approximately 84% of consolidated revenue for the fiscal year ended 2023 was generated from two properties, with Norfolk Southern Railway and Regulus Solar LLC contributing 45% and 39% respectively [293]. Liabilities and Debt - Current loan liabilities totaled approximately $15.5 million as of December 31, 2023, including a $14.4 million bank loan secured by the greenhouse portfolio [295]. - The Greenhouse Loan is currently in default, and the Trust is working with the lender to establish a path forward, with litigation filed by the lender seeking foreclosure [298]. - The balance of the Municipal Debt as of December 31, 2023 was approximately $51,000, with a simple interest rate of 5.0% [312]. - The PWSS Term Loan balance as of December 31, 2023 was approximately $456,000, with a fixed interest rate of 5.0% [313]. - The 2015 PWRS Loan balance as of December 31, 2023 was approximately $6,957,000, with a 4.34% interest rate and a maturity date of October 14, 2034 [314]. - The PW PWV Loan balance as of December 31, 2023 was approximately $14,412,000, with a fixed interest rate of 4.62% and maturing in 2054 [315]. - The Greenhouse Loan outstanding balance as of December 31, 2023 was approximately $14,358,000, with a maturity date changed to December 21, 2025 [318]. - The total long-term debt of Power REIT as of December 31, 2023 is approximately $36,744,694 [319]. Expenses and Impairments - The Trust's expenses for the year ended December 31, 2023, decreased by $5,154,072 compared to 2022, primarily due to a reduction in non-cash impairment charges [290]. - In 2023, the Trust recorded approximately $8.2 million in non-cash impairment charges, compared to approximately $16.7 million in 2022 [326]. - Impairment expense was $8,235,136 in 2023, a decrease from $16,739,040 in 2022, suggesting a reduction in asset write-downs [331]. - Stock-based compensation increased to $885,314 in 2023 from $682,259 in 2022, indicating higher costs associated with employee compensation [331]. - Depreciation on land improvements rose to $2,260,655 in 2023, compared to $1,505,470 in 2022, reflecting increased investment in property [331]. - Interest expense related to the amortization of debt costs increased to $290,554 in 2023 from $87,430 in 2022, indicating higher financing costs [331]. Shareholder Information - As of December 31, 2023, the Trust has 336,944 outstanding shares of Series A Preferred Stock, with cumulative unpaid dividends totaling approximately $816,000 [310]. - The Trust did not declare a dividend on its Series A Preferred Stock during 2023, resulting in accrued dividends at an annual rate of $0.4844 per share per quarter [310]. - Preferred stock dividends remained consistent at approximately $(652,829) in 2023 compared to $(652,827) in 2022, indicating stable dividend obligations [331]. - Weighted average shares outstanding (basic) increased slightly to 3,389,661 in 2023 from 3,377,676 in 2022, showing a marginal increase in share count [331]. Future Outlook - The Trust anticipates generating approximately $1,700,000 in cash rent from existing leases as of December 31, 2023 [306]. - The Trust's plan includes selling properties, entering new leases, and improving cash collections to enhance liquidity and address current liabilities that exceed current assets [299].

Financial Performance - Revenue for the three months ended September 30, 2023, was $488,531, a decrease of 75.7% from $2,007,645 in the same period of 2022[113]. - Revenue for the nine months ended September 30, 2023, was $1,711,161, down 72.6% from $6,226,114 in the same period of 2022[115]. - Net loss attributable to common shareholders for the three months ended September 30, 2023, was ($10,185,943), compared to a net income of $419,762 in 2022, representing a decrease of $10,605,705[113]. - Net loss attributable to common shareholders for the nine months ended September 30, 2023, was ($13,042,842), a decrease of $15,078,999 from a net income of $2,036,157 in 2022[115]. - Total expenses for the three months ended September 30, 2023, increased by $9,086,592, primarily due to a non-cash impairment charge of $8,235,136[113]. - Core FFO available to common shares for the three months ended September 30, 2023, was ($1,090,924), compared to $1,139,835 in 2022[123]. - Core FFO per common share for the three months ended September 30, 2023, was ($0.32), down from $0.34 in 2022[123]. Assets and Portfolio - As of September 30, 2023, the Trust's assets included approximately 112 miles of railroad infrastructure, 501 acres of land leased for solar power generating projects with a capacity of approximately 88 Megawatts, and 263 acres of Controlled Environment Agriculture properties totaling approximately 2,211,000 square feet[96]. - The total gross book value of the Trust's portfolio is approximately $91.9 million, with a net book value of $65.0 million after impairment and depreciation[110]. - Cash and cash equivalents totaled $3,605,689 as of September 30, 2023, a decrease of $242,182 from December 31, 2022[117]. Strategic Initiatives - The Trust aims to improve its balance sheet by reducing debt and leverage, maintaining liquidity, and enhancing the overall quality of its property portfolio[101]. - The Trust is exploring acquisition opportunities for properties that meet its financial and strategic criteria, potentially involving the use of debt or equity capital[107]. - The Trust's business strategy includes maximizing rental income and cash flows to enhance shareholder value and property values[100]. - The Trust completed asset sales in early 2023 for total gross proceeds of $2.5 million, as part of its strategy to dispose of non-core properties[104]. - On November 1, 2023, a subsidiary sold a cannabis-related greenhouse facility for total consideration of $4,787,000, with $3,400,000 paid in cash and $850,000 in seller financing[102]. Operational Challenges - The Trust reported substantial doubt regarding its ability to continue as a going concern due to net losses, expected reduced revenue, and increased property maintenance expenses, with $3.6 million in cash and cash equivalents as of September 30, 2023[103]. - The Trust has substantial doubt about its ability to continue as a going concern due to net losses and expected reduced revenue[118]. - The Trust's management is focused on selling properties and improving collections to alleviate liquidity concerns[119]. Sustainability Efforts - The greenhouse cultivation method used by the Trust consumes approximately 70% less energy and 95% less water compared to traditional methods, representing a sustainable business model[99].

Financial Performance - Total revenue for the three months ended June 30, 2023, was $217,898, a decrease of 90.2% compared to $2,232,953 for the same period in 2022[110] - Revenue for the six months ended June 30, 2023, was $1,222,630, a decrease of 71.0% compared to $4,218,469 for the same period in 2022[112] - Net loss attributable to common shareholders for the three months ended June 30, 2023, was ($2,354,646), a decrease of $3,136,368 compared to net income of $781,722 in 2022[110] - Net loss attributable to common shareholders for the six months ended June 30, 2023, was ($2,856,899), a decline of $4,473,294 from net income of $1,616,395 in 2022[112] - Core Funds From Operations (Core FFO) for the six months ended June 30, 2023, was ($2,078,872), compared to $2,743,941 in 2022[120] - Core FFO per common share for the six months ended June 30, 2023, was ($0.61), down from $0.81 in 2022[120] Assets and Portfolio - The Trust's assets as of June 30, 2023, included approximately 112 miles of railroad infrastructure, 501 acres of solar farm land with a generating capacity of 88 Megawatts, and 263 acres of Controlled Environment Agriculture properties totaling approximately 2,211,000 square feet[94] - The Trust's total portfolio gross book value was $101,004,421, with a net book value of $78,679,458 after accounting for impairment and depreciation[107] - Cash and cash equivalents totaled $4,272,933 as of June 30, 2023, an increase of $425,062 from December 31, 2022[114] Dividends and Shareholder Returns - The Trust accrued a quarterly dividend of approximately $326,000 ($0.484375 per share) on its 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock[96] - The Trust accrued and paid a cash dividend of $326,414 to holders of Series A Preferred Stock for the six months ended June 30, 2023[113] Operational Challenges and Strategies - The Trust incurred substantial doubt about its ability to continue as a going concern due to net losses and expected reduced revenue[117] - The Trust is focused on improving its balance sheet by reducing debt and leveraging its operating performance, including selling non-core properties and underperforming assets[99][102] - The Trust plans to continue seeking acquisition opportunities for properties with better operating metrics than its existing portfolio, potentially involving debt or equity capital[104] Cost Management - The Trust's property maintenance expenses increased by $1,035,496, contributing to the overall rise in total expenses for the six months ended June 30, 2023[112] - Other income increased by $880,452 due to a gain on the disposal of the Tulare property[112] Energy Efficiency - The Trust's greenhouse cultivation method uses approximately 70% less energy and 95% less water compared to traditional methods, positioning it as a sustainable solution[97] Share Statistics - Weighted average shares outstanding for the six months ended June 30, 2023, was 3,389,661, slightly up from 3,367,396 in 2022[120]