Power REIT(PW) - 2025 Q4 - Annual Report

Revenue and Income - Total revenue for the fiscal year ended December 31, 2025, was $2,011,783, a decrease from $3,049,875 in 2024, primarily due to a $785,000 reduction in rental income from related parties [308]. - Rental income for 2025 was $927,376, with direct financing lease income of $915,000 and other income of $169,407 [308]. - Approximately 93% of rental income and lease income for 2025 came from two tenants: Norfolk Southern Railway (50%) and Regulus Solar LLC (43%) [309]. - Other income increased by $845,608 in 2025, driven by a gain on extinguishment of debt of $1,092,670 [312]. - Revenue for the year ended December 31, 2025, was $2,011,783, a decrease from $3,049,875 in 2024 [346]. Expenses and Losses - Total expenses decreased by $22,708,143 in 2025, mainly due to an $18,795,056 reduction in impairment expense and a $1,807,694 decrease in interest expense following the settlement of the Greenhouse Loan [310]. - Net loss attributable to common shareholders for 2025 was $2,847,910, significantly improved from a net loss of $25,363,569 in 2024 [313]. - Net loss for the year ended December 31, 2025, was $(2,195,082), significantly improved from a net loss of $(24,710,741) in 2024 [346]. - Core FFO available to common shares for 2025 was $(1,024,487), compared to $(3,884,098) in 2024, indicating a reduction in losses [346]. - Core FFO per common share improved to $(0.30) in 2025 from $(1.15) in 2024 [346]. Debt and Financing - The balance of the Greenhouse Loan was reduced from approximately $16,720,000 in 2024 to $0 in 2025 after settling obligations through deeds-in-lieu of foreclosure [298]. - Current loan liabilities decreased significantly to approximately $760,000 as of December 31, 2025, down from $17,400,000 as of December 31, 2024, primarily due to a settlement agreement [315][333]. - Total consolidated debt as of December 31, 2025, was $20,421,152, with principal payments remaining for future years outlined in a detailed schedule [340]. - The Trust's long-term debt, net of unamortized discount, was approximately $19,213,071 as of December 31, 2025, down from $19,965,043 in 2024 [333]. - The company recognized approximately $554,000 and $850,000 in late charges and related fees for the fiscal years ended December 31, 2025, and 2024, respectively [339]. Cash Flow and Activities - As of December 31, 2025, cash, cash equivalents, and restricted cash totaled $2,235,306, a decrease of $3,720 from December 31, 2024, with cash used in operating activities decreasing to $68,316 from $1,393,709 in 2024 [314][322]. - Cash provided by investing activities decreased to $542,861 in 2025 from $1,759,142 in 2024, mainly due to lower proceeds from property sales [324]. - Cash used in financing activities was $470,825 in 2025, a decrease of $1,767,906 compared to $2,238,731 in 2024, attributed to lower principal payments on long-term debt [326]. - The Trust generated approximately $239,000 of cash from debt service related to seller financing in 2024, with a remaining balance of seller financing agreements totaling $981,035 as of December 31, 2025 [319][325]. Asset Management and Strategy - The company completed asset sales for total gross proceeds of approximately $325,000 in 2025, including $105,000 of seller financing [304]. - The company is focused on improving its portfolio by selling underperforming assets and seeking to re-lease vacant properties [305]. - Future growth strategies include opportunistic acquisitions of properties with better operating metrics than the current portfolio [307]. - The company plans to realize value from retained assets by leasing and/or selling after resolving the Greenhouse Loan issues [339]. - The Trust is exploring a shift in focus to evaluate distressed real estate situations, including properties, loans, and companies [321]. Accounting and 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, prompting a review of the accounting treatment for Series A Preferred Stock [330]. - The Trust's Series A Preferred Stock was reclassified to equity, correcting previous misclassifications and eliminating the accrual of undeclared dividends [338]. - Power REIT resolved issues with the Greenhouse Loan, resulting in a non-cash gain of approximately $1,093,000 from the write-off of properties valued at approximately $17,083,000 and associated loan obligations totaling approximately $17,997,000 [339]. - The balance of the Greenhouse Loan was approximately $0 as of December 31, 2025, down from approximately $16,720,000 as of December 31, 2024, which included approximately $13.3 million of principal and $2.1 million of interest and default interest [339].