Power REIT(US:PW)2022-08-12 21:16Real Estate Acquisitions - As of June 30, 2022, the company's portfolio included approximately 112 miles of railroad infrastructure, 601 acres of land for solar power generating projects with a capacity of 108 MW, and 263 acres of land with about 2,211,000 square feet of greenhouses [92]. - During the first half of 2022, the company acquired a new greenhouse property in Nebraska for tomato cultivation and amended two existing cannabis leases to increase rental income [93]. - The company executed seven lease amendments to provide relief to Colorado tenants due to market compression, restructuring monthly cash payments to lower rent in 2022 and increase it in 2023 or 2024 [93]. - The company acquired a 1,121,513 square foot greenhouse facility in Nebraska for $9,350,000, with an annual straight-line rent of approximately $1,099,387, yielding an estimated 11% [99]. - A new triple-net lease with Elevate & Bloom, LLC was established, with a total commitment of approximately $1,282,000 and an annual straight-line rent of about $239,000, representing an 18.6% unleveraged FFO yield [101]. - The Walsenburg Lease was amended to provide $625,000 for processing space and equipment, with revenue recognition currently on a cash basis [97]. - The Sweet Dirt Lease was amended to fund $3,508,000 for property improvements, with an annual straight-line rent of approximately $654,000 [98]. - The company is focused on expanding its real estate acquisitions in the Controlled Environment Agriculture (CEA) sector related to food and cannabis production [88]. - The company is actively seeking to grow its portfolio of CEA properties for food and cannabis production [92]. Financial Performance - Revenue for the three months ended June 30, 2022, was $2,232,953, a decrease of 1.5% from $2,267,848 in the same period of 2021 [111]. - Net income attributable to common shares for the three months ended June 30, 2022, was $781,722, down 43.2% from $1,376,493 in 2021 [111]. - For the six months ended June 30, 2022, total revenue increased to $4,218,469, up 3.2% from $4,088,775 in 2021 [113]. - Net income attributable to common shares for the six months ended June 30, 2022, was $1,616,395, a decrease of 30.3% compared to $2,321,411 in 2021 [113]. - Cash and cash equivalents totaled $1,191,708 as of June 30, 2022, a decrease of $1,979,593 from December 31, 2021 [115]. - The company anticipates generating $11,959,403 in cash rent over the next twelve months based on existing leases [119]. - Total expenses for the six months ended June 30, 2022, increased by $834,709 compared to the same period in 2021, primarily due to higher general and administrative expenses and depreciation [113]. - Revenue for the three months ended June 30, 2022, was $2,232,953, a decrease of 1.5% compared to $2,267,848 in 2021 [123]. - Net income for the same period was $944,928, down 38.7% from $1,539,695 in 2021 [123]. - Core FFO available to common shares for the three months ended June 30, 2022, was $1,395,408, a decrease of 16.8% from $1,677,637 in 2021 [123]. - Core FFO per common share decreased to $0.41 from $0.51, representing a decline of 19.6% [123]. - Total revenue for the six months ended June 30, 2022, increased to $4,218,469, up 3.2% from $4,088,775 in 2021 [123]. - Net income for the six months ended June 30, 2022, was $1,942,808, a decrease of 26.6% compared to $2,647,823 in 2021 [123]. - Stock-based compensation increased to $109,100 for the three months ended June 30, 2022, compared to $86,815 in 2021, reflecting a rise of 25.6% [123]. - Interest expense - amortization of debt costs rose to $21,818 for the three months ended June 30, 2022, compared to $8,528 in 2021, an increase of 156.5% [123]. - Depreciation on land improvements for the three months ended June 30, 2022, was $388,520, significantly higher than $146,515 in 2021, marking a 164.5% increase [123]. - Weighted average shares outstanding (basic) increased to 3,367,261 for the three months ended June 30, 2022, from 3,312,001 in 2021 [123]. Market Conditions - The national regulated cannabis market has experienced significant price compression, impacting tenant viability and rental income [110]. - A write-off was taken to eliminate the impact of straight-lining rent, with future rent treated on a cash or straight-line basis as applicable [106]. - The lease with Marengo Cannabis LLC was amended to restructure rent payments, with payments scheduled to begin in January 2023 [95]. - The company is focused on non-dilutive capital sources, such as debt and potential issuance of additional preferred stock, to fund property improvements and acquisitions [118].