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].
Power REIT(PW) - 2023 Q3 - Quarterly Report