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].
Power REIT(PW) - 2023 Q4 - Annual Report