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].
Power REIT(PW) - 2024 Q1 - Quarterly Report