Power REIT(PW) - 2021 Q4 - Annual Report

Financial Performance - In 2021, Power REIT achieved total revenue of $8,457,914, a 98.5% increase from $4,272,709 in 2020[269] - Net income attributed to common shares for 2021 was $4,491,656, compared to $1,891,644 in 2020, reflecting a 137% growth[268] - For the year ended December 31, 2021, Power REIT reported revenue of $8,457,914, representing a 98% increase from $4,272,709 in 2020[302] - Net income for the same period was $5,144,490, a 137% increase compared to $2,171,874 in 2020[302] - Core Funds From Operations (Core FFO) available to common shareholders was $6,139,903, reflecting a 140% growth from $2,560,225 in the previous year[302] - Core FFO per common share increased by 44% to $1.93 from $1.34 in 2020[302] Asset Acquisition and Growth - The company acquired nine greenhouse properties in 2021, totaling approximately 873,000 square feet, with a capital commitment of about $51.9 million[263] - As of December 31, 2021, Power REIT's assets included approximately 601 acres of land leased to solar power projects with a total capacity of 108 MW[264] Cash Flow and Financing - Net cash generated by operating activities in 2021 was $8,000,559, up from $2,956,886 in 2020[276] - The company raised gross proceeds of approximately $36.7 million from a non-dilutive Rights Offering in 2021[272] - Power REIT entered into a Debt Facility with an initial availability of $20 million, structured with a 5.52% interest rate and a debt service coverage ratio of at least 2.0 to 1.0[288] - As of March 22, 2022, Power REIT had drawn $2,500,000 against the Debt Facility[288] - As of December 31, 2021, Power REIT's long-term debt amounted to $23,775,083, with principal payments of $675,370 due in 2022 and $19,661,847 due thereafter[290] Lease Structure and Revenue Recognition - Power REIT's unique lease structure for cannabis operators includes a period of higher rent initially, providing strong protection to its investment[262] - The company recognizes lease revenue from solar land and CEA properties on a straight-line basis, with deferred rent receivable or liability recorded as necessary[294] General and Administrative Expenses - The company expects G&A expenses to continue increasing in 2022 and beyond as it implements its business plan[270] Management Perspective - Management believes Core FFO is a useful measure for assessing operating performance, excluding non-recurring expenses and certain non-cash items[300]