Power REIT SEC 10-Q Report

Power REIT, a diversified real estate investment trust (REIT) with a portfolio that includes railroad infrastructure, solar power project land, and Controlled Environment Agriculture (CEA) properties, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational activities, reflecting both challenges and strategic initiatives aimed at enhancing long-term shareholder value.

Financial Highlights

• Revenue: $1.51 million, a decrease from $2.48 million in the prior year period, primarily due to a reduction in rental income from related parties and a decline in other rental income.
• Net Income (Loss): $(0.87) million, an improvement from a loss of $(21.55) million in the prior year period, reflecting a significant decrease in impairment expenses and interest expenses.
• Core FFO Available to Common Shares: $(0.74) million, improved from $(2.68) million in the prior year period, indicating better operational performance despite lower revenue.

Business Highlights

• Real Estate Portfolio: Power REIT owns a diversified portfolio of real estate assets in the United States, including approximately 112 miles of railroad infrastructure, 447 acres of land leased to solar power projects with a capacity of 82 MW, and 82 acres of land with 357,000 square feet of Controlled Environment Agriculture (CEA) properties.
• Recent Property Sales: The company sold two cannabis-related greenhouse properties in Ordway, Colorado, during 2025. These sales were part of a strategy to dispose of non-core and underperforming assets, with one sale including seller financing.
• Greenhouse Loan Settlement: Power REIT resolved issues with its lender concerning the Greenhouse Loan by providing deeds-in-lieu of foreclosure for properties in Michigan and Nebraska. This settlement relieved the company of ongoing costs associated with these properties and allowed it to retain other assets for potential leasing or sale.
• Operational Strategy: The company is focused on maximizing long-term shareholder value by improving property operating results, re-leasing vacant properties, and selling non-core assets. It is also exploring strategic alternatives, including potential mergers or acquisitions, to enhance its portfolio.
• Future Growth Opportunities: Power REIT is positioning itself for future growth by implementing strong internal capital management processes and exploring real estate distressed situations, including properties, loans, and companies, to increase shareholder value.
• Geographical Performance: The company's real estate assets are primarily located in the United States, with significant holdings in Colorado, California, Michigan, and Nebraska. The recent settlement of the Greenhouse Loan has shifted focus away from Michigan and Nebraska properties.
• Revenue Segments: The company's revenue is derived from lease income from direct financing leases, rental income, and other income. The decrease in revenue was primarily due to a reduction in rental income from related parties and other rental income.
• Operational Challenges: The company faced challenges with non-performing tenants and vacant properties, particularly in its greenhouse portfolio, which impacted rental income and necessitated strategic asset sales and re-leasing efforts.

SEC Filing: Power REIT [ PW ] - 10-Q - Oct. 24, 2025