Power REIT Creates Efficiencies of Scale with Tenant Expansion
February 23 2021 - 6:15AM
Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”)
today announced that it has entered into a lease amendment with The
Grail Project LLC (“Grail Project”) to fund the expansion of its
existing property leased to Grail Project by 6,256 square feet.
Power REIT’s capital commitment related to the expansion is
approximately $517,000 and the increase in annual straight-line
rent is approximately $105,000. The property, which is
strategically located in a part of southern Colorado that offers a
very favorable business setting and climate for greenhouse
cultivation, is owned through a wholly owned subsidiary of Power
REIT.
Including the expansion announced today, Power
REIT has committed to invest approximately $2.36 million for the
construction of approximately 28,000 square feet of greenhouse and
processing space for its tenant, Grail Project. The 20 year
“triple-net” lease is structured to provide straight-line annual
rent of approximately $455,000, which represents an unleveraged FFO
yield of approximately 19.3% on Power REIT’s invested capital.
David Lesser, Power REIT’s Chairman and
CEO, commented, “This transaction demonstrates an
attractive element of our business plan whereby our existing
portfolio has the potential for built in growth and we can deploy
incremental capital at very attractive yields. As we facilitate the
expansion of a property, we also help create efficiencies of scale
for our tenants which should improve their competitiveness. We
continue to deploy capital on a highly accretive basis and in a
manner that supports our investment thesis of investing in
sustainable greenhouse properties. We remain enthusiastic about
expanding our greenhouse portfolio in Colorado, which should
compete favorably with indoor cultivation facilities, while
providing quality real estate for Gail Project to grow high quality
cannabis at a competitive cost.”
Project Grail owner Andrew Duvall,
commented “We are excited to expand the cultivation
facility with the help of Power REIT. This expansion is a first
step in our goal of rapid expansion and should help drive economies
of scale and reduced production expense associated with greenhouse
facilities compared to other indoor cultivation solutions.”
STATEMENT ON SUSTAINABILITY
Power REIT owns real estate related to
infrastructure assets including properties for Controlled
Environment Agriculture (CEA Facilities), Renewable Energy and
Transportation.
CEA Facilities, such as
greenhouses, provide an extremely environmentally friendly
solution, which consume approximately 70% less energy than indoor
growing operations that do not benefit from “free” sunlight. CEA
facilities use 90% less water than field grown plants, and all of
Power REIT’s greenhouse properties operate without the use of
pesticides and avoid agricultural runoff of fertilizers and
pesticides. These facilities cultivate medical Cannabis, which has
been recommended to help manage a myriad of medical symptoms,
including seizures and spasms, multiple sclerosis, post-traumatic
stress disorder, migraines, arthritis, Parkinson's disease, and
Alzheimer’s.
Renewable Energy assets are
comprised of land and infrastructure associated with utility scale
solar farms. These projects produce power without the use of fossil
fuels thereby lowering carbon emissions. The solar farms produce
approximately 50,000,000 kWh of electricity annually which is
enough to power approximately 4,600 home on a carbon free
basis.
Transportation assets are
comprised of land associated with a railroad, an environmentally
friendly mode of bulk transportation.
ABOUT POWER REIT
Power REIT is a specialized real estate
investment trust (REIT) that owns sustainable real estate related
to infrastructure assets including properties for Controlled
Environment Agriculture, Renewable Energy and Transportation. Power
REIT is actively seeking to expand its real estate portfolio
related to Controlled Environment Agriculture for the cultivation
of food and cannabis. Power REIT is focuses on the “Triple Bottom
Line” with a commitment to Profit, Planet and People… Additional
information about Power REIT can be found on its website:
www.pwreit.com
Additional information about Power REIT can be
found on its website: www.pwreit.com
CAUTIONARY STATEMENT ABOUT
FORWARD-LOOKING STATEMENTS
This document includes forward-looking
statements within the meaning of the U.S. securities laws.
Forward-looking statements are those that predict or describe
future events or trends and that do not relate solely to historical
matters. You can generally identify forward-looking statements as
statements containing the words "believe," "expect," "will,"
"anticipate," "intend," "estimate," "project," "plan," "assume",
"seek" or other similar expressions, or negatives of those
expressions, although not all forward-looking statements contain
these identifying words. All statements contained in this document
regarding our future strategy, future operations, future prospects,
the future of our industries and results that might be obtained by
pursuing management's current or future plans and objectives are
forward-looking statements. You should not place undue reliance on
any forward-looking statements because the matters they describe
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond our control. Our
forward-looking statements are based on the information currently
available to us and speak only as of the date of the filing of this
document. Over time, our actual results, performance, financial
condition or achievements may differ from the anticipated results,
performance, financial condition or achievements that are expressed
or implied by our forward-looking statements, and such differences
may be significant and materially adverse to our security
holders.
CONTACT:
David H. Lesser, Chairman & CEO |
Mary Jensen, Investor Relations |
dlesser@pwreit.com |
mary@irrealized.com |
212-750-0371 |
310-526-1707 |
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301 Winding RoadOld Bethpage, NY
11804 |
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www.pwreit.com |
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