Power REIT Completes Asset Acquisition/Disposition on Jan 8

TL;DR

**Power REIT just completed an asset deal, watch for details on impact.**

AI Summary

Power REIT (PW) filed an 8-K on January 9, 2024, reporting the completion of an acquisition or disposition of assets on January 8, 2024. The filing indicates that both its Common Shares (PW) and its 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock (PW.A), with a liquidation preference of $25 per share, were involved in this event. This matters to investors because significant asset changes can impact the company's financial health, future earnings, and dividend stability, potentially affecting the stock's value and the preferred stock's security.

Why It Matters

This filing signals a change in Power REIT's asset base, which could affect its revenue streams, operational costs, and overall financial performance, directly influencing shareholder value.

Risk Assessment

Risk Level: medium — The filing indicates an asset change but lacks specific details on the nature or financial impact, creating uncertainty for investors.

Analyst Insight

Investors should await further disclosures from Power REIT regarding the specifics of the asset transaction to understand its financial implications before making investment decisions.

Key Numbers

• $25 — Liquidation Preference per Share (for the 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock)

Key Players & Entities

• Power REIT (company) — the registrant filing the 8-K
• Common Shares (company) — a class of securities registered by Power REIT
• 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock (company) — a class of securities registered by Power REIT
• $25 (dollar_amount) — liquidation preference per share for the preferred stock
• January 8, 2024 (date) — date of the earliest event reported
• January 9, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Power REIT will release more details about the asset change in a subsequent filing or press release. (Power REIT) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $25 — Preferred Stock, Liquidation Preference $25 per Share PW.A NYSE (American) I
• $1,325,000 — which was vacant. The sale price was $1,325,000. As part of the transaction, a subsidia
• $1,250,000 — vided seller financing in the amount of $1,250,000 with an initial 10% interest rate that
• $40,000 — y with a fixed amortization schedule of $40,000 for three months and $15,000 per month
• $15,000 — chedule of $40,000 for three months and $15,000 per month thereafter until maturity. Th

Filing Documents

• form8-k.htm (8-K) — 37KB
• 0001493152-24-001835.txt ( ) — 247KB
• pw-20240108.xsd (EX-101.SCH) — 4KB
• pw-20240108_def.xml (EX-101.DEF) — 26KB
• pw-20240108_lab.xml (EX-101.LAB) — 36KB
• pw-20240108_pre.xml (EX-101.PRE) — 25KB
• form8-k_htm.xml (XML) — 5KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): January 8, 2024 POWER REIT (Exact name of registrant as specified in its charter) Maryland (State or other jurisdiction of incorporation) 001-36312 (Commission File Number) 45-3116572 (IRS Employer Identification No.) 301 Winding Road Old Bethpage , NY 11804 (Address of principal executive offices and Zip Code) Registrant's telephone number, including area code: (212) 750-0371 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Shares PW NYSE (American) 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock, Liquidation Preference $25 per Share PW.A NYSE (American) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 2.01 – Completion of Acquisition or Disposition of Assets On January 8, 2024, two wholly owned subsidiaries of Power REIT sold two cannabis related greenhouse cultivation properties located in Ordway, Colorado to an affiliate of a tenant of one of the properties. The properties are described in prior filings as Sherman 6 (affiliated with the tenant/purchaser) and Tamarack 14 which was vacant. The sale price was $1,325,000. As part of the transaction, a subsidiary provided seller financing in the amount of $1,250,000 with an initial 10% interest rate that increases over time until maturity. The seller financing has a three-year maturity with a fixed amortization schedule of $40,000 for three months and $15,000 per month thereafter until maturity. The note is secured by a first mortgage on the property and certain corporate and personal guarantees. The sale of these properties is part of a strategic review by Power REIT as it continues to evaluate alternatives to enhance liquidity and improve opportunities. In 2019, Power REIT shifted its focus to Controlled Environment Agriculture in the form of greenhouses as a technology based real estate opportunity. Power REIT has significant exposure to cannabis cultivation related tenants. The market for cannabis at the wholesale level in many markets across the United States has gone through a dramatic change which has put significant financial pressure on our tenants. We continue to work through tenant issues and are exploring options intended to create shareholder value including, but not limited to, additional asset sales. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. POWER REIT Date: January 9, 2024 By /s/ David H. Lesser David H. Lesser Chairman of the Board and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR