Power REIT Reports Q2 2025 Financial Results with Revenue Decline and Net Income Recovery

Power REIT reported its financial results for the second quarter of 2025, revealing a total revenue of $506,783, a decrease from $519,349 in the same period of 2024. For the first half of 2025, revenue totaled $992,577, down from $1,053,961 year-over-year. The decline in revenue was attributed primarily to a decrease in rental income from cannabis tenants, which faced challenges in the current market. Despite the revenue drop, the company achieved a net income of $157,706 for the second quarter, a significant recovery from a net loss of $19,308,376 in the prior year. For the six-month period, the net loss attributable to common shareholders was $1,418,613, an improvement from a loss of $21,548,581 in 2024.

The company’s financial position showed significant changes compared to the previous fiscal period. Total assets decreased to $27,881,636 as of June 30, 2025, down from $46,102,638 at the end of 2024. This decline was largely due to the write-off of properties related to the Greenhouse Loan settlement, which resulted in a non-cash gain of approximately $1,093,000. The total liabilities also decreased to $21,934,533 from $39,349,760, reflecting the resolution of the Greenhouse Loan, which had previously been in default.

Operationally, Power REIT has been focusing on strategic developments, including the sale of underperforming assets. In June 2025, the company sold a cannabis-related greenhouse property in Colorado for $125,000, providing $105,000 in seller financing. The company also sold another property earlier in the year for $200,000, with proceeds used to pay down existing loans. As of June 30, 2025, the company had 3,389,661 common shares outstanding, consistent with the previous period.

The company’s outlook remains cautious as it navigates challenges in the cannabis sector and seeks to improve its liquidity. Power REIT has not declared dividends on its Series A Preferred Stock since the fourth quarter of 2022, resulting in accumulated unpaid dividends of approximately $1,795,000. Management is focused on enhancing cash flow through leasing vacant properties, selling non-core assets, and exploring new financing options. The company believes that its current cash position, along with operational cash flows, should be sufficient to meet its capital needs for at least the next twelve months, although it acknowledges the uncertainty surrounding market conditions and tenant performance.