Power REIT reported its financial results for the first quarter of 2025, revealing a total revenue of $485,794, a decrease of approximately 9.1% from $534,612 in the same period of 2024. The decline in revenue was primarily attributed to a drop in rental income from cannabis tenants, which fell by $49,860 due to lease defaults amid ongoing challenges in the cannabis industry. The company recorded a net loss attributable to common shareholders of $1,576,319, a reduction from a loss of $2,240,205 in the prior year, indicating an improvement in profitability.
Total expenses for the quarter decreased significantly to $1,869,836 from $3,006,004 in the previous year, largely due to the absence of impairment charges and a reduction in depreciation expenses. General and administrative expenses also saw a decline, contributing to the overall decrease in costs. The company did not recognize any gains from property sales in the first quarter of 2025, contrasting with a gain of $394,394 in the same quarter of 2024.
In terms of operational developments, Power REIT's asset portfolio remains concentrated, with approximately 98% of its revenue generated from two properties leased to Norfolk Southern Railway and Regulus Solar, LLC. The company continues to face challenges with its greenhouse properties, which have been subject to foreclosure proceedings. As of March 31, 2025, the company had total assets of $45.6 million, with liabilities amounting to $40.1 million, resulting in total equity of $5.5 million.
Strategically, Power REIT has taken steps to address its financial challenges, including the sale of a cannabis-related greenhouse property for $200,000 in January 2025, with proceeds used to pay down debt. The company has also entered into a settlement agreement regarding its Greenhouse Loan, which had been in default, allowing it to retain certain assets while alleviating some financial burdens. Looking ahead, Power REIT aims to improve its liquidity and operational performance by focusing on selling underperforming assets and exploring new leasing opportunities. The company has not declared dividends on its preferred shares since the fourth quarter of 2022, reflecting its ongoing efforts to conserve cash and strengthen its balance sheet.
About Power REIT
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