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Power REIT (MD) (PW+0.45%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the financial position of Power REIT, highlighting a net loss attributable to common shareholders of $25,363,569 for the year, compared to a net loss of $15,018,342 in the previous year. The increase in net loss is primarily due to a significant impairment charge of approximately $20 million related to the greenhouse properties.
Revenue for the year was reported at $3,049,875, an increase from $2,222,483 in the prior year, primarily due to the recognition of security deposits as income from defaulted leases. Rental income from related parties contributed $785,000 to the total revenue.
The filing indicates that Power REIT's current liabilities exceed its current assets, raising substantial doubt about the company's ability to continue as a going concern. The company is actively seeking to sell non-core and underperforming assets to improve liquidity.
Power REIT's portfolio includes approximately 112 miles of railroad infrastructure, 447 acres of land leased to a utility-scale solar power project, and 239 acres of land with greenhouse properties. The greenhouse properties have faced significant challenges, with many tenants defaulting on lease payments.
The company has not declared dividends on its Series A Preferred Stock since the fourth quarter of 2022, resulting in cumulative undeclared dividends of approximately $1,469,000 as of December 31, 2024.
Power REIT's management is focused on raising capital by monetizing the embedded value in its portfolio, re-leasing vacant properties, and exploring new opportunities in distressed real estate markets.
The filing also notes that Power REIT is in discussions with its lender regarding the defaulted Greenhouse Loan, which is non-recourse to the Trust. The company is exploring options to resolve the situation, including potential distressed sales of the secured properties.
The company continues to face significant risks related to its financial position, operations, and investment strategy, as detailed in the risk factors section of the filing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Power REIT (MD) annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.