Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 06, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36312 | |
Entity Registrant Name | POWER REIT | |
Entity Central Index Key | 0001532619 | |
Entity Tax Identification Number | 45-3116572 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 301 Winding Road | |
Entity Address, City or Town | Old Bethpage | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11804 | |
City Area Code | (212) | |
Local Phone Number | 750-0371 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,322,433 | |
Common shares [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Shares | |
Trading Symbol | PW | |
Security Exchange Name | NYSE | |
Sec 7.75 series cumulative redeemable perpetual preferred stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock, Liquidation Preference $25 per Share | |
Trading Symbol | PW.PRA | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Land | $ 10,671,460 | $ 8,333,040 |
Greenhouse cultivation and processing facilities, net of accumulated depreciation | 22,588,702 | 10,305,979 |
Greenhouse cultivation and processing facilities - construction in progress | 6,963,451 | 2,087,086 |
Net investment in direct financing lease - railroad | 9,150,000 | 9,150,000 |
Total real estate assets | 49,373,613 | 29,876,105 |
Cash and cash equivalents | 28,829,442 | 5,601,826 |
Prepaid expenses | 197,973 | 89,345 |
Intangible assets, net of accumulated amortization | 3,233,742 | 3,352,313 |
Deferred rent receivable | 2,642,435 | 1,602,655 |
Deal deposit | 1,000,000 | |
Other assets | 16,975 | 16,975 |
TOTAL ASSETS | 85,294,180 | 40,539,219 |
LIABILITIES AND EQUITY | ||
Accounts payable | 93,138 | 83,562 |
Accrued interest | 76,363 | 80,579 |
Deferred rent liability | 442,953 | 123,966 |
Tenant security deposits | 1,828,481 | 1,137,481 |
Prepaid rent | 115,911 | 105,331 |
Current portion of long-term debt, net of unamortized discount | 623,843 | 605,272 |
Long-term debt, net of unamortized discount | 22,929,351 | 23,192,871 |
TOTAL LIABILITIES | 26,110,040 | 25,329,062 |
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock Par Value $25.00 (1,675,000 shares authorized; 336,944 and 144,636 issued and outstanding as of June 30, 2021 and December 31, 2020) | 8,489,952 | 3,492,149 |
Equity: | ||
Common Shares, $0.001 par value (98,325,000 shares authorized; 3,322,433 shares issued and outstanding at June 30, 2021 and 1,916,139 at December 31, 2020) | 3,322 | 1,916 |
Additional paid-in capital | 48,730,417 | 12,077,054 |
Retained earnings (accumulated deficit) | 1,960,449 | (360,962) |
Total Equity | 50,694,188 | 11,718,008 |
TOTAL LIABILITIES AND EQUITY | $ 85,294,180 | $ 40,539,219 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Series A 7.75% Cumulative redeemable perpetual preferred stock cumulative redeemable percentage | 7.75% | 7.75% |
Series A 7.75% Cumulative redeemable perpetual preferred stock, par value | $ 25 | $ 25 |
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares authorized | 1,675,000 | 1,675,000 |
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares issued | 336,944 | 144,636 |
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares outstanding | 336,944 | 144,636 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 98,325,000 | 98,325,000 |
Common stock, shares issued | 3,322,433 | 1,916,139 |
Common stock, shares outstanding | 3,322,433 | 1,916,139 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUE | ||||
Lease income from direct financing lease – railroad | $ 228,750 | $ 228,750 | $ 457,500 | $ 457,500 |
Rental income | 2,035,098 | 735,441 | 3,627,029 | 1,238,643 |
Other income | 4,000 | 10,931 | 4,246 | 66,367 |
TOTAL REVENUE | 2,267,848 | 975,122 | 4,088,775 | 1,762,510 |
EXPENSES | ||||
Amortization of intangible assets | 59,286 | 59,284 | 118,571 | 118,569 |
General and administrative | 231,980 | 104,166 | 395,508 | 253,500 |
Property taxes | 6,302 | 10,105 | 12,609 | 14,657 |
Depreciation expense | 146,515 | 29,612 | 342,566 | 56,262 |
Interest expense | 284,070 | 292,202 | 571,698 | 587,682 |
TOTAL EXPENSES | 728,153 | 495,369 | 1,440,952 | 1,030,670 |
NET INCOME | 1,539,695 | 479,753 | 2,647,823 | 731,840 |
Preferred Stock Dividends | (163,202) | (70,058) | (326,412) | (140,116) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 1,376,493 | $ 409,695 | $ 2,321,411 | $ 591,724 |
Income Per Common Share: | ||||
Basic | $ 0.42 | $ 0.21 | $ 0.77 | $ 0.31 |
Diluted | $ 0.41 | $ 0.21 | $ 0.74 | $ 0.30 |
Weighted Average Number of Shares Outstanding: | ||||
Basic | 3,312,001 | 1,912,939 | 3,033,751 | 1,906,126 |
Diluted | 3,398,314 | 1,976,050 | 3,118,979 | 1,955,568 |
Cash dividend per Series A Preferred Share | $ 0.48 | $ 0.48 | $ 0.97 | $ 0.97 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 1,873 | $ 11,821,486 | $ (2,252,606) | $ 9,570,753 |
Beginning balance, shares at Dec. 31, 2019 | 1,872,939 | |||
Net Income | 252,087 | 252,087 | ||
Cash Dividends on Preferred Stock | (70,058) | (70,058) | ||
Stock-Based Compensation | $ 40 | 75,118 | 75,158 | |
Stock-Based Compensation, shares | 40,000 | |||
Ending balance, value at Mar. 31, 2020 | $ 1,913 | 11,896,604 | (2,070,577) | 9,827,940 |
Ending balance, shares at Mar. 31, 2020 | 1,912,939 | |||
Beginning balance, value at Dec. 31, 2019 | $ 1,873 | 11,821,486 | (2,252,606) | 9,570,753 |
Beginning balance, shares at Dec. 31, 2019 | 1,872,939 | |||
Net Income | 731,840 | |||
Ending balance, value at Jun. 30, 2020 | $ 1,913 | 11,944,737 | (1,660,882) | 10,285,768 |
Ending balance, shares at Jun. 30, 2020 | 1,912,939 | |||
Beginning balance, value at Mar. 31, 2020 | $ 1,913 | 11,896,604 | (2,070,577) | 9,827,940 |
Beginning balance, shares at Mar. 31, 2020 | 1,912,939 | |||
Net Income | 479,753 | 479,753 | ||
Cash Dividends on Preferred Stock | (70,058) | (70,058) | ||
Stock-Based Compensation | 48,133 | 48,133 | ||
Ending balance, value at Jun. 30, 2020 | $ 1,913 | 11,944,737 | (1,660,882) | 10,285,768 |
Ending balance, shares at Jun. 30, 2020 | 1,912,939 | |||
Beginning balance, value at Dec. 31, 2020 | $ 1,916 | 12,077,054 | (360,962) | 11,718,008 |
Beginning balance, shares at Dec. 31, 2020 | 1,916,139 | |||
Net Income | 1,108,128 | 1,108,128 | ||
Cash Dividends on Preferred Stock | (163,210) | (163,210) | ||
Issuance of Common Shares for Cash | $ 1,383 | 36,596,672 | 36,598,055 | |
Issuance of Common Shares for Cash ,shares | 1,383,394 | |||
Stock-Based Compensation | 66,158 | 66,158 | ||
Ending balance, value at Mar. 31, 2021 | $ 3,299 | 48,739,884 | 583,956 | 49,327,139 |
Ending balance, shares at Mar. 31, 2021 | 3,299,533 | |||
Beginning balance, value at Dec. 31, 2020 | $ 1,916 | 12,077,054 | (360,962) | 11,718,008 |
Beginning balance, shares at Dec. 31, 2020 | 1,916,139 | |||
Net Income | 2,647,823 | |||
Ending balance, value at Jun. 30, 2021 | $ 3,322 | 48,730,417 | 1,960,449 | 50,694,188 |
Ending balance, shares at Jun. 30, 2021 | 3,322,433 | |||
Beginning balance, value at Mar. 31, 2021 | $ 3,299 | 48,739,884 | 583,956 | 49,327,139 |
Beginning balance, shares at Mar. 31, 2021 | 3,299,533 | |||
Net Income | 1,539,695 | 1,539,695 | ||
Cash Dividends on Preferred Stock | (163,202) | (163,202) | ||
Stock Issuance Costs | (96,259) | (96,259) | ||
Stock-Based Compensation | $ 23 | 86,792 | 86,815 | |
Stock-Based Compensation, shares | 22,900 | |||
Ending balance, value at Jun. 30, 2021 | $ 3,322 | $ 48,730,417 | $ 1,960,449 | $ 50,694,188 |
Ending balance, shares at Jun. 30, 2021 | 3,322,433 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net income | $ 2,647,823 | $ 731,840 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of intangible assets | 118,571 | 118,569 |
Amortization of debt costs | 17,055 | 17,055 |
Stock-based compensation | 152,973 | 123,291 |
Depreciation | 342,566 | 56,262 |
Changes in operating assets and liabilities | ||
Other assets | (275) | |
Deferred rent receivable | (1,039,780) | (451,193) |
Deferred rent liability | 318,987 | 77,318 |
Prepaid expenses | (108,628) | (64,579) |
Accounts payable | 9,576 | 18,245 |
Tenant security deposits | 691,000 | 577,494 |
Accrued interest | (4,216) | (3,418) |
Prepaid rent | 10,580 | |
Net cash provided by operating activities | 3,156,507 | 1,200,609 |
Investing activities | ||
Cash paid for land, greenhouse cultivation and processing facilities | (9,965,906) | (1,601,655) |
Cash paid for greenhouse cultivation and processing facilities - construction in progress | (4,876,365) | (4,842,686) |
Deal deposit | (1,000,000) | |
Net cash used in investing activities | (15,842,271) | (6,444,341) |
Financing Activities | ||
Net proceeds from issuance of common stock | 36,501,796 | |
Principal payment on long-term debt | (262,004) | (239,444) |
Cash dividends paid on preferred stock | (326,412) | (140,116) |
Net cash provided by (used in) financing activities | 35,913,380 | (379,560) |
Net increase (decrease) in cash and cash equivalents | 23,227,616 | (5,623,292) |
Cash and cash equivalents, beginning of period | 5,601,826 | 15,842,504 |
Cash and cash equivalents, end of period | 28,829,442 | 10,219,212 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 550,428 | 568,987 |
Preferred stock issuance for purchase of greenhouse cultivation and processing facility | $ 4,997,803 |
GENERAL INFORMATION
GENERAL INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Trust, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth herein. All such adjustments are of a normal recurring nature. Results for interim periods are not necessarily indicative of results to be expected for a full year. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes included in our latest Annual Report on Form 10-K filed with the SEC on March 24, 2021. Power REIT (the “Registrant” or the “Trust”, and together with its consolidated subsidiaries, “we”, “us”, “Power REIT”, unless the context requires otherwise) is a Maryland-domiciled real estate investment trust (a “REIT”) that holds, develops, acquires and manages real estate assets related to transportation, alternative energy infrastructure and Controlled Environment Agriculture (CEA) in the United States. The Trust was formed as part of a reorganization and reverse triangular merger of P&WV that closed on December 2, 2011. P&WV survived the reorganization as a wholly-owned subsidiary of the Registrant. The Trust is structured as a holding company and owns its assets through twenty-two wholly-owned, special purpose subsidiaries that have been formed in order to hold real estate assets, obtain financing and generate lease revenue. As of June 30, 2021, the Trust’s assets consisted of approximately 112 miles of railroad infrastructure and related real estate which is owned by its subsidiary Pittsburgh & West Virginia Railroad (“P&WV”), approximately 601 acres of fee simple land leased to a number of utility scale solar power generating projects with an aggregate generating capacity of approximately 108 Megawatts (“MW”) and approximately 111 acres of land with approximately 533,000 sf of existing or under construction greenhouses leased to sixteen separate regulated cannabis operators. Power REIT is actively seeking to grow its portfolio of real estate related to CEA for food and cannabis production. During the six months ended June 30, 2021, the Trust raised gross proceeds of approximately $ 36.7 1,383,394 26.50 On February 3, 2021, we issued 192,308 During the six months ended June 30, 2021, the Trust paid quarterly dividends of approximately $ 326,000 0.484375 7.75 The Trust has elected to be treated for tax purposes as a REIT, which means that it is exempt from U.S. federal income tax if a sufficient portion of its annual income is distributed to its shareholders, and if certain other requirements are met. In order for the Trust to maintain its REIT qualification, at least 90 17 POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).” Principles of Consolidation The accompanying consolidated financial statements include Power REIT and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation. Income per Common Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted net income per common share is computed similar to basic net income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The dilutive effect of the Trust’s options is computed using the treasury stock method. The following table sets forth the computation of basic and diluted Income per Share: SCHEDULE OF INCOME PER COMMON SHARE 2021 2020 2021 2020 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net Income $ 1,539,695 $ 479,753 $ 2,647,823 $ 731,840 Preferred Stock Dividends (163,202 ) (70,058 ) (326,412 ) (140,116 ) Numerator for basic and diluted EPS - income available to common Shareholders $ 1,376,493 $ 409,695 $ 2,321,411 $ 591,724 Denominator: Denominator for basic EPS - Weighted average shares 3,312,001 1,912,939 3,033,751 1,906,126 Dilutive effect of options 86,313 63,111 85,228 49,442 Denominator for diluted EPS - Adjusted weighted average shares 3,398,314 1,976,050 3,118,979 1,955,568 Basic income per common share $ 0.42 $ 0.21 $ 0.77 $ 0.31 Diluted income per common share $ 0.41 $ 0.21 $ 0.74 $ 0.30 Real Estate Assets and Depreciation of Investment in Real Estate The Trust expects that most of its transactions will be accounted for as asset acquisitions. In an asset acquisition, the Trust is required to capitalize closing costs and allocate the purchase price on a relative fair value basis. For the six months ended June 30, 2021, all acquisitions were considered to be asset acquisitions. In making estimates of relative fair values for purposes of allocating purchase price, the Trust utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property, our own analysis of recently acquired and existing comparable properties in our portfolio and other market data. The Trust also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the relative fair value of the tangible acquired. The Trust allocates the purchase price of acquired real estate to various components as follows: ● Land – Based on actual purchase price adjusted to an allocation of the relative fair value (as necessary) if acquired separately or market research/comparables if acquired with existing property improvements. POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements ● Improvements – Based on the allocation of the relative fair value of the improvements acquired. Depreciation is calculated on a straight-line method over the useful life of the improvements. ● Lease Intangibles – The Trust considers the value of an acquired in-place lease if in excess of the value of the land improvements and the amortization of the lease intangible over the remaining term of the lease on a straight-line basis. ● Construction in Progress (CIP) - The Trust classifies greenhouses or buildings under development and/or expansion as construction-in-progress until construction has been completed and certificates of occupancy permits have been obtained upon which the asset is then classified as an Improvement. Power REIT has several leases with tenants whereby the tenants are responsible for implementing improvements to Power REIT’s properties and Power REIT has committed to fund the cost of such improvements. Power REIT capitalized the costs of such property improvements but has determined not to capitalize interest expense based on a determination that the amount for each project would not be material and each project has a relatively short construction period. Depreciation Depreciation is computed using the straight-line method over the estimated useful lives of up to 20 55 343,000 56,000 Fair Value Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Trust measures its financial assets and liabilities in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. ○ Level 1 – valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow a company to sell its ownership interest back at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities or funds. ○ Level 2 – valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and certain corporate obligations. Valuations are usually obtained from third party pricing services for identical or comparable assets or liabilities. ○ Level 3 – valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. In determining fair value, the Trust utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk. The carrying amounts of Power REIT’s financial instruments, including cash and cash equivalents, deposits, and accounts payable approximate fair value because of their relatively short-term maturities. The carrying value of long-term debt approximates fair value since the related rates of interest approximate current market rates. There are no financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | 3. ACQUISITIONS On January 4, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CO CanRE Grail, LLC, (“PW Grail”), completed the acquisition of two properties totaling 4.41 150,000 21,732 1.69 518,000 6,256 2.4 1,024,000 On January 14, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CO CanRE Apotheke, LLC, (“PW Apotheke”), completed the acquisition of a property totaling 4.31 150,000 21,548 1.66 Accordingly, PW Apotheke’s total capital commitment is approximately $ 1.81 534,000 On February 3, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CA CanRE Canndescent LLC, (“PW Canndescent”), completed the acquisition of a 37,000 7.685 2.685 192,308 The following table summarized the preliminary allocation of the purchase consideration for the Canndescent Property based on the relative fair values of the assets acquired: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED Land $ 258,420 Assets Subject to Depreciation: Improvements (Greenhouses / Processing Facilities) 7,426,580 - Acquisition Costs Capitalized 92,289 Total Assets Acquired $ 7,777,289 On March 12, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CO CanRE Gas Station, LLC, (“PW Gas Station”), completed the acquisition of a property totaling 2.2 85,000 24,512 2.03 Accordingly, PW Gas Station’s total capital commitment is approximately $ 2.1 315,000 On April 20, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CO CanRE Cloud Nine, LLC, (“PW Cloud Nine”), completed the acquisition of two properties totaling approximately 4.0 300,000 38,440 2.65 Accordingly, PW Cloud Nine’s total capital commitment is approximately $ 2.95 565,000 On May 21, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CO CanRE Walsenburg, LLC, (“PW Walsenburg”), completed the acquisition of a 35 -acre property with multiple existing greenhouses plus processing/auxiliary facilities approved for medical cannabis cultivation in Huerfano County, Colorado (“Walsenburg Property”) for $ 2.3 million plus acquisition costs. As part of the transaction, the Trust will fund approximately $ 1.6 million to upgrade the buildings and construct additional greenhouse space resulting in 102,800 square feet of greenhouse and related space. Accordingly, PW Walsenburg’s total capital commitment is approximately $ 3.9 million. As of June 30, 2021, the total construction in progress that was funded by Power REIT is approximately $ 649,000 . POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements The following table summarized the allocation of the purchase consideration for the Walsenburg Property based on the relative fair values of the assets acquired: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED Land $ 945,000 Construction in Progress 1,355,000 Acquisition Costs Capitalized 47,636 Total Assets Acquired $ 2,347,636 On June 11, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CanRE OK Vinita, LLC, (“PW Vinita”), completed the acquisition of a 9.35 40,000 3,000 100,000 2.1 550,000 Accordingly, PW Vinita’s total capital commitment is approximately $ 2.65 2,400 The following table summarized the allocation of the purchase consideration for the Vinita Property based on the relative fair values of the assets acquired: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED Land $ 50,000 Construction in Progress 2,050,000 Acquisition Costs Capitalized 44,328 Total Assets Acquired $ 2,144,328 On June 18, 2021, Power REIT, through a newly formed wholly owned subsidiary, PW CO CanRE JKL, LLC, (“PW JKL”), completed the acquisition of a property totaling 10 400,000 12,000 12,880 2.5 Accordingly, PW JKL’s total capital commitment is approximately $ 2.9 518,000 The acquisitions described above are accounted for as asset acquisitions under ASC 805-50, Business Combinations – Related Issues 20 years for greenhouses and up to 55 years for buildings. Concurrent with the closing of the acquisitions, Power REIT entered in leases with tenants that are licensed for the production of medical cannabis cultivation at the facilities. The combined annual straight-line rent from these eight acquisitions and one expansion is approximately $ 4.6 20 years five-year |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 4. LONG-TERM DEBT On December 31, 2012, as part of the Salisbury land acquisition, PW Salisbury Solar, LLC (“PWSS”) assumed existing municipal financing (“Municipal Debt”). The Municipal Debt has approximately 10 years 5.0% February 1, 2022 64,000 70,000 POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements In July 2013, PWSS borrowed $ 750,000 he PWSS Term Loan carries a fixed annual interest rate of 5.0% 10 years 536,000 5,500 551,000 6,800 On November 6, 2015, PWRS entered into a loan agreement (the “2015 PWRS Loan Agreement”) with a lender for $ 10,150,000 October 14, 2034 4.34% 8,051,000 292,000 8,183,000 303,000 On November 25, 2019, Power REIT, through a newly formed subsidiary, PW PWV Holdings LLC (“PW PWV”), entered into a loan agreement (the “PW PWV Loan Agreement”) with a lender for $ 15,500,000 15,500,000 4.62% 312,000 2054 14,902,000 298,000 14,994,000 302,000 The approximate amount of principal payments remaining on Power REIT’s long-term debt as of June 30, 2021 is as follows for the subsequent years ending December 31: SCHEDULE OF LONG-TERM DEBT Total Debt 2021 (6 months remaining) 373,520 2022 675,374 2023 1,168,408 2024 715,777 2025 755,634 Thereafter 20,459,470 Long term debt $ 24,148,183 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | 5. LEASES Information as Lessor Under ASC Topic 842 To generate positive cash flow, as a lessor, the Trust leases its facilities to tenants in exchange for payments. The Trust’s leases for its railroad, solar farms and greenhouse cultivation facilities have an average lease term ranging between 20 and 99 years. Payments from the Trust’s twenty-five leases are recognized on a straight-line basis over the terms of the respective leases. Total revenue from its leases recognized for the six months ended June 30, 2021 and 2020 are approximately $ 4.1 million and 1.7 million, respectively. POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements The aggregate annual cash to be received by the Trust on all leases related to its portfolio as of June 30, 2021 is as follows for the subsequent years ending December 31: SCHEDULE OF MINIMUM FUTURE RENTALS June 30, 2021 2021 (6 months remaining) $ 6,010,025 2022 $ 16,350,458 2023 $ 15,983,082 2024 $ 12,428,375 2025 $ 8,103,779 Thereafter $ 144,098,465 Total $ 202,974,184 |
EQUITY AND LONG-TERM COMPENSATI
EQUITY AND LONG-TERM COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY AND LONG-TERM COMPENSATION | 6. EQUITY AND LONG-TERM COMPENSATION Increase in Authorized Preferred Stock On January 7, 2021, the Trust filed Articles Supplementary with the State of Maryland to classify an additional 1,500,000 0.001 1,675,000 192,308 5,000,008 2,205 Stock Issued for Cash During the six months ended June 30, 2021, the Trust raised gross proceeds of approximately $ 36.7 million and issued an additional 1,383,394 common shares through a rights offering that closed on February 5, 2021. Offering expenses of $ 158,145 were incurred in connection with the offering and recorded as contra-equity netting against the proceeds of the offering. Hudson Bay Partner, LP (“HBP”) which is 100 % owned by David Lesser, is the Managing Member of PW RO Holdings LLC which participated in the rights offering and acquired 132,074 shares. David Lesser is the Managing Member of PW RO Holdings 2 LLC which participated in the rights offering and acquired 155,000 shares. David Lesser is the Managing Member of PW RO Holdings 3 LLC which participated in the rights offering and acquired 123,020 shares. HBP became the Co-Managing Member of 13310 LMR2A (“13310”) after the Trust acquired the Canndescent property from 13310 which participated in the rights offering and acquired 68,679 shares. Summary of Stock Based Compensation Activity – Options The summary of stock based compensation activity for the six months ended June 30, 2021, with respect to the Trust’s stock options, is as follows: Summary of Activity - Options SUMMARY OF STOCK BASED COMPENSATION ACTIVITY Weighted Aggregate Number of Average Intrinsic Options Exercise Price Value Balance as of December 31, 2020 106,000 7.96 - Plan Awards - - - Options Exercised - - - Balance as of June 30, 2021 106,000 7.96 3,414,260 Options vested at June 30, 2021 106,000 7.96 3,414,260 The weighted average remaining term of the options is approximately 1.12 years. POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements Summary of Plan Activity – Restricted Stock The summary of Plan activity for the six months ended June 30, 2021, with respect to the Trust’s restricted stock, was as follows: Summary of Activity - Restricted Stock SUMMARY OF RESTRICTED STOCK PLAN ACTIVITY Number of Weighted Shares of Average Restricted Grant Date Stock Fair Value Balance as of December 31, 2020 35,066 8.76 Plan Awards 22,900 37.18 Restricted Stock Vested (15,356 ) 9.96 Balance as of June 30, 2021 42,610 23.60 Stock-based Compensation During the six months ended June 30, 2021, the Trust recorded approximately $ 153,000 of non-cash expense related to restricted stock and options granted compared to approximately $ 123,000 for six months ended June 30, 2020. As of June 30, 2021, there was approximately $ 1,006,000 of total unrecognized share-based compensation expense, which will be recognized through the first quarter of 2024. The Trust does not currently have a policy regarding the repurchase of shares on the open market related to equity awards and does not currently intend to acquire shares on the open market. Power REIT’s 2020 Equity Incentive Plan, which superseded the 2012 Equity Incentive Plan, was adopted by the Board on May 27, 2020 and approved by the shareholders on June 24, 2020. It provides for the grant of the following awards: (i) Incentive Stock Options; (ii) Nonstatutory Stock Options; (iii) SARs; (iv) Restricted Stock Awards; (v) RSU Awards; (vi) Performance Awards; and (vii) Other Awards. The Plan’s purpose is to secure and retain the services of Employees, Directors and Consultants, to provide incentives for such persons to exert maximum efforts for the success of the Trust and to provide a means by which such persons may be given an opportunity to benefit from increases in value of the common Stock through the granting of awards. As of June 30, 2021, the aggregate number of shares of Common Stock that may be issued pursuant to outstanding awards is currently 213,017 Preferred Stock Dividends During the six months ended June 30, 2021, the Trust paid a total of approximately $ 326,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 7. RELATED PARTY TRANSACTIONS A wholly-owned subsidiary of Hudson Bay Partners, LP (“HBP”), an entity associated with the CEO of the Trust, David Lesser, provides the Trust and its subsidiaries with office space at no cost. Effective September 2016, the Board of Trustees approved reimbursing an affiliate of HBP $ 1,000 4,000 15,000 36,000 10,500 POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements Power REIT has entered into two lease transactions with tenant/operators that are capitalized by Millennium Investment and Acquisition Company Inc. (ticker: MILC) (“MILC’). David H Lesser, Power REIT’s Chairman and CEO, is also Chairman and CEO of MILC. On May 21, 2021, MILC agreed to provide a loan of up to $ 750,000 77.5 750,000 77.5 106,000 Under the Trust’s Declaration of Trust, the Trust may enter into transactions in which trustees, officers or employees have a financial interest, provided however, that in the case of a material financial interest, the transaction is disclosed to the Board of Trustees to determine if the transaction is fair and reasonable. After consideration of the terms and conditions of the reimbursement to HBP, and the relationship with MILC described herein, the independent trustees approved such arrangements having determined such arrangements are fair and reasonable and in the interest of the Trust. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 8. SUBSEQUENT EVENTS On July 22, the Registrant declared a quarterly dividend of $ 0.484375 per share on Power REIT’s 7.75 % Series A Cumulative Redeemable Perpetual Preferred Stock payable on September 15, 2021 to shareholders of record on August 15, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).” |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include Power REIT and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation. |
Income per Common Share | Income per Common Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted net income per common share is computed similar to basic net income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The dilutive effect of the Trust’s options is computed using the treasury stock method. The following table sets forth the computation of basic and diluted Income per Share: SCHEDULE OF INCOME PER COMMON SHARE 2021 2020 2021 2020 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net Income $ 1,539,695 $ 479,753 $ 2,647,823 $ 731,840 Preferred Stock Dividends (163,202 ) (70,058 ) (326,412 ) (140,116 ) Numerator for basic and diluted EPS - income available to common Shareholders $ 1,376,493 $ 409,695 $ 2,321,411 $ 591,724 Denominator: Denominator for basic EPS - Weighted average shares 3,312,001 1,912,939 3,033,751 1,906,126 Dilutive effect of options 86,313 63,111 85,228 49,442 Denominator for diluted EPS - Adjusted weighted average shares 3,398,314 1,976,050 3,118,979 1,955,568 Basic income per common share $ 0.42 $ 0.21 $ 0.77 $ 0.31 Diluted income per common share $ 0.41 $ 0.21 $ 0.74 $ 0.30 |
Real Estate Assets and Depreciation of Investment in Real Estate | Real Estate Assets and Depreciation of Investment in Real Estate The Trust expects that most of its transactions will be accounted for as asset acquisitions. In an asset acquisition, the Trust is required to capitalize closing costs and allocate the purchase price on a relative fair value basis. For the six months ended June 30, 2021, all acquisitions were considered to be asset acquisitions. In making estimates of relative fair values for purposes of allocating purchase price, the Trust utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property, our own analysis of recently acquired and existing comparable properties in our portfolio and other market data. The Trust also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the relative fair value of the tangible acquired. The Trust allocates the purchase price of acquired real estate to various components as follows: ● Land – Based on actual purchase price adjusted to an allocation of the relative fair value (as necessary) if acquired separately or market research/comparables if acquired with existing property improvements. POWER REIT AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements ● Improvements – Based on the allocation of the relative fair value of the improvements acquired. Depreciation is calculated on a straight-line method over the useful life of the improvements. ● Lease Intangibles – The Trust considers the value of an acquired in-place lease if in excess of the value of the land improvements and the amortization of the lease intangible over the remaining term of the lease on a straight-line basis. ● Construction in Progress (CIP) - The Trust classifies greenhouses or buildings under development and/or expansion as construction-in-progress until construction has been completed and certificates of occupancy permits have been obtained upon which the asset is then classified as an Improvement. Power REIT has several leases with tenants whereby the tenants are responsible for implementing improvements to Power REIT’s properties and Power REIT has committed to fund the cost of such improvements. Power REIT capitalized the costs of such property improvements but has determined not to capitalize interest expense based on a determination that the amount for each project would not be material and each project has a relatively short construction period. |
Depreciation | Depreciation Depreciation is computed using the straight-line method over the estimated useful lives of up to 20 55 343,000 56,000 |
Fair Value | Fair Value Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Trust measures its financial assets and liabilities in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. ○ Level 1 – valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow a company to sell its ownership interest back at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities or funds. ○ Level 2 – valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and certain corporate obligations. Valuations are usually obtained from third party pricing services for identical or comparable assets or liabilities. ○ Level 3 – valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. In determining fair value, the Trust utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk. The carrying amounts of Power REIT’s financial instruments, including cash and cash equivalents, deposits, and accounts payable approximate fair value because of their relatively short-term maturities. The carrying value of long-term debt approximates fair value since the related rates of interest approximate current market rates. There are no financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF INCOME PER COMMON SHARE | The following table sets forth the computation of basic and diluted Income per Share: SCHEDULE OF INCOME PER COMMON SHARE 2021 2020 2021 2020 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net Income $ 1,539,695 $ 479,753 $ 2,647,823 $ 731,840 Preferred Stock Dividends (163,202 ) (70,058 ) (326,412 ) (140,116 ) Numerator for basic and diluted EPS - income available to common Shareholders $ 1,376,493 $ 409,695 $ 2,321,411 $ 591,724 Denominator: Denominator for basic EPS - Weighted average shares 3,312,001 1,912,939 3,033,751 1,906,126 Dilutive effect of options 86,313 63,111 85,228 49,442 Denominator for diluted EPS - Adjusted weighted average shares 3,398,314 1,976,050 3,118,979 1,955,568 Basic income per common share $ 0.42 $ 0.21 $ 0.77 $ 0.31 Diluted income per common share $ 0.41 $ 0.21 $ 0.74 $ 0.30 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PW CA CanRE Canndescent LLC [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED | The following table summarized the preliminary allocation of the purchase consideration for the Canndescent Property based on the relative fair values of the assets acquired: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED Land $ 258,420 Assets Subject to Depreciation: Improvements (Greenhouses / Processing Facilities) 7,426,580 - Acquisition Costs Capitalized 92,289 Total Assets Acquired $ 7,777,289 |
PW CO CanRE Walsenburg, LLC [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED | The following table summarized the allocation of the purchase consideration for the Walsenburg Property based on the relative fair values of the assets acquired: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED Land $ 945,000 Construction in Progress 1,355,000 Acquisition Costs Capitalized 47,636 Total Assets Acquired $ 2,347,636 |
PW CanRE OK Vinita, LLC [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED | The following table summarized the allocation of the purchase consideration for the Vinita Property based on the relative fair values of the assets acquired: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED Land $ 50,000 Construction in Progress 2,050,000 Acquisition Costs Capitalized 44,328 Total Assets Acquired $ 2,144,328 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LONG-TERM DEBT | The approximate amount of principal payments remaining on Power REIT’s long-term debt as of June 30, 2021 is as follows for the subsequent years ending December 31: SCHEDULE OF LONG-TERM DEBT Total Debt 2021 (6 months remaining) 373,520 2022 675,374 2023 1,168,408 2024 715,777 2025 755,634 Thereafter 20,459,470 Long term debt $ 24,148,183 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
SCHEDULE OF MINIMUM FUTURE RENTALS | The aggregate annual cash to be received by the Trust on all leases related to its portfolio as of June 30, 2021 is as follows for the subsequent years ending December 31: SCHEDULE OF MINIMUM FUTURE RENTALS June 30, 2021 2021 (6 months remaining) $ 6,010,025 2022 $ 16,350,458 2023 $ 15,983,082 2024 $ 12,428,375 2025 $ 8,103,779 Thereafter $ 144,098,465 Total $ 202,974,184 |
EQUITY AND LONG-TERM COMPENSA_2
EQUITY AND LONG-TERM COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SUMMARY OF STOCK BASED COMPENSATION ACTIVITY | Summary of Activity - Options SUMMARY OF STOCK BASED COMPENSATION ACTIVITY Weighted Aggregate Number of Average Intrinsic Options Exercise Price Value Balance as of December 31, 2020 106,000 7.96 - Plan Awards - - - Options Exercised - - - Balance as of June 30, 2021 106,000 7.96 3,414,260 Options vested at June 30, 2021 106,000 7.96 3,414,260 |
SUMMARY OF RESTRICTED STOCK PLAN ACTIVITY | The summary of Plan activity for the six months ended June 30, 2021, with respect to the Trust’s restricted stock, was as follows: Summary of Activity - Restricted Stock SUMMARY OF RESTRICTED STOCK PLAN ACTIVITY Number of Weighted Shares of Average Restricted Grant Date Stock Fair Value Balance as of December 31, 2020 35,066 8.76 Plan Awards 22,900 37.18 Restricted Stock Vested (15,356 ) 9.96 Balance as of June 30, 2021 42,610 23.60 |
GENERAL INFORMATION (Details Na
GENERAL INFORMATION (Details Narrative) - USD ($) | Feb. 03, 2021 | Feb. 03, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Trust's assets, description | As of June 30, 2021, the Trust’s assets consisted of approximately 112 miles of railroad infrastructure and related real estate which is owned by its subsidiary Pittsburgh & West Virginia Railroad (“P&WV”), approximately 601 acres of fee simple land leased to a number of utility scale solar power generating projects with an aggregate generating capacity of approximately 108 Megawatts (“MW”) and approximately 111 acres of land with approximately 533,000 sf of existing or under construction greenhouses leased to sixteen separate regulated cannabis operators. Power REIT is actively seeking to grow its portfolio of real estate related to CEA for food and cannabis production. | ||||
Proceeds from issuance of common stock | $ 36,501,796 | ||||
Price per share | $ 26.50 | ||||
Percentage of redeemable perpetual preferred stock | 90.00% | ||||
Net operating loss | $ 17,000,000 | ||||
Series A Preferred Stock [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Proceeds from issuance of common stock | $ 5,000,008 | ||||
Number of common shares issued | 192,308 | 192,308 | |||
Series A Cumulative Redeemable Perpetual Preferred Stock [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Dividend paid | $ 326,000 | ||||
Dividend paid per share | $ 0.484375 | ||||
Percentage of redeemable perpetual preferred stock | 7.75% | ||||
Trust [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Proceeds from issuance of common stock | $ 36,700,000 | ||||
Number of common shares issued | 1,383,394 |
SCHEDULE OF INCOME PER COMMON S
SCHEDULE OF INCOME PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||||
Net Income | $ 1,539,695 | $ 1,108,128 | $ 479,753 | $ 252,087 | $ 2,647,823 | $ 731,840 |
Preferred Stock Dividends | (163,202) | (70,058) | (326,412) | (140,116) | ||
Numerator for basic and diluted EPS - income available to common Shareholders | $ 1,376,493 | $ 409,695 | $ 2,321,411 | $ 591,724 | ||
Denominator for basic EPS - Weighted average shares | 3,312,001 | 1,912,939 | 3,033,751 | 1,906,126 | ||
Dilutive effect of options | $ 86,313 | $ 63,111 | $ 85,228 | $ 49,442 | ||
Denominator for diluted EPS - Adjusted weighted average shares | 3,398,314 | 1,976,050 | 3,118,979 | 1,955,568 | ||
Basic income per common share | $ 0.42 | $ 0.21 | $ 0.77 | $ 0.31 | ||
Diluted income per common share | $ 0.41 | $ 0.21 | $ 0.74 | $ 0.30 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 146,515 | $ 29,612 | $ 342,566 | $ 56,262 |
Greenhouse [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 20 years | |||
Auxiliary buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 55 years |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED (Details) - USD ($) | Jun. 11, 2021 | May 21, 2021 | Feb. 03, 2021 |
PW CA CanRE Canndescent LLC [Member] | |||
Business Acquisition [Line Items] | |||
Land | $ 258,420 | ||
Improvements (Greenhouses / Processing Facilities) | 7,426,580 | ||
Construction in Progress | |||
Acquisition Costs Capitalized | 92,289 | ||
Total Assets Acquired | $ 7,777,289 | ||
PW CO CanRE Walsenburg, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Land | $ 945,000 | ||
Improvements (Greenhouses / Processing Facilities) | 1,600,000 | ||
Construction in Progress | 1,355,000 | ||
Acquisition Costs Capitalized | 47,636 | ||
Total Assets Acquired | $ 2,347,636 | ||
PW CanRE OK Vinita, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Land | $ 50,000 | ||
Construction in Progress | 2,050,000 | ||
Acquisition Costs Capitalized | 44,328 | ||
Total Assets Acquired | $ 2,144,328 |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) | Jun. 18, 2021USD ($)aft² | Jun. 11, 2021USD ($)a | May 21, 2021USD ($) | Apr. 20, 2021USD ($) | Mar. 12, 2021USD ($) | Feb. 23, 2021USD ($)ft² | Feb. 03, 2021USD ($)ft²shares | Jan. 14, 2021USD ($) | Jan. 04, 2021USD ($) | Feb. 03, 2021USD ($)ft²shares | Jun. 30, 2021USD ($) | Jun. 11, 2021ft² | May 21, 2021a | May 21, 2021ft² | Apr. 20, 2021a | Apr. 20, 2021ft² | Mar. 12, 2021a | Mar. 12, 2021ft² | Jan. 14, 2021a | Jan. 14, 2021ft² | Jan. 04, 2021a | Jan. 04, 2021ft² |
Business Acquisition [Line Items] | ||||||||||||||||||||||
Rent income | $ 4,600,000 | |||||||||||||||||||||
Lease term | 20 years | |||||||||||||||||||||
Option to extend | five-year | |||||||||||||||||||||
Greenhouse [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||||||||||||||||||
Auxiliary buildings [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 55 years | |||||||||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Issuance of shares | shares | 192,308 | 192,308 | ||||||||||||||||||||
PW CO CanRE Grail, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | 6,256 | 4.41 | 21,732 | |||||||||||||||||||
Business acquisition cost | $ 150,000 | |||||||||||||||||||||
Greenhouse and processing facility | $ 1,690,000 | |||||||||||||||||||||
Business acquisition cost | $ 518,000 | $ 1,024,000 | ||||||||||||||||||||
Capital commitment | $ 2,400,000 | |||||||||||||||||||||
PW CO CanRE Apotheke, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | 4.31 | 21,548 | ||||||||||||||||||||
Business acquisition cost | $ 150,000 | |||||||||||||||||||||
Greenhouse and processing facility | 1,660,000 | |||||||||||||||||||||
Business acquisition cost | 534,000 | |||||||||||||||||||||
Capital commitment | $ 1,810,000 | |||||||||||||||||||||
PW CA CanRE Canndescent LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | ft² | 37,000 | 37,000 | ||||||||||||||||||||
Greenhouse and processing facility | $ 7,426,580 | $ 7,426,580 | ||||||||||||||||||||
Purchase price | 7,685,000 | |||||||||||||||||||||
Business acquisition transaction facilities | $ 2,685,000 | |||||||||||||||||||||
PW CA CanRE Canndescent LLC [Member] | Series A Preferred Stock [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Issuance of shares | shares | 192,308 | |||||||||||||||||||||
PW CO CanRE Gas Station, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | 2.2 | 24,512 | ||||||||||||||||||||
Business acquisition cost | $ 85,000 | |||||||||||||||||||||
Greenhouse and processing facility | 2,030,000 | |||||||||||||||||||||
Business acquisition cost | 315,000 | |||||||||||||||||||||
Capital commitment | $ 2,100,000 | |||||||||||||||||||||
PW CO CanRE Cloud Nine, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | 4 | 38,440 | ||||||||||||||||||||
Business acquisition cost | $ 300,000 | |||||||||||||||||||||
Greenhouse and processing facility | 2,650,000 | |||||||||||||||||||||
Business acquisition cost | 565,000 | |||||||||||||||||||||
Capital commitment | $ 2,950,000 | |||||||||||||||||||||
PW CO CanRE Walsenburg, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | 35 | 102,800 | ||||||||||||||||||||
Business acquisition cost | $ 2,300,000 | |||||||||||||||||||||
Greenhouse and processing facility | 1,600,000 | |||||||||||||||||||||
Business acquisition cost | 649,000 | |||||||||||||||||||||
Capital commitment | $ 3,900,000 | |||||||||||||||||||||
PW CanRE OK Vinita, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | 9.35 | 3,000 | ||||||||||||||||||||
Business acquisition cost | $ 2,100,000 | |||||||||||||||||||||
Capital commitment | 2,650,000 | |||||||||||||||||||||
Business acquisition transaction facilities | 550,000 | |||||||||||||||||||||
Greenhouse And Processing Facility [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business acquisition cost | 2,400 | |||||||||||||||||||||
Greenhouse And Processing Facility [Member] | P W Vinita [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | ft² | 40,000 | |||||||||||||||||||||
Greenhouse And Processing Facility [Member] | PW CO CanRE JKL, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | ft² | 12,000 | |||||||||||||||||||||
Fully Fenced Outdoor Growing Space [Member] | PW CanRE OK Vinita, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | ft² | 100,000 | |||||||||||||||||||||
PW CO CanRE JKL, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | a | 10 | |||||||||||||||||||||
Business acquisition cost | $ 400,000 | |||||||||||||||||||||
Business acquisition cost | $ 518,000 | |||||||||||||||||||||
Capital commitment | $ 2,900,000 | |||||||||||||||||||||
Business acquisition transaction facilities | $ 2,500,000 | |||||||||||||||||||||
Support Buldings [Member] | PW CO CanRE JKL, LLC [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Area of land | ft² | 12,880 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | Nov. 25, 2019 | Nov. 06, 2015 | Dec. 31, 2012 | Jul. 31, 2013 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Outstanding loan balance | $ 24,148,183 | |||||
2015 PWRS Loan Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Oct. 14, 2034 | |||||
Debt amount | $ 10,150,000 | |||||
Debt fixed interest rate | 4.34% | |||||
Outstanding loan balance | 8,051,000 | $ 8,183,000 | ||||
Unamortized debt costs | 292,000 | 303,000 | ||||
PW PWV Loan Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt fixed interest rate | 4.62% | |||||
Outstanding loan balance | 14,902,000 | 14,994,000 | ||||
Capitalized debt cost | $ 312,000 | 298,000 | 302,000 | |||
Proceeds from long term debt | $ 15,500,000 | |||||
Debt maturity year | 2054 | |||||
Municipal Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 10 years | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||
Debt maturity date | Feb. 1, 2022 | |||||
Municipal debt securities carrying value | 64,000 | 70,000 | ||||
PWSS Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 10 years | |||||
Debt amount | $ 750,000 | |||||
Debt description | he PWSS Term Loan carries a fixed annual interest rate of 5.0% for a term of 10 years and amortizes based on a 20-year principal amortization schedule. | |||||
Debt fixed interest rate | 5.00% | |||||
Outstanding loan balance | 536,000 | 551,000 | ||||
Capitalized debt cost | $ 5,500 | $ 6,800 |
SCHEDULE OF LONG-TERM DEBT (Det
SCHEDULE OF LONG-TERM DEBT (Details) | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 (6 months remaining) | $ 373,520 |
2022 | 675,374 |
2023 | 1,168,408 |
2024 | 715,777 |
2025 | 755,634 |
Thereafter | 20,459,470 |
Long term debt | $ 24,148,183 |
SCHEDULE OF MINIMUM FUTURE RENT
SCHEDULE OF MINIMUM FUTURE RENTALS (Details) | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (6 months remaining) | $ 6,010,025 |
2022 | 16,350,458 |
2023 | 15,983,082 |
2024 | 12,428,375 |
2025 | 8,103,779 |
Thereafter | 144,098,465 |
Total | $ 202,974,184 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,267,848 | $ 975,122 | $ 4,088,775 | $ 1,762,510 |
Minimum [Member] | ||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Lessor, Operating Lease, Term of Contract | 20 years | 20 years | ||
Maximum [Member] | ||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Lessor, Operating Lease, Term of Contract | 99 years | 99 years |
SUMMARY OF STOCK BASED COMPENSA
SUMMARY OF STOCK BASED COMPENSATION ACTIVITY (Details) - Share-based Payment Arrangement [Member] | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Beginning balance | shares | 106,000 |
Weighted Average Exercise Price, Beginning balance | $ / shares | $ 7.96 |
Aggregate Intrinsic Value, Beginning balance | $ | |
Number of Options, Plan Awards | shares | |
Weighted Average Exercise Price, Plan Awards | $ / shares | |
Aggregate Intrinsic Value, Plan Awards | $ | |
Number of Options, Options Exercised | shares | |
Weighted Average Exercise Price, Options Exercised | $ / shares | |
Aggregate Intrinsic Value, Options Exercised | $ | |
Number of Options, Ending balance | shares | 106,000 |
Weighted Average Exercise Price, Ending balance | $ / shares | $ 7.96 |
Aggregate Intrinsic Value, Ending balance | $ | $ 3,414,260 |
Number of Options, Vested | shares | 106,000 |
Weighted Average Exercise Price, Options Vested | $ / shares | $ 7.96 |
Aggregate Intrinsic Value, Options Vested | $ | $ 3,414,260 |
SUMMARY OF RESTRICTED STOCK PLA
SUMMARY OF RESTRICTED STOCK PLAN ACTIVITY (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Restricted Stock, Beginning balance | shares | 35,066 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 8.76 |
Number of Shares Restricted Stock, Plan Awards | shares | 22,900 |
Weighted Average Grant Date Fair Value, Plan Awards | $ / shares | $ 37.18 |
Number of Shares Restricted Stock, Restricted Stock Vested | shares | (15,356) |
Weighted Average Grant Date Fair Value, Restricted Stock Vested | $ / shares | $ 9.96 |
Number of Shares Restricted Stock, Ending balance | shares | 42,610 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 23.60 |
EQUITY AND LONG-TERM COMPENSA_3
EQUITY AND LONG-TERM COMPENSATION (Details Narrative) - USD ($) | Feb. 03, 2021 | Jan. 07, 2021 | Feb. 03, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Par value per share | $ 0.001 | $ 0.001 | ||||
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares authorized | 1,675,000 | 1,675,000 | ||||
Proceeds from issuance of common stock | $ 36,501,796 | |||||
Noninterest Expense Offering Cost | 158,145 | |||||
Share-based Payment Arrangement, Noncash Expense | 152,973 | 123,291 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 1,006,000 | |||||
Share-based Payment Arrangement [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Noncash Expense | $ 153,000 | $ 123,000 | ||||
PW RO Holdings LLC [Member] | David H. Lesser [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during the period, shares | 132,074 | |||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||
PW RO Holdings 2 LLC [Member] | David H. Lesser [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during the period, shares | 155,000 | |||||
PW RO Holdings 3 LLC [Member] | David H. Lesser [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during the period, shares | 123,020 | |||||
13310 LMR2A [Member] | David H. Lesser [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during the period, shares | 68,679 | |||||
Trust [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common shares issued | 1,383,394 | |||||
Proceeds from issuance of common stock | $ 36,700,000 | |||||
Series A Preferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common shares issued | 192,308 | 192,308 | ||||
Proceeds from issuance of common stock | $ 5,000,008 | |||||
Debt issuance costs | $ 2,205 | |||||
Preferred stock dividends | $ 326,000 | |||||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during the period, shares | 1,500,000 | 213,017 | ||||
Par value per share | $ 0.001 | |||||
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares authorized | 1,675,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Feb. 23, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 11, 2021 | May 21, 2021 | Mar. 31, 2021 | Sep. 30, 2016 |
Tenant [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Rental properties | $ 106,000 | ||||||
Board of Trustess [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Increase in reimbursement | $ 4,000 | ||||||
David H. Lesser [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to affiliate | $ 36,000 | $ 10,500 | |||||
Hudson Bay Partners LP [Member] | Board of Trustess [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Reimbursing an affiliate, per month | $ 15,000 | $ 1,000 | |||||
Millennium Investment Acquisition [Member] | Tenant [Member] | Walsenburg Colorado Property [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt instrument, face amount | $ 750,000 | $ 750,000 | |||||
Equity method investment, ownership percentage | 77.50% | 77.50% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Series A Cumulative Redeemable Perpetual Preferred Stock [Member] - $ / shares | Jul. 22, 2021 | Jun. 30, 2021 |
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.484375 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.484375 | |
[custom:PercentageOfRedeemablePerpetualPreferredStock-0] | 7.75% |