Old Bethpage, New York, December 23, 2021 (GLOBE NEWSWIRE) – Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”), with a targeted “Triple Bottom Line” strategy and Commitment to People, Planet and Profit, today announced that it has entered into a debt financing facility with a federally regulated commercial bank (the “Bank”) in the initial amount of $ 20 million (the “Loan facility”). Power REIT plans to use the proceeds from the loan facility as a growth vehicle to acquire additional greenhouse growing properties, as well as to fund value-added improvements to its existing greenhouse properties.
“We are delighted to enter into this funding agreement,” said David H. Lesser, CEO of Power REIT. “This credit facility is the culmination of months of effort and reflects the close working relationship and the trust we have developed with the Bank. This transaction allows us to continue our growth path by deploying non-dilutive capital at a significant investment return spread over the cost of borrowing. We also believe that this borrowing facility can be extended as we add additional unencumbered assets to the borrowing base used to calculate the amount of funding the Bank is prepared to advance. “
The interest rate on the loan facility is set at 5.52%. The loan facility has a 12 month drawdown period, after which the loan facility converts to a five year fully amortizing term loan. In consideration for the loan facility, Power REIT has contributed a portion of its greenhouse real estate portfolio to a newly formed wholly owned subsidiary which will serve as the borrower, with the assets serving as collateral to the Bank. Power REIT’s remaining unencumbered greenhouse portfolio may be added to the loan facility collateral pool at a later date, which may allow for expansion of the loan facility size.
Non-dilutive capital plan
As described in its presentation to investors, Power REIT’s short-term financial strategy focuses on non-dilutive capital to fund its pipeline of acquisitions and real estate improvements within its existing portfolio. The Trust believes that these attractive sources of capital, combined with the expansion and strategic enhancements of the portfolio, should continue to drive earnings growth as it accretively deploys capital through its credit facility and potential offerings. shares through issuance of preferred shares which would also have a significant difference in return on investment over the cost of capital associated with the issuance of preferred shares. Power REIT currently holds outstanding 7.75% Series A Preferred Shares (symbol: PW.A).
The Power REIT portfolio currently includes:
- 21 Controlled Environment Agriculture (CEA) properties totaling more than 1,000,000 square feet;
- 7 solar farm land leases totaling 601 acres; and
- 112 miles of railroad property.
Power REIT owns real estate related to infrastructure assets, including properties for environmentally controlled agricultural facilities, with a focus on greenhouses, renewables and transportation.
The CEA’s installations, in the form of greenhouses, offer an extremely environmentally friendly solution, which consume around 70% less energy than indoor crops that do not benefit from “free” sunshine. greenhouses use 90% less water than plants grown in the field, and all of Power REIT’s greenhouses operate without the use of pesticides and avoid agricultural run-off of fertilizers and pesticides. These facilities cultivate medical cannabis, which has been recommended to help manage a myriad of medical symptoms, including seizures and spasms, multiple sclerosis, post-traumatic stress disorder, migraines, arthritis, illness Parkinson’s disease and Alzheimer’s disease.
Renewable energy the assets consist of land and infrastructure associated with large-scale solar parks. These projects generate electricity without using fossil fuels, thus reducing carbon emissions. Solar farms generate around 50,000,000 kWh of electricity per year, which is enough to power around 4,600 carbon-free homes.
Transport the assets consist of land associated with a railroad, an environmentally friendly mode of bulk transport.
ON POWERFUL REIT
Power REIT, with a focus on the ‘Triple Bottom Line’ and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns durable real estate linked to infrastructure assets, including properties for controlled environment agriculture, renewable energies and transportation. Power REIT is actively seeking to expand its real estate portfolio related to controlled environment agriculture in the form of greenhouses for growing food and cannabis.
Additional information about Power REIT is available on its website: www.pwreit.com
Caution regarding forward-looking statements
This document includes forward-looking statements within the meaning of United States securities laws. Forward-looking statements are those which predict or describe future events or trends and which do not relate solely to historical matters. You can generally identify forward-looking statements as statements containing the words “believe”, “expect”, “” seek “or other similar expressions, or negatives of such expressions, although not all forward-looking statements contain not those identifying words. All statements in this document regarding our future strategy, future operations, future prospects, the future of our industries and the results that may be achieved by pursuing the current or future plans and objectives of management are forward-looking statements.You should not place undue reliance on forward-looking statements, as the matters they describe are subject to known and unknown risks, uncertainties and other unforeseeable factors, many of which are beyond our control. Our forward-looking statements are based on information currently available to us and speak only the date of filing of this document. Over time, our actual results, performance, financial condition or achievements may differ from the anticipated results, performance, financial condition or achievements which are expressed or implied by our forward-looking statements, and such differences may be material and materially unfavorable to our security. holders.