Power REIT (NYSEAMERICAN:PW) saw its 4Q revenue climb 121% year-over-year to $1.4 million as accretive acquisitions boosted both the company’s top and bottom lines.
Power REIT’s Funds From Operations (FFO) for the quarter, meanwhile, increased 200% to $0.51 per share while its net income per share for the period rose 300% to $0.40.
“Our dynamic growth is a function of the attractive yields Power REIT can achieve with its strategic Controlled Environment Agriculture (CEA) investments, coupled with our relatively small size, which amplifies the impact of these transactions,” Power REIT CEO David Lesser said in a statement.
READ: Power REIT inks deal to acquire 2.2 acres for greenhouse cannabis cultivation in Colorado
Lesser added: “At a recent stock price of $41.00 and forward Core FFO run rate of $3.16 per share, Power REIT trades at a 12.9x multiple. We believe our growth rate and relatively low forward Core FFO multiple provides a compelling value proposition for investors.”
For fiscal 2020, Power REIT’s revenue rose 96% to $4.3 million with a 167% increase in its net income per share to $0.96, along with a 113% gain in the company’s Core FFO per share to $1.34.
As well, Power REIT said presuming it fully deploys the remaining proceeds from its recent rights offering into additional acquisitions at an average 16% yield to common equity, the company foresees a forward Core FFO per share run rate of $3.16.
Power REIT ended the year with cash and equivalents of $5.6 million, although it has since raised about $36.7 million through a rights offering that closed on February 5.
Power REIT’s portfolio currently comprises:
- 17 Controlled Environment Agriculture (CEA) properties totaling almost 330,000 square feet;
- 7 solar farm ground leases totaling 601 acres; and
- 112 miles of railroad property
Power REIT is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets, including properties for controlled environment agriculture (greenhouses for the cultivation of food and cannabis), renewable energy, and transportation.
The company also boasts an acquisition pipeline in excess of $100 million at various stages of negotiations.
Contact Sean at sean@proactiveinvestors.com