Power REIT (NYSEMKT:PW) reported second-quarter 2021 net income of $0.41 per share, a 95% year-over-year increase, as accretive acquisitions continued to put a charge into the company’s bottom line.
Power REIT (NYSEMKT:PW)’s revenue for the period also climbed 133% to nearly $2.3 million, while its core funds from operations (FFO) rose 76% from a year ago.
“With the current stock price at 36.46 and a forward Core FFO run rate of $3.24 per share, Power REIT (NYSEMKT:PW) trades at an 11.4 multiple. We believe our potential growth rate driven by acquisitions combined with a relatively low forward Core FFO multiple provides a compelling value proposition for investors,” Power REIT CEO David Lesser said in a statement.
READ: Power REIT expands cannabis greenhouse cultivation footprint in Colorado
“We have an active pipeline of acquisitions and hope to announce additional activity in the near future,” Lesser added.
During the quarter, the company spent about $12.4 million to acquire four Controlled Environmental Agriculture (CEA) facilities in Colorado and Oklahoma totaling around 206,000 square feet of greenhouse and cultivation/processing space.
As well, Power REIT entered into four new long-term, triple-net leases, which is expected to generate straight-line annualized rent of about $2.3 million, representing more than an 18% unleveraged yield on invested capital.
The company noted its portfolio currently comprises 20 CEA properties totaling almost 533,000 square feet, seven 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