Power REIT (NYSEMKT:PW) to acquire a 3.0-acre property in York County, Maine, for $400K through a wholly owned subsidiary, PropCo.

In acquiring the Property, PropCo exercised an option it received at the time of the acquisition of the 495 Property (adjacent property, acquired in May 2020).

Concurrent with the acquisition, PropCo amended the lease with Sweet Dirt whereby the lease will cover both properties and PropCo will fund the construction of an additional approximately 9,900 square feet of processing space and the renovation of an existing ~2,738-square-foot building on the 505 Property.

As part of the acquisition, the existing triple net lease is being amended whereby PropCo will fund approximately $1.56M of costs to complete the construction. Accordingly, the company’s total investment in the 505 Property is ~$1.96M.

The acquisition and expansion transactions are immediately accretive to CORE FFO by adding ~$402,000 of straight-line rent that translates to incremental CORE FFO of ~$0.21/share p.a. on a run rate basis.

Recent transactions should add ~1.76/share on a run rate basis to Core FFO.

Assuming the company deploys its existing available capital prior to the end of the year, the year-end “run-rate” for FFO should be in excess of $2/share.

Source: Press Release


Leave a Reply