Power REIT (NYSE: PW)

Power REIT is an internally-managed real estate investment trust that owns a portfolio of real estate assets related to transportation, energy infrastructure, and controlled environment agriculture in the United States. The trust holds its assets through nineteen wholly-owned special purpose subsidiaries created to hold real estate, obtain financing, and generate lease revenue. As of December 31, 2025, the railroad property owned by its subsidiary Pittsburgh & West Virginia Railroad consisted of approximately 112 miles of track and related real estate with a gross book value of $9,150,000. The solar farm land totaled 447 acres leased to a utility‑scale solar power project with an aggregate capacity of about 82 megawatts and a gross book value of $9,183,548. The greenhouse portfolio comprised roughly 82 acres of land with approximately 357,000 square feet of greenhouse structures used for state‑licensed cannabis and food cultivation, carrying a gross book value of $32,503,352. In addition, the trust held multiple mortgage loan assets, including properties in Walsenburg, Colorado ($4,219,170), Desert Hot Springs, California ($7,685,000), Vinita, Oklahoma ($2,593,313), and Eliot, Maine ($597,000), along with smaller mortgage loan balances of $884,142 and $96,893.

Power REIT generates revenue primarily from lease income on its railroad, solar, and greenhouse properties, interest income on its mortgage loan holdings, and proceeds from the sale of real estate assets. For the fiscal year ended December 31, 2025, the trust reported total revenue of $2,011,783, with the railroad lease to Norfolk Southern Railway and the solar lease to Regulus Solar LLC providing the majority of lease payments. Greenhouse properties are leased to state‑licensed cannabis operators and a tomato grower, generating lease revenue that has been affected by vacancy and tenant defaults. Mortgage loan assets produce interest income from borrowers across the listed properties. The trust also earns gains from property sales and receives cash from seller‑financing arrangements, such as the approximately $239,000 of cash from debt service related to seller financing provided in 2024 and 2025. These revenue streams are supported by long‑term leases and interest‑bearing loans that contribute to the trust’s cash flow.

The company operates through the following segments.

• Railroad: This segment owns approximately 112 miles of railroad infrastructure and related real estate leased to Norfolk Southern Railway, generating lease revenue and carrying a gross book value of $9,150,000.

• Solar: This segment comprises approximately 447 acres of land leased to a utility‑scale solar power generating project with an aggregate capacity of about 82 megawatts, leased to Regulus Solar LLC, providing lease income and a gross book value of $9,183,548.

• Greenhouse (Controlled Environment Agriculture): This segment includes approximately 82 acres of land with roughly 357,000 square feet of greenhouse properties used for state‑licensed cannabis and food cultivation, generating lease income from tenants, carrying a gross book value of $32,503,352, and has experienced significant vacancy and tenant default in recent years.

• Mortgage Loans: This segment consists of various mortgage loan assets, including properties in Walsenburg, Colorado ($4,219,170), Desert Hot Springs, California ($7,685,000), Vinita, Oklahoma ($2,593,313), and Eliot, Maine ($597,000), as well as smaller balances of $884,142 and $96,893, which produce interest income for the trust.

Power REIT occupies a niche position within the real estate investment trust sector, competing with other specialized REITs that focus on infrastructure, farmland, or timber assets. Its competitive advantages stem from being internally managed, which aligns management incentives with shareholder interests, and from maintaining a diversified asset base across transportation, energy, and agriculture. The trust’s long‑term leases on railroad and solar assets provide predictable cash flows, while its ability to monetize distressed greenhouse properties and pursue strategic alternatives, such as raising capital through debt or equity, offers flexibility in changing market conditions. These factors help the trust differentiate itself from peers that may rely on a single property type or external management structures.

The company’s customer base includes Norfolk Southern Railway for the railroad segment, Regulus Solar LLC for the solar segment, various state‑licensed cannabis operators and a tomato grower for the greenhouse segment, and numerous borrowers on its mortgage loan portfolio encompassing the properties in Walsenburg, Desert Hot Springs, Vinita, and Eliot, as well as the smaller mortgage loan balances.