Wed, May 14, 8:58 PM (35 days ago)
**Power REIT (PW) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $485,794 (down from $534,612 in Q1 2024) due to decreased rental income from cannabis tenants and increased other income. - **Net Loss:** $1,576,319 (improved from $2,240,205 in Q1 2024) due to no impairment expense and decreased depreciation. - **Cash Flow:** Negative operating cash flow of $436,648 (up from $402,163 in Q1 2024) due to changes in operating assets and liabilities. - **Liquidity:** $2,033,211 in cash and cash equivalents (down from $2,231,586 in Q1 2024) with $2 million available for general corporate purposes. - **Debt:** $18.4 million in current loan liabilities, including a $17.6 million defaulted Greenhouse Loan. **Key Metrics and Trends:** - **Profit Margins:** Negative due to net losses. - **Earnings Changes:** Improved net loss by $663,886 compared to Q1 2024. - **Quarterly Performance:** Mixed, with improved net loss but decreased revenue and cash flow. - **Uncertainties:** Going concern doubt alleviated post-Greenhouse Loan settlement, but liquidity and debt remain significant risks. **Future Operations and Impact:** - **Greenhouse Loan Settlement:** Resolved on April 11, 2025, resulting in the write-off of Nebraska and Michigan properties and the remaining loan balance. - **Strategic Focus:** Shifting focus to realize value from retained assets and evaluating real estate distressed situations. - **Liquidity and Debt:** Continued efforts to improve liquidity and reduce debt, with a focus on selling non-core properties and raising capital. **Risks and Challenges:** - **Market Risks:** Concentration in a few investments and industries, with significant exposure to the cannabis sector. - **Financial Risks:** Substantial debt and preferred shares outstanding, with potential negative consequences for shareholders. - **Operational Risks:** Dependence on a few tenants and properties, with risks associated with tenant defaults and market conditions. **Conclusion:** Power REIT faces significant financial and operational challenges, with a focus on improving liquidity, reducing debt, and shifting strategic focus. The Greenhouse Loan settlement alleviates immediate going concern doubts, but long-term sustainability depends on successful execution of strategic initiatives.