Power REIT (PW)·Q2 2021 Earnings Summary

Executive Summary

• Power REIT delivered strong Q2 2021 results driven by accelerated CEA acquisitions: revenue rose to $2,267,848 (from $975,122 YoY), diluted EPS was $0.41 (vs $0.21 YoY), and Core FFO/share was $0.51 (vs $0.29 YoY) .
• Management raised forward Core FFO per share run-rate guidance to $3.24 (annualized) assuming full deployment of remaining Rights Offering proceeds at ~16% yields; up from $3.18 in Q1 and $3.16 in Q4 2020, highlighting continued acquisition execution and visibility .
• Capital deployment and portfolio growth were notable: 4 new CEA facilities added in Q2 with ~$12.4M committed; H1 2021 totaled 8 properties and ~317k SF, supporting straight-line annualized rent additions of ~$4.6M at >17% unlevered yields .
• Wall Street consensus estimates (S&P Global) were unavailable at time of analysis; therefore, no comparison vs estimates is provided (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

• Acquisition-driven operating leverage: revenue +133% YoY, Core FFO/share +76% YoY, diluted EPS +95% YoY as newly added CEA assets contributed high-yield rents .
• Raised forward Core FFO run-rate to $3.24 on the back of remaining capital deployment assumptions (~$17.0M left), signaling continued growth potential and improving visibility .
• Clear strategic momentum and supportive tone: “We continued to make significant progress on our external growth strategy… this capital fueled our accretive acquisition strategy” — David Lesser, CEO .

What Went Wrong

• Near-term dilution/visibility caveat: management cautioned quarterly results could fall below run-rate due to acquisition timing and dilution from the Rights Offering until proceeds are fully deployed .
• Lack of consolidated segment disclosure or granular margin/KPI detail beyond portfolio counts and rent yields, limiting depth of profitability analysis in-quarter (no segment margin detail provided) .
• No earnings call transcript located for Q2 2021 (limits color on tenant performance, credit, and underwriting assumptions); only the 8-K press release was available in the period [ListDocuments: earnings-call-transcript returned none for 6/1–9/30/2021].

Financial Results

Quarterly P&L Snapshot (Q4’20 → Q1’21 → Q2’21)

Notes: YoY growth for Q2 2021 — Revenue +133%, Core FFO/share +76%, EPS +95% — reflects acquisition-driven rent growth .

Selected Cash/Balance Indicators

Portfolio / KPI Progression

Non-GAAP reconciliation highlights (Q2 2021): adds back stock-based comp $86,815, amortization of debt costs $8,528, amortization of intangible $59,286, depreciation on land improvements $146,515 to derive Core FFO available to preferred/common $1,840,839; after preferred dividends $163,202, Core FFO to common $1,677,637 .

Guidance Changes

Earnings Call Themes & Trends

No Q2 2021 earnings call transcript was located; themes reflect management commentary from 8-Ks.

Management Commentary

• “We continued to make significant progress on our external growth strategy during the first half of 2021… This capital fueled our accretive acquisition strategy.” — David Lesser, CEO .
• “With the current stock price at 36.46 and a forward Core FFO run rate of $3.24 per share, Power REIT trades at a 11.4 multiple… potential acquisition of an approximately 565,000 square foot green house facility in Michigan… Forward Core FFO would grow to approximately $3.42.” — David Lesser .
• “Our dynamic growth is a function of the attractive yields… coupled with our relatively small size which amplifies the impact of these transactions.” — David Lesser (Q1 2021 context) .

Q&A Highlights

• No Q2 2021 earnings call transcript was found in the document set; therefore, no Q&A detail or analyst follow-ups are available for this quarter [ListDocuments: none found for earnings-call-transcript in Q2 window].

Estimates Context

• Wall Street consensus estimates (S&P Global) for Q2 2021 EPS and revenue were unavailable at time of request due to data access limits; as a result, we cannot provide an “actual vs. consensus” comparison for this quarter (S&P Global data unavailable).

Key Takeaways for Investors

• Acquisition machine is working: Q2 revenue and Core FFO/share inflected higher on the back of four new CEA facilities (~206k SF) at >18% unlevered yields, reinforcing the model’s ability to translate capital into high-return rents .
• Forward earnings power stepped up: annualized Core FFO/share run-rate raised to $3.24 with ~$17.0M still to deploy, and a potential path to ~$3.42 including the Michigan greenhouse scenario (timing uncertain) .
• Balance sheet remains a growth lever: Q2-end cash of ~$28.8M, shelf registration effective, and ongoing pursuit of non-dilutive capital should support continued pipeline conversion .
• Portfolio compounding: CEA properties expanded to 20 (~533k SF) by Q2 from 17 (~330k SF) at year-end 2020, evidencing rapid scale that should bolster rent-driven revenue and cash flow .
• Near-term cadence caution: management flagged that quarterly reported results can trail run-rate due to deal timing and Rights Offering dilution until proceeds are fully placed, creating potential intra-quarter volatility but preserving the forward growth thesis .
• Income layer steady: Series A preferred dividend maintained at $0.484375 per share quarterly; no change to preferred distribution policy in the period .
• Catalyst path: incremental acquisitions and closing of the highlighted Michigan greenhouse could drive upward estimate revisions and sentiment as deployment narrows the gap to the raised run-rate .

Appendix: Transaction Highlights (Q2)

• Committed ~$12.4M across four facilities (CO/OK), adding ~$2.3M straight-line annualized rent at >18% unlevered yields; all structured as long-term triple-net leases with initial rent-free periods and rapid capital payback schedules .