PW Power REIT

Item 1. Financial Statements

 Three Months Ended Nine Months Ended
 September 30, September 30
 2007 2006 2007 2006
INCOME AVAILABLE FOR
 DISTRIBUTION:

Interest income from
 capital lease $ 229 $ 229 $ 686 $ 686

Less general and
 administrative expense 19 19 118 108

NET INCOME $ 210 $ 210 $ 568 $ 578

Per Share:
(1,510,000 average shares outstanding)

Net Income $ .14 $ .14 $ .38 $ .38
Cash Dividends $ .13 $ .13 $ .39 $ .39

The accompanying notes are an integral part of these financial statements.

 (Unaudited) (Audited)
 September 30 December 31
 2007 2006
ASSETS

Net investment in capital lease $ 9,150 $ 9,150
Cash 28 49
 $ 9,179 $ 9,199

LIABILITIES AND SHAREHOLDERS' EQUITY

Shareholders' equity:
Shares of beneficial interest, at no par
 value , 1,510,000 shares issued
 outstanding 9,145 9,145
Retained earnings 33 54

Total shareholders' equity 9,179 9,199

Total liabilities and shareholders'
equity $ 9,179 $ 9,199

The accompanying notes are an integral part of these financial statements.

 Nine Months Ended
 September 30,
 2007 2006
Cash flows from operating activities:
 Net income $ 568 $ 579
 Adjustment to reconcile net income to net
 cash provided by operating activities:
 Increase ( decrease) in accounts payable
 And accrued liabilities - (9)

 Net cash provided by operating activities $ 568 $ 570

Cash flows used in financing activities:

 Dividends paid 589 589

 Net increase ( decrease) in cash (21) (19)

 Cash, beginning of period 49 54

 Cash, end of period $ 28 $ 35

The accompanying notes are an integral part of these financial statements.

PITTSBURGH & WEST VIRGINIA RAILROAD
FORM 10-Q

Notes to financial statements:

(1) The foregoing interim financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results of operations for the interim periods presented. All adjustments are of a normal recurring nature.

(2) Registrant has elected to be treated for tax purposes as a real estate investment trust. As such, the Trust is exempt from paying federal corporate income tax on any income that is distributed to shareholders. It has been Registrant's policy to distribute annually all of its ordinary taxable income. Consequently, no provision has been made for federal income tax.

(3) Under the terms of the lease, Norfolk Southern Corporation has leased all of Pittsburgh & West Virginia Railroad's real properties, including its railroad lines, for a term of 99 years, renewable by the lessee upon the same terms for additional 99-year terms in perpetuity. The lease provides for a cash rental of $915,000 per year for the current lease period and all renewal periods. The net investment in capital lease, recognizing renewal options in perpetuity, was estimated to have a current value of $9,150,000 assuming an implicit interest rate of 10%.

(4) Under the provisions of the lease, the Trust may not issue, without the prior written consent of Norfolk Southern, any shares or options to purchase shares or declare any dividends on its shares of beneficial interest in an amount exceeding the value of the assets not covered by the lease plus the annual cash rent of $915,000 to be received under the lease, less any expenses incurred for the benefit of shareholders. At September 30, 2007, all net assets are covered by the lease. The Trust may not borrow any money or assume any guarantees except with the prior written consent of Norfolk Southern.