Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”)
today announced that it has finalized a lease amendment (the
“Amendment”) to fund additional improvements to its greenhouse
cultivation facility in Marengo Township, MI (the “Property”).
Pursuant to the Amendment, Power REIT is providing funding for
additional improvements to the Property on the same economic terms
as the original lease. Power REIT’s capital commitment related to
the additional budget items is approximately $4,100,000 which
increases the straight-line annual rent by approximately $830,000
which represents an approximately 20% unleveraged core FFO yield.
Including the additional funding announced
today, Power REIT’s total capital commitment is approximately
$25,600,000 million for the purchase and improvement of 556,146
square feet of greenhouse and processing space. The 20 year
“triple-net” lease is structured to provide straight-line annual
rent of approximately $5,100,000, which represents an unleveraged
core FFO yield of approximately 20% on Power REIT’s invested
capital.
The Property is leased to Marengo Cannabis LLC,
which is a wholly owned subsidiary of Millennium Cannabis LLC which
is a wholly owned subsidiary of Millennium Investment &
Acquisition Company (ticker: MILC). David Lesser is Chairman and
CEO of Power REIT and also Chairman and CEO of Millennium
Investment & Acquisition Company.
Property Improvements
The additional items for Phase 2 of facility
improvements focus on transitioning the facility from pepper
farming to cannabis cultivation. The greenhouse upgrades include
air circulation fans, exhaust fans with carbon filters as well as
installation of an upgraded greenhouse automation system. The
existing energy curtain will be replaced, and a blackout curtain
will be added for photoperiod control necessary for optimizing
greenhouse cultivation of cannabis. Three quarters of an acre of
the greenhouse will be converted into nursery space adjacent to the
new state-of-the-art propagation room that is currently under
construction. The construction of fourteen dedicated spaces
incorporating precision energy-efficient environmental control
equipment will ensure optimal conditions for the critical phase of
drying and curing the harvested plants. Other general improvements
are included in this lease addendum as well as upgrades to the
office space, upgrades to the head-house, and installation of video
surveillance and other security systems.
Construction and Progress
Improvements are currently underway for the
modifications contemplated in the original lease. Perimeter
security fencing, site grading, access gates and the parking lot
are nearing completion. Fire separation between the head house and
post-production has been erected and the construction of the
propagation room is underway. Jared Schrader, President of
Millennium Cannabis commented, “We are very pleased with
the pace of construction at the Marengo, Michigan project. The
funding provided by the lease amendment will enable us to continue
the construction progress and our pathway to revenue. Approvals at
the township level are moving along well and we have received
approval from the Planning Committee and are currently working on
next steps with the State of Michigan and Marengo township for the
final site plan. Licensing is progressing as expected and we hope
to commence cultivation of plants in early 2022.”
Michigan Cannabis Market
Update
For the month of September 2021, the Michigan
Marijuana Regulatory Agency (“MMRA”) reported regulated cannabis
product sales of $161,339,691 (Medical and Adult Use) which
represents 52.4% growth year over year. The price of flower in
Michigan remains strong at $3,064 (MMRA), as impressive sales
growth continues with total sales for 2021 on track to reach $2
billion.
David Lesser, Chairman and CEO of Power
REIT commented, “We are pleased with the progress we have
made since acquiring this property which we believe will be the
largest cannabis cultivation facility in Michigan. The Michigan
market remains very strong, and we are confident that Millennium
Cannabis is putting in place a plan to become a low-cost
large-scale producer of cannabis related products within the
Michigan market. We believe we acquired this property at an
attractive basis that, once operational, should provide Millennium
Cannabis a competitive advantage. This transaction represents the
latest example of Power REIT’s ability to deploy capital on a
highly accretive basis.”
Statement on Sustainability
Power REIT owns real estate related to
infrastructure assets including properties for Controlled
Environment Agriculture facilities with a focus on greenhouses,
Renewable Energy and Transportation.
CEA facilities in the form of greenhouses,
provide an extremely environmentally friendly solution, which
consume approximately 70% less energy than indoor growing
operations that do not benefit from “free” sunlight. greenhouses
use 90% less water than field grown plants, and all of Power REIT’s
greenhouse properties operate without the use of pesticides and
avoid agricultural runoff of fertilizers and pesticides. These
facilities cultivate medical Cannabis, which has been recommended
to help manage a myriad of medical symptoms, including seizures and
spasms, multiple sclerosis, post-traumatic stress disorder,
migraines, arthritis, Parkinson’s disease, and Alzheimer’s.
Renewable Energy assets are
comprised of land and infrastructure associated with utility scale
solar farms. These projects produce power without the use of fossil
fuels thereby lowering carbon emissions. The solar farms produce
approximately 50,000,000 kWh of electricity annually which is
enough to power approximately 4,600 homes on a carbon free
basis.
Transportation assets are
comprised of land associated with a railroad, an environmentally
friendly mode of bulk transportation.
About Power REIT
Power REIT, with a focus on the “Triple Bottom
Line” and a commitment to Profit, Planet and People is a
specialized real estate investment trust (REIT) that owns
sustainable real estate related to infrastructure assets including
properties for Controlled Environment Agriculture, Renewable Energy
and Transportation. Power REIT is actively seeking to expand its
real estate portfolio related to Controlled Environment Agriculture
in the form of greenhouses for the cultivation of food and
cannabis.
Additional information about Power REIT can be
found on its website: www.pwreit.com
About Millennium Investment &
Acquisition Co. Inc.
Millennium Investment and Acquisition Co. Inc.
(ticker: MILC) is an internally managed, non-diversified,
closed-end investment company. During 2020, MILC announced that it
was seeking to de-register as an Investment Company that is
regulated under Investment Company Act of 1940. MILC is currently
seeking an Order from the SEC declaring that it has ceased to be an
Investment Company as it no longer meets the definition of holding
itself out as investing in securities but rather has pivoted to
focus on direct investments in operating businesses.
MILC is currently focusing on opportunities in
sustainable cannabis cultivation in greenhouses and sustainable
production of activated carbon.
Additional information about MILC can be found
on its website: www.millinvestment.com
Cautionary Statement About
Forward-Looking Statements
This document includes forward-looking
statements within the meaning of the U.S. securities laws.
Forward-looking statements are those that predict or describe
future events or trends and that do not relate solely to historical
matters. You can generally identify forward-looking statements as
statements containing the words “believe,” “expect,” “will,”
“anticipate,” “intend,” “estimate,” “project,” “plan,” “assume”,
“seek” or other similar expressions, or negatives of those
expressions, although not all forward-looking statements contain
these identifying words. All statements contained in this document
regarding our future strategy, future operations, future prospects,
the future of our industries and results that might be obtained by
pursuing management’s current or future plans and objectives are
forward-looking statements. You should not place undue reliance on
any forward-looking statements because the matters they describe
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond our control. Our
forward-looking statements are based on the information currently
available to us and speak only as of the date of the filing of this
document. Over time, our actual results, performance, financial
condition or achievements may differ from the anticipated results,
performance, financial condition or achievements that are expressed
or implied by our forward-looking statements, and such differences
may be significant and materially adverse to our security
holders.
Contact:
David H. Lesser, Chairman & CEO |
Mary Jensen, Investor Relations |
dlesser@pwreit.com |
mary@irrealized.com |
212-750-0371 |
310-526-1707 |
|
|
301 Winding RoadOld Bethpage, NY
11804 |
|
www.pwreit.com |
|
Grafico Azioni Power REIT (AMEX:PW)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Power REIT (AMEX:PW)
Storico
Da Lug 2023 a Lug 2024