Power REIT Announces Acquisition and Dividend Declaration

Power REIT Announces Acquisition and Dividend Declaration

Power REIT Announces its First Solar Acquisition and Declaration of $0.10 Per
Share Cash Dividend Payable on January 25, 2013 to Shareholders of Record as
of January 14, 2013

OLD BETHPAGE, N.Y., Jan. 7, 2013 (GLOBE NEWSWIRE) -- via PRWEB - On December
31, 2012, Power REIT (NYSE Mkt: PW) closed on its acquisition of a fee-simple
interest in land beneath one of the largest operational solar farms in New
England. The acquisition represents a key milestone in the company's execution
of its infrastructure focused business plan. The approximately $1 million
acquisition is expected to be immediately accretive to funds from operations
("FFO") per share.

David Lesser, Chairman and CEO, commented: "we are pleased to have completed
our first solar farm property acquisition. The property is a mission-critical
asset for our solar project tenant, which has made a significant investment in
capital improvements on our land. The tenant uses photovoltaic technology that
does not have meaningful technology risk and should lead to predictable power
generation and cash-flow through long-term contracts to sell the power. We
believe Power REIT's investment will generate an attractive risk adjusted rate
of return. This investment is representative of Power REIT's goal of building
shareholder value through accretive acquisitions intended to increase
dividends over time."

In addition to announcing the acquisition, the board of trustees today
declared a dividend of $0.10 per share, payable on January 25, 2013 to
shareholders of record as of January 14, 2013.

Transaction

The transaction consists of a $1.0 million investment in approximately 54
acres of fee-simple land (the "Property") supporting a 5.7MW solar farm in
Salisbury, Massachusetts ("Salisbury Solar Farm"). Salisbury Solar Farm is an
affiliate of a $282 million solar fund that is managed by Capital Dynamics,
Inc., which is a member of the Capital Dynamics group, a $14 billion global
private asset manager with headquarters in Switzerland. Completed in the
summer of 2012, Salisbury Solar Farm is one of the largest operational solar
farms in New England and is currently operating and generating revenue. The
solar project consists of approximately 25,000 solar panels, supporting
equipment and infrastructure, including interconnection to the grid via a
transmission line that runs along the edge of Power REIT's Property. Salisbury
Solar Farm is expected to generate approximately 6,700,000 kWh a year and
serve the needs of approximately 1,000 homes.

Power REIT formed a wholly owned subsidiary, PW Salisbury Solar, LLC ("PWSS")
for the purposes of acquiring the property (PWSS and Power REIT collectively
referred to as "Power REIT"). The Property was acquired subject to the
existing lease agreement (the "Lease") with the Salisbury Solar Farm, which
has a remaining term of approximately twenty-one years with extension options
on mutually agreeable terms. The current annual rent pursuant to the Lease is
$80,800, which is payable quarterly and provides for a 1.0% annual escalation.
Power REIT is responsible for real estate property taxes and the tenant is
responsible for taxes related to the solar project. The transaction price of
$1.0 million includes the assumption of approximately $122,000 of municipal
financing provided by the local town. The assumed debt carries a coupon of
5.0% and has a remaining payment term of nineteen years.

Salisbury Solar Farm sells power pursuant to 20-year power purchase agreements
(PPAs) with three local municipalities: Triton Regional School District
(Moodys: Aa3), city of Newburyport (Moodys: Aa2) and Salisbury (Moodys: Aa3).
These PPAs should generate predictable and reliable revenues to Salisbury
Solar Farm, which provides an attractive ground lease coverage ratio (tenant
revenue / lease payment). Further supporting our investment thesis in the
transaction is the substantial capital investment that Salisbury Solar Farm
has made on the Property, providing the tenant with a strong financial
incentive to pay contracted lease payments pursuant to the Lease.

The Property was previously acquired for the purpose of developing an
industrial park and is located approximately 45 miles northeast of Boston, 20
miles south of Portsmouth, New Hampshire and 70 miles southwest of Portland,
Maine. With its close proximity to urban centers and excellent access to both
I-95 and I-495, we believe this investment will provide Power REIT with
attractive current income and the opportunity for long-term capital
appreciation through potential repowering of the site via installation of
newer solar generation technologies and/or redevelopment opportunities upon
lease termination.

Transaction Financing and Financing Update

In order to complete the acquisition of the Property, Power REIT received an
$800,000 bridge loan ("Bridge Loan") from Hudson Bay Partners, LP, an
affiliate of our Chairman and CEO, David H. Lesser. The Bridge Loan has an
interest rate of 5% for the first six months during which time Power REIT
intends to refinance the Bridge Loan with permanent financing. The company
believes the terms of the Bridge Loan are favorable to Power REIT and
demonstrates a commitment by Mr. Lesser to support Power REIT's business plan.

Power REIT expects to utilize various financing mechanisms to finance new
acquisitions and to re-finance the Bridge Loan, including issuance of common
stock or other equity-like securities such as convertible debt or preferred
equity, debt and UPREIT contribution transactions. In the second quarter of
2012, Power REIT's $100 million shelf offering on Form S-3/A was declared
effective by the Securities and Exchange Commission. The shelf offering
provides Power REIT with flexibility to raise equity to fund its growth
business plans as required.

Acquisition Strategy in 2013

Power REIT intends to continue executing its strategy to become a diversified
infrastructure REIT with a focus on renewable energy assets. Power REIT will
also consider investing in other infrastructure asset classes beyond this
initial focus. The Company expects to acquire assets that are diversified by
asset size, geography and tenants. Power REIT continues to evaluate a
significant pipeline of acquisition candidates. There can be no assurance that
any of these acquisition targets will result in completed transactions.

Dividend Declaration

The board of trustees declared a dividend of $0.10 per share payable on
January 25, 2013 to shareholders of record as of January 14, 2013. The board
of trustees of Power REIT plans to declare quarterly dividends after the end
of each calendar quarter. The company is seeking to grow its dividend per
share over time as additional assets are acquired on an accretive basis. There
can be no assurance however as to the timing of acquisitions or to the timing
or growth in quarterly dividends.

About Power REIT

Power REIT is a NYSE market listed real estate investment trust (ticker: PW)
that is focused on the acquisition of real estate related to infrastructure
assets, with a core focus on renewable energy assets. In addition to renewable
energy, the company is focused on transportation and energy assets. The
company's business plan expands its ownership of its wholly-owned subsidiary,
Pittsburgh & West Virginia Railroad, which owns 112 miles of railroad track,
rights of way and other real estate that is currently leased to Norfolk
Southern Corporation under a long-term lease agreement. Power REIT's
management team has over 40 years of experience within real estate, REITs,
renewable energy and investment banking. Power REIT is actively looking to
expand its portfolio of infrastructure real estate investments through
accretive acquisitions that will enable the company to grow distributions per
share over time.

Forward Looking Statements

This press release may contain include forward-looking statements within the
meaning of the Securities Act of 1933, as amended, and Securities Exchange Act
of 1934, as amended. 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," "would," "should," "project," "plan," "assume" or other similar
expressions, or negatives of those expressions, although not all
forward-looking statements contain these identifying words. All statements
contained in this press release regarding Power REIT's future strategy, future
operations, projected financial position, estimated future revenues, projected
costs, future prospects, the future of the Power REIT's industries and results
that might be obtained by pursuing management's current or future plans and
objectives are forward-looking statements. Over time, Power REIT's actual
results, performance or achievements will likely differ from the anticipated
results, performance or achievements that are expressed or implied by the
Power REIT's forward-looking statements, and such difference might be
significant and materially adverse to Power REIT's security holders.

All forward-looking statements reflect the Power REIT's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance. Furthermore, Power REIT disclaims any obligation to publicly
update or revise any forward-looking statement to reflect changes in
underlying assumptions or factors, of new information, data or methods, future
events or other changes. For a further discussion of these and other factors
that could cause Power REIT's future results to differ materially from any
forward-looking statements, see the section entitled "Risk Factors" in Power
REIT's registration statement on Form S-3/A filed with the Securities and
Exchange Commission (SEC) on May 11, 2012 and other risks described in
documents subsequently filed by Power REIT from time to time with the SEC.

Investor Relations

Please contact Power REIT for further information or for business
opportunities:

Power REIT
301 Winding Road
Old Bethpage, NY 11804
(T) 212-750-0373
(E) ir(at)pwreit(dot)com
(W) http://www.pwreit.com/

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http://www.prweb.com/releases/2013/1/prweb10296109.htm

CONTACT: Power REIT
         Investor Relations
         ir@pwreit.com
         212.750.0373
 
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