Power REIT Announces Results for Second Quarter 2013

Power REIT Announces Results for Second Quarter 2013

  *Core Funds from Operations ("Core FFO") per share up 300% to $0.10 per
    share compared to prior year quarter
  *Revenue up 10% from prior year quarter
  *Acquired additional land in July 2013, increasing recent land purchases
    (all leased to solar projects) to over 150 acres and tenant megawatts to
    over 25MW

("Power REIT" or the "Company"), a real estate investment trust focused on
transportation and energy infrastructure real estate assets, announced its
consolidated financial results for the second quarter of 2013. Compared to the
same quarter in the prior year, revenue increased 10% to $251,000, net income
decreased slightly to ($100,000) from ($98,000) and Core FFO increased to
$172,000 from $43,000. Our definition of Core FFO and a reconciliation of Core
FFO to net income can be found further below.

During the first half of the third quarter 2013, the Company also acquired an
additional 100 acres of fee land leased to 20 megawatts of utility scale solar
projects and refinanced the bridge loan it obtained in December 2012 from a
related party, to help finance another land acquisition, with 10-year term
debt from an unrelated party.

"We are pleased with the progress we have made in executing our business plan
to increase Power REIT's portfolio of high quality infrastructure assets and
create shareholder value," said David H. Lesser, Chairman and Chief Executive
Officer. "We continue to focus on accretive real estate acquisitions with a
primary focus on land and other infrastructure leased to solar, wind and other
operating power projects. Furthermore, Power REIT is committed to implementing
an intelligent capital plan to fund acquisitions with a mix of bridge
financing, term debt and other non-dilutive capital to preserve equity value
upside while using our at-the-market equity offering program to raise equity
in a judicious manner. We continue to expand our transaction pipeline and our
sourcing reach with developers and asset owners and look forward to continued
progress over the rest of the year."

Second Quarter Highlights:

  *Core FFO up 300% to $0.10 per share compared to prior year quarter
  *Revenue up 10% from prior year quarter
  *Acquired additional land in July 2013, increasing recent land purchases
    (all leased to solar projects) to over 150 acres and tenant megawatts to
    over 25MW
  *Our subsidiary, Pittsburgh & West Virginia Railroad, filed a motion to
    supplement its counterclaims in its pending litigation with NSC; potential
    value of new claims exceeds $8 million

Lesser added, "our recent acquisition in July is expected to result in a
pro-forma increase in annualized consolidated revenue of 16% over consolidated
revenue reported in the second quarter of 2013. These new revenues are
expected to start hitting the income statement beginning in the fourth quarter
of 2013, at which time we expect the transaction to become accretive to
shareholders. On a pro-forma basis, the new acquisition increases our
annualized consolidated revenue by 27% and by over 23% on a per share basis
compared to calendar year 2012. In addition, our revenue has become more
diversified, with our Pittsburgh & West Virginia Railroad assets generating
less than 80% of annualized consolidated revenue on a pro-forma basis,
compared to 100% in the 2012 calendar year."

                   Annualized Consolidated Revenue Contribution
                   (in $ thousands)
                   2013 Pro-Forma          2012 Actual
Source of Revenue   $             %          $         %
Railroad Revenue   $915          79%        $915      100%
Solar Land Revenue 247           21%        --        0%
Total Revenue       $1,162        100%       $915      100%

Litigation Update

As previously disclosed, our wholly owned subsidiary, Pittsburgh & West
Virginia Railroad (P&WV) is currently in litigation with its tenant – Norfolk
Southern Corp. ("NSC") – and with NSC's sub-lessee ("WLE").P&WV is seeking to
protect its rights under its long-term lease with NSC. At this point, fact
discovery and expert witness discovery are complete. During the second
quarter, P&WV filed leave with the court to amend its complaint to include
additional claims against NSC and WLE, including claims related to previously
undisclosed dispositions by NSC and WLE of oil, gas and other P&WV property.
The supplemental claims relate to improper oil and gas and other leases by NSC
and WLE that exceed $8 million. If the court approves the amendment to P&WV's
counterclaims, the potential value of all P&WV's claims against NSC and WLE
would exceed $24 million (approximately $14/share), not including any
potential for interest and damages. The parties are awaiting the judge's
ruling related to the inclusion of P&WV's amended claims.The parties have
agreed to a deadline for filing summary judgment motions of 30 days from when
the court rules on P&WV's motion. P&WV remains cautiously optimistic on the
status of the litigation.

Supplemental Financial Information and Updated Investor Presentation

Further details regarding Power REIT's consolidated results of operations and
financial statements are contained in the Company's quarterly report on Form
10-Q filed with the Securities and Exchange Commission, which can be viewed at
the Company's website at http://www.pwreit.com under the Investor Relations
section and on the SEC's website.The Company has also posted an updated
shareholder presentation under Shareholder Presentations.

About Power REIT

Power REIT is a real estate investment trust focused on the acquisition of
real estate related to infrastructure assets, with a core focus on renewable
energy assets. Power REIT is actively seeking to expand its real estate
portfolio within the renewable energy sector and is pursuing investment
opportunities within solar, wind, hydroelectric, geothermal, transmission and
other infrastructure projects that qualify for REIT ownership.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning
of the Securities Act of 1933, as amended, and the 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 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, financial condition or achievements may differ from the
anticipated results, performance, financial condition or achievements that are
expressed or implied by Power REIT's forward-looking statements, and such
differences may be significant and materially adverse to Power REIT's security

All forward-looking statements reflect 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 statements to reflect changes in
underlying assumptions or factors, new information, data or methods, future
events or other changes.For a further discussion of factors that could cause
Power REIT's future results or financial condition to differ materially from
any forward-looking statements, see the sections entitled "Risk Factors" in
Power REIT's registration statements and quarterly and annual reports as filed
by Power REIT from time to time with the Securities and Exchange Commission.

Non-GAAP Financial Measures

This release contains supplemental financial measures that are not calculated
pursuant to U.S. generally accepted accounting principles ("GAAP"), including
the measure identified by us as Core Funds From Operations ("Core
FFO").Following are a definition of this measure, an explanation as to why we
present it and a reconciliation of it to the most directly comparable GAAP
financial measure.

Core FFO: Management believes that Core FFO is a useful measure of the
Company's operating performance.Management believes that alternative measures
of performance, such as net income computed under GAAP, or Funds From
Operations computed in accordance with the definition used by the National
Association of Real Estate Investment Trusts ("NAREIT"), include certain
financial items that are not indicative of the results provided by the
Company's asset portfolio and inappropriately affect the comparability of the
Company's period-over-period performance. These items include, but are not
limited to, non-recurring expenses, such as those incurred in connection with
litigation, and certain non-cash expenses, including non-cash equity
compensation expense. Therefore, management uses Core FFO and defines it as
net income excluding such items.Management believes that, for the foregoing
reasons, these adjustments to net income are appropriate in determining Core
FFO. The Company believes that Core FFO is a useful supplemental measure for
the investing community to employ in comparing the Company to other REITs, as
many REITs provide some form of adjusted or modified FFO, and in analyzing
changes in the Company's performance over time. Readers are cautioned that
other REITs may use different adjustments to their GAAP financial measures,
and that as a result the Company's Core FFO may not be comparable to the FFO
measures used by other REITs or to other non-GAAP or GAAP financial measures
used by REITs or other companies.

Power REIT and Subsidiaries
(in $ thousands, except per share data)
                                      Three Months Ended  Six Months Ended
                                      June 30,            June 30,
                                      2013      2012      2013      2012
Interest income from capital lease -  $229      $229      $458      $458
Rental revenue                        22        --        45        --
TOTAL REVENUE                          251       229       502       458
General and administrative            96        186       203       284
Property tax                          2         --        5         --
Interest                              12        --        24        --
Litigation                            241       141       481       224
TOTAL EXPENSES                         351       327       713       508
NET LOSS                               (100)     (98)      (211)     (51)
Earnings per common share:                                        
Basic                                 $(0.06)   $(0.06)   $(0.13)   $(0.03)
Assuming dilution                      (0.06)    (0.06)    (0.13)    (0.03)
Weighted average number ofshares                                 
Basic share count                      1,635,965 1,623,250 1,629,643 1,623,250
Diluted share count                    1,682,019 1,623,250 1,686,279 1,623,250
Cash dividend per common share         --        $0.10     $0.10     $0.20

Power REIT and Subsidiaries
(in $ thousands, except per share data)
                                                     (Unaudited) (Audited)
                                                     June 30,    December 31,
                                                     2013        2012
Land                                                  $1,056      $1,056
Net investment in capital lease – railroad            9,150       9,150
Total real estate assets                             10,206      10,206
Cash and cash equivalents                             382         366
Other receivables                                     --         11
Deposits                                              5           --
Prepaid expenses                                      38          6
Other assets                                          115         49
Total assets                                         $10,746     $10,637
LIABILITIES AND EQUITY                                           
Deferred revenue                                      $10         $14
Accounts payable                                      544         341
Accrued interest                                      23          --
Current portion of long-term debt                     6           12
Long-term debt, related party                         800         800
Long-term debt                                        109         115
common shares, $0.001 par value; 100,000,000                    
authorized; 1,676,955 and 1,653,250 issued and                  
as of June 30, 2013 and December 31, 2012            10,390     10,113
Retained earnings                                    (1,135)     (759)
Total equity                                          9,255       9,354
Total liabilities and equity                          $10,746     $10,637

(in $ thousands, except per share data)
                                                             Six Months Ended
                                                             June 30,
                                                             2013     2012
CASH FLOWS FROM OPERATING ACTIVITIES                                  
Net Loss                                                     $(211)   $(51)
Adjustments to reconcile net loss to net cash used in                 
operating activities:
Decrease in other receivables                                11       --
Increase in prepaid assets                                   (32)     (98)
Increase in deposits                                         (5)      (40)
Increase in other assets                                     (67)     --
Decrease in deferred revenue                                 (4)      --
Increase in accrued interest                                 22       --
Increase in accounts payable                                 203      92
Stock-based compensation                                     57       --
CASH FLOWS USED IN OPERATING ACTIVITIES                       (26)     (97)
CASH FLOWS USED IN FINANCING ACTIVITIES                               
Repayments of debt                                           (12)     --
Net Proceeds from equity issuance                           219      --
Dividends paid                                               (165)    (162)
Net Increase (Decrease) in Cash and Cash Equivalents          16       (259)
Cash and cash equivalents, beginning of period                366      982
Cash and cash equivalents, end of period                      $382     $723

Power REIT and Subsidiaries
(in $ thousands, except per share data)
                                   Three Months Ended Six Months Ended
                                   June 30,           June 30,
                                   2013      2012     2013     2012
CORE FFO                                                     
Net Loss Attributable to Power REIT $(100)    $(98)    $(211)   $(51)
Litigation Expenses                 241       141      481      224
Non-cash Compensation Expense       31        --       57       --
Core FFO                            172       43       327      174
Core FFO Per Share                                           
Basic                               $0.10     $0.03    $0.20    $0.11
Diluted                             $0.10     $0.03    $0.19    $0.11

         301 Winding Road
         Old Bethpage, NY 11804

Power REIT Logo
Press spacebar to pause and continue. Press esc to stop.