Slide 1: Energized for Growth
Energized for Growth David H. Lesser Chairman and CEO 212 - 750 - 0373 dlesser@pwreit.com Arun Mittal, CFA VP Bus. Development 212 - 750 - 0373 amittal@pwreit.com POWER REIT Power REIT Investor Presentation May 2012
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement This presentation may contain forward - looking statements regarding future events and the future performance of Power REIT (the “ Company ” ) that involve risks and uncertainties that could cause actual results to differ materially from those projected. The Company may use w
Slide 3: Company Snapshot
3 Company Snapshot Our goal is to create shareholder value and grow cash flow and dividends per share through acquisitions ▪ Power REIT is a listed infrastructure real - estate investment trust (AMEX: PW) – Shares Outstanding: 1,623,250 – Share Price (May 3, 2012) 9.52 – Market Cap: ~$16mm – Dividen
Slide 4: Power REIT Investment Highlights
Power REIT Investment Highlights 4 Power REIT is an Innovative Infrastructure REIT Targeting a Large, Attractive Market Massive U.S. infrastructure investment opportunity Superior return profile of infrastructure assets compared to traditional real - estate Attractive opportunity to grow cash flow a
Slide 5: New Growth Business Plan vs Legacy Business Plan
New Growth Business Plan Legacy Business Plan Asset(s): Pittsburgh & West Virginia Railroad Revenue : Fixed rent of $915,000 / annually under 99 - year lease with Norfolk Southern Dividend Growth : None Diversification: Single asset Value Creation: Negative: Shareholder value degraded over time due
Slide 6: Significant Investment Opportunity
6 Significant Investment Opportunity Significant opportunity to invest in energy and transportation real - estate with a focus on renewable energy real - estate Wind Farms - Land, air rights - Towers - Supporting real - estate Solar Farms - Land, air rights - Balance of System - Supporting real - es
Slide 7: Attractive Return Profile
7 Attractive Return Profile We believe energy infrastructure assets offer attractive risk - adjusted returns relative to traditional real - estate ▪ Infrastructure Investment Rationale: – We believe we can acquire infrastructure assets at higher yields than traditional real - estate investments – Un
Slide 8: Substantial Embedded Growth Potential as a Small-Cap REIT
Substantial Embedded Growth Potential as a Small - Cap REIT 8 1. The above financial model illustrates a hypothetical transaction and is intended to describe the value that can be created by Power REIT if it acquires $50 million of its intended assets. Actual results may differ from this example. 2.
Slide 9: Foundation Established in 2011-2012 to Facilitate Growth
Foundation Established in 2011 - 2012 to Facilitate Growth 1967 Pittsburgh & West Virginia Railroad listed on AMEX as the first infrastructure REIT - Received critical IRS ruling that forms the basis of many infrastructure REIT investments 1968 – 2010 Shareholder value destroyed due to fixed revenue
Slide 10: Litigation with Norfolk Southern Corporation (NSC)
Litigation with Norfolk Southern Corporation ( “ NSC ” ) P&WV is seeking to protect it s contractual rights under its lease 1 ▪ Litigation commenced in December 2011 ▪ P&WV is seeking to protect its contractual rights under the lease, including the right to additional payments from Norfolk Southern
Slide 11: Experienced Management Team and Board of Trustees
Experienced Management Team and Board of Trustees 11 David H. Lesser Chairman & Chief Executive Officer ▪ Largest Shareholder ▪ 25+ years of real - estate, REIT and investment banking experience ▪ Previously – Director of KeyStone Property Trust (NYSE: KTR), Senior VP of Crescent Realty, Director in
Slide 12: Power REIT Investment Summary
Power REIT Investment Summary 12 Power REIT is an Innovative Infrastructure REIT Targeting a Large, Attractive Market Massive U.S. infrastructure investment opportunity Superior return profile of infrastructure assets compared to traditional real - estate Attractive opportunity to grow cash flow and