Power Reit (md) · AMEX:PW
Power Reit (md) — Power REIT — Investor Presentation (October 2020)
25 slides from Power Reit (md)'s investor presentation, October 2020
Slide 1: Sustainable Real Estate for the Cultivation of Cannabis and Food Production
Sustainable Real Estate for the Cultivation of Cannabis and Food Production Investor Presentation October 2020 NYSE (AMEX): PW and PW.PRA
Slide 2: Forward-Looking Statements
Forward-Looking Statements Power REIT (“we” or the “Company”) has filed a registration statement (including a prospectus supplement and accompanying prospectus) with the SEC for the offering referred to in this communication. Before you invest, you should read the prospectus supplement and accompany
Slide 3: Power REIT Value Proposition
ATTRACTIVE FFO MULTIPLE POTENTIAL FOR DRAMATIC GROWTH THROUGH ACCRETIVE ACQUISITIONS POWER REIT VALUE PROVEN REAL ESTATE EXPERTISE AND WELL ALIGNED WITH SHAREHOLDERS PROPOSITION PREDICTABLE CASH FLOW FROM LONG TERM TRIPLE NET LEASED REAL ESTATE SUSTAINABILITY / ESG – TRIPLE BOTTOM LINE INVESTMENT 3
Slide 4: Power REIT Focused Sustainable Real Estate Strategy
Power REIT Focused Sustainable Real Estate Strategy Value Proposition • Controlled Environment Agriculture (CEA) for the cultivation of Cannabis and Food production A Real Estate Investment Trust • 38 acres of land with 193,000 sf of focused on sustainable and non- greenhouse/processing space for me
Slide 5: Creating Shareholder Value Total Shareholder Return
Creating Shareholder Value (TSR 6/3/2019 – 9/18/2020) 9/18/2020: $19.65 6/24/2020: $31.92 PW Announces two Highly TSR of 441% Accretive Acquisitions and PW Reaches All-Time High Expansions – Maine & Colorado 500.00% 5/15/2020: $19.80 PW Acquires Greenhouse 400.00% July 2019 - PW implements Property
Slide 6: Triple Bottom Line Investment Opportunity/ESG
“Triple Bottom Line” Investment Opportunity/ESG Power REIT is investing in sustainable properties with attractive risk adjusted returns and a rapid return on capital Environmental Governance Social • Focus on CEA Greenhouse • Cannabis is considered an • Significant insider ownership Properties: alte
Slide 7: Controlled Environmental Agriculture (CEA)
Benefits of Controlled Environment Agriculture Real Estate Controlled Strategic Investment in CEA properties to support sustainability and Environmental transformation of cultivation of crops through technological Investment innovation Agriculture (CEA) Essential Demand for medicinal cannabis and su
Slide 8: Disciplined Underwriting Strategy
Disciplined Underwriting Strategy Focused on acquiring CEA properties for the sustainable cultivation of cannabis and food REAL ESTATE - Past, present & future cash flow and operating margins - Construction quality, condition, design, and projected capital needs of the facility and property (conditi
Slide 9: Legalization of Cannabis Across the United States of 2019
Legalization of Cannabis Across the United States of 2019 } 74% of the national population has legal access to cannabis; ― 36 states plus Washington DC have medical marijuana laws ― 11 states plus Washington DC have recreational marijuana laws } While the growth of the industry continues to be impac
Slide 10: U.S. Cannabis Market: $30.4 Billion Projected by 2023
U.S. Cannabis Market: $30.4 Billion Projected by 2023 } Total legal sales are estimated to hit between $25.0 and $30.4 billion by 2023 } Cannabis is one of the few markets historically to ever see double-digit growth } The current total annual demand for recreational cannabis (legal + black market)
Slide 11: Detailed Property List
Detailed Property List all data as 5/15/2020 unless otherwise indicated 11
Slide 12: Portfolio
Solar Farm Land Portfolio 19% } ANNUALIZED RENT: $5.0 Million – $3.6 million CEA RENT CEA BREAKDOWN Greenhouses – $1.0 million Solar Farmland Railroad (Cannabis) Property Ground Leases 65% 16% – $0.9 million Railroad } GROSS BOOK VALUE: $40.0 Million Solar Farm Land – $19.2 million CEA 29% CEA – $11
Slide 13: Annualized Base Rent
Annualized Base Rent CANNABIS: Monte Fiore Sweet Dirt $ 1,293,077 10% Regulus Solar Farm 14% Maverick 5 – Cannabis 256,743 Fifth Ace 5% Sherman 6 – Cannabis 375,159 Tulare Solar Farm 3% Salsbury Solar Farm Maverick 14 – Cannabis 354,461 1% JAB – Cannabis 495,834 Fifth Ace 291,963 Monte Fiore 578,634
Slide 14: Rent Payment
Sculpted Rent Schedule for Cannabis Properties Rapid Return of Capital and Sustainable Long-Term Rent Level Rent Payment Deferred Return of Rent Capital Phase Phase Standard Rent With Federal Legalization of Rent Cannabis 6 months 36 months Timeline 20 years 14
Slide 15: Acquisition Case Study Location
Acquisition Case Study Location Value Proposition • Maine is second only to Colorado nationwide in terms of Google search interest per capita related to cannabis Sweet Dirt – Eliot, ME (May 2020) • Tourism driven by lower prices and higher quality • High barriers to entry • Municipal opt in and spee
Slide 16: Acquisition Case Study
Asset Type Cannabis growing facility for medical marijuana Acquisition Case Study Maverick Lot 1 – Southern Colorado 5.2-acre parcel with existing 5,616 sf greenhouse and Asset Size processing space acquired July 2019 >100,000 SF Expansion Opportunity December 2019 announced 10,800 sf expansion fund
Slide 17: A Case Study of A Testimonial by Paul Elias
A Case Study of A Testimonial by Paul Elias Cancer Survivor and Cannabis Business Owner Original Cannabis Growers LLC Success Diagnosed with AML (Acute Myeloid Leukemia) in 1998 and a 50/50 chance of survival, Paul credits overcoming his affliction with a little help from cannabis, How Cancer Create
Slide 18: Solar Land and Railroad Assets
Solar Land and Railroad Assets SustainableAssetswithConsistentCashFlows SOLAR – 600 Acres >107 Megawatts Utility-Scale Solar Farms – 50,000,000 kWh per year powers 4,600 homes – Consistent cash flow generating leases with implicit credit enhancements – Long-term Power Purchase Agreements (PPA’s) wit
Slide 19: Core FFO Per Share
Core FFO Per Share Quarterly Historical and Pro-Forma 0.60 0.50 0.50 0.47 0.40 0.35 0.29 0.30 0.18 0.19 0.20 0.18 0.14 0.14 0.10 - 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/2020 (e) 12/31/2020 (e) 3/31/2021 (e) Consistent Core Funds from Operations (FFO) Per Share } Power REIT’s existing
Slide 20: Core FFO Assumptions
Core FFO Assumptions (Historical and Pro-Forma) Core Funds From Operations 2017A 2018A Q1 2019A Q2 2019E Q3 2019 Q4 2019E 2019E(1) Q1 2020E Q2 2020E Q3 2020E Q4 2020E 2020E (2) 2021E (3) FFO -Existing $ 1,027,099 $ 1,043,633 $ 1,173,958 $ 258,842 $ 258,842 $ 258,842 $258,842 $ 1,035,366 $ 1,035,366
Slide 21: Near Term Strategies to Create Shareholder Value
Near Term Strategies to Create Shareholder Value } Improve Valuation Accretively – Attractive FFO multiple Acquire CEA Real Estate – Strategic investor outreach Improve Assets – Relative business resiliency Valuation } Accretive Acquisitions Focus on – Focused on CEA real estate non dilutive for the
Slide 22: Small Capitalization Increases Growth Potential
Small Capitalization Increases Growth Potential Continue to growth cash flow per share through accretive acquisitions The chart below is for illustrative purposes only ; actual results may vary. Impact of a similar CASH FLOW sized acquisition PER SHARE Mid- sized REIT POWER REIT COMPANY SIZE 22
Slide 23: PW Management Historical Case Study
PW Management Historical Case Study Keystone Price Appreciation $35.00 Keystone Property Trust delivered a 20%+ IRR and 2.9x MOI over six years $30.00 } Formative Transaction - August 1997 – Hudson Bay Partners (David Lesser) sponsored a reverse merger of an $25.00 approximately $100mm portfolio int
Slide 24: Appendix: Disclosure Regarding Non-GAAP Financial Measures
APPENDIX Disclosure Regarding Non-GAAP Financial Measures This presentation contains supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles ("GAAP"), including the measures identified by us as Net Asset Value (“NAV”), Adjusted NAV, Core Fund
Slide 25: Contact Information
.PRA & PW PW EX): Real Estate for E(AM Sustainable Industries NYS | Contact Information 020 Phone: 212-750-0371 er 2 Email: ir@pwreit.com ctob | O tion enta Pres stor Inve