Power Reit (md) · AMEX:PW
Power Reit (md) — Power REIT — Investor Presentation (June 2015)
26 slides from Power Reit (md)'s investor presentation, June 2015
Slide 1: Investor Presentation
Investor Presentation June 2015
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: Table of Contents
TABLE OF CONTENTS Overview Investment Strategy Acquisitions Litigation Corporate Structure & Financial Overview Conclusion 3
Slide 4: Power REIT at a Glance
POWER REIT AT A GLANCE Multiple drivers of value and growth • Power REIT (Ticker: PW) is a real estate investment trust focused on infrastructure and alternative energy assets – Equity Market Capitalization: $8.9 million – Share price: $5.15 as of 6/19/2015 – Estimated NAV per share: $12.17 • Power
Slide 5: Small Capitalization Increases Growth Potential
SMALL CAPITALIZATION INCREASES GROWTH POTENTIAL Significant opportunity to grow cash flow per share through accretive acquisitions Impact of a similar CASH FLOW sized acquisition PER SHARE Pro-Forma Power REIT Mid-sized Pro-Forma Mid-sized REIT POWER Pre-Transaction REIT COMPANY SIZE The chart above
Slide 6: Renewable Energy Opportunities
RENEWABLE ENERGY OPPORTUNITIES Attractive near-term opportunities within renewable energy Solar Opportunity1 – US installed 1.31 GW in Q1 of 2015, which is up 76% from Q1 2014 – U.S. installed 6.2 GW of solar facilities in 2014 – >21 GW of cumulative operating solar capacity in US as of Q1 2015 Wind
Slide 7: Infrastructure Focus
INFRASTRUCTURE FOCUS REIT Opportunity: significant real estate embedded within infrastructure INFRASTRUCTURE REAL ESTATE • Renewable Energy • Location, location, location – Solar Farms – Wind Farms • Long-life assets – Other Renewables: • Hard to replace and/or • Hydro relocate • Geothermal – i.e. c
Slide 8: Timeline – From Railroads to Solar
TIMELINE – FROM RAILROADS TO SOLAR Recently commenced diversifying from a single railroad asset Power REIT Power REIT PWV lease David H. formed and acquires five solar with NSC Lesser joins completes reverse farm properties becomes P&WV board triangular merger (Tulare Country, effective with P&WV CA
Slide 9: Power REIT Corporate Structure
POWER REIT CORPORATE STRUCTURE Power REIT is a holding company and has four wholly-owned subsidiaries POWER REIT Over 2,000 Public Listed on NYSE MKT (ticker PW) Shareholders Pittsburgh & West PW Regulus Solar PW Salisbury Solar Virginia Railroad PW Tulare Solar LLC LLC LLC (“P&WV”) • Fee ownership
Slide 10: Portfolio
PORTFOLIO Railroad Asset Lease Term Location Size Start (years)* NOI ($)** PA/ WV/ OH 112 miles Oct-64 99 915,000 Solar Land Size Lease Term Location Acres (MW) Start (years)* NOI ($) Salisbury, MA 54 5.7 Dec-11 22 75,400 Tulare County, CA 18 4.0 Mar-13 25 29,200 Tulare County, CA 18 4.0 Mar-13 25 2
Slide 11: Solar Land
SOLAR LAND Solar farms property leases provide a reliable cash flow • Solar farms have long term Power Purchase Agreements (“PPA”) to sell all power generated – Counterparties to PPA’s are regulated utilities with strong credit ratings – Utilities are obligated to purchase renewable energy based on
Slide 12: Solar Land
SOLAR LAND 12
Slide 13: P&WV Subsidiary
P&WV SUBSIDIARY • Power REIT’s wholly-owned subsidiary, P&WV, owns 112 miles of railroad track and related real estate – Hard to replace railroad stretching from Western Pennsylvania to Eastern Ohio – P&WV’s property is located within the Marcellus and Utica Shale Regions of Pennsylvania and Ohio –
Slide 14: P&WV Litigation
P&WV LITIGATION • Change in P&WV management in early 2011 • P&WV’s new management evaluated NSC’s compliance with the terms of the Lease and raised concerns to NSC • In response, NSC/WLE commenced litigation in December 2011 seeking declaratory judgment that the Lease is not in default • In response
Slide 15: P&WV Litigation
P&WV LITIGATION • On April 22nd, 2015, the court in the Western District of Pennsylvania granted NSC’s motions for a summary judgment and dismissed all of P&WV’s claims • Trial on remaining NSC claims is scheduled for August 2015 • Management is reviewing prospects for appeal – A negative final ruli
Slide 16: Capital Plan
CAPITAL PLAN Seeking to minimize near-term dilution • Power REIT is seeking to limit near-term dilution to help maximize shareholder value from operations – Minimize issuance of common stock at current prices – Utilize non-dilutive capital (debt, bridge financing, preferred equity, JV capital) – Fun
Slide 17: Core FFO
CORE FFO Management believes Core FFO is a relevant non-GAAP financial measure Q1 2015 Q1 2015 Annualized Core FFO Core FFO Net Income $ (67,462) $ (269,848) Adjustments Litigation Expense 4,440 17,760 Property Acquisition Expense (1,105) (4,420) Stock Based Compensation 53,540 214,160 Finance Expen
Slide 18: Power REIT Consolidated Net Asset Value (NAV)
POWER REIT CONSOLIDATED NET ASSET VALUE (NAV)1 Estimated Adjusted Non-GAAP 31-Mar-15 31-Mar-15 (unaudited) (unaudited) Assets $ $ $/ share HIGHLIGHTS Consolidated Cash 654,381 654,381 0.38 P&WV Railroad 9,150,000 19,393,545 11.20 • Power REIT trades at a Solar Land/ Intangibles 11,503,943 14,713,846
Slide 19: Power REIT Consolidated Net Asset Value (NAV) (continued)
POWER REIT CONSOLIDATED NET ASSET VALUE (NAV) (CONTINUED) Footnote to previous slide NAV and Adjusted NAV are non-GAAP financial measures. See Appendix for disclosure regarding non-GAAP financial measures. Management has adjusted certain of its reported GAAP asset values to provide an indication of
Slide 20: Near-Term Objectives
NEAR-TERM OBJECTIVES Create Shareholder Value Acquire additional Refinance assets on existing debt accretive basis Work to narrow discount to NAV through investor outreach Pittsburgh & West Virginia Railroad (“P&WV”) is a wholly-owned subsidiary of Power REIT 20
Slide 21: Management
MANAGEMENT Thought leadership within infrastructure REIT & renewable energy sector Knowledge- Driven Business Plan Management Alignment - Track Record Significant of Execution Inside Ownership 21
Slide 22: 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 Fu
Slide 23: Contact Us
CONTACT US Contact Information: Telephone | 212.750.0373 Email | ir@pwreit.com Website | www.pwreit.com 23
Slide 24: Appendix 1: Solar Land Acquisition – December 2012
APPENDIX 1: SOLAR LAND ACQUISITION – DECEMBER 2012 Approx. 6MW of solar land located near Boston, MA • Approximately $1.0 million acquisition price Portland with a recent appraisal of $1.3 million 70 miles • 54 acres in Salisbury, MA – Formerly zoned as an industrial park – Located near I-495 and I-
Slide 25: Appendix 2: Solar Land Acquisition – July 2013
APPENDIX 2: SOLAR LAND ACQUISITION – JULY 2013 Approx. 20MW of solar land located near Fresno, California • Approx. $1.55 million to acquire 100 acres leased to utility scale solar projects • Revenue of $157,500 per annum pursuant to leases with a 25 year initial term – Real-estate tax liability cap
Slide 26: Appendix 3: Solar Land Acquisition – April 2014
APPENDIX 3: SOLAR LAND ACQUISITION – APRIL 2014 Approx. 82 MW of solar land located in Kern County, California • Approx. $9.2 million to acquire approximately 450 acres in Kern County (approximately 10 miles from Bakersfield) • Revenue of $735,000 per annum pursuant to leases with a 20 year initial