Power REIT (PW): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the complexity and see exactly how Power REIT (PW) makes its money right now, and honestly, it's a fascinating mix of specialized infrastructure. As an analyst who's seen plenty of REIT models, I can tell you PW's business hinges on long-term, triple-net leases across three distinct buckets: the P&WV railroad, solar farm land, and Controlled Environment Agriculture (CEA) space. The core tension you need to grasp is this: while they secure predictable income from assets like the 112 miles of railroad, their revenue stream is extremely concentrated, with two tenants accounting for about 98% of total revenue, all while they manage the fallout from a defaulted Greenhouse Loan, leading to a Total TTM Revenue of roughly \$2.08 million through September 2025. Keep reading; this canvas breaks down exactly how they manage that risk and where their next acquisition focus lies.

Power REIT (PW) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Power REIT's specialized infrastructure model running. These aren't just names on a contract; they represent the revenue backbone for the railroad, solar, and CEA segments.

The railroad segment is anchored by a single, long-term tenant relationship.

For the renewable energy segment, Power REIT partners with developers who build and operate utility-scale solar projects on the REIT's land.

This partnership structure provides highly predictable cash flow, as the tenants have invested significantly more into the infrastructure than the land cost.

• Solar Land Leased: Approximately 447 acres.
• Project Capacity: Leased to an 82 MW utility-scale solar project.
• Annual Output: Approximately 40,000,000 kWh of carbon-free electricity.
• Residential Equivalent: Enough power for approximately 3,500 homes.

The Controlled Environment Agriculture (CEA) operators are the tenants for the greenhouse properties. While Power REIT is actively pursuing new CEA projects, the existing portfolio has faced challenges, leading to lease amendments for financial relief.

Here's what we know about the scale of the CEA portfolio from recent filings, though the exact number of active tenants in late 2025 isn't explicitly stated:

• Portfolio Size (as of August 2022): 22 Controlled Environment Agriculture (CEA) properties.
• Total Square Footage (as of August 2022): More than 2,200,000 square feet.
• Financing Status: The portfolio is secured by a loan that was in default as of the March 2025 10-K.
• Debt Settlement Activity: Net proceeds of $4,787,000 from a Maine asset sale were used to service the Greenhouse Loan.

Power REIT relies on institutional lenders for significant debt financing, especially while managing the defaulted Greenhouse Loan settlement. The overall financial structure reflects this reliance.

The Debt Ratio for Power REIT stood at 0.73 for the quarter ending June 2025. The original Greenhouse Loan facility had an initial availability of $20 million.

Institutional investors maintain a significant stake in Power REIT, though trading activity shows shifts in positions.

Overall, institutional investors held 14.65% of Power REIT's stock as of the latest reported data.

Finance: review the impact of the Q2 2025 gain on extinguishment of debt on the Q3 2025 debt servicing schedule by next Tuesday.

Power REIT (PW) - Canvas Business Model: Key Activities

You're looking at the core engine of Power REIT (PW) operations as of late 2025. The focus is clearly on specialized real estate, primarily Controlled Environment Agriculture (CEA) properties, which are greenhouses, alongside Renewable Energy and Transportation assets like the railroad leased to Norfolk Southern.

Real estate acquisition: Actively seeking accretive acquisitions, primarily in CEA.

• Portfolio includes properties for Controlled Environment Agriculture, Renewable Energy, and Transportation.
• The Q2 2025 revenue breakdown reflects the income stream from these assets: Lease income from direct financing lease was $228,750; Rental income was $236,139.

Asset management: Overseeing triple-net leases across three distinct asset classes.

• The portfolio is managed under triple-net lease structures.
• Total revenue for Q2 2025 was $506,783.
• Core Funds From Operations (Core FFO) available to common shareholders was $407,148 for Q2 2025.

Debt restructuring: Negotiating resolution for the defaulted Greenhouse Loan.

• The need for resolution is underscored by the accumulated deficits standing at $50,780,862 as of June 30, 2025.
• A significant gain on extinguishment of debt was noted in Q2 2025 results.

Capital recycling: Strategic sales of underperforming assets to improve liquidity.

• Total expenses dropped drastically to $1,254,099 in Q2 2025, compared to $19,664,518 in Q2 2024, suggesting expense management or asset-related write-downs were addressed.
• Impairment expense in Q2 2025 was $13,600, significantly lower than $17,449,424 in Q2 2024.

Corporate governance: Internally-managed REIT operations with a lean team.

• The management team includes the CEO, Chairman, CFO, Secretary, and Treasurer, held by David H. Lesser since December 2011.
• The board of directors has an average tenure of 14.0 years.
• One data point suggests the company operates with 2 employees.

Here's the quick math on the operational results tied to these activities for the second quarter ending June 30, 2025:

Power REIT (PW) - Canvas Business Model: Key Resources

You're looking at the core assets that make Power REIT tick. These aren't just line items; they are the physical foundations supporting the company's specialized real estate focus across transportation, energy, and Controlled Environment Agriculture (CEA). Honestly, for a REIT, the physical assets are the business.

The Key Resources are centered around three distinct, long-term asset classes. Here's a breakdown of the hard numbers defining that portfolio as of late 2025, based on the latest available reporting periods.

Specialized Real Estate Portfolio Composition:

• Asset focus on Transportation, Solar Land, and CEA.
• Railroad real estate provides a legacy, infrastructure-based revenue stream.
• Solar land leases offer predictable, long-term cash flow from utility-scale power generation.
• CEA properties target the growing indoor agriculture sector.

The tangible assets that anchor Power REIT's operations are detailed below:

Beyond the real estate, the financial resources are critical for operations and potential near-term moves. You need to know the liquidity position to gauge flexibility.

Financial Resources:

The balance sheet shows the immediate financial capacity:

• Cash and equivalents on hand as of March 31, 2025, totaled $2,033,211.

If you look at the Q3 2025 data, the Cash & Cash Equivalents were reported at $1.99M, so the $2,033,211 figure from the March 31, 2025 filing is the specific data point for that date.

Power REIT (PW) - Canvas Business Model: Value Propositions

You're looking at the core value Power REIT (PW) delivers to its customers, which are primarily infrastructure operators needing specialized, long-term real estate. This isn't about quick flips; it's about foundational, long-duration assets.

Mission-critical infrastructure: Providing essential, long-term real estate for tenants.

Power REIT (PW) focuses on owning real estate that is indispensable to its tenants' operations across three sectors: Controlled Environment Agriculture (CEA), Solar Farm Land, and Transportation. The railroad segment is a prime example of mission-critical support. Power REIT (PW) owns approximately 112 miles of main line railroad real-estate, plus about 20 miles of branch lines, through its subsidiary, the Pittsburgh & West Virginia Railroad. This entire network is leased to Norfolk Southern Corporation. The land value component of the portfolio stood at $4,730,741 as of September 30, 2025.

Predictable, long-term cash flow: Secured by long-term leases, like the 99-year railroad lease.

The structure of the leases is designed for stability. Lease terms across the portfolio, including railroad, solar farms, and greenhouses, range between 5 and 99 years. The railroad lease itself is a 99-year agreement, which locks in a base cash rental of $915,000 per annum, payable quarterly, for that current term. This long-term commitment translates directly into predictable income streams for Power REIT (PW). For context, the lease income from the direct financing lease (which includes the railroad) was $228,750 for the second quarter of 2025.

Here's a quick look at the asset base underpinning this cash flow as of the latest reporting periods:

Sustainable real estate solutions: Leasing land for utility-scale solar power generation.

Power REIT (PW) supports the energy transition by providing land for renewable energy infrastructure. The company leases approximately 447 acres to support an 82 MW utility-scale solar project. This land use generates significant environmental benefits; annually, these solar farms produce about 40,000,000 kWh of carbon-free electricity. That output is enough to power roughly 3,500 homes. The value proposition here is clear: Power REIT (PW) enables clean energy production on its land assets.

Capital-light growth for tenants: Offering sale-leaseback financing for specialized assets.

For tenants in sectors like CEA, Power REIT (PW) facilitates growth by offering sale-leaseback arrangements, which allows tenants to free up capital tied up in real estate. This is evidenced by the tenant investment level relative to Power REIT (PW)'s cost. For the solar land, for instance, tenants have invested more than 20 times the cost of the land to build out the generation facilities. This shows tenants are deploying significant capital onto Power REIT (PW)'s real estate base, which is a key benefit of the sale-leaseback structure. The company's operating cash flow in Q3 2025 was $476.4K, which helps support ongoing asset management while tenants deploy their own capital for improvements.

The value proposition is supported by the nature of the underlying assets:

• Leasing land for solar projects where tenants invested over 20 times the land cost.
• Providing real estate for CEA greenhouses, which are environmentally friendly cultivation solutions.
• Offering long-term leases that secure tenant operations for decades.

Power REIT (PW) - Canvas Business Model: Customer Relationships

You're looking at the core of Power REIT (PW)'s business: locking in long-term revenue streams, which is crucial given the volatility in the Controlled Environment Agriculture (CEA) sector. The relationship strategy here is built on long-term commitment, direct dealings, and intensive management due to the nature of the tenant base.

Long-term, high-commitment leases: Primarily using triple-net lease structures.

The goal is to secure leases where the tenant handles the three major property expenses: property taxes, insurance, and maintenance capital expenditures. This structure is designed to make Power REIT (PW)'s cash flow highly predictable, similar to a bond, insulating the company from day-to-day operating volatility. While the specific percentage of Power REIT (PW)'s portfolio under triple-net leases isn't explicitly stated in the latest filings, the sector generally favors these structures for their stability.

• Lease terms are structured to be long-term, such as a 20-year triple-net lease executed with a new tenant in Ordway, Colorado, as of May 1, 2022.

Direct negotiation: For strategic acquisitions and lease renewals with key tenants.

Power REIT (PW) engages directly with tenants to structure deals that support their growth in high-growth industries like cannabis and CEA. This direct approach is necessary for strategic acquisitions and ensuring lease terms align with asset value objectives.

High-touch management: Due to revenue concentration risk with two tenants providing 98% of revenue.

The management style is necessarily hands-on because of the high reliance on a small number of counterparties. Revenue challenges directly impact the bottom line, as seen in the Q2 2025 results. This necessitates close partnership and oversight.

Restructuring and workout: Active engagement with defaulting tenants in the CEA portfolio.

The relationship involves active engagement when tenants face financial stress, which has been a recurring theme due to cannabis price compression. Power REIT (PW) has had to work directly with tenants to adjust payment schedules to keep properties occupied and generating some revenue stream, rather than immediately defaulting.

• Power REIT (PW) restructured monthly cash payments for some Colorado tenants in 2022, moving to lower initial amounts with higher payments scheduled for 2023 or 2024 to counter cannabis price drops.

Finance: draft 13-week cash view by Friday.

Power REIT (PW) - Canvas Business Model: Channels

You're looking at how Power REIT (PW) connects with its key partners and the investing public as of late 2025. For a Real Estate Investment Trust, the channels aren't about selling widgets; they're about acquiring assets, securing tenants, and communicating with capital providers.

Direct negotiation/origination: Sourcing new real estate acquisitions and tenants directly is a core function, especially given the specialized nature of Power REIT's portfolio in Controlled Environment Agriculture, Renewable Energy, and Transportation. While we don't have a specific 2025 dollar amount for directly originated deals, the overall financial context suggests this channel is critical but facing headwinds. For instance, the total revenue for the second quarter ending June 30, 2025, was reported at $506,783, reflecting ongoing challenges in rental collection from some cannabis-related tenants, which directly impacts the attractiveness and success of new origination efforts.

Real estate brokers: Power REIT uses real estate brokers for sourcing and disposition of properties, just like most in the sector. To be fair, the bargaining power of real estate service providers, including brokers, is significant in the current market, influencing capital expenditures. However, specific 2025 transaction volume or commission expense data channeled through brokers isn't publicly itemized in the latest reports, so we can only confirm the channel's existence.

Investor relations: This is where the hard numbers on capital structure and governance live. Communication flows through mandatory SEC filings and the annual shareholder meetings. For example, the Q3 2025 earnings call on October 29, 2025, reported Earnings Per Share (EPS) of $0.02. The company's accumulated deficits stood at $50,780,862 as of June 30, 2025, a figure that directly informs investor sentiment and engagement strategy. Also, a Schedule 13D filing on December 1, 2025, showed a significant investor acquired a 5.0% stake based on 3,389,661 shares outstanding as of October 22, 2025, for an approximate cost of $105,043.

Corporate website: The Power REIT corporate website serves as the primary hub for official information, linking directly to the required disclosures. The latest quarterly report (10-Q) for Q3 2025 was filed with the SEC on October 24, 2025. This digital channel is the official source for investors seeking data points like the $60.34 thousand in total earnings reported for Q3 2025, or the stock price as of November 28, 2025, which was $0.85 per share.

Here's a quick look at the key financial metrics that these channels communicate to stakeholders:

The reliance on formal SEC filings means that the Investor Relations channel is heavily regulated, ensuring a baseline of transparency, even when direct deal flow metrics are private. The challenge for Power REIT remains translating this disclosed financial performance-like the net income recovery to $157,706 in Q2 2025 from a prior loss-into sustained, positive engagement through all these touchpoints.

• Direct negotiation focuses on specialized CEA and energy assets.
• Broker usage supports sourcing and disposition activities.
• SEC filings provide mandatory data like Q3 2025 EPS of $0.02.
• The corporate website hosts official reports like the Q3 2025 10-Q.
• Investor meetings communicate strategy post-filing deadlines.

Finance: draft 13-week cash view by Friday.

Power REIT (PW) - Canvas Business Model: Customer Segments

Power REIT (PW) maintains a highly concentrated customer base, which is a critical factor in assessing its revenue stability. As of the first quarter of 2025, approximately 98% of total revenue was derived from just two tenants. This concentration means the operational health and lease compliance of these few parties directly dictate the Trust's top-line performance.

The revenue streams Power REIT generates from these segments can be seen in the Q2 2025 figures:

The Trailing Twelve Months (TTM) revenue ending September 30, 2025, was reported at $2.1M.

The specific customer segments Power REIT serves align with its focus on transportation, energy infrastructure, and agriculture:

• Utility-scale solar operators: Seeking long-term land leases for renewable energy projects.
• Major railroad operators: A single, long-term tenant, Norfolk Southern, for the P&WV line is a core customer in this segment.
• Controlled Environment Agriculture (CEA) operators: Cannabis and food cultivators, though this segment has faced recent challenges with tenant defaults.
• Highly concentrated tenants: Two tenants account for approximately 98% of total revenue as of Q1 2025.

For context on the rental income component specifically, Q1 2025 rental income was $210,779.

Power REIT (PW) - Canvas Business Model: Cost Structure

The Cost Structure for Power REIT (PW) is heavily influenced by financing obligations, ongoing property management, and the internal management structure. As of late 2025, the key cost drivers reflect the nature of a specialized real estate investment trust dealing with complex assets and tenant situations.

Interest expense remains a significant outlay. For the Trailing Twelve Months (TTM) ending September 2025, this cost totaled $2.65 million. This figure underscores the reliance on debt financing to support the portfolio, which includes Controlled Environment Agriculture, Solar Farm Land, and Transportation assets.

Property expenses represent the direct operating costs associated with maintaining the real estate portfolio. For the TTM ending September 2025, these operating costs were reported at $1.42 million. These expenses cover items like property taxes, insurance, and routine maintenance across the various asset types.

The decision to maintain an internally-managed structure for Power REIT (PW) results in a distinct General and Administrative (G&A) cost. For the TTM ending September 2025, G&A expenses were $1.28 million. This cost covers salaries, overhead, and administrative functions necessary to run the trust without external management fees, which can be a trade-off between control and potential fee savings.

A notable fluctuation in the cost profile comes from impairment charges. Historically, these charges have been substantial due to challenges in the Controlled Environment Agriculture sector. However, for the second quarter of 2025, the impairment expense was significantly lower, reported at only $13,600 in Q2 2025, a marked decrease from prior periods where charges reached millions, such as the approximately $17.45 million in Q2 2024.

Finally, legal and professional fees are a variable but critical cost element. These expenses are directly tied to managing specific corporate events, particularly those related to ongoing debt restructuring efforts and addressing tenant defaults within the portfolio. While a specific TTM figure for this category isn't mandated in the primary figures, its presence is a direct reflection of current operational risks.

Here is a summary of the key cost components for the TTM ending September 2025, alongside the most recent quarterly impairment data:

You should also note the context around some of these costs:

• The Q2 2025 Net Income was $157,706, a recovery from a significant loss in Q2 2024.
• Total expenses for Q2 2025 dropped to $1,254,099 from $19,664,518 in Q2 2024.
• As of June 30, 2025, accumulated deficits stood at $50,780,862.
• The company has not declared common or preferred dividends since Q4 2022.

Finance: draft 13-week cash view by Friday.

Power REIT (PW) - Canvas Business Model: Revenue Streams

The revenue streams for Power REIT (PW) are primarily derived from its real estate holdings through various lease structures and other miscellaneous income sources.

Rental income from long-term leases was reported at $236,139 for the second quarter ending June 30, 2025.

Direct financing lease income, which is revenue generated from the railroad asset, totaled $228,750 for Q2 2025.

Other income contributed $41,894 to the revenue for the same quarter.

The total revenue for the quarter ending June 30, 2025, was $506,783. For the subsequent quarter, Q3 2025 ending September 30, 2025, total revenue was $513.11K.

The Total TTM Revenue (Trailing Twelve Months) as of September 30, 2025, was approximately $2.08 million. This figure represented a year-over-year decrease of -31.23%.

Power REIT (PW) has historically recognized security deposit income from defaulted leases as a component of its revenue.

Here is a breakdown of the Q2 2025 revenue components:

For context on the scale of these revenue streams, here are some related financial metrics:

• Total TTM Revenue as of September 30, 2025: $2.08 million.
• Annual Revenue for fiscal year 2024: $3.05 million.
• Q3 2025 Revenue: $513.11K.
• Shares Outstanding as of August 1, 2025: 3,389,661 common shares.
• Revenue Per Employee (TTM): $1.04M.

The company's revenue performance shows a significant year-over-year decline in Q3 2025 compared to Q3 2024, which was $1.43 million.