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te✅le✅gr✅am.
@Jack_Anthony55
https://finance.yahoo.com/news/7-best-bargain-stocks-buy-155546825.html
7:30 AM ET 12/18/20 | GlobeNewswire
Sets December 28, 2020 as Record Date
Old Bethpage, New York, Dec. 18, 2020 (GLOBE NEWSWIRE) -- Power REIT (NYSE-AMEX: PW and PW.PRA) ("Power REIT" or the "Trust") today announced that it intends to conduct a rights offering (the "Rights Offering"). Power REIT is conducting the Rights Offering to offer existing holders of its Common Shares the ability to participate in providing capital to the Power REIT on a non-dilutive basis. The proceeds are intended to be used primarily to finance acquisitions of real property assets, in particular real estate within the Controlled Environment Agriculture ("CEA") sector, and to fund our subsidiaries. In addition, the proceeds may be used to retire all or a portion of any debt, to redeem any outstanding preferred stock, or for working capital purposes, including the payment of distributions, interest and operating expenses.
Power REIT has established December 28, 2020 at 5:00 PM Eastern Time as the record date (the "Record Date") for the Rights Offering.
Upon commencement of the planned Rights Offering, the Trust will distribute non-transferable rights (the "Rights") to purchase additional shares of Power REIT's common stock to existing Power REIT common stockholders and holders of outstanding Power REIT options. Additionally, holders of Rights may subscribe for additional shares of our Common Shares through an over-subscription privilege.
No rights will be distributed until the final terms of the Rights Offering, including the subscription price and the expiration date for the Rights, have been set forth in a final prospectus supplement that will be filed with the SEC and distributed to stockholders of the Trust's Common Shares as of the Record Date.
A Registration Statement relating to the Rights offering has been filed with the Securities and Exchange Commission but has not yet become effective. The Trust may not accept any offers to purchase Power REIT Common Shares pursuant to the Rights prior to the time the Registration Statement becomes effective.
This Press Release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Adrian Sedlin, Founder and CEO of Canndescent, commented, “We are excited to partner with Power REIT and are already exploring additional pipeline and business opportunities that could be mutually beneficial to us and Power REIT as we both continue to expand our respective businesses.”
Mr. Lesser concluded, “In addition, we believe that our previously announced Rights Offering is a very investor friendly component of our capital plan that should allow shareholders the opportunity to participate in our immediate growth plans. As previously announced, we have extended the closing on the Rights Offering to February 5, 2021. This was in response to the significant interest we have received and to allow as many shareholders as possible to participate. We are optimistic about our acquisition pipeline and hope to announce additional acquisitions in the near future.”
"I spent a good chunk of the quarter doing a ‘deep dive’ on REITs as a potential investment opportunity for Greystone. I came away with the understanding that REITs can have their place within a concentrated portfolio but like most of our investments, ownership would have to be predicated on the right situation with material upside existing outside of just dividend income and inflation-like growth in rental income or capital appreciation.
The most well-run REITs with the best property types and locations typically trade above their net asset value (NAV) and can be difficult to purchase at a discount. Occasionally special situations arise, of which I found 2-3 during the quarter and subsequently purchased one for client accounts. Clients now own Power REIT (PW), a specialized REIT with legacy ownership in railroads and solar farm assets, now focused on the acquisition and ownership of Controlled Environment Agriculture (CEA) properties for use by growers and manufacturers of cannabis. This is an interesting area of property ownership that is ripe for growth as nearly all operators within the industry lack access to traditional sources of capital given the perceived risks surrounding their industry and main crop. This is where PW comes in, serving as a landlord and renovation / construction financing arm for cannabis businesses. To date, Power REIT has acquired ten properties totaling nearly 200,000 sq. feet in the past two years alone. These acquisitions combined with their legacy assets should generate core FFO per share of nearly $2.00 for FY2021, with a large acquisition pipeline in place set to further boost earnings moving forward.
Like most microcaps, Power REIT comes with an embedded discount due to its small size, lack of analyst coverage, and until recently limited investor relations efforts. However, given their phenomenal performance during the past year, massive secular tailwinds, and limited competition, its only a matter of time before continued execution drives the share price higher as the market digest the story and fundamentals. PW currently trades at less than 10x core FFO, a below market multiple, and even cheaper compared to their only publicly traded competitor – Innovative Industrial Properties – which trades at more than 30x core FFO.
I’ve had numerous conversations with CEO David Lesser, who I believe is the right person to be running this business and someone who understands the opportunity in front of him. I like how he thinks about capital allocation, and I came away from our conversations and from my research thinking that PW is in the early stages of growth and the business could potentially be worth multiples of the current price."
Does anyone know what the following mean? Wonder how we can sell the shares in the future if not using our brokerage.
" Issuance of Common Shares:
At the completion of the Rights Offering, we will Common Shares in book-entry form at our Transfer Agent. We will not issue any stock certificates. If you participate in the Rights Offering, you will receive a statement of ownership from our transfer agent, Broadridge Corporate Issuer Solutions, Inc., reflecting the shares of Common Shares that you have purchased in the Rights Offering after the closing of the Rights Offering. "
Based on latest presentation they are doing .18 per quarter and could go up .075 with acquisitions to .255.
What is fair value with FFO running at $1 per share per year?
BTW I participated in the PW secondary offering and was approved the requested additional shares! Hoorah!