Recent developments highlight share price movements and ongoing portfolio management efforts.

• Power REIT shares crossed below the 200-day moving average as of July 30, 2026, indicating recent share price weakness [N1].
• The company has been actively managing its portfolio through sales, leasing efforts, and capital raising to address liquidity and operational challenges [S1][S2].
• Power REIT has been recognized in prior years as a promising REIT stock and experienced share price gains approaching 52-week highs in 2021 [N2][N4][N5].

Power REIT's business strategy to monetize underperforming assets, reduce debt, and improve liquidity could enhance operational stability. The company's ownership of railroad infrastructure and utility-scale solar farm land provides exposure to essential infrastructure sectors with potential for steady lease income. The ongoing efforts to lease and sell vacant greenhouse properties, combined with selective capital raising, may improve cash flow and balance sheet health. The Trust's exploration of strategic alternatives, including non-real estate investments, could diversify revenue sources and reduce concentration risk. The company's recent net income and cash position improvements indicate some operational progress. Positive market recognition as a promising REIT stock and share price movements near 52-week highs in prior years reflect investor interest in its niche portfolio [N2][N4][N5].

The Greenhouse Portfolio's poor performance, significant vacancy, and tenant defaults have led to loan defaults, foreclosure settlements, and substantial write-offs, negatively impacting financial results and liquidity. The company's rental income concentration among two tenants exposes it to significant risk if either defaults or reduces payments. Material weaknesses in internal controls related to complex accounting transactions raise concerns about financial reporting reliability. The Trust carries substantial debt and preferred stock obligations with cumulative unpaid dividends, limiting financial flexibility and increasing default risk. Low liquidity ratios and an accumulated deficit of over $52 million highlight financial strain. The company's ability to raise capital is constrained by market capitalization and regulatory limits, potentially restricting access to needed funds. The distressed real estate market environment and ongoing operational challenges may continue to pressure results and shareholder value [S2].

Power REIT's moat is primarily derived from its ownership of specialized real estate assets in niche sectors such as transportation infrastructure (railroad) and utility-scale solar power land leases, which require significant capital and regulatory approvals to replicate. The company's portfolio includes a substantial railroad infrastructure segment and solar farm land with long-term leases, providing stable income streams. However, the Greenhouse Portfolio has underperformed, reducing overall portfolio quality. The company's internally-managed structure and ownership through special purpose subsidiaries allow operational control and financing flexibility. Nonetheless, the concentration of rental income among few tenants and the challenges in the CEA sector limit the strength of the moat. The company's ability to monetize and reposition assets amid a distressed real estate market may provide some competitive advantage in capital recycling and portfolio optimization.

• Concentration Risk: Rental income is highly concentrated with 96% derived from two tenants, increasing exposure to tenant default or financial difficulties.
• Financial and Liquidity Risk: The company has substantial debt and preferred stock with cumulative unpaid dividends, low liquidity ratios, and an accumulated deficit, which may limit operational flexibility and increase default risk.
• Operational Risk in Greenhouse Portfolio: Significant vacancy and tenant defaults in the Greenhouse Portfolio have led to loan defaults, foreclosure settlements, and asset write-offs, impacting cash flow and financial condition.
• Internal Control Weaknesses: Material weaknesses in internal controls related to accounting for complex transactions remain unremediated, potentially affecting financial reporting accuracy and investor confidence.
• Market and Economic Risks: The real estate market is experiencing distress due to economic downturns, rising interest rates, and shifting demand, which may affect asset values and leasing opportunities.

• Power REIT is a Maryland-domiciled, internally-managed real estate investment trust (REIT) owning real estate assets related to transportation, energy infrastructure, and Controlled Environment Agriculture (CEA) in the U.S.
• The Trust owns assets through 19 wholly-owned special purpose subsidiaries formed to hold real estate assets, obtain financing, and generate lease revenue.
• As of December 31, 2025, assets included approximately 112 miles of railroad infrastructure owned by subsidiary Pittsburgh & West Virginia Railroad (P&WV), about 447 acres of land leased to a utility scale solar power project with 82 MW capacity, and about 82 acres with 357,000 square feet of greenhouse properties (Greenhouse Portfolio).
• The Greenhouse Portfolio, focused on cannabis and food cultivation, has experienced significant vacancy and poor performance, leading to efforts to monetize these assets through sales and re-leasing.
• A loan secured by most of the Greenhouse Portfolio was in default; in April 2025, Power REIT settled with the lender by providing deeds-in-lieu of foreclosure for Michigan and Nebraska properties, resulting in a write-off of approximately $16.9 million for those properties and $18.0 million for the loan balance, and a non-cash gain of about $1.1 million.
• The Trust continues to seek value from retained Greenhouse Portfolio assets by leasing and selling properties.
• The real estate market is in transition with distressed properties due to economic downturns, shifting demand post-COVID, rising interest rates, and mortgage defaults, which Power REIT views as potential opportunities.
• The Trust is exploring strategic alternatives including non-real estate investments and plans to selectively raise capital via debt or equity to improve liquidity.
• Power REIT's business strategy focuses on maximizing long-term shareholder value by optimizing rental income, cash flows, net operating income, funds from operations, and property values.
• The company has been selling non-core and underperforming properties and providing seller financing to buyers.
• As of June 30, 2026, Power REIT reported cash and cash equivalents of approximately $3.15 million, net income of $435,548 for Q2 2026, and basic and diluted EPS of $0.74.
• Liquidity ratios as of June 30, 2026, include a current ratio of 0.01 and a cash ratio of 0.17, indicating low short-term liquidity relative to current liabilities.
• The Trust had a net loss attributable to common shareholders of approximately $784,000 for the six months ended June 30, 2026, and an accumulated deficit of about $52.3 million as of that date.
• Rental income is concentrated, with 96% from two tenants (NSC and Regulus Solar, LLC) representing 51% and 45% of rental income respectively, exposing the company to concentration risk.
• The Trust has substantial debt and preferred shares outstanding with significant liquidation preference, including approximately $19.7 million in debt and $8.5 million par value of Series A Preferred Stock with cumulative unpaid dividends of about $2.45 million as of June 30, 2026.
• The company has identified material weaknesses in internal controls related to accounting for complex transactions, specifically classification of Series A Preferred Stock, which remain unremediated as of June 30, 2026.
• Power REIT's subsidiaries have loans secured by assets, including a $5.8 million loan for PW Regulus Solar, LLC and a $13.9 million loan for Pittsburgh & West Virginia Railroad, both non-recourse to the parent Trust.
• The company has a sales agreement with A.G.P./Alliance Global Partners for an 'at the market' offering of common shares, but sales are limited by SEC and NYSE American rules and market capitalization thresholds.
• Recent news highlights include the company's shares crossing below the 200-day moving average as of July 30, 2026, and prior coverage identifying Power REIT as a promising REIT stock and noting share price movements approaching 52-week highs in 2021.
• Power REIT has been actively managing its portfolio through sales, leasing efforts, and capital raising to address liquidity and operational challenges.