UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.01 – Completion of Acquisition or Disposition of Assets
On January 6, 2023, a wholly owned subsidiary of Power REIT sold its interest in five ground leases related to utility scale solar farms located in Tulare County, California for gross proceeds of $2.5 million. The purchaser is an unaffiliated third party and the price was established based on an arm’s length negotiation. The properties were acquired by Power REIT in 2013 for $1,550,000.
The sale of the Tulare solar ground leases is part of a strategic review by Power REIT as it continues to evaluate alternatives to enhance liquidity and improve opportunities for the Trust. Power REIT has shifted its to Controlled Environment Agriculture in the form of greenhouses as a technology based real estate opportunity. Power REIT has significant exposure to cannabis cultivation related tenants. The market for cannabis at the wholesale level in many markets across the United States has gone through a dramatic change which has put significant pressure on a number of our tenants. We continue to work through tenant issues and are exploring options intended to create shareholder value including, but not limited to, additional asset sales.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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POWER REIT | |
| Date: January 9, 2023 | By | /s/ David H. Lesser |
David H. Lesser Chairman of the Board and Chief Executive Officer | ||