Power REIT (PW) 10-Q 11 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	11-May-15
Document And Entity Information
Entity Registrant Name	Power REIT
Entity Central Index Key	1532619
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,731,788
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONSOLIDATED_BALANCE_SHEET_Una

CONSOLIDATED BALANCE SHEET (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets
Land	$6,788,067	$6,788,067
Net Investment in Capital Lease - Railroad	9,150,000	9,150,000
Total real estate assets	15,938,067	15,938,067
Cash and Cash Equivalents	641,748	654,381
Other Receivables	158,553	1,054
Prepaid Expenses	76,774	13,576
Intangible assets, net of accumulated amortization	4,715,876	4,775,161
Other Assets	1,057,676	957,231
TOTAL ASSETS	22,588,694	22,339,470
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred Revenue	369,024	25,582
Accounts Payable	453,537	572,591
Accounts payable, related party	580,639	641,628
Accrued Interest	119,238	46,873
Current portion of long-term debt	199,015	198,709
Long term debt, related party	0	1,650,000
Current debt, related party	1,650,000	0
Other long-term debt	7,432,591	7,519,413
Interest Rate Swap	711,906	528,040
TOTAL LIABILITIES	11,515,950	11,182,836
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock Par Value $25.00 (175,000 shares authorized; 144,636 issued and outstanding as of March 31, 2015 and December 31, 2014)	3,492,149	3,492,149
Commitments and Contingencies
Common Shares, $0.001 par value (100,000,000 shares authorized; 1,731,788 and 1,731,788 shares issued and outstanding as of March 31, 2015 and December 31, 2014)	1,732	1,732
Additional paid-in capital	10,869,429	10,815,889
Accumulated deficit	-3,290,566	-3,153,136
Total Equity	7,580,595	7,664,485
TOTAL LIABILITIES AND EQUITY	$22,588,694	$22,339,470

CONSOLIDATED_BALANCE_SHEET_Par

CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred Stock Par Value	$25	$25
Preferred Stock Authorized	175,000	175,000
Preferred Stock Issued	144,636	144,636
Preferred Stock Outstanding	144,636	144,636
Common Stock Par Value	$0.00	$0.00
Common Stock Authorized	100,000,000	100,000,000
Common Stock Issued	1,731,788	1,731,788
Common Stock Outstanding	1,731,788	1,731,788

CONSOLIDATED_INCOME_STATEMENT_

CONSOLIDATED INCOME STATEMENT (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
REVENUE
Lease income from capital lease - railroad, net	$228,750	$228,750
Rental income	262,008	69,304
Interest income	11	42
TOTAL REVENUE	490,769	298,096
EXPENSES
Amortization of intangible assets	59,285	2,413
General and administrative	53,613	41,785
Stock-based compensation	53,540	21,770
Property Tax	5,462	6,600
Property acquisition expenses	-1,105	4,212
Litigation expenses (see note 8)	4,440	112,712
Interest expense	199,130	50,629
Unrealized loss on interest rate swap	183,866	0
TOTAL EXPENSES	558,231	240,121
NET LOSS	-67,462	57,975
Preferred Stock Dividends	69,968	0
NET LOSS ATTRIBUTABLE TO COMMON SHARES	($137,430)	$57,975
Loss per Common Share:
Basic	($0.08)	$0.03
Diluted	($0.08)	$0.03
Weighted Average Number of Shares Outstanding:
Basic	1,731,788	1,674,733
Diluted	1,731,788	1,688,080
Cash dividend per Series A Preferred Share	$0.48	$0

CONSOLIDATED_STATEMENT_OF_CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	($67,462)	$57,975
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of intangible assets	59,285	2,413
Change in unrealized loss on interest rate swap	183,866	0
Amortization of debt costs	62,502	0
Stock-based compensation	53,540	21,770
(Increase) decrease in other receivables	-157,500	6,164
(Increase) decrease in prepaid expense	-63,199	-61,458
Increase in Other Assets	0	-73,114
Increase (decrease) in deferred revenue	-162,946	144,309
Increase in Prepaid Rent	343,442	0
Increase (decrease) in accounts payable	-114,424	241,230
Increase (decrease) in accrued interest	6,747	34,684
Net cash provided by (used in) operating activities	143,851	373,973
Financing Activities
Principal payment on long-term debt	-86,516	-11,851
Net proceeds from issuance of preferred stock	0	2,645,000
Cash dividends paid on preferred stock	-69,968	0
Net cash provided by financing activities	-156,484	2,633,149
Net increase (decrease) in cash and cash equivalents	-12,633	3,007,122
Cash and cash equivalents, beginning of period	654,381	78,000
Cash and cash equivalents, end of period	641,748	3,085,000
Suplemental disclosure of cash flow information:
Interest paid	$56,995	$5,284

1_GENERAL_INFORMATION

1. GENERAL INFORMATION	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
General Information	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements.  In the opinion of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth herein.  All such adjustments are of a normal recurring nature.  Results for interim periods are not necessarily indicative of results to be expected for a full year.
	These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes included in our latest Annual Report on Form 10-K filed with the SEC on March 31, 2015.
	Power REIT (the “Registrant” or the “Trust”, and together with its consolidated subsidiaries, “we”, “us”, the “Company” or “Power REIT”, unless the context requires otherwise) is a Maryland-domiciled real estate investment trust (a “REIT”) that holds, develops, acquires and manages real estate assets related to transportation and energy infrastructure in the United States. Within the transportation and energy infrastructure sectors, Power REIT is focused on making new acquisitions of real estate that are or will be leased to renewable energy generation projects, such as utility-scale solar farms and wind farms, that have low or minimal technology risk.
	The Trust is structured as a holding company and owns its assets through five wholly-owned, special purpose subsidiaries, with one subsidiary owning another subsidiary, that have been formed in order to hold real estate assets, obtain financing and generate lease revenue. As of March 31, 2015, the Trust’s assets consisted of approximately 112 miles of railroad infrastructure and related real estate which is owned by its subsidiary Pittsburgh & West Virginia Railroad (“P&WV”) and approximately 601 acres of fee simple land leased to a number of solar power generating projects with an aggregate generating capacity of approximately 108 Megawatts (“MW”).  Power REIT is actively seeking to expand its portfolio of real estate related to renewable energy generation projects and is pursuing investment opportunities that qualify for REIT ownership within solar, wind, hydroelectric, geothermal, transmission and other infrastructure projects.
	P&WV is a business trust organized under the laws of Pennsylvania for the purpose of owning railroad assets that are currently leased to Norfolk Southern Railway (“NSC”) pursuant to a 99-year lease that became effective in 1964 and is subject to an unlimited number of 99-year renewal periods under the same terms and conditions, including annual rent payments, at the option of NSC (the “Railroad Lease”).  P&WV’s assets consist of a railroad line of approximately 112 miles in length, extending through Connellsville, Washington and Allegheny Counties in the Commonwealth of Pennsylvania, through Brooke County in the State of West Virginia and through Jefferson and Harrison Counties in the State of Ohio, to Pittsburgh Junction in Harrison County, Ohio.  There are also branch lines that total approximately 20 miles in length located in Washington and Allegheny Counties in Pennsylvania and Brooke County in West Virginia.  NSC pays P&WV base cash rent of $915,000 per year, payable in quarterly installments.  In addition, Power REIT believes NSC is responsible for additional rent and other amounts, which is currently the subject of litigation.  (See Note 5).
	PW Salisbury Solar, LLC (“PWSS”) is a Massachusetts limited liability company that owns approximately 54 acres of land located in Salisbury, Massachusetts that is leased to a 5.7 MW operational solar farm.  Pursuant to the lease agreement, PWSS’ tenant is required to pay PWSS rent of $80,800 cash for the year December 1, 2012 to November 30, 2013, with a 1.0% escalation in each corresponding year thereafter. Rent is payable quarterly in advance and is recorded by Power REIT for accounting purposes on a straight-line basis. Rent for the year ended December 31, 2014 was $89,494.  For each of the three months ended March 31, 2015 and 2014 rent has been recorded in the amount of $22,374. At the end of the 22-year lease period, which commenced on December 1, 2011 (prior to being assumed by PWSS), the tenant has certain renewal options, with terms to be mutually agreed upon.
	PW Tulare Solar, LLC (“PWTS”) is a California limited liability company that owns approximately 100 acres of land leased to five solar farms, with an aggregate generating capacity of approximately 20MW, located near Fresno, California. The solar farm tenants pay PWTS an aggregate annual rent of $157,500 cash, payable in advance and without escalation during the 25-year term of the leases. At the end of the 25-year term, which commenced in March 2013 (prior to being assumed by PWTS), the tenants have certain renewal options, with terms to be mutually agreed upon. For the year ended December 31, 2014, PPWTS recorded rental income of $167,603.  For the three months ended March 31, 2015 and 2014, PWTS recorded rental income of $38,836 and $46,030, respectively.
	PW Regulus Solar, LLC (“PWRS”) is a California limited liability company that owns approximately 447 acres of land leased to a solar project with an aggregate generating capacity of approximately 82 Megawatts that is under construction and is in Kern County, California near Bakersfield.  PWRS’s lease was structured to provide it with initial quarterly rental payments until the solar farm achieves commercial operations which occurred on November 11, 2014. During the primary term of the lease which extends for 20 years from achieving commercial operations, PWRS will receive an initial annual rent of approximately $735,000 per annum which grows at 1% per annum.  The lease is a “triple net” lease with all expenses to be paid by the tenant. At the end of the primary term of the lease, the tenants have certain renewal options with rent calculated as the greater of a minimum stated rental amount or a percentage of the total project-level gross revenue. The acquisition price, not including transaction and closing costs, was approximately $9.2 million.  For the year ended December 31, 2014, PWRS recorded rental income of approximately $571,000.  For the three months ended March 31, 2015 and 2014, PWRS recorded rental income of $200,779 and $0 respectively.
	Power REIT Financo, LLC (“Financo”), a wholly-owned, direct subsidiary of Power REIT, entered into a credit facility in April 2014 with a major institutional lender (the “Credit Facility”).  Financo is the owner of PWRS.
	During the quarter ended March 31, 2015, the Trust paid a quarterly dividend of approximately $70,000 ($0.48375 per share) on Power REIT’s 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock.
	The Trust was formed as part of a reorganization and reverse triangular merger of P&WV that closed on December 2, 2011.  P&WV survived the reorganization as a wholly-owned subsidiary of the Trust.
	The Trust has elected to be treated for tax purposes as a REIT, which means that it is exempt from U.S. federal income tax if a sufficient portion of its annual income is distributed to its shareholders, and if certain other requirements are met. In order for the Trust to maintain its REIT qualification, at least 90% of its ordinary taxable annual income must be distributed to shareholders.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
2. Summary of Significant Accounting Policies	Basis of Presentation
	These consolidated financial statements have been prepared in accordance with GAAP.
	Principles of Consolidation
	The accompanying consolidated financial statements include Power REIT and its wholly-owned subsidiaries.  All intercompany balances have been eliminated in consolidation.
	Reclassifications
	Certain amounts in the 2014 consolidated financial statements have been reclassified to conform to the 2015 presentation.
	Derivative Financial Instruments
	The Trust uses derivative financial instruments to reduce interest rate risks.  Derivatives are measured at fair value and recognized as either assets or liabilities in the Trust’s Consolidated Balance Sheets.  Changes in the fair value of these instruments are reported in earnings or other comprehensive income depending on the use of the derivatives and whether it qualifies for hedge accounting.  The accounting for gains and losses associated with changes in the fair value of the derivative and the effect on the Consolidated Financial Statements will depend on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value of cash flows of the asset or liability hedged.  The Trust does not hold or issue derivative financial instruments for trading purposes; however, the Trust has not performed the activities necessary to qualify its interest rate swap for hedge accounting.  As a result, changes in the fair value of these instruments are reported in earnings.
	Fair Value
	Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Trust measures its financial assets and liabilities in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
	o	Level 1 – valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow a company to sell its ownership interest back at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities or funds.
	o	Level 2 – valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and certain corporate obligations. Valuations are usually obtained from third party pricing services for identical or comparable assets or liabilities.
	o	Level 3 – valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.
	In determining fair value, the Trust utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk.
	The carrying amounts of Power REIT’s financial instruments, including cash and cash equivalents, deposits, and accounts payable approximate fair value because of their relatively short maturity.  Financial assets and liabilities reported or disclosed at fair value were as follows:
	31-Mar-15
	($ in thousands)
			Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents(1)		$	642	$	-	$	-	$	642
	Total at fair value		$	642	$	-	$	-	$	642
	Liabilities
	Current debt, related party(2)		$	-	$	1,650	$	-	$	1,650
	Long-term debt(3)			-		7,433		-		7,433
	Interest rate swap(4)			-		712		-		712
	Total at fair value		$	-	$	9,795	$	-	$	9,795
	(1) Comprises money market funds, which are included in Cash & Cash Equivalents in the accompanying consolidated balance sheet.
	(2) Comprises amount borrowed by PWTS from Hudson Bay Partners, LP, a wholly owned affiliate of David H. Lesser, to fund its acquisition of property in July 2013.
	(3) Comprises amounts borrowed and assumed by PWSS in connection with its acquisition of property in December 2012 and PWRS in connection with its acquisition of property in April 2014.
	(4) The Trust has entered into swap agreements to hedge interest rate exposure on floating rate debt associated with its Credit Facility. The interest Rate swap is designated as a Level 2 instrument. The fair value of the interest rate swap is determined using observable market inputs such as current interest rates and considered non-performance risk of the Trust and its counterparties. The liability indicates that interest rates have declined since the inception of the swap which represents an unrealized loss at March 31, 2015
	For financial assets that utilize Level 1 inputs, the Trust utilizes both direct and indirect observable price quotes, including quoted market prices (Level 1 inputs).

3_LONGTERM_DEBT

3. LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
3. Long-term Debt	On April 14, 2014, Power REIT Financo, LLC (“Financo”), a wholly owned, direct subsidiary of Power REIT, entered into a credit facility with a major institutional lender (the “Credit Facility”). As part of the closing of the acquisition by PWRS, approximately $6,891,000 was drawn on the Credit Facility including approximately $173,000 drawn to pay for bank fees.  The credit facility is intended to fund additional acquisitions.  The Credit Facility has a five-year term and carries an interest rate of 350 basis points over LIBOR during the first three years, and 400 basis points over LIBOR during the remainder of the term. Power REIT has entered into interest rate hedging strategies designed to minimize the risks associated with any refinancing and with interest rate swings.  The outstanding balance of the Credit facility as of March 31, 2015 is approximately $6,695,000.
	On July 12, 2013, PWTS borrowed $1,650,000 from Hudson Bay Partners, L.P. (“HBP”), a wholly-owned affiliate of David H. Lesser, our Chairman and CEO, in the form of an A note and a B Note (the “Notes”), to fund the acquisition of property located near Fresno, California.  The A note has a principal balance of $1,155,000 and carries an interest rate of 5.0% during the first six months, stepped up to 8.5% thereafter.  The B note has a principal balance of $495,000 and carries an interest rate of 9.5% during the first six months, stepped up to 13.5% thereafter.  Both notes mature in January of 2016 and require interest-only payments at six-month intervals or upon a prepayment.   In addition to a first lien mortgage on PWTS’s property, the notes are also secured by a parent guarantee from the Trust.
	On July 5, 2013, PWSS borrowed $750,000 from a regional bank (the “PWSS Term Loan”) to refinance a bridge loan that had been extended by HBP in connection with PWSS’ acquisition of leased property in December 2012.  The PWSS Term Loan carries a fixed interest rate of 5.0%, a term of 10-years and amortizes based on a twenty-year principal amortization schedule.  In addition to being secured by PWSS’ real estate assets, the term loan is secured by a parent guarantee from the Trust.  The balance of the PWSS Term Loan as of March 31, 2015 is approximately $712,000.
	On December 31, 2012, as part of the Salisbury land acquisition, PWSS assumed existing municipal financing (“Municipal Debt”).  The Municipal Debt has approximately 18 years remaining.  The Municipal Debt has a simple interest rate of 5.0% that is paid annually, with the next payment due February 1, 2016.  The balance of the Municipal Debt as of March 31, 2015 is approximately $103,000.

4_LONGTERM_COMPENSATION

4. LONG-TERM COMPENSATION	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
4. Long-term Compensation	Summary of Plan Activity – Options
	The summary of Plan activity for the three months ended March 31, 2015, with respect to the Trust’s stock options, was as follows:
	Summary of Plan Activity - Options
				Weighted
		Number of		Average		Aggregate
		Options		Exercise Price		Intrinsic Value
	Balance at December 31, 2014		106,000		7.96		67,840
	Plan Awards		-
	Options Exercised		-		7.96
	Balance as of March 31, 2015		106,000		7.96		67,840
	Options expected to vest at March 31, 2015		35,333		7.96		22,613
	Options exercisable as of March 31, 2015		70,667		7.96		45,227
	For the three months ended March 31, 2015 and 2014, the weighted average fair value of options vested, not vested and granted is $0.96 per share.   The Aggregate Intrinsic Value is based on the difference between the option exercise price and the closing stock price of $8.60 at March 31, 2015.
	Summary of Plan Activity – Restricted Stock
	The summary of Plan activity for the three months ended March 31, 2015, with respect to the Trust’s restricted stock, was as follows:
	Summary of Plan Activity - Restricted Stock
		Number of		Weighted
		Shares of		Average
		Restricted		Grant Date
		Stock		Fair Value
	Balance at December 31, 2014		37,042		8.08
	Plan Awards		-
	Restricted Stock Vested		-
	Balance as of March 31, 2015		37,042		8.08

5_LEGAL_PROCEEDINGS

5. LEGAL PROCEEDINGS	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
5. Legal Proceedings	As previously disclosed in its public filings with the SEC, the Trust and its wholly-owned subsidiary P&WV are in litigation with NSC and NSC’s sub-lessee, Wheeling & Lake Erie Railroad (“WLE” and, together with NSC, the “Litigants”) concerning matters arising under the Railroad Lease.  The case is pending in Federal trial court in Pittsburgh (the “Court”).  The Litigants initiated the litigation against the Trust and P&WV in December 2011, seeking, among other things, a declaratory judgment that NSC was not in default under the Railroad Lease.
	P&WV, as lessor, has asserted counterclaims, seeking determinations that NSC is in default under the Railroad Lease for, among other things, failing to reimburse P&WV for certain legal fees incurred by P&WV, failing to permit P&WV to inspect NSC’s books and records as called for under the terms of the Railroad Lease and failing to pay other amounts that P&WV believes are due and owing. P&WV also seeks declarations from the Court (a) that NSC’s obligation to repay the indebtedness owed under the Railroad Lease is not indefinite in duration, and (b) that the indebtedness owed to P&WV is due on demand with interest.  If P&WV is successful with certain of its counterclaims, it can terminate the Railroad Lease and demand from NSC payment of the indebtedness.
	The indebtedness is the cumulative result of amounts received by NSC from its dispositions of P&WV property, additional rental amounts due and other sums that NSC owes to P&WV but which NSC has elected, under its interpretation of the Railroad Lease, to pay by increasing its indebtedness to P&WV rather than by providing P&WV with cash. According to records maintained by NSC pursuant to the Railroad Lease and provided by NSC to P&WV, as of December 31, 2012 the indebtedness owed to P&WV was approximately $16,600,000. NSC has not provided a more recent update of the indebtedness amount.  P&WV believes that the indebtedness amount is understated.  The indebtedness has not been included in P&WV’s balance sheets prepared under GAAP, because of the dispute as to when it is due. Similarly, certain additional rental amounts that NSC disputes are due on a current basis, and which have historically been treated as indebtedness, have not been included in P&WV’s income statements or balance sheets prepared under GAAP; however, these additional rent amounts have historically been recorded as taxable income on P&WV’s tax returns.
	The Litigants have alleged that the Trust is a successor in interest in respect of the Railroad Lease.  If that allegation were to be decided against us in a fact-finding stage of the litigation, it could lead to liability and expenses. The Trust believes that it is not a successor in interest in respect of the Railroad Lease and is not constrained by any of the Railroad Lease restrictions.
	The parties have made certain supplements to their respective claims and counterclaims. In August 2013, P&WV filed a second supplement to its counterclaims following the Litigants’ disclosure of previously undisclosed dispositions of P&WV property.  P&WV believes that additional amounts are owed to it as a result of these dispositions and, accordingly, asserted new counterclaims, including claims of fraud and conversion. Based on the information available at the time P&WV supplemented its claims, P&WV has estimated that the additional amounts owed to it exceed $8 million, not including potential interest and damages.  P&WV also supplemented its counterclaim for additional rental amounts due in order to include the reimbursement of its legal expenses related to the litigation. In response to P&WV’s second supplement to its counterclaims, in January 2014 the Litigants amended their pleadings to add additional claims against both P&WV and the Trust. The Litigants’ new claims seek additional declarations from the Court that the Litigants have not defaulted on or violated the terms of the Railroad Lease.
	On September 13, 2013, the Trust filed a motion for summary judgment seeking dismissal of all of the claims against it primarily based on the fact that the Trust is not a party to the Lease.  On January 15, 2014, the Court heard oral arguments from the parties on the Trust’s motion. On October 16, 2013, the Litigants filed a motion seeking leave to supplement their claims to include: (i) nominal damages, (ii) enjoinment of Power REIT from taking actions in breach of the Lease Agreement, (iii) the withdrawal of NSC’s consent to the additional share by PWV; and (iv) the undoing of the reverse triangular merger. On June 19, 2014, the court denied the Trust’s motion but also denied Plaintiff’s motion seeking leave to supplement their claims with the exception of granting the motion to seek nominal damages.
	The fact and expert discovery phases of the litigation have been completed.  On September 8, 2014, P&WV filed a Motion for Summary Judgment and on October 22, 2014, the Litigants filed an opposition to such motion and on November 5 2014, P&WV filed a Reply to NSC and WLE’s opposition to such motion. On September 8, 2014, the Litigants filed a Motion for Summary Judgment and on October 22, 2014, P&WV filed an opposition to such motion and on November 5, 2014, the Litigants filed a reply to P&WV’s opposition to such motion. On December 16, 2014, the court held oral argument on both of the pending motions for Summary Judgment.
	On April 22, 2015, the court denied P&WV’s motion for summary judgment and granted the Litigants’ summary judgment motion thereby dismissing all of P&WV’s claims. On April 29, 2015, the court held a status conference. It is currently anticipated that a trial will occur during the third quarter of 2015 to resolve the remaining issues in the case.  The company is reviewing its legal options and evaluating the prospects of an appeal.
	P&WV has provided key court filings in the litigation on its website (www.pwreit.com) under a tab called “P&WV Litigation Update” which is under the “Investor Relations” tab. The provided documents and accompanying supporting documents are not comprehensive or complete and the full case docket is available from the Public Access to Court Records (PACER) website. Power REIT encourages interested parties to review all the public filings available on PACER and to review the risks and disclosures in Power REIT’s Annual Report filed on Form 10-k and other documents filed from time to time with the Securities and Exchange Commission (SEC).
	During the year ended December 31, 2014, P&WV incurred litigation related expenses of approximately $1,050,000. During the quarter ended March 31, 2015 and 2014, P&WV incurred litigation related expenses of approximately $4,000 and $112,000, respectively.  As of March 31, 2015, P&WV had incurred a total of approximately $2,710,000 of cumulative expenses related to the litigation, of which approximately $545,000 was payable.  P&WV believes that the costs associated with the litigation are reimbursable by NSC under the Railroad Lease as additional rent, but NSC has refused to pay such amounts. At this point, in order to collect on such amounts, P&WV would need to file and prevail on an appeal.  There can be no assurance that P&WV will prevail in collecting its litigation expenses from NSC; accordingly, the expenses of the litigation are accrued and expensed as incurred.

6_RELATED_PARTY_TRANSACTIONS

6. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
6. Related Party Transactions	The Trust and its subsidiaries have hired Morrison Cohen, LLP (“Morrison Cohen”) as their legal counsel with respect to general corporate matters and the litigation with NSC. The spouse of the Trust’s Chairman, CEO, Secretary and Treasurer is a partner at Morrison Cohen. During the three months ended March 31, 2015 and 2014, Power REIT (on a consolidated basis) paid approximately $94,000 and $0 respectively, in legal fees and costs to Morrison Cohen in connection with various legal matters, including the litigation with NSC, and another approximately $581,000 had been billed, but not paid as of March 31, 2015.
	On July 11, 2013, HBP, a wholly-owned affiliate of the Trust’s Chairman, CEO, Secretary and Treasurer, loaned PWTS $1,650,000 in the form of senior, secured bridge loan notes which remains outstanding at March 31, 2015.  The interest expense related to this secured bridge loan for the three months ended March 31, 2015 and 2014, amounted to $40,685 and $39,035 respectively. (See Note 3).
	A wholly-owned subsidiary of HBP provides the Trust and its subsidiaries with office space at no cost.
	Under the Trust’s Declaration of Trust, the Trust may enter into transactions in which trustees, officers or employees have a financial interest, provided however, that in the case of a material financial interest, the transaction is disclosed to the Board of Trustees or the transaction shall be fair and reasonable. After consideration of the terms and conditions of the retention of Morrison Cohen and the bridge loan arrangements described above, the independent trustees approved the hiring of Morrison Cohen as counsel and approved the bridge loans, determining all such arrangements to be fair and reasonable and in the interest of the Trust.

7_SUBSEQUENT_EVENTS

7. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
7. SUBSEQUENT EVENTS	As previously disclosed in its public filings with the SEC, the Trust and its wholly-owned subsidiary P&WV are in litigation with NSC and NSC’s sub-lessee, Wheeling & Lake Erie Railroad (“WLE” and, together with NSC, the “Litigants”) concerning matters arising under the Railroad Lease.  On April 22, 2015, the court denied P&WV’s motion for summary judgment and granted the Litigants’ summary judgment motion thereby dismissing all of P&WV’s claims. On April 29, 2015, the court held a status conference. It is currently anticipated that a trial will occur during the third quarter of 2015 to resolve the remaining issues in the case.  The company is reviewing its legal options and evaluating the prospects of an appeal.   (See Note 5).
	On April 24, 2015, the Registrant declared a quarterly dividend of $0.48375 per share on Power REIT’s 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock payable on June 15, 2015 to shareholders of record on May 15, 2015.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of presentation	These consolidated financial statements have been prepared in accordance with GAAP.
Principles of Consolidation	The accompanying consolidated financial statements include Power REIT and its wholly-owned subsidiaries.  All intercompany balances have been eliminated in consolidation.
Reclassifications	Certain amounts in the 2014 consolidated financial statements have been reclassified to conform to the 2015 presentation.
Derivative Financial Instruments
	The Trust uses derivative financial instruments to reduce interest rate risks.  Derivatives are measured at fair value and recognized as either assets or liabilities in the Trust’s Consolidated Balance Sheets.  Changes in the fair value of these instruments are reported in earnings or other comprehensive income depending on the use of the derivatives and whether it qualifies for hedge accounting.  The accounting for gains and losses associated with changes in the fair value of the derivative and the effect on the Consolidated Financial Statements will depend on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value of cash flows of the asset or liability hedged.  The Trust does not hold or issue derivative financial instruments for trading purposes; however, the Trust has not performed the activities necessary to qualify its interest rate swap for hedge accounting.  As a result, changes in the fair value of these instruments are reported in earnings.
Fair Value
	Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Trust measures its financial assets and liabilities in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
	o	Level 1 – valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow a company to sell its ownership interest back at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities or funds.
	o	Level 2 – valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and certain corporate obligations. Valuations are usually obtained from third party pricing services for identical or comparable assets or liabilities.
	o	Level 3 – valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.
	In determining fair value, the Trust utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk.
	The carrying amounts of Power REIT’s financial instruments, including cash and cash equivalents, deposits, and accounts payable approximate fair value because of their relatively short maturity.  Financial assets and liabilities reported or disclosed at fair value were as follows:
	31-Mar-15
	($ in thousands)
			Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents(1)		$	642	$	-	$	-	$	642
	Total at fair value		$	642	$	-	$	-	$	642
	Liabilities
	Current debt, related party(2)		$	-	$	1,650	$	-	$	1,650
	Long-term debt(3)			-		7,433		-		7,433
	Interest rate swap(4)			-		712		-		712
	Total at fair value		$	-	$	9,795	$	-	$	9,795
	(1) Comprises money market funds, which are included in Cash & Cash Equivalents in the accompanying consolidated balance sheet.
	(2) Comprises amount borrowed by PWTS from Hudson Bay Partners, LP, a wholly owned affiliate of David H. Lesser, to fund its acquisition of property in July 2013.
	(3) Comprises amounts borrowed and assumed by PWSS in connection with its acquisition of property in December 2012 and PWRS in connection with its acquisition of property in April 2014.
	(4) The Trust has entered into swap agreements to hedge interest rate exposure on floating rate debt associated with its Credit Facility. The interest Rate swap is designated as a Level 2 instrument. The fair value of the interest rate swap is determined using observable market inputs such as current interest rates and considered non-performance risk of the Trust and its counterparties. The liability indicates that interest rates have declined since the inception of the swap which represents an unrealized loss at March 31, 2015
	For financial assets that utilize Level 1 inputs, the Trust utilizes both direct and indirect observable price quotes, including quoted market prices (Level 1 inputs).

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Financial assets and liabilities carried at fair value on a recurring basis
	31-Mar-15
	($ in thousands)
		Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents(1)	$	642	$	-	$	-	$	642
	Total at fair value	$	642	$	-	$	-	$	642
	Liabilities
	Current debt, related party(2)	$	-	$	1,650	$	-	$	1,650
	Long-term debt(3)		-		7,433		-		7,433
	Interest rate swap(4)		-		712		-		712
	Total at fair value	$	-	$	9,795	$	-	$	9,795
	(1) Comprises money market funds, which are included in Cash & Cash Equivalents in the accompanying consolidated balance sheet.
	(2) Comprises amount borrowed by PWTS from Hudson Bay Partners, LP, a wholly owned affiliate of David H. Lesser, to fund its acquisition of property in July 2013.
	(3) Comprises amounts borrowed and assumed by PWSS in connection with its acquisition of property in December 2012 and PWRS in connection with its acquisition of property in April 2014.
	(4) The Trust has entered into swap agreements to hedge interest rate exposure on floating rate debt associated with its Credit Facility. The interest Rate swap is designated as a Level 2 instrument. The fair value of the interest rate swap is determined using observable market inputs such as current interest rates and considered non-performance risk of the Trust and its counterparties. The liability indicates that interest rates have declined since the inception of the swap which represents an unrealized loss at March 31, 2015

4_LONGTERM_COMPENSATION_Tables

4. LONG-TERM COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option activity	Summary of Plan Activity - Options
				Weighted
		Number of		Average		Aggregate
		Options		Exercise Price		Intrinsic Value
	Balance at December 31, 2014		106,000		7.96		67,840
	Plan Awards		-
	Options Exercised		-		7.96
	Balance as of March 31, 2015		106,000		7.96		67,840
	Options expected to vest at March 31, 2015		35,333		7.96		22,613
	Options exercisable as of March 31, 2015		70,667		7.96		45,227
Summary of Plan Activity - Restricted Stock	Summary of Plan Activity - Restricted Stock
		Number of		Weighted
		Shares of		Average
		Restricted		Grant Date
		Stock		Fair Value
	Balance at December 31, 2014		37,042		8.08
	Plan Awards		-
	Restricted Stock Vested		-
	Balance as of March 31, 2015		37,042		8.08

1_GENERAL_INFORMATION_Details_

1. GENERAL INFORMATION (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
General Information Details Narrative
PWTS rental income	$38,836	$46,030
PWRS recorded rental income	$200,779	$0

2_SUMMARY_OF_SIGNIFICANT_ACCOU3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$642,000
Total assets at fair value	642,000
Liabilities
Current debt, related party	1,650,000	0
Long-term debt	7,433,000
Interest rate swap	712,000
Total long-term debt at fair value	9,795,000
Level 1
Assets
Cash and cash equivalents	642,000
Total assets at fair value	642,000
Liabilities
Long-term debt
Interest rate swap
Total long-term debt at fair value
Level 2
Assets
Cash and cash equivalents
Total assets at fair value
Liabilities
Current debt, related party	1,650,000
Long-term debt	7,433,000
Interest rate swap	712,000
Total long-term debt at fair value	9,795,000
Level 3
Assets
Cash and cash equivalents
Total assets at fair value
Liabilities
Current debt, related party
Long-term debt
Interest rate swap
Total long-term debt at fair value

3_LONGTERM_DEBT_Details_Narrat

3. LONG-TERM DEBT (Details Narrative) (USD $)	Mar. 31, 2015
Long-term Debt Details Narrative
Outstanding balance of the Credit facility	$6,695,000
PWSS Term Loan	712,000
Municipal Debt	$103,000

4_LONGTERM_COMPENSATION_OPTION

4. LONG-TERM COMPENSATION, OPTION ACTIVITY IN PLAN (Details) (Stock Options, USD $)	3 Months Ended
	Mar. 31, 2015
Stock Options
Balance at December 31, 2014 - Number of options	106,000
Plan Awards - Number of options
Options Exercised - Number of options
Balance as of March 31, 2015 - Number of options	106,000
Options expected to vest March 31, 2015 - Number of options	35,333
Options Exercisable as of March 31, 2015 - Number of options	70,667
Balance at December 31, 2014 - Weighted Average Exercise Price	$7.96
Balance as of March 31, 2015 - Weighted Average Exercise Price	$7.96
Options expected to vest March 31, 2015 - Weighted Average Exercise Price	$7.96
Weighted Average Share Price of Options Exercisable March 31, 2015 - Weighted Average Exercise Price	$7.96
Balance at December 31, 2014 - Aggregate Intrinsic Value	$67,840
Balance as of March 31, 2015 - Aggregate Intrinsic Value	67,840
Options expected to vest March 31, 2015 - Aggregate Intrinsic Value	$22,613
Aggregate Intrinsic Value Exercisable March 31, 2015 - Aggregate Intrinsic Value	$45,227

4_LONGTERM_COMPENSATION_RESTRI

4. LONG-TERM COMPENSATION, RESTRICTED STOCK ACTIVITY IN PLAN (Details) (Restricted Stock, USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock
Balance at December 31, 2014	37,042
Number of Shares Restricted Stock, Plan Awards	0
Number of Shares Restricted Stock, Vested	0
Balance as of March 31, 2015	37,042
Weighted Average Grant Date Fair Value at December 31, 2014	$8.08
Weighted Average Grant Date Fair Value as of March 31, 2015	$8.08

5_LEGAL_PROCEEDINGS_Details_Na

5. LEGAL PROCEEDINGS (Details Narrative) (USD $)	Mar. 31, 2015
Legal Proceedings Details Narrative
Litigation Expense Incurred to Date	$2,710,000
Litigation Expense Payable	$545,000

6_RELATED_PARTY_TRANSACTIONS_D

6. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest expense related to this secured bridge loan	$40,685	$39,035
Morrison Cohen
Payment to related party for legal services	94,000	0
Accrued Litigation expenses	$545,000