Power REIT (PW) 10-Q 29 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 29, 2019
Document And Entity Information
Entity Registrant Name	Power REIT
Entity Central Index Key	0001532619
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,872,939
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
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	2,133,793	1,771,011
Prepaid expenses	51,749	16,795
Intangible assets, net of accumulated amortization	3,708,025	3,826,595
Other assets	414,098	342,668
TOTAL ASSETS	22,245,732	21,895,136
LIABILITIES AND EQUITY
Deferred revenue	109,740	32,851
Accounts payable	41,729	24,828
Accounts payable - Related party		1,374
Accrued interest	84,392	87,846
Current portion of long-term debt	406,043	389,996
Long-term debt	9,031,255	9,167,336
TOTAL LIABILITIES	9,673,159	9,704,231
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock Par Value $25.00 (175,000 shares authorized; 144,636 issued and outstanding as of June 30, 2019 and December 31, 2018)	3,492,149	3,492,149
Commitments and Contingencies
Equity:
Common Shares, $0.001 par value (100,000,000 shares authorized; 1,872,939 shares issued and outstanding at June 30, 2019 and 1,870,139 at December 31, 2018)	1,873	1,870
Additional paid-in capital	11,727,232	11,616,154
Accumulated deficit	(2,648,681)	(2,919,268)
Total Equity	9,080,424	8,698,756
TOTAL LIABILITIES AND EQUITY	$ 22,245,732	$ 21,895,136

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Series A 7.75% Cumulative redeemable perpetual preferred stock cumulative redeemable percentage	7.75%	7.75%
Series A 7.75% Cumulative redeemable perpetual preferred stock, par value	$ 25	$ 25
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares authorized	175,000	175,000
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares issued	144,636	144,636
Series A 7.75% Cumulative redeemable perpetual preferred stock, shares outstanding	144,636	144,636
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	1,872,939	1,870,139
Common stock, shares outstanding	1,872,939	1,870,139

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
REVENUE
Lease income from capital lease - railroad, net	$ 228,750	$ 228,750	$ 457,500	$ 457,500
Rental income	262,528	262,528	525,055	525,055
Misc. income	4,333	2,364	7,649	3,690
TOTAL REVENUE	495,611	493,642	990,204	986,245
EXPENSES
Amortization of intangible assets	59,285	59,285	118,570	118,570
General and administrative	102,273	105,039	218,048	197,828
Property tax	5,557	2,782	11,113	8,269
Interest expense	115,038	119,044	231,770	239,439
TOTAL EXPENSES	282,153	286,150	579,501	564,106
NET INCOME	213,458	207,492	410,703	422,139
Preferred Stock Dividends	(70,058)	(70,058)	(140,116)	(140,116)
NET INCOME ATTRIBUTABLE TO COMMON SHARES	$ 143,400	$ 137,434	$ 270,587	$ 282,023
Income Per Common Share:
Basic and diluted	$ 0.08	$ 0.08	$ 0.14	$ 0.15
Weighted Average Number of Shares Outstanding:
Basic and diluted	1,870,192	1,827,338	1,870,165	1,827,338
Cash dividend per Series A Preferred Share	$ 0.48	$ 0.48	$ 0.97	$ 0.97

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings/Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 1,827	$ 11,393,476	$ (3,477,847)	$ 7,917,456
Balance, shares at Dec. 31, 2017	1,827,338
Net Income			214,647	214,647
Cash Dividends on Preferred Stock			(70,058)	(70,058)
Stock-Based Compensation		47,363		47,363
Stock-Based Compensation, shares
Balance at Mar. 31, 2018	$ 1,827	11,440,839	(3,333,258)	8,109,408
Balance, shares at Mar. 31, 2018	1,827,338
Balance at Dec. 31, 2017	$ 1,827	11,393,476	(3,477,847)	7,917,456
Balance, shares at Dec. 31, 2017	1,827,338
Net Income				422,139
Balance at Jun. 30, 2018	$ 1,827	11,484,068	(3,195,824)	8,290,071
Balance, shares at Jun. 30, 2018	1,827,338
Balance at Mar. 31, 2018	$ 1,827	11,440,839	(3,333,258)	8,109,408
Balance, shares at Mar. 31, 2018	1,827,338
Net Income			207,492	207,492
Cash Dividends on Preferred Stock			(70,058)	(70,058)
Stock-Based Compensation		43,229		43,229
Stock-Based Compensation, shares
Balance at Jun. 30, 2018	$ 1,827	11,484,068	(3,195,824)	8,290,071
Balance, shares at Jun. 30, 2018	1,827,338
Balance at Dec. 31, 2018	$ 1,870	11,616,154	(2,919,268)	8,698,756
Balance, shares at Dec. 31, 2018	1,870,139
Net Income			197,245	197,245
Cash Dividends on Preferred Stock			(70,058)	(70,058)
Stock-Based Compensation		63,954		63,954
Stock-Based Compensation, shares
Balance at Mar. 31, 2019	$ 1,870	11,680,108	(2,792,081)	8,889,897
Balance, shares at Mar. 31, 2019	1,870,139
Balance at Dec. 31, 2018	$ 1,870	11,616,154	(2,919,268)	8,698,756
Balance, shares at Dec. 31, 2018	1,870,139
Net Income				410,703
Balance at Jun. 30, 2019	$ 1,873	11,727,232	(2,648,681)	9,080,424
Balance, shares at Jun. 30, 2019	1,872,939
Balance at Mar. 31, 2019	$ 1,870	11,680,108	(2,792,081)	8,889,897
Balance, shares at Mar. 31, 2019	1,870,139
Net Income			213,458	213,458
Cash Dividends on Preferred Stock			(70,058)	(70,058)
Stock-Based Compensation	$ 3	47,124		47,127
Stock-Based Compensation, shares	2,800
Balance at Jun. 30, 2019	$ 1,873	$ 11,727,232	$ (2,648,681)	$ 9,080,424
Balance, shares at Jun. 30, 2019	1,872,939

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities
Net Income	$ 410,703	$ 422,139
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	118,570	118,570
Amortization of debt costs	12,595	12,595
Stock-based compensation	111,081	90,592
Changes in operating assets and liabilities
(Decrease)/Increase in accounts payable related party	(1,374)	99
(Decrease) in other assets	(71,430)	(74,408)
(Decrease) in prepaid expenses	(34,954)	(16,346)
(Decrease)/Increase in accounts payable	16,901	(640)
(Decrease) in accrued interest	(3,454)	(3,721)
Increase in deferred revenue	76,889	76,464
Net cash provided by operating activities	635,527	625,344
Financing Activities
Principal payment on long-term debt	(132,629)	(117,315)
Cash dividends paid on preferred stock	(140,116)	(140,116)
Net cash used in financing activities	(272,745)	(257,431)
Net increase in cash and cash equivalents	362,782	367,913
Cash and cash equivalents, beginning of period	1,771,011	1,146,730
Cash and cash equivalents, end of period	2,133,793	1,514,643
Supplemental disclosure of cash flow information:
Interest paid	$ 222,629	$ 236,439

General Information

General Information	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
General Information	1. 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 25, 2019. 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 four wholly-owned, special purpose subsidiaries that have been formed in order to hold real estate assets, obtain financing and generate lease revenue. As of June 30, 2019, 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. During the six months ended June 30, 2019, the Trust paid quarterly dividends totaling approximately $140,000 ($0.484375 per share per quarter) 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).” Recent Accounting Pronouncements In February 2016, the FASB issued ASU No 2016-02 “Leases” (Topic 842). The standard requires companies that lease valuable assets like aircraft, real estate, and heavy equipment to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The standard also requires companies to disclose in the footnotes to their financial statements information about the amount, timing, and uncertainty for the payments they make for the lease agreements. This standard is effective for fiscal years and interim periods beginning after December 15, 2018, and the Company adopted the standard using the modified retrospective approach effective January 1, 2019. The lessor accounting model under ASC 842 is similar to existing guidance, however, it limits the capitalization of initial direct leasing costs, such as internally generated costs. The Company elected all practical expedients permitted under ASC 842, other than the hindsight practical expedient. Accordingly, the Company will retain distinction between a finance lease (i.e., capital leases under existing guidance) and an operating lease and account for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC 842, (b) whether classification of the operating leases would be different in accordance with ASC 842c or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC 842 at lease commencement. The Company does not have a cumulative effect adjustment to retained earnings upon adoption. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718),” which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The adoption of ASU 2018-07 on January 1, 2019, did not have a significant impact on our Consolidated Financial Statements. Principles of Consolidation The accompanying consolidated financial statements include Power REIT and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation. 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. ○ 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. ○ 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. ○ 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-term maturities. The carrying value of long-term debt approximates fair value since the related rates of interest approximate current market rates. There are no financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2019 and December 31, 2018.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-Term Debt	3. LONG-TERM DEBT On November 6, 2015, PWRS borrowed $10,150,000 pursuant to a bond offering (the “PWRS Bonds”). The PWRS Bonds are secured by land and intangibles owned by PWRS and have a total obligation of $10,150,000. The PWRS Bonds carry a fixed annual interest rate of 4.34% and matures in 2034. During 2015, the Trust capitalized approximately $441,000 of expenses related to the PWRS Bonds of which approximately $97,000 was paid in cash and approximately 344,000 was incurred through issuance of debt. This amount is amortized over the life of the PWRS Bonds. As of June 30, 2019 and December 31 2018, the balance of the PWRS Bonds was approximately $8,768,000 (net of unamortized debt costs of approximately $337,000) and $8,870,000 (net of unamortized debt costs of approximately $348,000), respectively. On July 5, 2013, PWSS borrowed $750,000 from a regional bank (the “PWSS Term Loan”). 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 June 30, 2019 and December 31, 2018 is approximately $592,000 (net of approximately $11,000 of capitalized debt costs which are being amortized over the life of the financing) and $605,000 (net of approximately $12,000 of capitalized debt costs which are being amortized over the life of the financing), respectively. On December 31, 2012, as part of the Salisbury land acquisition, PWSS assumed existing municipal financing (“Municipal Debt”). The Municipal Debt has approximately 15 years remaining. The Municipal Debt has a simple interest rate of 5.0% that is paid annually, with the next payment due February 1, 2020. The balance of the Municipal Debt as of June 30, 2019 and December 31, 2018 is approximately $77,000 and $83,000 respectively.

Equity and Long-Term Compensati

Equity and Long-Term Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Equity and Long-Term Compensation	4. EQUITY AND LONG-TERM COMPENSATION Summary of Stock Based Compensation Activity – Options The summary of stock based compensation activity for the six months ended June 30, 2019, with respect to the Trust’s stock options, was as follows: Summary of Activity - Options Weighted Number of Average Aggregate Options Exercise Price Intrinsic Value Balance as of December 31, 2018 106,000 7.96 - Plan Awards - - - Options Exercised - - - Balance as of June 30, 2019 106,000 7.96 - Options vested at June 30, 2019 106,000 7.96 - The weighted average remaining term of the options is approximately 3.12 years. Summary of Plan Activity – Restricted Stock The summary of Plan activity for the three months ended June 30, 2019, with respect to the Trust’s restricted stock, was as follows: Summary of Activity - Restricted Stock Number of Weighted Shares of Average Restricted Grant Date Stock Fair Value Balance as of December 31, 2018 54,033 6.23 Plan Awards 2,800 - Restricted Stock Vested (18,066 ) 6.15 Balance as of June 30, 2019 38,767 6.24 Stock-based Compensation During the first six months of 2019, the Trust recorded approximately $111,000 of non-cash expense related to restricted stock and options granted compared to approximately $91,000 for the first six months of 2018. As of June 30, 2019 there was approximately $242,000 of total unrecognized share-based compensation expense, which expense will be recognized through the second quarter of 2021 equating to a weighted average amortization period of approximately 2 years from the issuance date. The Trust does not currently have a policy regarding the repurchase of shares on the open market related to equity awards and does not currently intend to acquire shares on the open market. Preferred Stock Dividends During the first six months of 2019, the Trust paid a total of approximately $140,000 of dividends to holders of Power REIT’s Series A Preferred Stock.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	5. RELATED PARTY TRANSACTIONS The Trust and its subsidiaries have hired 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 six months ended June 30, 2019, Power REIT (on a consolidated basis) did not pay any legal fees and costs to Morrison Cohen in connection with various legal matters, including the litigation with NSC. A wholly-owned subsidiary of Hudson Bay Partners, LP (“HBP”), an entity associated with the CEO of the company, David Lesser, provides the Trust and its subsidiaries with office space at no cost. Effective September 2016, the Board of Directors approved reimbursing an affiliate of HBP $1,000 per month for administrative and accounting support based on a conclusion that it would pay more for such support from a third party. A total of $6,000 was paid pursuant to this arrangement during the six months ended June 30, 2019. 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 described herein, and the reimbursement to HBP described herein, the independent trustees approved such arrangements having determined such arrangement are fair and reasonable and in the interest of the Trust. David Lesser, CEO, paid expenses on behalf of the Company in the amount of $1,374 during 2018 which is disclosed as accounts payable – related party in the consolidated balance sheets. The amount is non-interest bearing, unsecured, and due on demand. During the quarter ended June 30, 2019, the accounts payable – related party was repaid.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	6. SUBSEQUENT EVENTS On July 12, 2019, Power REIT (the “Trust”) acquired two properties located in southern Colorado (the “Properties”) through a newly formed wholly owned subsidiary of a newly formed wholly owned subsidiary of the Trust (the “PropCo”). The properties were acquired for a combined total of $1,770,000 and is comprised of 7.31 acres. The properties have 2 existing greenhouses and processing facilities totaling 18,612 square feet. The purchase price of $1,770,000 plus acquisition expenses was paid with existing working capital. Propco has entered into two cross-collateralized and cross-defaulted triple-net leases (the “Leases”) with JAB Industries Ltd. (“Tenant”) for the Properties. The leases provide that Tenant is responsible for paying all expenses related to the Properties, including maintenance expenses, insurance and taxes. The term of each of the leases is 20 years and provides two options to extend for additional five-year periods. The leases also have financial guarantees from affiliates of the Tenant. The rent for each of the leases is structured whereby after a six-month free-rent period, the rental payments provide Power REIT a full return of invested capital over the next three years in equal monthly payments. After the 42nd month, rent is structured to provide a 12.5% return on the original invested capital amount which will increase at a 3% rate per annum. At any time after year six, if cannabis is legalized at the federal level, the rent will be readjusted down to an amount equal to a 9% return on the original invested capital amount and will increase at a 3% rate per annum based on a starting date of the start of year seven. On July 23, 2019, the Registrant declared a quarterly dividend of $0.484375 per share on Power REIT’s 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock payable on September 15, 2019 to shareholders of record on August 15, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).”
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No 2016-02 “Leases” (Topic 842). The standard requires companies that lease valuable assets like aircraft, real estate, and heavy equipment to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The standard also requires companies to disclose in the footnotes to their financial statements information about the amount, timing, and uncertainty for the payments they make for the lease agreements. This standard is effective for fiscal years and interim periods beginning after December 15, 2018, and the Company adopted the standard using the modified retrospective approach effective January 1, 2019. The lessor accounting model under ASC 842 is similar to existing guidance, however, it limits the capitalization of initial direct leasing costs, such as internally generated costs. The Company elected all practical expedients permitted under ASC 842, other than the hindsight practical expedient. Accordingly, the Company will retain distinction between a finance lease (i.e., capital leases under existing guidance) and an operating lease and account for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC 842, (b) whether classification of the operating leases would be different in accordance with ASC 842c or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC 842 at lease commencement. The Company does not have a cumulative effect adjustment to retained earnings upon adoption. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718),” which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The adoption of ASU 2018-07 on January 1, 2019, did not have a significant impact on our Consolidated Financial Statements.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include Power REIT and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation.
Fair Value	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. ○ 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. ○ 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. ○ 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-term maturities. The carrying value of long-term debt approximates fair value since the related rates of interest approximate current market rates. There are no financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2019 and December 31, 2018.

Equity and Long-Term Compensa_2

Equity and Long-Term Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Summary of Stock Based Compensation Activity	Summary of Activity - Options Weighted Number of Average Aggregate Options Exercise Price Intrinsic Value Balance as of December 31, 2018 106,000 7.96 - Plan Awards - - - Options Exercised - - - Balance as of June 30, 2019 106,000 7.96 - Options vested at June 30, 2019 106,000 7.96 -
Summary of Restricted Stock Plan Activity	Summary of Activity - Restricted Stock Number of Weighted Shares of Average Restricted Grant Date Stock Fair Value Balance as of December 31, 2018 54,033 6.23 Plan Awards 2,800 - Restricted Stock Vested (18,066 ) 6.15 Balance as of June 30, 2019 38,767 6.24

General Information (Details Na

General Information (Details Narrative)	6 Months Ended
	Jun. 30, 2019USD ($)a$ / shares
Trust's assets, description	As of June 30, 2019, 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").
Dividend paid | $	$ 140,000
Dividend paid per share | $ / shares	$ 0.484375
Percentage of redeemable perpetual preferred stock	7.75%
Preferred stock dividends description	The Trust paid quarterly dividends totaling approximately $140,000 ($0.484375 per share per quarter) on Power REIT's 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock.
Minimum percentage of taxable income to be distributed to shareholders	90.00%
P&WV [Member]
Acres of land | a	601

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Fair value of assets and liabilities measured on recurring basis

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($)	Nov. 06, 2015	Dec. 31, 2012	Jun. 30, 2019	Dec. 31, 2015	Dec. 31, 2018	Jul. 05, 2013
PWSS Term Loan [Member]
Debt amount						$ 750,000
Debt fixed interest rate						5.00%
Outstanding loan balance			$ 592,000		$ 605,000
Debt term						10 years
Debt description			On July 5, 2013, PWSS borrowed $750,000 from a regional bank (the "PWSS Term Loan"). 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.
Capitalized debt cost			$ 11,000		12,000
Municipal Debt [Member]
Debt fixed interest rate		5.00%
Debt term		15 years
Debt maturity date		Feb. 1, 2020
Municipal debt securities carrying value			77,000		83,000
PWRS Bonds [Member]
Debt maturity year	2034
Capitalized expenses				$ 441,000
Debt repayment in cash				97,000
Proceeds from issuance of debt				$ 344,000
Outstanding loan balance			8,768,000		8,870,000
Unamortized debt costs			$ 337,000		$ 348,000
PWRS Bonds [Member] | Land and Intangibles [Member]
Debt amount	$ 10,150,000
Debt fixed interest rate	4.34%

Equity and Long-Term Compensa_3

Equity and Long-Term Compensation (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Weighted average remaining term	3 years 1 month 13 days
Non-cash expense related to restricted stock and options granted	$ 111,081	$ 90,592
Unrecognized share-based compensation expense	$ 242,000
Weighted average amortization period	2 years
Series A Preferred Stock [Member]
Preferred stock dividends	$ 140,000

Equity and Long-Term Compensa_4

Equity and Long-Term Compensation - Summary of Stock Based Compensation Activity (Details) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Number of Options Balance Beginning | shares	106,000
Number of Options Plan Awards | shares
Number of Options Exercised | shares
Number of Options Balance Ending | shares	106,000
Number of Options Vested | shares	106,000
Weighted Average Exercise Price Balance Beginning | $ / shares	$ 7.96
Weighted Average Exercise Price Plan Awards | $ / shares
Weighted Average Exercise Price Options Exercised | $ / shares
Weighted Average Exercise Price Balance Ending | $ / shares	7.96
Weighted Average Exercise Price Options Vested | $ / shares	$ 7.96
Aggregate Intrinsic Value Balance Beginning | $
Aggregate Intrinsic Value Balance Ending | $
Aggregate Intrinsic Value Options Vested | $

Equity and Long-Term Compensa_5

Equity and Long-Term Compensation - Summary of Restricted Stock Plan Activity (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of Shares Restricted Stock, Balance Beginning | shares	54,033
Number of Shares Restricted Stock, Plan Awards | shares	2,800
Number of Shares Restricted Stock, Restricted Stock Vested | shares	(18,066)
Number of Shares Restricted Stock, Balance Ending | shares	38,767
Weighted Average Grant Date Fair Value, Balance Beginning | $ / shares	$ 6.23
Weighted Average Grant Date Fair Value, Plan Awards | $ / shares
Weighted Average Grant Date Fair Value, Restricted Stock Vested | $ / shares	6.15
Weighted Average Grant Date Fair Value, Balance Ending | $ / shares	$ 6.24

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2016
Accounts payable - related party		$ 1,374
David H. Lesser [Member]
Accounts payable - related party		$ 1,374
Hudson Bay Partners, L.P [Member]
Payments to affiliate	$ 6,000
Hudson Bay Partners, L.P [Member] | Board of Directors [Member]
Reimbursing an affiliate, per month			$ 1,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	Jul. 23, 2019$ / shares	Jul. 12, 2019USD ($)aft²	Jun. 30, 2019$ / shares
Dividend paid per share			$ 0.484375
Subsequent Event [Member] | Series A Cumulative Redeemable Perpetual Preferred Stock [Member]
Dividend paid per share	$ 0.484375
Preferred stock dividend percentage	7.75%
Dividend payable date	Sep. 15, 2019
Dividend payable recorded date	Aug. 15, 2019
Subsequent Event [Member] | JAB Industries Ltd [Member]
Leases terms		20 years
Leases extend terms		Five-year periods.
Lease description		The rent for each of the leases is structured whereby after a six-month free-rent period, the rental payments provide Power REIT a full return of invested capital over the next three years in equal monthly payments. After the 42nd month, rent is structured to provide a 12.5% return on the original invested capital amount which will increase at a 3% rate per annum. At any time after year six, if cannabis is legalized at the federal level, the rent will be readjusted down to an amount equal to a 9% return on the original invested capital amount and will increase at a 3% rate per annum based on a starting date of the start of year seven.
Subsequent Event [Member] | PropCo [Member]
Business combination were acquired | $		$ 1,770,000
Acres of land | a		7.31
Subsequent Event [Member] | PropCo [Member] | Two Existing Greenhouses and Processing Facilities [Member]
Acres of land | ft²		18,612