Those investors who chose the specialized real-estate investment trust Power REIT PW to add to their portfolios some five years ago are now enjoying their high returns.
Despite COVID’s negative effect on the overall economy over the past two years, industries, like pharma, e-commerce and online gaming thrived. The cannabis industry also experienced unexpected growth, with some weed-related stocks continuing to see gains.
Over the last five years, Power REIT’s stock has outperformed some of the most popular stocks in the world, such as Apple AAPL, Twilio TWLO, Netflix NFLX and Bank of America BAC.
Even though Power REIT is not considered a pure-play stock, its relation to the cannabis industry is straightforward – it has a real estate portfolio of controlled environment agriculture (CEA) greenhouse properties for medical cannabis cultivation. The trust is mainly concentrated on sustainable real estate with attractive risk-adjusted returns.
In addition to controlled environment agriculture, Power REIT also covers solar farmland and railroad sectors. Its CEA properties are leased to tenants that are licensed for the production of medical marijuana at the facilities.
Last year, Power REIT, which is headquartered in Old Bethpage, NY, announced an $18.5 million greenhouse acquisition to reach the booming Michigan cannabis market. It has also reached Oklahoma, acquiring a 9.35-acre property in Craig County via its subsidiary PropCo for a total of $2.65 million.
At the end of 2021, the company confirmed it will borrow $20 million from a commercial federally regulated bank to support further acquisitions of greenhouse cultivation properties, as well as fund value-add improvements at its existing properties.
In its latest earnings report for the fourth quarter and full-year 2021, the company disclosed full-year revenue of $8.46 million, up 98% compared to $4,272,709 in 2020. Yearly net income reached $4.5 million, up 137% compared to $1.9 million in 2020. Power REIT’s Q4 revenue grew 28% year-over-year to $1.79 million.
Here’s how the returns break down from April 2017 to the present:
- Bank of America Corporation is up from $23.34 a share to $40.90 for a return of 75.23%
- Netflix is up from $152.20 a share to $373.47 for a return of 145.38%;
- Apple is up from $35.91 a share to $174.31 for a return of 385.41%
- Twilio is up from $33.05 a share to $169.50 for a return of 412.86%;
- And finally, Power REIT is up from $6.95 per share to $39.45 for a return of 467.63%.