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Power REIT: A High Growth REIT

Mar. 08, 2021 11:19 AM ETPower REIT (PW), PW.PANSC23 Comments
Bjorn Zonneveld profile picture
Bjorn Zonneveld


  • PW has an asset portfolio consisting of 3 types of properties.
  • The company has shifted focus to cannabis properties and has been acquiring over 10 properties in the last few years.
  • At current valuation, the company is trading at a small discount to fair value.

Recently, I came across Power REIT (NYSE:PW), a small cap diversified REIT that focuses on growing markets. Although the company's share price has risen significantly over the past year, I think that the company is making moves into the right markets. However, there are some risks regarding legalization and competition to take into account. Nonetheless, in my opinion the shares are undervalued by around 6%.

power reit logo

Source: Company website

Company description

As most readers will probably be unfamiliar with PW, I will start with giving some background of the company and its markets. PW is a holding company and has several wholly-owned subsidiaries. PW's history starts with the Pittsburgh & West Virginia Railroad. The P&WV Railroad was qualified as the first infrastructure REIT in the late 1960's. In the early 10's the company also decided to buy some land for solar panels. The company owns around 600 acres of land that is leased to solar projects with 107MW of utility scale. However, since 2019 the company has a new investment focus: agricultural real estate. The company is not focused on just any agricultural real estate, the company is focusing on Controlled Environment Agriculture (CEA). CEA is a method of growing plants by creating an optimized environment. The company owns CEAs that are focused on food or cannabis.


Currently the smallest market of the company, with around 12% of gross rent (of the properties owned at the end of the third quarter). The company has a total of 112 miles of railroad, which is leased to a subsidiary of Norfolk Southern Railway (NSC). The lease is for a term of 99 years and started in 1964. The tracks are leased on a triple net basis which means that all the costs are for the renter and that PW does not have

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This article was written by

Bjorn Zonneveld profile picture
I mainly focus on stocks that are unknown by the public and REITs. As for me: I am a BBA graduate who is pursuing a Master in Finance (MSF) at Erasmus University (Rotterdam, Netherlands) and work a student job in the real estate industry. My portfolio mainly consist of dividend growth stocks and REITs. Although I do have smaller positions in growth and value (non-dividend) stocks. My largest positions are: Enbridge, Abbvie and VICI.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in PW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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