Power REIT (NYSE:PW) announced yesterday that it had closed on a deal to buy approximately 100 acres of land leased to the owners of over 20 MW of solar projects near Fresno, CA. This will be the company’s second solar transaction and increases the share of its revenue from solar to 21%. These two solar transactions put PW well on its way to becoming the nation’s first REIT to get most of its revenue from renewable energy. The balance of its revenue comes from leasing its railroad property. Whiile not renewable energy, rail is also a green asset in that transport by rail is much more fuel efficient than the alternative: trucking.
Salisbury, MA Transaction
Just last week, PW completed financing for its previous solar transaction, by closing on a $750,000 bank loan. I thought it would be helpful to dig into the newly released numbers to understand the economics of the transactions.
Below are the details of the completed transaction for land under the True North Solar farm in Salisbury, MA. These, and the details about the Fresno transaction discussed below come from the press releases, interviews with the Chairman and CEO of Power REIT, David Lesser, and my own searches of news stories and public records.
Written by Tom Konrad. To read the full article, click here.