Power REIT announced that it has acquired a 35-acre property located in Huerfano County, Colorado (the “Property”) through a wholly owned subsidiary (“PropCo”). The Property is strategically located in a part of southern Colorado that offers a very favorable business setting and growing environment for efficient and sustainable greenhouse cultivation. The property currently has multiple greenhouses and support buildings which will be upgraded through a redevelopment plan that Power REIT will fund along with the new construction of additional greenhouse space. Upon completion, the Property will comprise approximately 102,800 square feet of greenhouse and related space. Power REIT’s total capital commitment for the project is approximately $3.9 million including the property acquisition cost. The Property also has ample acreage for future expansion which Power REIT intends to finance. Concurrent with the acquisition, PropCo entered into a 20-year “triple-net” lease (the “Lease”) with Walsenburg Cannabis LLC (“WC”) which will operate the cannabis cultivation facility. The Lease covers approximately 22.2 acres of the 35 acre Property. The remaining and undeveloped 12.8 acres is available for future expansions. The Lease requires WC to pay all property related expenses including maintenance, insurance and taxes. After the initial 20-year term, The Lease provides two, five-year renewal options and has a personal guarantee from WC’s President. Pursuant to the Lease, WC will maintain a medical marijuana license and will operate in accordance with all Colorado and municipal regulations. The Lease also prohibits retail sales from the Property. The Lease, as structured, is immediately accretive to Core FFO by adding straight-line annual rent of approximately $729,000. This represents an unleveraged Core FFO yield of approximately 18.8% on Power REIT’s invested capital. After an initial deferred rent period, the rental payments enumerated in the Lease provide PropCo with a full return of its invested capital over the next three years after which PropCo receives an approximately 13% yield increasing thereafter at a rate of 3% per annum.