Power REIT announced that a wholly owned subsidiary PropCo entered a 20-year triple-net lease (the Lease) with Marengo Cannabis LLC, a wholly owned subsidiary of Millennium Cannabis LLC (Millennium Cannabis), allowing use of the Property as a cannabis cultivation and processing facility. The Lease requires Millennium Cannabis 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 guarantee from Millennium Cannabis LLC. As mandated by the Lease, Millennium Cannabis will maintain a medical marijuana license and will operate in accordance with all Michigan and municipal regulations. The Lease also prohibits the retail sale of cannabis at the Property. After an initial deferred rent period to allow for renovations, the Lease stipulates rental payments that provide PropCo with a full return of its invested capital over the next three years, and thereafter, provides an approximately 14.7% yield increasing thereafter at a rate of 3% per annum. The Lease, as structured, provides straight-line annual rent of approximately $4.3 million, representing an unleveraged Core FFO yield of approximately 20% on the invested capital.