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DIRECT FINANCING LEASES AND OPERATING LEASES | 3 Months Ended
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Mar. 31, 2024
Leases [Abstract] |
DIRECT FINANCING LEASES AND OPERATING LEASES | 5 – DIRECT FINANCING LEASES AND OPERATING LEASES Information as Lessor Under ASC Topic 842 To generate positive cash flow, as a lessor, the Trust leases its facilities to tenants in exchange for payments. The Trust’s leases for its railroad, solar farms and greenhouse cultivation facilities have lease terms ranging between 5 and 99 years. Payments from the Trust’s leases are recognized on a straight-line basis over the terms of the respective leases or on a cash basis for tenants with collectability issues. During the three months ended March 31, 2024 and 2023, the Trust wrote off a net amount of $0 in straight-line rent receivable against rental income. Total revenue from its leases recognized for the three months ended March 31, 2024 and 2023 is approximately $489,000 and $923,000, respectively. Due to significant price compression in the wholesale cannabis market, many of our cannabis related tenants are currently experiencing severe financial distress. Unfortunately, starting in 2022, collections from the CEA portfolio has diminished to a nominal amount. The Trust is exploring strategic alternatives with respect to the CEA portfolio and has listed some of the assets for sale and may list additional assets. Historically, the Trust’s revenue has been concentrated to a relatively limited number of investments, industries and lessees. During the three months ended March 31, 2024, Power REIT collected approximately 81% of its consolidated revenue from two properties. The tenants were Norfolk Southern Railway and Regulus Solar, LLC which represent 43% and 38% of consolidated revenue respectively. Comparatively, during the three months ended March 31, 2023, Power REIT collected approximately 92% of its consolidated revenue from three properties. The tenants were NorthEast Kind Assets, LLC (“Sweet Dirt”), Norfolk Southern Railway, and Regulus Solar, LLC which represent 46%, 25% and 21% of consolidated revenue respectively. The following is a schedule by years of minimum future rentals on non-cancelable operating leases as of March 31, 2024 for assets and assets held for sale where revenue recognition is considered on a straight-line basis: SCHEDULE OF MINIMUM FUTURE RENTALS ON NON- CANCELABLE OPERATION LEASES
|  | Assets |  |  | Assets Held for Sale |
2024 (Nine months left) |  |  | 704,733 |  |  |  | - |
2025 |  |  | 811,802 |  |  |  | - |
2026 |  |  | 820,004 |  |  |  | - |
2027 |  |  | 828,155 |  |  |  | - |
2028 |  |  | 836,388 |  |  |  | - |
Thereafter |  |  | 5,155,262 |  |  |  | - |
Total |  | $ | 9,156,344 |  |  | $ | - |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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