NewLake Capital Partners, Inc. Price: Quote, Forecast, Charts & News (NLCP)

Perplexity Finance

NLCP

NewLake Capital Partners, Inc.

NLCP

PNK

Market Closed

Tuesday, May 20, 2025

$14.94

-$0.01

0.07%

At close: May 19, 7:54:27 PM UTC

$14.94

$0.00

After hours: 7:54:27 PM UTC

Change

-$0.01

0.07%

Financial Profile

Prev Close

$14.95

Market Cap

$306.86M

Day Range

$14.86 - $15.00

Open

$15.00

P/E Ratio

12.0

52W Range

$12.08 - $21.46

24H Volume

$253.73K

Dividend Yield

11.51%

EPS

1.25

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

10m 1s

To the NewLake Capital Partners First Quarter twenty twenty five Earnings Conference Call. I'm joined today by Gordon Dugan, Chairman Anthony Camiglio, President and Chief Executive Officer Lisa Meyer, Chief Financial Officer and Jared Annenberg, Senior Vice President and Head of Investments. Before we begin, I'd like to remind everyone that savings made during today's conference call may be deemed forward looking statements within the meaning of the Safe Harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks and uncertainties and other factors. For a detailed discussion of some of the ongoing risks and uncertainties, uncertainties in the company's business, I refer you to the press release issued yesterday and filed with the SEC on Form eight ks as well as the company's 10 ks, 10 Q, other reports filed periodically with the SEC. Company disclaims any intention or obligation to update or revise any forward looking statements. Whether as a result of new information, future events or otherwise. FFO and AFFO are supplemental non GAAP financial measures. Used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common shareholders to FFO and AFFO and definitions of terms are included at the end of our press release.

11m 18s

Please refer to that press release for more information. With that, it's my pleasure to turn the call over to Mr. Gordon Dugan. Gordon, please go ahead. Thank you, Walter and good morning everyone. I appreciate you all joining us today. 2025 is off to a solid start for NewLake. Rent collections across our portfolio remain stable and in line with the expectations we outlined on our last earnings call. We also closed two new property acquisitions. Modest in size but fully in line with our strategy of disciplined accretive Our first quarter AFFO payout ratio of 84% is consistent with recent quarters and remains within our stated target range of 80 to 90% payout, providing strong coverage and continued support for our dividend. As we discussed just two months ago, anticipated continuing headwinds for the cannabis sector as the industry awaits key catalysts. Since then, we've unfortunately seen additional headlines reflecting distressed in the sector. Over the past few years, we've emphasized our differentiated underwriting approach, and that discipline has thus far provided relative stability for our shareholders amid broader industry challenges. I believe our consistent cautious approach during the industry's hyper growth phase has positioned us well.

12m 38s

It has supported a reliable dividend profile and preserved the financial strength we need to capitalize on long term opportunities as the industry matures. Beyond cannabis, the broader REIT industry continues to navigate elevated interest rates and evolving capital markets. Tariff policy and recession concerns are impacting certain REIT sectors as Anthony will discuss shortly, NewLake's cash flows are less sensitive to these external pressures than most. Despite broader macroeconomic environment and continued difficulty in the cannabis industry, industry. We believe NewLake is well positioned We have strong liquidity.

13m 17s

One of the lowest leverage ratios in the REIT sector. And ample credit capacity. We are very well prepared to invest prudently high quality tenants and to navigate the current landscape for the long term benefit of our shareholders. With that, I'll turn it over to Anthony.

13m 35s

Thank you, Gordon, and good morning, everyone.

13m 37s

Our first quarter results reflect the consistency and resilience of our portfolio. These results are consistent with our expectations and highlight the benefits of the proactive steps we've taken in portfolio construction and risk management. I'd like to start by highlighting the progress with one of our tenants Calypso which secured a strategic investment and partnership that will help unlock the value of their license, particularly as Pennsylvania moves closer to approving an adult use market. Jarrett will provide more detail shortly but I wanted to emphasize that this outcome validates a core element of our investment strategy which is focusing on quality properties in limited license states where regulatory frameworks support tenant profitability and long term value creation. As Gordon just mentioned, we entered 2025 with a cautious outlook on the cannabis industry and that view certainly remains intact. We anticipate continued small scale M and A, tougher financing conditions and more industry receiverships as that challenging environment persists. While headlines may weigh on sentiment, our focus on property level cash flow and limited license markets provides a bit of a buffer against that broader volatility. We remain confident that NewLake is well positioned to navigate this period and cap capitalize on long term growth opportunities.

15m

I'd like to turn to regulatory and legislative developments. The past few weeks have delivered a flurry of activity though the lasting impact on federal progress does remain uncertain. First, the DEA's rescheduling process continues to face delays. However, during last week's confirmation hearing, the nominee for DEA Administrator pledged to make advancing the rescheduling process one of his top priorities. As a reminder, the DEA submitted a proposed rule nearly twelve months ago to move cannabis from Schedule I to Schedule III under the Controlled Substances Act. A shift that could unlock meaningful tax relief for the industry and represent a significant milestone in federal cannabis reform. We also observed a few cannabis related bills introduced over the past few weeks. The States Act, the Prepare Act, and the evidence based Drug Policy Act. While passage of these bills is highly uncertain, it's great to see this type of activity in Washington around reform. During the presidential campaign, Donald Trump expressed support for rescheduling and an earlier version of the States Act. And we're going to be watching closely for any signals of policy alignment from the current administration. As we all know, tariff policy has taken center stage recently impacting many sectors of the global economy.

16m 24s

Compared to other sectors, the cannabis industry is likely to experience less disruption from recent tariffs. While some imported components such as vaporizer cartridges and materials are sourced internationally, these do represent a relatively small percentage of the total product cost. Infrastructure related imports like lighting and cultivation equipment, could be affected, However, given the current slowdown in capital expenditures for the industry, the near term impact should be modest. This is also an industry, let's remember, that has demonstrated remarkable from navigating COVID era supply chain shocks to adjusting quickly during periods of severe price compression cannabis operators have consistently shown their ability to adapt, to optimize, and to endure. In that context, I'm fairly confident the industry will find its way through this uncertainty as well. Given the recent tariff actions, there's also been renewed concern about a potential recession. While those fears are valid across many sectors, we believe the cannabis industry, like the spirits and beer industries, has characteristics that make it more resilient in an economic downturn. Consumer demand for these categories tends to remain stable even when discretionary spending tightens.

17m 44s

And cannabis much like alcohol is often viewed as an affordable indulgence and one that can one that customers continue to prioritize regardless of broader economic conditions. We did see this dynamic play out during the COVID-nineteen pandemic when cannabis sales remained relatively strong despite significant economic disruption. As a result, we're currently less concerned about a potential recession having a material impact on our portfolio. As I wrap up my comments today, I want to share a quick team update. Jarrett, who's been with us from the very beginning and played a key role in building the company, will be stepping away later this month.

18m 26s

To take the reins of his family business. Jarrett has been an incredible partner for many years He's been steady, thoughtful, and deeply committed to NewLake's success. From acquisition strategy to underwriting to tenant relationships, he set a tone of excellence that will continue to guide how we operate and grow. The quality portfolio we've built together reflects the high standards, discipline and execution that Jarrett helped define here at NewLake. We're grateful for all he's contributed and while we'll certainly miss working with him day to day, the foundation he helped build is strong and will serve NewLake shareholders well for years to come. Nikki Creer, who has worked closely with Jared over the past three years, and many of you know, will step into an expanded role working directly with on investment and portfolio management activities. We'll continue to evaluate our acquisition capabilities in the months ahead and importantly Jarrod is going to remain involved as a consultant through year end to ensure a smooth and seamless transition. We're really excited for Jarrett and his wonderful family. We wish him the best of luck. And with that, I'll turn the call over to Jarrett.

19m 36s

Thank you, AC, for the much too kind words. Before I discuss my transition in more detail, I'll provide an update on deal activity talk about REV Clinics In Calypso, give insight into the operating environment, and talk about transaction activity. In Q1, we acquired a Cresco dispensary in Ohio with a total commitment of $1,000,000 And subsequent to quarter end, we acquired a second Cresco dispensary in Ohio an additional commitment of $875,000. Between the two dispensaries, approximately 1,000,000 of the total commitment is constructed improvement allowance.

20m 11s

Moving to TI allowance, we did not have any disbursements in the first quarter. As of March 31, we had $11,000,000 in outstanding PI with C3 in Connecticut.

20m 21s

The timing of those disbursements for C3 will vary as the tenant is reevaluating options after final construction pricing came in significantly higher than the original bids. Turning to our existing facilities, average EBITDAR coverage for the latest available quarter was 3.4 times for cultivation and 8.6x for dispensaries. Both down slightly from the previous quarter. Now these metrics are from q four has historically been a slower quarter for the industry. That said, the coverages are still within the same range that they have been over the past twenty four months. But given price compression across the industry, time will tell if these coverages are really seasonality or the new normal for the industry. Please note that we use estimates where appropriate given each company reports slightly differently on a property level basis. Next, I want to give an update on REV Clinics and Calypso. Starting with RevClinics, who as a reminder entered receivership in mid December. They have continued to pay us 50% of contractual rent as they wind down operations, and we expect to take possession of the building to the June. We've hired a broker who has conducted tours with interested cannabis users. And while we have had activity early on, given the difficult operating environment in Massachusetts, we anticipate it will take some time to re lease the property.

21m 43s

With regards to Calypso, their security deposit was applied to rent through mid February. After which we received the remaining outstanding rent for the first quarter in connection with the financial restructuring of Calypso to raise new third party capital.

21m 57s

We're excited for our tenant and the added capital should allow them to build out own dispensaries, creating a vertically integrated operator in Pennsylvania, with the adult use legislation just passed through the state house this week. The Calypso transaction is currently awaiting regulatory approval and customary closing conditions. We expect to receive full rent moving forward. Now as Anthony and Gordon noted, the industry continues to experience headwinds as we await federal reforms and margins continue to compress. However, we are starting to see tack on acquisitions in select markets where operators with stronger balance sheets are taking advantage of the opportunity to buy quality assets from distressed sellers. These assets tend to be in markets where the acquirer already has a presence, and views the acquisition as a low risk opportunity that is immediately accretive to their existing operations. We expect to see this type of M and A continue as some operators look to shore up their balance sheets while others are looking to grow. Regarding transaction activity, as I mentioned, we closed on two dispensaries with Cresco in Ohio in the past ninety days.

23m 6s

While dispensaries aren't the same size as cultivation assets, these transactions do demonstrate that we are deploying capital in an accretive manner while maintaining our disciplined approach. We continue to see these types of opportunities for both dispensaries and cultivation assets as we have ample capital available and are a much less competitive environment. Lastly, on a personal note, as Anthony said, after six incredibly rewarding years helping build NewLake from the ground up, I've made the difficult decision to step away from the company. A few weeks, I'll be transitioning to help lead my family's real estate investment business. Something I've wanted to do for as long as I can remember. While I'm excited for what's ahead, it is bittersweet and I'm deeply proud of everything we've accomplished here together. I'll continue to support the team in a consulting role over the next six months to ensure continuity and momentum during the transition. I'm incredibly grateful to our investors, tenants, the board and the NewLake team for their trust, support that you've shown me over the last few years. I'll be cheering the company on and the continued success not only on a personal level, but as a shareholder and a believer in the company's long term prospects.

24m 21s

With that, I'll turn it over to Lisa.

24m 24s

Thank you, Jared.

24m 25s

In the first quarter of twenty twenty five, our portfolio generated total revenue of $13,200,000 an increase of 4.8% from the previous year. Reflecting the quality of our portfolio. The key factors contributing to this increase include rental income from the acquisition of a cultivation facility in Connecticut and a dispensary in Ohio. We've committed to fund an additional $11,700,000 in building and improvements for these properties. Base rent growth from the funding of building and improvements across four cultivation and annual rent escalators that consistently boost our revenue. As discussed, Revolutionary Clinics continued paying 50% of the contractual rent in the first quarter. Also, for CALYPSO, we applied the remaining escrow and security deposit of $490,000 to the first quarter rent and as Jared mentioned, we received the remaining contractual rent for the quarter as Calypso progressed through its recapitalization. During the three months ended 03/31/2025, we acquired a Cresco dispensary in Ohio and ended the quarter with a total unfunded commitments of $11,700,000 Net income attributable to common shareholders for the three months ended 03/31/2025, totaled $6,300,000 or 31¢ per share. Adjusted funds from operations for the quarter was $107,000,000 dollars or $0.51 per share, reflecting a modest decline of 2.2% as compared to the same period in 2024.

26m 13s

While revenue increased, the decline in was driven by higher professional fees and timing of tenant bill backs and the associated reimbursements. Since we recognize revenue on a cash basis, timing differences can arise from when we pay property expenses on behalf of our tenants and when the tenants reimburse us. Leading to temporary fluctuations in earnings. On a sequential basis, revenue grew 5% in the first quarter of twenty twenty five driven by the acquisition of a Cresco dispensary, annual rent escalators, and reimbursable revenue from tenant billbacks recorded during the quarter. However, AFFO modestly decreased compared to the fourth quarter driven by higher professional fees and the timing of tenant bill backs and their associated reimbursements, as previously discussed.

27m 9s

We declared a first quarter twenty twenty five cash dividend of $0.43 per share of common stock, equivalent to $1.72 per share of common stock on an annualized basis. The dividend is fully supported by the earnings power of our portfolio, with a first quarter payout ratio of 84%. This demonstrates our commitment to delivering consistent shareholder returns while maintaining a solid balance sheet. The first quarter dividend was paid on 04/15/2025, to stockholders of record at the close of business on 03/31/2025. On 03/31/2025, our balance sheet remained strong with $432,000,000 in gross real estate assets and only $8,000,000 in debt outstanding. And a debt to EBITDA ratio of less than 0.2 times. Our liquidity is solid with $102,000,000 available including $19,900,000 in cash and $82,400,000 in untapped revolving credit facility The company is strategically positioned to execute a business strategy to grow earnings for invested investors as we prudently deploy capital. With that, I will turn the call over to the operator for Q and A. Thank you.

28m 34s

Now be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, while we poll for questions. Our first question is from Pablo Zuanic with Zuanic and Associates.

29m 9s

Thank you. Good morning, everyone. I'm going to start with some basic modeling housekeeping questions.

29m 15s

So regarding C3, you said that they may not go ahead with their project. So the $11,000,000 in unfunded commitments may be won't materialize, meaning, you know, we won't be able to you will not be able to, I shouldn't model that in my book progression for the year, I'm assuming, but if you can give more color on that, and remind us whether you had advanced any manis to C3 as part of a Connecticut property and what happens with that money? Do you get it back, or do they pay rent on that? And I'll follow-up with Salix and Replenix, but let's start with C3. Thanks.

29m 49s

Yes. So thanks, Pablo, for the question. We own the property in Connecticut. They pay rent on the property in Connecticut. They are reevaluating the build out of that facility given how high the costs have come in to complete the project. And so timing of takedown or the ultimate takedown of any additional TI is uncertain as we've said. And so we don't want to predispose what the final outcome is going to be. But I think for the intermediate time here, for your modeling purposes, pausing the distribution of the TI would make sense.

30m 30s

Thank you. And then regarding REV clinics, understood from what you said, I think the receiver is in control and they are making sure that 50% of rent is paid. How does that work going forward? Is that being evaluated quarter by quarter or should we assume that that's being paid every quarter 50% of the rent And is there a deadline in terms of when do they control and hand it over to a broker to lease, or you can do that any time.

30m 58s

Thanks.

30m 59s

Yes. So we've already engaged brokers to try to source retenanting with the expectation that the receiver will turn the building back over to us and in Jared's comments, he identified that they'd be in there, I think, through the end of the second quarter. The receivers charge is to try to sell the business to maximize the proceeds for the creditors and we do have that stipulation agreement the receiver that so long as they're in the building, they will pay us that 50% And so as the receiver winds down their activity in either selling the business if they can get that done or liquidating what assets are available to the company I. E. Inventory. Before they turn the building back over to us.

31m 46s

So yeah, what we've said is expect through the end of the second quarter and we expect to get the building back at the end of the second quarter. And we've already started touring people through for releasing activities.

32m 2s

And I don't know, can you quantify the what the 50% rental in terms of AFFO per share Are we talking about $02 $03 Can you quantify that?

32m 14s

It's about $0.15 Okay. Alright. And regarding Calypso, way I shared what you said is pretty much, I guess, everything is back to normal. Going to get the escrow and deposits up again, and they want to keep paying full rental per normal.

32m 32s

That is the plan is sub subject to regulatory approval and customary closing conditions, but that generally would be the plan.

32m 41s

But while we wait for the regulatory approval, what happens in 2Q in terms of, again, modeling and rental being collected?

32m 51s

What we've said, we don't provide, forward looking statements, But what we've said is that we've been confident in the resolution. And if there was a disruption to rent, it would be very short lived. But we do expect all tenants to pay rent timely. And Calypso is no different.

33m 12s

Okay, thank you. And then just stepping back bigger picture, obviously you're stock has been penalized or impacted by what's been happening at IPR, first with the PharmaGun situation and then with some tenant defaults that they've disclosed. You know, what's the read here for NewLake? And what can we say to investors in terms of why is this different in the case of NewLake?

33m 39s

Thank you for the question. I would start by pointing out our payout ratio. I think with an 84% AFFO payout ratio, well within our 80% to 90% guided range. I think that provides coverage that investors can feel confident about the dividend that we've declared previously and our ability to continue delivering on the dividend for shareholders. I also think when you look across the portfolio over the 33 properties, we've had one and that is the revolutionary clinics that's been an issue. And while we spent a lot of time on previous calls talking about Calypso, we've collected all rent from the inception of that lease. It's It's been noisy for sure, but we have collected rent. And I know a lot of people look at what's happening across the industry and expecting us to come up with a meaningful press release around a number of defaults. And I'd say if you just look at our EBITDAR coverage coverage disclosures and understand from hearing us talk about the way we underwrite deals, the best way to continue getting paid rent is to enter into deals that provide good cash flow for the tenant. And we feel pretty good about the cash that our properties provide for the tenant.

35m 3s

Want to be clear, I'm not saying we're never going to have another issue. You can't have a portfolio with over thirteen years of remaining weighted average lease term and expect that you're not going to have another tenant issue. But again, I think why we've been insulated from a lot of the disruption that you've seen across the landscape is that emphasis not only on limited license states, but on the property level cash flows.

35m 30s

Thank you. And one more bigger picture. So in terms of I mean, most companies sound more cautious, right? We've seen the MSO numbers so far, not a lot of growth. There's some uncertainty in terms of when we get Florida, Virginia, Pennsylvania, so there's less CapEx in general. I think even a mortgage REIT company yesterday talked about slower outlook in that sense. In that context, what does it mean for sale leasebacks? Does that mean that there is even less demand for sale leaseback I guess asking the question a different way when we look at that refinancing wall that people talk about, is there an opportunity for sale leaseback or not really? Thanks. [indiscernible] would let me answer that in a couple of ways. Number one, when we look at, this industry and where it is in the CapEx cycle, there isn't a significant demand for real estate capital today. As it stands. Number two, when I look at the balance sheets of public companies, we estimate that there is approximately $2,000,000,000 of real estate residing on the balance sheet of public companies So that means away from the publics, there's more. So just the existing cannabis real estate out there, there's billions of available properties, many of which are being utilized to secure shorter term debt facilities.

36m 58s

And so to your your other question around is there an opportunity, I certainly do believe there's an opportunity and we've been talking to operators in the industry that as they approach the refinancing of their facilities that they look at sale leaseback as a part of that approach and an opportunity for them to diversify their sources of capital, use their balance sheet assets potentially more efficiently than they are today by pledging them to a credit facility for 25%, 35%, 50% advance rate. So I do think there's opportunities. But long term, what is the opportunity It's for states like Texas Georgia, North Carolina. These are large states that have, if they have a marijuana program like a Tax Test it's very very small. And so there's lots of CapEx that's going to be required to build out those states not to mention Kentucky and maybe Nebraska when they start to get there. Their program organized. So I see that in the near term and I think our pipeline reflects this, excuse me, our deal activity reflects it. You look at what we've done over the last year, it's been much less versus that 'twenty one, 'twenty two period.

38m 13s

But we do see some opportunities to continue to deploy capital in the near term. But then long term, it'll be these large state activations that will continue to drive demand And then when companies have the opportunity to approach a proper, what I would consider a proper balance sheet construction, I think we'll see them utilize sale leaseback more as they get to a more optimal capital structure and shed hard assets off of their balance sheet.

38m 41s

Got it. And one last question, Anthony. Mean, you were at ICBC Berlin recently. Is international an opportunity for NewLake and for sale lease within the cannabis world? Thank you.

38m 53s

Yeah, potentially. Potentially it is. And that's why we were we were over there evaluating the market, learning about the market, What's interesting is that people may not know that Germany has fully legalized cannabis. It's a different structure than we utilize here in The States but they fully legalized cannabis. Lots of people believe that as Germany goes, the rest of the continent will go. And so just as we see reform occurring in The United States, I think we'll continue to see reform occur over the long term And quite frankly, of our tenants in The U. S. Are over in Europe already and some of them are looking to enter Europe. And so if we're comfortable with a credit and a management team in The U. S, If we want to be a true partner for them, we certainly have to be ready if they call upon us to evaluate opportunities wherever their business may take them, whether that be in Canada or in Europe.

39m 51s

Thank you. That's all. Thanks.

39m 55s

Thank you, Pablo.

40m

Thank you. There are no further questions at this time. I'd like to hand the floor back over to Anthony Coniglio for any closing comments.

40m 8s

Well, you everybody for joining us today. Have yourself a great summer. We'll speak to you in August.

40m 17s

This concludes today's conference. May disconnect your lines at this time. Thank you for your participation.

Key Insights

Q1 2025 revenue was $13.2 million, up 4.8% year-over-year, driven by new property acquisitions and annual rent escalators; net income attributable to common shareholders was $6.3 million ($0.31 per share), and AFFO was $10.7 million ($0.51 per share), a 2.2% decline due to higher professional fees and timing of tenant reimbursements.
Portfolio rent collections remain stable and in line with expectations; the AFFO payout ratio was 84%, within the target range of 80–90%, supporting a $0.43 per share quarterly dividend ($1.72 annualized).
Two new Cresco dispensary acquisitions in Ohio were completed (total commitment: $1.875 million), with $11.7 million in total unfunded commitments at quarter-end; C3 in Connecticut is reevaluating a $11 million buildout due to higher construction costs, pausing further TI disbursements.
REV Clinics continues to pay 50% of contractual rent during receivership, with the property expected to be returned to NLCP by the end of Q2; Calypso has resolved rent issues and is expected to resume full rent payments pending regulatory approval after a successful recapitalization.
NLCP maintains strong liquidity ($102 million available), low leverage (debt/EBITDA <0.2x), and a disciplined underwriting approach focused on limited license states; management expects continued industry headwinds but sees long-term growth opportunities, including potential international expansion and future sale-leaseback demand as new state markets open.

Recent Transcripts

Revenue rose 4.8%, AFFO payout ratio steady at 84%, strong liquidity and low leverage maintained.

AFFO per share grew 10% and dividends rose 8% despite cannabis sector headwinds.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$12M	$28M	$45M	$47M	$50M
Cost of Revenue	$16M	$144K	$60K	$657K	$239K
Gross Profit	-$4M	$28M	$45M	$47M	$50M
Gross Profit %	-34%	99%	100%	99%	100%
R&D Expenses	-$0.89	$0.41	$0.5	$0	$0

2020

2021

2022

2023

2024

Revenue

$12M

$28M

$45M

$47M

$50M

Cost of Revenue

$16M

$144K

$60K

$657K

$239K

Gross Profit

-$4M

$28M

$45M

$47M

$50M

Gross Profit %

-34%

99%

100%

99%

100%

R&D Expenses

-$0.89

$0.41

$0.5

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$10M	$12M	$22M	$25M	$27M
Dep. & Amort.	$2.6M	$8.1M	$13M	$14M	$15M
Def. Tax	-$1.5M	-$20M	$0	$0	$0
Stock Comp.	$4.7M	$2M	$1.5M	$1.4M	$1.7M
Chg. in WC	$499K	$5M	$99K	$753K	$852K

2020

2021

2022

2023

2024

Net Income

-$10M

$12M

$22M

$25M

$27M

Dep. & Amort.

$2.6M

$8.1M

$13M

$14M

$15M

Def. Tax

-$1.5M

-$20M

Stock Comp.

$4.7M

$2M

$1.5M

$1.4M

$1.7M

Chg. in WC

$499K

$5M

$99K

$753K

$852K

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$20M	$127M	$45M	$26M	$20M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$20M	$127M	$45M	$26M	$20M
Receivables	$0	$30M	$5M	$4.8M	$4.9M
Inventory	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Cash

$20M

$127M

$45M

$26M

$20M

ST Investments

Cash & ST Inv.

$20M

$127M

$45M

$26M

$20M

Receivables

$30M

$5M

$4.8M

$4.9M

Inventory

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $307M
IPO Date: 8/20/21
CEO: Mr. Anthony Coniglio CPA
Fulltime Employees: 8
Sector: Real Estate
Industry: REIT - Specialty
Country: US
Exchange: Other OTC

Peers

Alpine Income Property Trust, Inc.

$15.25

PINE

0.07%

Chicago Atlantic Real Estate Finance, Inc.

Global Medical REIT Inc.

Watchlist

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

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Transcript

10m 1s

11m 18s

12m 38s

13m 17s

13m 35s

Thank you, Gordon, and good morning, everyone.

13m 37s

15m

16m 24s

17m 44s

18m 26s

19m 36s

20m 11s

Moving to TI allowance, we did not have any disbursements in the first quarter. As of March 31, we had $11,000,000 in outstanding PI with C3 in Connecticut.

20m 21s

21m 43s

21m 57s

23m 6s

24m 21s

With that, I'll turn it over to Lisa.

24m 24s

Thank you, Jared.

24m 25s

26m 13s

27m 9s

28m 34s

29m 9s

Thank you. Good morning, everyone. I'm going to start with some basic modeling housekeeping questions.

29m 15s

29m 49s

30m 30s

30m 58s

Thanks.

30m 59s

31m 46s

32m 2s

And I don't know, can you quantify the what the 50% rental in terms of AFFO per share Are we talking about $02 $03 Can you quantify that?

32m 14s

32m 32s

That is the plan is sub subject to regulatory approval and customary closing conditions, but that generally would be the plan.

32m 41s

But while we wait for the regulatory approval, what happens in 2Q in terms of, again, modeling and rental being collected?

32m 51s

33m 12s

33m 39s

35m 3s

35m 30s

36m 58s

38m 13s

38m 41s

Got it. And one last question, Anthony. Mean, you were at ICBC Berlin recently. Is international an opportunity for NewLake and for sale lease within the cannabis world? Thank you.

38m 53s

39m 51s

Thank you. That's all. Thanks.

39m 55s

Thank you, Pablo.

40m

Thank you. There are no further questions at this time. I'd like to hand the floor back over to Anthony Coniglio for any closing comments.

40m 8s

Well, you everybody for joining us today. Have yourself a great summer. We'll speak to you in August.

40m 17s

This concludes today's conference. May disconnect your lines at this time. Thank you for your participation.

Key Insights

Q1 2025 revenue was $13.2 million, up 4.8% year-over-year, driven by new property acquisitions and annual rent escalators; net income attributable to common shareholders was $6.3 million ($0.31 per share), and AFFO was $10.7 million ($0.51 per share), a 2.2% decline due to higher professional fees and timing of tenant reimbursements.
Portfolio rent collections remain stable and in line with expectations; the AFFO payout ratio was 84%, within the target range of 80–90%, supporting a $0.43 per share quarterly dividend ($1.72 annualized).
Two new Cresco dispensary acquisitions in Ohio were completed (total commitment: $1.875 million), with $11.7 million in total unfunded commitments at quarter-end; C3 in Connecticut is reevaluating a $11 million buildout due to higher construction costs, pausing further TI disbursements.
REV Clinics continues to pay 50% of contractual rent during receivership, with the property expected to be returned to NLCP by the end of Q2; Calypso has resolved rent issues and is expected to resume full rent payments pending regulatory approval after a successful recapitalization.
NLCP maintains strong liquidity ($102 million available), low leverage (debt/EBITDA <0.2x), and a disciplined underwriting approach focused on limited license states; management expects continued industry headwinds but sees long-term growth opportunities, including potential international expansion and future sale-leaseback demand as new state markets open.

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