Newlake Capital Partners Inc
OTC:NLCP
Newlake Capital Partners Inc
NewLake Capital Partners, Inc. provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third-party purchases and funding for build-to-suit projects. The company is headquartered in New Canaan, Connecticut and currently employs 7 full-time employees. The company went IPO on 2021-08-19. Its properties are leased to single tenants on a long-term, triple-net basis. The firm supplies real estate capital primarily to companies that cultivate, produce and/or dispense cannabis. NewLake owns a geographically diversified portfolio consisting of approximately 24 properties across nine states with six tenants, comprised of 17 dispensaries and seven cultivation facilities.
NewLake Capital Partners, Inc. provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third-party purchases and funding for build-to-suit projects. The company is headquartered in New Canaan, Connecticut and currently employs 7 full-time employees. The company went IPO on 2021-08-19. Its properties are leased to single tenants on a long-term, triple-net basis. The firm supplies real estate capital primarily to companies that cultivate, produce and/or dispense cannabis. NewLake owns a geographically diversified portfolio consisting of approximately 24 properties across nine states with six tenants, comprised of 17 dispensaries and seven cultivation facilities.
Results In Line: NewLake Capital reported third quarter results that matched expectations, with steady portfolio performance despite a tough cannabis sector.
AFFO Growth: Adjusted funds from operations grew more than 2% year-over-year, driven by lower expenses and stable rental income.
Dividend Maintained: The quarterly dividend of $0.43 per share was paid, supported by an 82% AFFO payout ratio within the company’s targeted range.
Risk Management: Management proactively managed tenant risks, including lease amendments with C3 and re-tenanting AYR properties after rent defaults.
Cautious Outlook: The company remains cautious on new cannabis sector investments due to limited capital access and federal regulatory delays.
Strong Balance Sheet: NewLake maintains low leverage (1.6% debt to assets) and high liquidity, with $106 million available to fund future opportunities.
Tenant Health Monitored: All tenants except AYR are current on rent, and no further issues with other tenants were reported.
