NewLake Capital Partners Reports Second Quarter 2025 Financial Results

GlobeNewswire | NewLake Capital
Wednesday, August 6, 2025 at 9:00pm UTC

Second Quarter 2025 Revenue Totaled $12.9 Million, an Increase of 3.8% Year-Over-Year

Second Quarter 2025 Net Income Attributable to Common Stockholders Totaled $7.3 Million, Funds from Operations Totaled $11.4 Million, and Adjusted Funds from Operations Totaled $11.5 Million

Conference Call and Webcast Scheduled for August 7, 2025, at 11 a.m. Eastern Time

NEW CANAAN, Conn., Aug. 06, 2025 (GLOBE NEWSWIRE) -- NewLake Capital Partners, Inc. (OCTQX: NLCP) (the “Company” or “NewLake”), a leading provider of real estate capital to state-licensed cannabis operators, today announced its financial results for the second quarter ended June 30, 2025.

“Our second quarter results demonstrate the continued stability of our business model,” said Anthony Coniglio, NewLake's President and Chief Executive Officer. “We generated revenue and AFFO growth while maintaining a 79% AFFO payout ratio, reflecting disciplined execution despite ongoing challenges in the cannabis industry.”

Second Quarter 2025 Financial and Operational Highlights

  • Revenue totaled $12.9 million.
  • Net income attributable to common stockholders totaled $7.3 million.
  • Funds From Operations (“FFO”)(1) totaled $11.4 million.
  • Adjusted Funds From Operations (“AFFO”)(1) totaled $11.5 million.
  • Declared a second quarter dividend of $0.43 per common share, equivalent to an annualized dividend of $1.72 per common share.

Comparison to the Second Quarter ended June 30, 2024

  • Revenue totaled $12.9 million, as compared to $12.5 million, an increase of approximately 3.8% year-over-year.
  • Net income attributable to common stockholders totaled $7.3 million, as compared to $6.8 million.
  • FFO totaled $11.4 million, as compared to $10.5 million, an increase of 7.7% year-over-year.
  • AFFO totaled $11.5 million, as compared to $11.0 million, an increase of 4.0% year-over-year.
  • For the second quarter ended June 30, 2025, the Company declared a dividend of $0.43 per common share, consistent to the second quarter ended June 30, 2024.

Six Months Ended June 30, 2025 Financial and Operational Highlights
Comparison to the six months ended June 30, 2024

  • Revenue totaled $26.1 million, as compared to $25.1 million, an increase of 4.3% year-over-year.
  • Net income attributable to common stockholders totaled $13.6 million, as compared to $13.7 million.
  • FFO totaled $21.6 million, as compared to $21.1 million, an increase of 2.5% year-over-year.
  • AFFO totaled $22.2 million, as compared to $22.0 million, an increase of 0.9% year-over-year.

Balance Sheet Highlights as of June 30, 2025

  • Cash and cash equivalents as of June 30, 2025, were $21.9 million, with $12.1 million committed to fund future improvements.
  • Total liquidity of $104.3 million, consisting of cash and cash equivalents and availability under the Company’s Revolving Credit Facility.
  • Gross real estate assets of $432.2 million.
  • 1.6% debt to total gross assets and a debt service coverage ratio of approximately 95x.
  • No debt maturity until May 2027.

(1) FFO and AFFO are presented on a dilutive basis.

Investment Activity

Acquisitions

The following table presents the Company’s investment activity for the six months ended June 30, 2025 (in thousands):

Tenant Market Site Type Closing Date Real Estate
Acquisition Costs
Cresco Labs Ohio Dispensary February 19, 2025 $285
Cresco Labs Ohio Dispensary April 25, 2025  500
Curaleaf (1) Pennsylvania Dispensary June 12, 2025  950
Total       $1,735
          

(1) This dispensary was acquired through a like-kind exchange and was recorded at its fair value. For further details, refer to the “Disposition” section below.

Disposition

On June 12, 2025, the Company completed a deed-for-deed like-kind exchange with a tenant, involving the transfer of its dispensary located in Mokena, IL for a dispensary located in Brookville, PA. The transaction was structured as a nonmonetary exchange with no cash consideration. Upon completion of the exchange, the Brookville property received by the Company was leased to a current tenant under a new operating lease. The Brookville dispensary was recorded at its estimated fair value of $950 thousand and the Company recognized a de minimis loss on the exchange. For additional details, refer to the acquisition summary in the table above.

Real Estate Commitments

Improvement Allowances

The following table presents the funded and remaining unfunded commitments for the six months ended June 30, 2025 (in thousands):

Tenant Market Site Type Closing Date Funded
Commitments
 Unfunded
Commitments
C3 Industries Connecticut Cultivation May 7, 2024 $ $11,043
Cresco Labs Ohio Dispensary February 19, 2025    705
Cresco Labs Ohio Dispensary April 25, 2025    375
Total $ $12,123
           

Condition of Our Tenants

Revolutionary Clinics

Revolutionary Clinics faced operational challenges that impaired their ability to meet contractual rent obligations. Beginning in June 2024, they paid approximately 50% of rent due. On December 13, 2024, Revolutionary Clinics entered into receivership. In the first quarter of 2025, the Company entered into a stipulation agreement with the court appointed receiver to receive 50% of contractual rent on a weekly basis, along with weekly reimbursements for certain delinquent real estate taxes and utilities previously paid by the Company. For the three and six months ended June 30, 2025, the Company received the rent and expense payments in accordance with the stipulation agreement. The receiver is working to liquidate the tenant's business.

In April 2025, the Company retained a commercial real estate broker to facilitate the leasing process and began actively marketing the property. The tenant vacated the premises in July 2025, and leasing efforts remain ongoing.

Financing Activity

Revolving Credit Facility

As of June 30, 2025, the Company had approximately $7.6 million in borrowings under the Revolving Credit Facility and $82.4 million in funds available to be drawn, subject to sufficient collateral in the borrowing base. The Revolving Credit Facility accrued interest at a fixed rate of 5.65% through May 5, 2025. Commencing May 6, 2025, the Revolving Credit Facility bears interest at a variable rate based upon the greater of (a) the Prime Rate quoted in the Wall Street Journal (Western Edition) plus an applicable margin of 1.0% or (b) 4.75%. As of June 30, 2025, the interest rate was at 8.50%.

The facility is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants, and events of default. As of June 30, 2025, the Company was in compliance with the financial covenants under the agreement.

Dividend

On June 16, 2025, the Company’s Board of Directors declared a second quarter 2025 cash dividend of $0.43 per share of common stock, equivalent to an annualized dividend of $1.72 per share of common stock. The dividend was paid on July 15, 2025, to stockholders of record at the close of business on June 30, 2025, and represents an AFFO payout ratio of 79%.

Recent Developments

On July 30, 2025, AYR Wellness Inc. (“AYR”), which operates at two of the Company’s owned properties, announced that it had entered into a restructuring support agreement with its senior noteholders. Under the proposed plan, certain AYR assets and operations will be acquired by the senior noteholders, while the remaining assets and operations are expected to be sold or wound down. AYR properties represent approximately 5.9% of the Company’s rental revenue for the six months ended June 30, 2025. AYR has paid its rental payments through July 2025; however, as of August 6, 2025, the Company has not received rent payments for August. Based on currently available information, the Company does not expect the operations associated with the two leased properties to be included in the transaction with AYR’s senior noteholders. The Company holds security deposits equal to approximately 3.5 months of rent for each of the two properties. The Company intends to enforce all of its rights under the lease agreements.

Conference Call and Webcast Details:

Management will host a conference call and webcast at 11:00 a.m. Eastern Time on August 7, 2025, to discuss its quarterly financial results and answer questions about the Company's operational and financial highlights for the second quarter ended June 30, 2025.

Event:NewLake Capital Partners Inc. Second Quarter 2025 Earnings Call
Date:Thursday, August 7, 2025
Time:11:00 a.m. Eastern Time
Live Call:1-877-300-8521 (U.S. Toll-Free) or 1-412-317-6026 (International)
Webcast:https://ir.newlake.com/news-events/ir-calendar
  

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until August 21, 2025, and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 10201213.

About NewLake Capital Partners, Inc.

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 34 properties comprised of 15 cultivation facilities and 19 dispensaries that are leased to single tenants on a triple-net basis. For more information, please visit www.newlake.com.

Forward-Looking Statements

This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. All of our statements regarding anticipated growth in our funds from operations, adjusted funds from operations, anticipated market conditions, and results of operations are forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.

Use of Non-GAAP Financial Information

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 stockholders to FFO and AFFO and definitions of terms are included at the end of this release.

Contact Information:
Lisa Meyer
Chief Financial Officer, Treasurer and Secretary
NewLake Capital Partners, Inc.
lmeyer@newlake.com

Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
Valter@KCSA.com
PH: (212) 896-1254

Media Contact:
Ellen Mellody, Senior Vice President
KCSA Strategic Communications
EMellody@KCSA.com
PH: (570) 209-2947

    
NEWLAKE CAPITAL PARTNERS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
    
 June 30, 2025 December 31, 2024
Assets:    
Real Estate   
Land$23,224  $22,891 
Building and Improvements 408,930   408,552 
Total Real Estate 432,154   431,443 
Less Accumulated Depreciation (51,321)  (44,709)
Net Real Estate 380,833   386,734 
Cash and Cash Equivalents 21,854   20,213 
In-Place Lease Intangible Assets, net 16,695   17,794 
Loan Receivable, net (Current Expected Credit Loss of $93 and $116, respectively) 4,907   4,884 
Other Assets 1,558   1,911 
Total Assets$425,847  $431,536 
    
Liabilities and Equity:    
    
Liabilities:   
Accounts Payable and Accrued Expenses$981  $1,515 
Revolving Credit Facility 7,600   7,600 
Dividends and Distributions Payable 9,024   9,246 
Security Deposits 7,642   8,117 
Rent Received in Advance 990   684 
Other Liabilities 81   402 
Total Liabilities 26,318   27,564 
    
Commitments and Contingencies   
    
Equity:   
    
Preferred Stock, $0.01 Par Value, 100,000,000 Shares Authorized, 0 Shares Issued and Outstanding, respectively     
Common Stock, $0.01 Par Value, 400,000,000 Shares Authorized, 20,552,632 and 20,514,583 Shares Issued and Outstanding, respectively 205   205 
Additional Paid-In Capital 446,759   446,627 
Accumulated Deficit (54,265)  (50,067)
Total Stockholders' Equity 392,699   396,765 
    
Noncontrolling Interests 6,830   7,207 
Total Equity 399,529   403,972 
    
Total Liabilities and Equity$425,847  $431,536 
        


    
NEWLAKE CAPITAL PARTNERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
    
 Three Months Ended Six Months Ended
 June 30, June 30,
  2025   2024   2025   2024 
Revenue:       
Rental Income$12,564  $12,253  $25,151  $24,380 
Interest Income from Loans 137   134   271   265 
Fees and Reimbursables 231   68   720   418 
Total Revenue 12,932   12,455   26,142   25,063 
        
Expenses:       
Reimbursable Property Expenses 41   28   668   50 
Property Carrying Costs 5      5    
Depreciation and Amortization Expense 3,877   3,626   7,760   7,194 
General and Administrative Expenses:       
Compensation Expense 670   1,150   1,875   2,385 
Professional Fees 197   243   803   645 
Other General and Administrative Expenses 554   455   964   873 
Total General and Administrative Expenses 1,421   1,848   3,642   3,903 
Total Expenses 5,344   5,502   12,075   11,147 
        
Loss on Sale of Real Estate (34)     (34)   
Provision for Current Expected Credit Loss 10   12   23   26 
        
Income From Operations 7,564   6,965   14,056   13,942 
        
Other Income (Expense):       
Other Income 91   81   177   181 
Interest Expense (210)  (128)  (384)  (211)
Total Other Income (Expense) (119)  (47)  (207)  (30)
        
Net Income 7,445   6,918   13,849   13,912 
        
Net Income Attributable to Noncontrolling Interests (126)  (122)  (234)  (247)
        
Net Income Attributable to Common Stockholders$7,319  $6,796  $13,615  $13,665 
        
Net Income Attributable to Common Stockholders Per Share - Basic$0.36  $0.33  $0.66  $0.66 
        
Net Income Attributable to Common Stockholders Per Share - Diluted$0.35  $0.33  $0.66  $0.66 
        
Weighted Average Shares of Common Stock Outstanding - Basic 20,613,866   20,555,362   20,602,635   20,548,601 
        
Weighted Average Shares of Common Stock Outstanding - Diluted 20,974,923   20,951,379   20,971,160   20,946,805 
                

Non-GAAP Financial Information

Funds From Operations

The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently and therefore the Company’s computation of FFO may not be comparable to such other REITs.

Adjusted Funds From Operations

The Company calculates AFFO by starting with FFO and adjusting for non-cash and certain non-recurring transactions, including non-cash components of compensation expense and the effect of provisions for credit loss. Other REITs may not define AFFO in the same manner and therefore the Company’s calculation of AFFO may not be comparable to such other REITs. You should not consider FFO and AFFO to be alternatives to net income as a reliable measure of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.

The table below is a reconciliation of net income attributable to common stockholders to FFO and AFFO for the three and six months ended June 30, 2025 and 2024 (in thousands, except share and per share amounts):

  Three Months Ended June 30, Six Months Ended June 30,
   2025   2024   2025   2024 
Net Income Attributable to Common Stockholders $7,319  $6,796  $13,615  $13,665 
Net Income Attributable to Noncontrolling Interests  126   122   234   247 
Net Income  7,445   6,918   13,849   13,912 
         
Adjustments:        
Real Estate Depreciation and Amortization  3,873   3,622   7,751   7,185 
Loss on Sale of Real Estate  34      34    
FFO Attributable to Common Stockholders - Diluted  11,352   10,540   21,634   21,097 
Provision for Current Expected Credit Loss  (10)  (12)  (23)  (26)
Stock-Based Compensation  47   424   434   774 
Non-cash Interest Expense  67   67   135   135 
Amortization of Straight-line Rent Expense  (1)     (2)  (1)
AFFO Attributable to Common Stockholders - Diluted $11,455  $11,019  $22,178  $21,979 
         
FFO per share – Diluted $0.54  $0.50  $1.03  $1.01 
         
AFFO per share – Diluted $0.55  $0.53  $1.06  $1.05 

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