AG真人官方

NewLake Capital Partners Reports First Quarter 2025 Financial Results

First Quarter 2025 Revenue Totaled $13.2 Million, an Increase of 4.8% Year-Over-Year

First Quarter 2025 Net Income Attributable to Common Stockholders Totaled $6.3 Million, Funds from Operations Totaled $10.3 Million, and Adjusted Funds from Operations Totaled $10.7 Million

Conference Call and Webcast Scheduled for May听8, 2025, at 11 a.m. Eastern Time

NEW CANAAN, Conn., May 07, 2025 (GLOBE NEWSWIRE) -- NewLake Capital Partners, Inc. (OCTQX: NLCP) (the 鈥淐ompany鈥� or 鈥淣ewLake鈥�), a leading provider of real estate capital to state-licensed cannabis operators, today announced its financial results for the first quarter ended March听31, 2025.

鈥淥ur first quarter financial results underscore the consistency and resilience of our portfolio,鈥� said Anthony Coniglio, NewLake鈥檚 President and Chief Executive Officer. 鈥淩ent collections were in line with expectations, and we delivered an 84% AFFO payout ratio. I鈥檓 proud of how our team continues to execute in a challenging industry landscape and a volatile macroeconomic environment. These consistent results reflect the benefits of the proactive steps we鈥檝e taken in portfolio construction and disciplined risk management.鈥�

First Quarter 2025 Financial and Operational Highlights⁽¹⁾

• Revenue totaled $13.2 million.
• Net income attributable to common stockholders totaled $6.3 million.
• Funds From Operations (鈥淔FO鈥�)⁽²⁾ totaled $10.3 million.
• Adjusted Funds From Operations (鈥淎FFO鈥�)⁽²⁾ totaled $10.7 million.
• Declared a first quarter dividend of $0.43 per common share, equivalent to an annualized dividend of $1.72 per common share.
• Collected approximately 98% of contractual rent during the quarter, inclusive of applying the remaining escrow deposit and security deposit of one tenant as described below.

Balance Sheet Highlights as of March听31, 2025

• Cash and cash equivalents as of March听31, 2025, were $19.9 million, with $11.7 million committed to fund future improvements.
• Total liquidity of $102.3 million, consisting of cash and cash equivalents and availability under the Company鈥檚 revolving credit facility.
• Gross real estate assets of $431.7 million.
• 1.6% debt to total gross assets and a debt service coverage ratio of approximately 113x.
• No debt maturity until May 2027.

Comparison to the first quarter ended March听31, 2024⁽¹⁾

• Revenue totaled $13.2 million, as compared to $12.6 million, an increase of approximately 4.8% year-over-year.
• Net income attributable to common stockholders totaled $6.3 million, as compared to $6.9 million.
• FFO totaled $10.3 million, as compared to $10.6 million, a decrease of 2.6% year-over-year.
• AFFO totaled $10.7 million, as compared to $11.0 million, a decrease of 2.2% year-over-year.
• For the first quarter ended March听31, 2025, the Company declared a dividend of $0.43 per common share, an increase of approximately 4.9% compared to the first quarter ended March听31, 2024.
  
  

(1) Quarterly comparisons of net income, FFO, and AFFO were impacted by two tenants who defaulted on their lease agreements. For one tenant, the remaining escrow and security deposit were applied to offset the unpaid rent, while the other tenant, who had no escrow or deposit available, contributed directly to the decrease in these metrics.
(2) FFO and AFFO are presented on a dilutive basis.

Investment Activity

Acquisitions

The following table presents the Company鈥檚 investment activity for the three months ended March听31, 2025 (in thousands):

AG真人官方 Estate Commitments

Improvement Allowances

The following table presents the funded and remaining unfunded commitments for the three months ended March听31, 2025 (in thousands):

Condition of Our Tenants

During the fourth quarter of 2023, the Company amended our leases with: a) Revolutionary Clinics as part of a restructuring of their business, the receipt of new third-party capital and new management, and b) Calypso in connection with their sale to Canvas Acquisition Corporation. Both tenants began experiencing operating challenges in the second half of 2024, impacting their ability to pay rent as described below. The Company has reserved all rights under the lease agreements.

Revolutionary Clinics

From June 2024 through March 2025, Revolutionary Clinics paid approximately 50% of its contractual rent. 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 paid weekly, along with weekly payments for the reimbursement of certain delinquent real estate taxes and utilities that were paid by the Company. The receiver is working to either liquidate or sell the tenant's business. The Company has hired a broker to help lease the property. The Company has reserved all of its rights under the lease agreement.

Calypso Enterprises

At December听31, 2024, the Company held the remaining escrow and security deposits of approximately $490 thousand, which were applied to satisfy contractual rent due for January 2025 and a portion of February 2025. At March听31, 2025 there were no remaining escrow or security deposits. In connection with a financial restructuring of Calypso to raise new third-party capital, the Company received the remaining outstanding rent for the first quarter of 2025. This payment received during the first quarter covered the remaining portion of February and March contractual rent, resulting in the collection of all rent due for the three months ended March听31, 2025.

Financing Activity

Revolving Credit Facility

As of March听31, 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 facility bears interest at a fixed rate of 5.65% through May 5, 2025 and thereafter a variable rate based upon the greater of (a) the Prime Rate quoted in the Wall Street Journal (Western Edition) (鈥淏ase Rate鈥�) plus an applicable margin of 1.0% or (b) 4.75%.

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 March听31, 2025, the Company was in compliance with the financial covenants under the agreement.

At the Market Equity Program

As of March听31, 2025, the Company has not issued any shares under the ATM Program.

Dividend

On March听4, 2025, the Company鈥檚 Board of Directors declared a first 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 April听15, 2025, to stockholders of record at the close of business on March听31, 2025, and represents an AFFO payout ratio of 84%

Conference Call and Webcast Details:

Management will host a conference call and webcast at 11:00 a.m. Eastern Time on May听8, 2025, to discuss its quarterly financial results and answer questions about the Company's operational and financial highlights for the first quarter ended March听31, 2025.

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until May 22, 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: 13752702.

About NewLake Capital Partners, Inc.

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust (鈥淩EIT鈥�) 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 33 properties comprised of 15 cultivation facilities and 18 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 鈥渇orward-looking statements.鈥� Forward-looking statements can be identified by words like 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渓ikely,鈥� 鈥渟hould,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渇uture,鈥� 鈥減lan,鈥� 鈥渂elieve,鈥� 鈥渋ntend,鈥� 鈥済oal,鈥� 鈥減roject,鈥� 鈥渃ontinue鈥� 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鈥檚 current expectations and assumptions regarding capital market conditions, the Company鈥檚 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 鈥淩isk Factors鈥� 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.

Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications

PH: (212) 896-1254

Media Contact:
Ellen Mellody, Senior Vice President
KCSA Strategic Communications

PH: (570) 209-2947

Non-GAAP Financial Information

Funds From Operations

The Company calculates FFO in accordance with the current National Association of AG真人官方 Estate Investment Trusts (鈥淣AREIT鈥�) 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鈥檚 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鈥檚 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 months ended March 31, 2025 and 2024 (in thousands, except share and per share amounts):