AG真人官方

NewLake Capital Partners Reports Second Quarter 2025 Financial Results

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听7, 2025, at 11 a.m. Eastern Time

NEW CANAAN, Conn., Aug. 06, 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 second quarter ended June听30, 2025.

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

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 (鈥淔FO鈥�)⁽¹⁾ totaled $11.4 million.
• Adjusted Funds From Operations (鈥淎FFO鈥�)⁽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听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听30, 2025, the Company declared a dividend of $0.43 per common share, consistent to the second quarter ended June听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听30, 2025

• Cash and cash equivalents as of June听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鈥檚 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鈥檚 investment activity for the six months ended June听30, 2025 (in thousands):

^{(1) This dispensary was acquired through a like-kind exchange and was recorded at its fair value. For further details, refer to the 鈥淒isposition鈥� 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.

AG真人官方 Estate Commitments

Improvement Allowances

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

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听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听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听5, 2025. Commencing May听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听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听30, 2025, the Company was in compliance with the financial covenants under the agreement.

Dividend

On June听16, 2025, the Company鈥檚 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听15, 2025, to stockholders of record at the close of business on June听30, 2025, and represents an AFFO payout ratio of 79%.

Recent Developments

On July 30, 2025, AYR Wellness Inc. (鈥淎YR鈥�), which operates at two of the Company鈥檚 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鈥檚 rental revenue for the six months ended June听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鈥檚 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听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听30, 2025.

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 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.
[email protected]

Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
[email protected]
PH: (212) 896-1254

Media Contact:
Ellen Mellody, Senior Vice President
KCSA Strategic Communications
[email protected]
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 and six months ended June 30, 2025 and 2024 (in thousands, except share and per share amounts):