Newlake Capital Partners, Inc. ( (NLCP) ) has released its Q3 earnings. Here is a breakdown of the information Newlake Capital Partners, Inc. presented to its investors.
NewLake Capital Partners, Inc. is a real estate investment trust providing capital to state-licensed cannabis operators through sale-leaseback transactions and property investments. The company announced its third-quarter 2024 financial results, reporting a revenue increase of 9.3% year-over-year to $12.6 million. Net income attributable to common stockholders reached $6.4 million, with funds from operations at $10.3 million and adjusted funds from operations at $10.8 million.
The company declared a third-quarter dividend of $0.43 per share, maintaining a payout ratio of 84%, and funded $2.6 million in building and tenant improvements across four properties. NewLake collected approximately 97% of contractual rent during the quarter, despite some tenants experiencing operational challenges. The company’s revenue for the first nine months of 2024 was $37.6 million, a 9.7% increase from the previous year, with net income at $20.1 million.
NewLake continues to invest in its property portfolio, including a recent acquisition in Connecticut, and maintains a strong liquidity position with $19.8 million in cash and equivalents and a revolving credit facility. Despite challenges with some tenants, the company remains optimistic about future growth opportunities, supported by potential federal cannabis reform.
Looking forward, NewLake Capital Partners remains focused on supplying capital to the cannabis industry, positioning itself for growth amid a changing regulatory landscape. The company’s management expresses optimism about the potential for cannabis reform, which could positively impact the industry and NewLake’s operations.
