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NewLake Capital Partners (NLCP)
OTHER OTC:NLCP
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NewLake Capital Partners
(OTC:NLCP)
75Outperform
NewLake Capital Partners (NLCP) vs. S&P 500 (SPY)
Market Cap
$307.96M
Dividend Yield11.97%
Average Volume (3M)46.03K
Price to Earnings (P/E)11.5
Beta (1Y)0.43
Revenue Growth5.98%
EPS Growth9.23%
CountryUS
Employees8
SectorReal Estate
Sector Strength65
IndustryREIT - Specialty
Share Statistics
EPS (TTM)1.25
Shares Outstanding21,460,672
10 Day Avg. Volume37,535
30 Day Avg. Volume46,032
Financial Highlights & Ratios
PEG Ratio1.25
Price to Book (P/B)N/A
Price to Sales (P/S)6.12
Price to Cash Flow (P/CF)7.20
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside39.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
NewLake Capital Partners Business Overview & Revenue Model
Company DescriptionNewLake Capital Partners (NLCP) is a real estate investment trust (REIT) that focuses on acquiring and leasing industrial and retail properties primarily to state-licensed cannabis operators. The company operates within the burgeoning cannabis sector, providing vital real estate capital to businesses in the medical and adult-use cannabis industries. By offering a tailored leaseback model, NLCP enables cannabis companies to access the capital they need to grow their operations while retaining the flexibility of property use.
How the Company Makes MoneyNewLake Capital Partners makes money by acquiring properties and leasing them to cannabis operators under long-term, triple-net lease agreements. These agreements require tenants to cover property expenses such as taxes, insurance, and maintenance, providing NLCP with a stable and predictable cash flow. The company's revenue is primarily derived from rental income, which is typically subject to annual escalations, ensuring growth over time. Additionally, NLCP may benefit from property value appreciation and strategic partnerships within the cannabis sector, further enhancing their earnings potential.
NewLake Capital Partners Financial Statement Overview
Summary
NewLake Capital Partners shows strong financial health with robust revenue growth, high profitability margins, and an impressive balance sheet devoid of debt. The company exhibits solid cash flow generation, although past fluctuations indicate some investment volatility. Overall, the financials paint a picture of a stable and growth-oriented outlook with minimal financial risk.Income Statement
NewLake Capital Partners shows strong growth in revenue and profitability. The gross profit margin is exceptionally high, indicating efficient cost management. Net profit margin and EBIT margins are robust, suggesting strong operational performance. The revenue growth rate has been positive year-over-year, showcasing a healthy upward trajectory in sales.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with zero total debt, resulting in a strong equity ratio. The debt-to-equity ratio is exceptionally low, indicating minimal leverage risk. Return on equity is impressive, reflecting effective use of shareholders' funds. The high stockholders' equity compared to total assets suggests financial stability.90
Very Positive
Cash Flow
Operating cash flow is strong and consistently covers net income, indicating solid cash generation from core operations. Free cash flow has shown significant growth over the years, reflecting efficient capital management. However, fluctuations in free cash flow in earlier years highlight potential investment volatility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 50.13M | 47.30M | 44.79M | 28.20M | 11.66M |
| Gross Profit | ||||
| 49.89M | 46.65M | 44.73M | 28.06M | -3.96M |
| EBIT | ||||
| 26.79M | 24.66M | 22.52M | 11.49M | 436.00K |
| EBITDA | ||||
| 41.86M | 38.92M | 35.34M | 19.59M | -7.83M |
| Net Income Common Stockholders | ||||
| 26.11M | 24.59M | 21.98M | 11.23M | -10.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.21M | 25.84M | 45.19M | 127.10M | 19.62M |
| Total Assets | ||||
| 431.54M | 433.29M | 454.25M | 460.88M | 144.18M |
| Total Debt | ||||
| 7.60M | 2.19M | 2.99M | 3.76M | 598.00K |
| Net Debt | ||||
| -12.61M | -23.66M | -42.21M | -123.34M | -19.02M |
| Total Liabilities | ||||
| 27.56M | 21.34M | 23.31M | 21.55M | 3.15M |
| Stockholders Equity | ||||
| 396.76M | 404.58M | 423.55M | 427.56M | 134.76M |
| Cash Flow | Free Cash Flow | |||
| 43.35M | 40.08M | -8.24M | 11.53M | 7.35M |
| Operating Cash Flow | ||||
| 43.35M | 40.08M | 37.01M | 26.70M | 7.35M |
| Investing Cash Flow | ||||
| -19.14M | -12.84M | -86.45M | -39.91M | -65.05M |
| Financing Cash Flow | ||||
| -29.84M | -46.60M | -32.46M | 120.69M | 10.42M |
NewLake Capital Partners Technical Analysis
Negative
14.37
Price Trends
15.35
Negative
16.30
Negative
17.35
Negative
Market Momentum
-0.27
Negative
34.05
Neutral
-10.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLCP, the sentiment is Negative. The current price of 14.37 is below the 20-day moving average (MA) of 14.78, below the 50-day MA of 15.35, and below the 200-day MA of 17.35, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 34.05 is Neutral, neither overbought nor oversold. The STOCH value of -10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NLCP.
NewLake Capital Partners Risk Analysis
NewLake Capital Partners disclosed 45 risk factors in its most recent earnings report. NewLake Capital Partners reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NewLake Capital Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $307.96M | 11.52 | 6.52% | 11.97% | 5.98% | 9.23% | |
70 Outperform | $1.53B | 9.79 | 8.20% | 13.61% | -0.32% | -4.24% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
49 Neutral | $1.04B | ― | -12.12% | ― | 6.27% | 67.62% | |
48 Neutral | $125.86M | 7.12 | 6.37% | 24.60% | -19.21% | -21.10% | |
43 Neutral | $62.43M | ― | -33.74% | ― | -16.39% | -9.08% |
* Real Estate Sector Average
Performance Comparison
NLCP
NewLake Capital Partners
14.35
-2.80
-16.33%
IIPR
Innovative Industrial Properties
56.49
-35.31
-38.46%
GRWG
GrowGeneration
1.05
-1.75
-62.50%
TSE:TRUL
Trulieve Cannabis
5.30
-10.59
-66.65%
AFCG
AFC Gamma
5.72
-1.19
-17.22%
NewLake Capital Partners Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -8.18% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted NewLake's financial growth and strong liquidity position, but also addressed significant challenges such as tenant payment issues and delays in federal cannabis reform. The company remains cautious about the industry's future due to these ongoing uncertainties.Highlights
AFFO Per Share Growth
NewLake achieved a growth in AFFO per share of 10% year-over-year for 2024, demonstrating sustained growth since their founding in 2019.
Increased Dividends
Annual dividends were increased to $1.70 per share, an 8% rise over 2023, reflecting NewLake's commitment to delivering value to shareholders.
Strong Liquidity Position
NewLake reported a strong liquidity position with $103 million available, including $20.2 million in cash and $82.4 million in untapped credit facility capacity.
Revenue Growth
Total revenue for 2024 reached $50.1 million, representing a 6% increase from $47.3 million in 2023.
New Board Member
Dina Rollman, with over a decade of experience in the cannabis industry, was added to the Board of Directors, enhancing leadership in legal and regulatory affairs.
Lowlights
Tenant Rent Payment Issues
Revolutionary Clinics and Calypso are the only two tenants facing issues with paying contractual rent, impacting the financial stability of the lease portfolio.
Challenges in Massachusetts and Pennsylvania
Revolutionary Clinics entered receivership, and Calypso is facing challenges, leading to reliance on deposits for rent payments and uncertainty in retenanting.
Revenue Decline in Q4
Fourth quarter revenue decreased by 3.9% year-over-year due to noncash revenue recorded for Revolutionary Clinics warrants and their subsequent impairment.
Federal Reform Delays
Delays in DEA rescheduling and federal cannabis reforms continue to create uncertainty and headwinds for the industry.
Company Guidance
During NewLake Capital Partners' Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance based on several key metrics and assumptions. The management anticipates continued headwinds in the cannabis industry for 2025 while awaiting developments such as the DEA's rescheduling decision and potential federal reforms. Despite these challenges, NewLake reported a 10% year-over-year growth in AFFO per share and increased their annual dividends by 8% to $1.70 per share in 2024. The company maintains a strong liquidity position with $103 million available, including $20.2 million in cash and $82.4 million in untapped credit facility capacity. NewLake's portfolio includes $445 million committed across 32 properties with 1.7 million square feet, maintaining an EBITDA coverage of 3.5x for cultivation and 9.0x for dispensaries. The company plans to continue its disciplined investment strategy with a focus on high-quality tenants and prudent risk management, supported by one of the lowest leverage levels in the REIT industry.NewLake Capital Partners Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
NewLake Capital Partners Reports Strong 2024 Financial Results
Positive
Mar 5, 2025
NewLake Capital Partners reported its financial results for the fourth quarter and full year of 2024, showing a 6.0% increase in full-year revenue to $50.1 million despite challenges in the cannabis industry. The company declared a first quarter 2025 dividend of $0.43 per share, reflecting an 8.3% increase in annual dividends, and highlighted its strong financial metrics and strategic investments, including a stock repurchase program and a $50 million At The Market Program.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.