NLCP · NewLake Capital Partners, Inc.

NewLake Capital Partners delivered first quarter 2026 results in line with expectations, as stated by CEO Anthony Coniglio, with total revenue of $12.3 million reflecting a decline from $13.2 million in the prior year quarter primarily due to vacancies at three cultivation facilities in Pottsville, PA; Sparks, NV; and Fitchburg, MA. These vacancies led to no rental income recognition and added carrying costs, contributing to a 5.9% drop in AFFO to $10.1 million. Positively, the company achieved 100% collection of contractual rents, including from tenant The Cannabist Company across four properties despite its ongoing restructuring under Canadian law with U.S. Chapter 15 recognition. Partial offsets included a full quarter of income from two 2025-acquired Ohio dispensaries and annual rent escalators. Net income attributable to common stockholders was $5.8 million or $0.28 per diluted share. Balance sheet remains conservative with $24.8 million in cash, $107.2 million total liquidity, low 1.6% debt-to-gross-assets ratio, and debt service coverage of 72x, with no maturities until May 2027. The board declared a $0.43 per share dividend, equating to a 90% AFFO payout ratio and $1.72 annualized yield. Portfolio updates include a San Diego lease amendment extending term to 2034 with Wellgreens following a change in control, and added guarantors for Pennsylvania and Massachusetts properties tied to Acreage Holdings transactions. Management continues marketing vacant properties and holds $0.4 million unfunded commitments for Ohio improvements, positioning for growth amid cannabis rescheduling tailwinds.