NewLake Capital Partners: Navigating Industry Challenges, Delivering Dividend Growth

NewLake Capital Partners, Inc. (OCTQX: NLCP), a leading provider of real estate capital to state-licensed cannabis operators, recently announced its financial results for the fourth quarter and full year ended December 31, 2024. The company also declared its first quarter 2025 common stock dividend of $0.43 per share. Despite facing industry challenges, NewLake Capital Partners delivered year-over-year growth across key financial metrics and maintained its commitment to delivering value to shareholders through dividend increases.

In 2024, NewLake Capital Partners generated record revenue of $50.1 million, an increase of 6.0% year-over-year. The company's net income attributable to common stockholders totaled $26.1 million, while funds from operations (FFO) and adjusted funds from operations (AFFO) reached $41.3 million and $43.7 million, respectively. These strong financial results allowed NewLake Capital Partners to increase its annual dividend to $1.70 per share, an 8.3% increase over 2023.

Throughout the year, NewLake Capital Partners took proactive measures to manage portfolio risks and mitigate the impacts of industry challenges. The company diversified its investments across various cannabis operators and geographies, strengthening its underwriting process, and proactively managing its tenants. Additionally, NewLake Capital Partners maintained strong liquidity and low leverage, providing a buffer against industry challenges and flexibility in managing its portfolio.



NewLake Capital Partners' dividend growth strategy has been a key driver of shareholder value. The company's ability to generate consistent cash flow and maintain a strong balance sheet has enabled it to deliver year-over-year dividend increases, despite industry challenges. Looking ahead, the prospects for future dividend increases appear positive, as the company continues to grow its portfolio and maintain a strong financial position.

In conclusion, NewLake Capital Partners' ability to navigate industry challenges and deliver dividend growth is a testament to its strong underwriting process, proactive portfolio management, and commitment to shareholder value. As the cannabis industry continues to evolve, NewLake Capital Partners remains well-positioned to capitalize on opportunities and maintain its dividend growth trajectory.