NewLake Capital Partners: Q3 2024 Financial Results and Growth Drivers

NewLake Capital Partners, Inc. (NLCP), a leading provider of real estate capital to state-licensed cannabis operators, reported its third quarter 2024 financial results, showcasing solid growth and strategic investments. The company declared a third-quarter dividend of $0.43 per common share, equivalent to an annualized dividend of $1.72 per share, with a payout ratio of 84%. NewLake's revenue totaled $12.6 million, a 9.3% increase year-over-year, while net income attributable to common stockholders totaled $6.4 million. Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) both increased by 6.5% and 6.7% year-over-year, respectively, to $10.3 million and $10.8 million.

NewLake's strategic investments and acquisitions have contributed significantly to its financial growth. In the past year, the company has made several strategic investments, including the acquisition of a cultivation facility in Connecticut from C3 Industries for $3.993 million. Additionally, NewLake has funded approximately $14.0 million of improvement allowances across four properties, demonstrating its commitment to enhancing its portfolio and driving financial growth.



NewLake's focus on the cannabis industry and real estate capital provision has demonstrated resilience during market fluctuations and regulatory changes. The company's revenue increased by 9.3% year-over-year to $12.6 million in Q3 2024, driven by a 9.7% increase in revenue for the nine months ended September 30, 2024. Net income attributable to common stockholders totaled $6.4 million in Q3 2024, up from $6.0 million in the same period last year. This growth can be attributed to the company's strategic investments in cannabis cultivation facilities and dispensaries, which are leased to single tenants on a triple-net basis, providing a stable revenue stream. Additionally, NewLake's commitment to funding building and tenant improvements, totaling $14.0 million for the nine months ended September 30, 2024, has contributed to the company's resilience.

In conclusion, NewLake Capital Partners' Q3 2024 financial results demonstrate the company's strong performance and commitment to growth. Through strategic investments, acquisitions, and a focus on the cannabis industry, NewLake has been able to drive revenue growth and maintain a healthy financial position. As the cannabis industry continues to evolve, investors should keep an eye on NewLake's progress and potential opportunities for growth.