NewLake Capital Partners Reports Second Quarter 2025 Financial Results

Second Quarter 2025 Revenue Totaled $12.9 Million, an Increase of 3.8% Year-Over-Year

Second Quarter 2025 Net Income Attributable to Common Stockholders Totaled $7.3 Million, Funds from Operations Totaled $11.4 Million, and Adjusted Funds from Operations Totaled $11.5 Million

Conference Call and Webcast Scheduled for August 7, 2025, at 11 a.m. Eastern Time

NEW CANAAN, Conn., Aug. 06, 2025 (GLOBE NEWSWIRE) -- NewLake Capital Partners, Inc. (OCTQX: NLCP) (the "Company" or "NewLake"), a leading provider of real estate capital to state-licensed cannabis operators, today announced its financial results for the second quarter ended June 30, 2025.

"Our second quarter results demonstrate the continued stability of our business model," said Anthony Coniglio, NewLake's President and Chief Executive Officer. "We generated revenue and AFFO growth while maintaining a 79% AFFO payout ratio, reflecting disciplined execution despite ongoing challenges in the cannabis industry."

Second Quarter 2025 Financial and Operational Highlights

• Revenue totaled $12.9 million.
• Net income attributable to common stockholders totaled $7.3 million.
• Funds From Operations ("FFO")⁽¹⁾ totaled $11.4 million.
• Adjusted Funds From Operations ("AFFO")⁽¹⁾ totaled $11.5 million.
• Declared a second quarter dividend of $0.43 per common share, equivalent to an annualized dividend of $1.72 per common share.
  

Comparison to the Second Quarter ended June 30, 2024

• Revenue totaled $12.9 million, as compared to $12.5 million, an increase of approximately 3.8% year-over-year.
• Net income attributable to common stockholders totaled $7.3 million, as compared to $6.8 million.
• FFO totaled $11.4 million, as compared to $10.5 million, an increase of 7.7% year-over-year.
• AFFO totaled $11.5 million, as compared to $11.0 million, an increase of 4.0% year-over-year.
• For the second quarter ended June 30, 2025, the Company declared a dividend of $0.43 per common share, consistent to the second quarter ended June 30, 2024.
  

Six Months Ended June 30, 2025 Financial and Operational Highlights
Comparison to the six months ended June 30, 2024

• Revenue totaled $26.1 million, as compared to $25.1 million, an increase of 4.3% year-over-year.
• Net income attributable to common stockholders totaled $13.6 million, as compared to $13.7 million.
• FFO totaled $21.6 million, as compared to $21.1 million, an increase of 2.5% year-over-year.
• AFFO totaled $22.2 million, as compared to $22.0 million, an increase of 0.9% year-over-year.

Balance Sheet Highlights as of June 30, 2025

• Cash and cash equivalents as of June 30, 2025, were $21.9 million, with $12.1 million committed to fund future improvements.
• Total liquidity of $104.3 million, consisting of cash and cash equivalents and availability under the Company's Revolving Credit Facility.
• Gross real estate assets of $432.2 million.
• 1.6% debt to total gross assets and a debt service coverage ratio of approximately 95x.
• No debt maturity until May 2027.
  

^{(1) FFO and AFFO are presented on a dilutive basis.}

Investment Activity

Acquisitions

The following table presents the Company's investment activity for the six months ended June 30, 2025 (in thousands):

Tenant		Market		Site Type		Closing Date		Real Estate Acquisition Costs
Cresco Labs		Ohio		Dispensary		February 19, 2025		$	285
Cresco Labs		Ohio		Dispensary		April 25, 2025			500
Curaleaf (1)		Pennsylvania		Dispensary		June 12, 2025			950
Total								$	1,735

^{(1) This dispensary was acquired through a like-kind exchange and was recorded at its fair value. For further details, refer to the "Disposition" section below.}

Disposition

On June 12, 2025, the Company completed a deed-for-deed like-kind exchange with a tenant, involving the transfer of its dispensary located in Mokena, IL for a dispensary located in Brookville, PA. The transaction was structured as a nonmonetary exchange with no cash consideration. Upon completion of the exchange, the Brookville property received by the Company was leased to a current tenant under a new operating lease. The Brookville dispensary was recorded at its estimated fair value of $950 thousand and the Company recognized a de minimis loss on the exchange. For additional details, refer to the acquisition summary in the table above.

Real Estate Commitments

Improvement Allowances

The following table presents the funded and remaining unfunded commitments for the six months ended June 30, 2025 (in thousands):

Tenant

Market

Site Type

Closing Date

Funded Commitments

Unfunded Commitments

C3 Industries

Connecticut

Cultivation

May 7, 2024

$

-

$

11,043

Cresco Labs

Ohio

Dispensary

February 19, 2025

-

705

Cresco Labs

Ohio

Dispensary

April 25, 2025

-

375

Total

$

-

$

12,123

Condition of Our Tenants

Revolutionary Clinics

Revolutionary Clinics faced operational challenges that impaired their ability to meet contractual rent obligations. Beginning in June 2024, they paid approximately 50% of rent due. On December 13, 2024, Revolutionary Clinics entered into receivership. In the first quarter of 2025, the Company entered into a stipulation agreement with the court appointed receiver to receive 50% of contractual rent on a weekly basis, along with weekly reimbursements for certain delinquent real estate taxes and utilities previously paid by the Company. For the three and six months ended June 30, 2025, the Company received the rent and expense payments in accordance with the stipulation agreement. The receiver is working to liquidate the tenant's business.

In April 2025, the Company retained a commercial real estate broker to facilitate the leasing process and began actively marketing the property. The tenant vacated the premises in July 2025, and leasing efforts remain ongoing.

Financing Activity

Revolving Credit Facility

As of June 30, 2025, the Company had approximately $7.6 million in borrowings under the Revolving Credit Facility and $82.4 million in funds available to be drawn, subject to sufficient collateral in the borrowing base. The Revolving Credit Facility accrued interest at a fixed rate of 5.65% through May 5, 2025. Commencing May 6, 2025, the Revolving Credit Facility bears interest at a variable rate based upon the greater of (a) the Prime Rate quoted in the Wall Street Journal (Western Edition) plus an applicable margin of 1.0% or (b) 4.75%. As of June 30, 2025, the interest rate was at 8.50%.

The facility is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants, and events of default. As of June 30, 2025, the Company was in compliance with the financial covenants under the agreement.

Dividend

On June 16, 2025, the Company's Board of Directors declared a second quarter 2025 cash dividend of $0.43 per share of common stock, equivalent to an annualized dividend of $1.72 per share of common stock. The dividend was paid on July 15, 2025, to stockholders of record at the close of business on June 30, 2025, and represents an AFFO payout ratio of 79%.

Recent Developments

On July 30, 2025, AYR Wellness Inc. ("AYR"), which operates at two of the Company's owned properties, announced that it had entered into a restructuring support agreement with its senior noteholders. Under the proposed plan, certain AYR assets and operations will be acquired by the senior noteholders, while the remaining assets and operations are expected to be sold or wound down. AYR properties represent approximately 5.9% of the Company's rental revenue for the six months ended June 30, 2025. AYR has paid its rental payments through July 2025; however, as of August 6, 2025, the Company has not received rent payments for August. Based on currently available information, the Company does not expect the operations associated with the two leased properties to be included in the transaction with AYR's senior noteholders. The Company holds security deposits equal to approximately 3.5 months of rent for each of the two properties. The Company intends to enforce all of its rights under the lease agreements.

Conference Call and Webcast Details:

Management will host a conference call and webcast at 11:00 a.m. Eastern Time on August 7, 2025, to discuss its quarterly financial results and answer questions about the Company's operational and financial highlights for the second quarter ended June 30, 2025.

Event:	NewLake Capital Partners Inc. Second Quarter 2025 Earnings Call
Date:	Thursday, August 7, 2025
Time:	11:00 a.m. Eastern Time
Live Call:	1-877-300-8521 (U.S. Toll-Free) or 1-412-317-6026 (International)
Webcast:	https://ir.newlake.com/news-events/ir-calendar

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until August 21, 2025, and can be accessed by dialing [phone] (U.S. Toll Free) or [phone] (International) and entering replay pin number: 10201213.

About NewLake Capital Partners, Inc.

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 34 properties comprised of 15 cultivation facilities and 19 dispensaries that are leased to single tenants on a triple-net basis. For more information, please visit www.newlake.com.

Forward-Looking Statements

This press release contains "forward-looking statements." Forward-looking statements can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements are based on the Company's current expectations and assumptions regarding capital market conditions, the Company's business, the economy and other future conditions. All of our statements regarding anticipated growth in our funds from operations, adjusted funds from operations, anticipated market conditions, and results of operations are forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.

Use of Non-GAAP Financial Information

FFO and AFFO are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to FFO and AFFO and definitions of terms are included at the end of this release.

Contact Information:
Lisa Meyer
Chief Financial Officer, Treasurer and Secretary
NewLake Capital Partners, Inc.
[e-mail]

Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
[e-mail]
PH: [phone]

Media Contact:
Ellen Mellody, Senior Vice President
KCSA Strategic Communications
[e-mail]
PH: [phone]

NEWLAKE CAPITAL PARTNERS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts)
	June 30, 2025				December 31, 2024
Assets:
Real Estate
Land	$	23,224			$	22,891
Building and Improvements		408,930				408,552
Total Real Estate		432,154				431,443
Less Accumulated Depreciation		(51,321	)			(44,709	)
Net Real Estate		380,833				386,734
Cash and Cash Equivalents		21,854				20,213
In-Place Lease Intangible Assets, net		16,695				17,794
Loan Receivable, net (Current Expected Credit Loss of $93 and $116, respectively)		4,907				4,884
Other Assets		1,558				1,911
Total Assets	$	425,847			$	431,536
Liabilities and Equity:
Liabilities:
Accounts Payable and Accrued Expenses	$	981			$	1,515
Revolving Credit Facility		7,600				7,600
Dividends and Distributions Payable		9,024				9,246
Security Deposits		7,642				8,117
Rent Received in Advance		990				684
Other Liabilities		81				402
Total Liabilities		26,318				27,564
Commitments and Contingencies
Equity:
Preferred Stock, $0.01 Par Value, 100,000,000 Shares Authorized, 0 Shares Issued and Outstanding, respectively		-				-
Common Stock, $0.01 Par Value, 400,000,000 Shares Authorized, 20,552,632 and 20,514,583 Shares Issued and Outstanding, respectively		205				205
Additional Paid-In Capital		446,759				446,627
Accumulated Deficit		(54,265	)			(50,067	)
Total Stockholders' Equity		392,699				396,765
Noncontrolling Interests		6,830				7,207
Total Equity		399,529				403,972
Total Liabilities and Equity	$	425,847			$	431,536

NEWLAKE CAPITAL PARTNERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
		2025				2024				2025				2024
Revenue:
Rental Income	$	12,564			$	12,253			$	25,151			$	24,380
Interest Income from Loans		137				134				271				265
Fees and Reimbursables		231				68				720				418
Total Revenue		12,932				12,455				26,142				25,063
Expenses:
Reimbursable Property Expenses		41				28				668				50
Property Carrying Costs		5				-				5				-
Depreciation and Amortization Expense		3,877				3,626				7,760				7,194
General and Administrative Expenses:
Compensation Expense		670				1,150				1,875				2,385
Professional Fees		197				243				803				645
Other General and Administrative Expenses		554				455				964				873
Total General and Administrative Expenses		1,421				1,848				3,642				3,903
Total Expenses		5,344				5,502				12,075				11,147
Loss on Sale of Real Estate		(34	)			-				(34	)			-
Provision for Current Expected Credit Loss		10				12				23				26
Income From Operations		7,564				6,965				14,056				13,942
Other Income (Expense):
Other Income		91				81				177				181
Interest Expense		(210	)			(128	)			(384	)			(211	)
Total Other Income (Expense)		(119	)			(47	)			(207	)			(30	)
Net Income		7,445				6,918				13,849				13,912
Net Income Attributable to Noncontrolling Interests		(126	)			(122	)			(234	)			(247	)
Net Income Attributable to Common Stockholders	$	7,319			$	6,796			$	13,615			$	13,665
Net Income Attributable to Common Stockholders Per Share - Basic	$	0.36			$	0.33			$	0.66			$	0.66
Net Income Attributable to Common Stockholders Per Share - Diluted	$	0.35			$	0.33			$	0.66			$	0.66
Weighted Average Shares of Common Stock Outstanding - Basic		20,613,866				20,555,362				20,602,635				20,548,601
Weighted Average Shares of Common Stock Outstanding - Diluted		20,974,923				20,951,379				20,971,160				20,946,805

Non-GAAP Financial Information

Funds From Operations

The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts ("NAREIT") definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently and therefore the Company's computation of FFO may not be comparable to such other REITs.

Adjusted Funds From Operations

The Company calculates AFFO by starting with FFO and adjusting for non-cash and certain non-recurring transactions, including non-cash components of compensation expense and the effect of provisions for credit loss. Other REITs may not define AFFO in the same manner and therefore the Company's calculation of AFFO may not be comparable to such other REITs. You should not consider FFO and AFFO to be alternatives to net income as a reliable measure of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.

The table below is a reconciliation of net income attributable to common stockholders to FFO and AFFO for the three and six months ended June 30, 2025 and 2024 (in thousands, except share and per share amounts):

		Three Months Ended June 30,								Six Months Ended June 30,
			2025				2024				2025				2024
Net Income Attributable to Common Stockholders		$	7,319			$	6,796			$	13,615			$	13,665
Net Income Attributable to Noncontrolling Interests			126				122				234				247
Net Income			7,445				6,918				13,849				13,912
Adjustments:
Real Estate Depreciation and Amortization			3,873				3,622				7,751				7,185
Loss on Sale of Real Estate			34				-				34				-
FFO Attributable to Common Stockholders - Diluted			11,352				10,540				21,634				21,097
Provision for Current Expected Credit Loss			(10	)			(12	)			(23	)			(26	)
Stock-Based Compensation			47				424				434				774
Non-cash Interest Expense			67				67				135				135
Amortization of Straight-line Rent Expense			(1	)			-				(2	)			(1	)
AFFO Attributable to Common Stockholders - Diluted		$	11,455			$	11,019			$	22,178			$	21,979
FFO per share - Diluted		$	0.54			$	0.50			$	1.03			$	1.01
AFFO per share - Diluted		$	0.55			$	0.53			$	1.06			$	1.05