newsfilter
← Earnings
Earnings Releases·

NewLake Capital Partners — Third Quarter 2026 Earnings Summary

NLCP

  • Financial Performance:

    • Total revenue for the three months ended September 30, 2026, was $12.0 million, a 4.5% decrease from $12.6 million in the same period in 2025.
    • Total revenue for the nine months ended September 30, 2026, was $36.4 million, a 6.0% decrease from $38.7 million in the same period in 2025.
    • Net income attributable to common stockholders for the three months ended September 30, 2026, was $4.2 million ($0.20 per share), compared to $6.7 million ($0.32 per share) in 2025.
    • Net income attributable to common stockholders for the nine months ended September 30, 2026, was $15.8 million ($0.77 per share), compared to $20.3 million ($0.98 per share) in 2025.
    • Funds from operations (FFO) for the three months ended September 30, 2026, totaled $10.0 million ($0.47 per share), a decrease from $10.7 million ($0.51 per share) in 2025.
    • FFO for the nine months ended September 30, 2026, totaled $29.6 million ($1.41 per share), a decrease from $32.3 million ($1.54 per share) in 2025.
    • Adjusted funds from operations (AFFO) for the three months ended September 30, 2026, totaled $10.3 million ($0.49 per share), a 6.3% decrease from $11.0 million ($0.52 per share) in 2025.
    • AFFO for the nine months ended September 30, 2026, totaled $30.7 million ($1.46 per share), a 7.6% decrease from $33.2 million ($1.58 per share) in 2025.
    • Cash and cash equivalents as of September 30, 2026, were $17.9 million.
    • Gross real estate assets totaled $433.8 million as of September 30, 2026.
    • The Company had no outstanding debt as of September 30, 2026, having repaid $7.6 million during the quarter.
    • Revolving credit facility commitment remained at $90.0 million with no outstanding borrowings.
    • The dividend payout ratio based on AFFO was 88%.

  • Guidance and Future Outlook:

    • Management stated that year-to-date contractual rent collection was 99.7%.
    • The Company believes it is well-positioned to pursue growth opportunities as the cannabis regulatory landscape matures, citing a debt-free balance sheet and available credit capacity.
    • Management indicated that revenue and AFFO declines were driven by properties becoming available for lease, partially offset by rent escalations and new acquisitions.

  • Business Segments and Product Lines:

    • The Company owns a portfolio of 37 properties, including 15 cultivation facilities and 22 dispensaries, primarily leased to single tenants under triple-net lease agreements.
    • In August 2026, the Company purchased a dispensary in Kentucky for approximately $0.6 million and committed to fund $1.6 million for improvements.
    • Subsequent to the quarter end, the Company acquired two dispensary properties in Michigan and Kentucky for an aggregate purchase price of approximately $1.3 million and committed to fund $1.7 million in improvements; these properties were leased to an affiliate of an existing tenant.
    • The Company recognized approximately $100.0 thousand in rental income from a forfeited security deposit related to The Cannabist Company's lease termination at an Aurora, Illinois facility.
    • PharmaCann Penn LLC underwent a change in control with Cresco Labs Inc. becoming a guarantor under the existing lease for the Shamokin, Pennsylvania property.

  • Market and Competitive Landscape:

    • The decline in revenue and AFFO was driven by the loss of rental income from three properties that became available for lease during 2025.
    • Revenue growth was partially offset by annual contractual rent escalations and full-period rental income from two Ohio dispensaries acquired in 2025.

  • Risks and Challenges:

    • The Company continues to monitor developments related to The Cannabist Company's restructuring proceedings, with the lease termination transaction pending as of September 30, 2026.
    • Forward-looking statements note inherent uncertainties regarding anticipated growth in funds from operations, adjusted funds from operations, and market conditions.

  • Management Commentary and Tone:

    • Anthony Coniglio, President and CEO, stated that third-quarter financial results were in line with expectations.
    • Management highlighted the strengthening of the balance sheet through debt repayment and the maintenance of a debt-free position.
    • The tone reflected confidence in the Company's ability to pursue growth opportunities given its disciplined focus on property-level cash flow and available credit capacity.

  • Other Key Points:

    • The Board of Directors declared a third-quarter cash dividend of $0.43 per share, equivalent to an annualized dividend of $1.72 per share.
    • The Board authorized an extension of the stock repurchase program expiration date to December 31, 2028, with approximately $8.2 million remaining available for future repurchases.
    • The Revolving Credit Facility maturity date was extended by two years from May 6, 2027, to May 6, 2029.
    • The Company collected all contractual rent due through September 30, 2026, from its other three properties leased to The Cannabist Company.
    • The Company holds aggregate security deposits of approximately $381.5 thousand related to The Cannabist Company properties.