Cannabis REIT Zoned Properties Q2 Revenue Advances 83% To $0.56M

Cannabis-focused real estate development firm Zoned Properties Inc. ZDPY announced its financial results Thursday for the three and six months ended June 30, 2021, revealing quarterly revenue of $555,064, which compares to $299,824 in the same quarter last year.

Second Quarter Financial Highlights

• Revenue increased 83% to $550,064 for the second quarter of 2021, compared to $299,824 for the second quarter of 2020. This increase in revenues was primarily attributable to an increase in rent revenues from the Significant Tenant of $22,756 and an increase in brokerage revenues of $236,592, offset by a decrease in advisory revenues of $9,108.
• Operating expenses increased 41.5% to $410,411 for the second quarter of 2021, compared to $290,071 for the second quarter of 2020.
• Net income was $112,594, or $0.01 per basic share and $0.00 per diluted share, for the second quarter of 2021, compared to a net loss of $18,927, or $0.00 per basic and diluted share for the second quarter of 2020.
• Net cash provided by operating activities was $284,408 for the six months ended June 30, 2021, compared to $72,232 for the six months ended June 30, 2020.
• At the end of the reporting period, on June 30, Zoned Properties had cash of $1.03 million compared to $699,335 as of December 31, 2020.

Second Quarter Business Milestones  

• The Scottsdale, Arizona-based company made meaningful progress recruiting for the expansion of the Company’s leadership team during the first two quarters of 2021, subsequently appointing Berekk Blackwell as Chief Operating Officer, Patrick Moroney as Director of Real Estate and Joseph Lewis as Designated Broker.
• The company completed the transition of its licensed commercial real estate brokerage team into a wholly-owned, in-house brokerage.
• Finalized an additional $100,000 strategic investment into national cannabis retail franchisor, Open Dør Dispensaries, increasing its investment to a total of $200,000 as a convertible debenture.

• Completed strategic investments into, and finalized partnerships with two separate Property Technology data and software service platforms.
• The company completed the sale of its Gilbert, Arizona property, a non-core asset, for net proceeds of $322,332, providing for a gain of $51,944.

“The transition of legacy cannabis operators into a regulated cannabis marketplace has been emerging at a scale and pace beyond what most data projections have accounted for among industry experts,” Bryan McLaren, CEO of Zoned Properties stated. “The leadership team at Zoned Properties has been expanding our real estate services and best practices to help integrate legacy operators into modern communities through a full-spectrum of real estate services, creating value and opportunity for business operators, local communities, and our own Company.”

Price Action

Zones Properties’ shares closed Thursday’s market session 4.60% higher at 57 cents per share.

Photo: Courtesy of Matteo Paganelli on Unsplash