Cannabis REIT NewLake's Q1 2024 Revenue Grows 10.4% Hitting $12.6M, CEO Is Optimistic About Possible Marijuana Rescheduling

Zinger Key Points
  • NewLake Capital's Q1 revenue spikes 10.4% year-over-year, showcasing robust growth in the cannabis REIT sector.
  • CEO Anthony Coniglio anticipates exciting prospects ahead, fueled by legislative changes and strategic acquisitions.

Cannabis REIT NewLake Capital Partners Inc. NLCP announced its financial results Thursday for the first quarter of the year ended March 31, 2024. With a primary focus on providing real estate capital to state-licensed cannabis operators, the company’s performance underscores its resilience and strategic positioning within the burgeoning cannabis industry.

Q1 2024 Financial Highlights

  • Revenue totaled $12.6 million, as compared to $11.4 million in Q1 2023, an increase of 10.4% year-over-year.
  • Net income attributable to common stockholders totaled $6.9 million, as compared to $5.9 million in the same quarter last year.
  • FFO totaled $10.6 million, as compared to $9.5 million, an increase of 10.8% year-over-year.
  • AFFO totaled $11 million, as compared to $9.9 million, an increase of 10.6% year-over-year.

Operational Highlights And Strategic Moves

NewLake’s operational highlights underscore its commitment to value creation and strategic expansion. Notably, the company increased its Q1 dividend to $0.41 per common share, reflecting confidence in its financial performance and growth prospects.

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Recent developments, including the acquisition of a cultivation facility in Connecticut for $4 million and commitment to fund $12 million for tenant improvements, underscore NewLake’s proactive approach to capital deployment and portfolio enhancement.

Investment And Financing

In terms of investment, NewLake’s activity remains robust, with approximately $7.9 million funded for tenant improvements across various properties in Q1 2024. Additionally, the company’s prudent financing strategy is evident through its revolving credit facility, with $86 million in funds available to be drawn, subject to sufficient collateral.

Leadership Commentary

"We are pleased with the performance of our portfolio and financial results during the first quarter of 2024. Our growth in revenue and AFFO year-over-year and sequentially, after deducting one-time adjustments in the fourth quarter, are what drove our second consecutive quarterly dividend increase to $0.41 per share, or $1.64 per share annually," Anthony Coniglio, NewLake Capital's president and CEO said.

"Looking forward, the cannabis industry has much to be excited about following the proposal to reschedule cannabis from Schedule I to Schedule 3, an increase in meaningful dialogue among congressional leaders, and medical to adult-use conversion in Ohio and the Adult-use ballot in Florida," he added.

NLCP Price Action
NLCP's shares were trading 0.33% higher at $20.35 per share at the time of this writing around 1 PM ET Tuesday.

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Posted In: CannabisEarningsNewsREITAnthony ConiglioCannabis EarningsCannabis real estateCannabis REIT
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