NewLake Capital Partners Announces Q3 2025 Earnings

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4. NewLake Capital Partners Reports Third Quarter 2025 Financial Results

11/05/2025 – 05:44 PM

Third Quarter 2025 Revenue totaled $12.6 Million, a slight increase of 0.3% Year-Over-Year

Net income attributable to common stockholders totaled $6.7 Million, Funds from Operations totaled $10.7 Million, and Adjusted Funds from Operations totaled $11.0 Million

Conference Call and Webcast Scheduled for November 6, 2025, at 11 a.m. Eastern Time

NEW CANAAN, Conn. — NewLake Capital Partners, Inc. (OTC: NLCP), a leading real estate investment trust (REIT) specializing in the cannabis industry, today released its financial results for the third quarter of 2025. The company’s strategic focus on tenant management and balance sheet strength appears to be resonating despite industry headwinds.

“During the third quarter we remained focused on proactive tenant management while maintaining the strength of our balance sheet,” said Anthony Coniglio, NewLake’s President and Chief Executive Officer. “Despite continued cannabis industry headwinds, NewLake is positioned to deliver lasting value for our shareholders.”

Third Quarter 2025 Financial and Operational Highlights

• Revenue totaled $12.6 million.
• Net income attributable to common stockholders totaled $6.7 million.
• Funds From Operations (“FFO”)⁽¹⁾ totaled $10.7 million.
• Adjusted Funds From Operations (“AFFO”)⁽¹⁾ totaled $11.0 million.
• Declared a third quarter dividend of $0.43 per share of common stock, equivalent to an annualized dividend $1.72 per common share.

Comparison to the Third Quarter ended September 30, 2024

• Revenue remained flat at $12.6 million year-over-year.
• Net income attributable to common stockholders totaled $6.7 million, as compared to $6.4 million.
• FFO totaled $10.7 million, as compared to $10.3 million, an increase of 3.8% year-over-year.
• AFFO totaled $11.0 million, as compared to $10.8 million, an increase of 2.4% year-over-year.
• For the third quarter ended September 30, 2025, the Company declared a dividend of $0.43 per share of common stock, consistent to the third quarter ended September 30, 2024.

Nine Months Ended September 30, 2025 Financial and Operational Highlights
Comparison to the nine months ended September 30, 2024

• Revenue totaled $38.7 million, as compared to $37.6 million, an increase of 3.0% year-over-year.
• Net income attributable to common stockholders totaled $20.3 million, as compared to $20.1 million.
• FFO totaled $32.3 million, as compared to $31.4 million, an increase of 3.0% year-over-year.
• AFFO totaled $33.2 million, as compared to $32.7 million, an increase of 1.4% year-over-year.

Balance Sheet Highlights as of September 30, 2025

• Cash and cash equivalents as of September 30, 2025, were $23.6 million, with approximately $1.1 million committed to fund future improvements.
• Total liquidity of $106.0 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 85x.
• 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 nine months ended September 30, 2025 (in thousands):

^{(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 as of September 30, 2025 (in thousands):

Condition of Our Tenants

Pottsville, PA and Sparks, NV Cultivation Facilities

On July 30, 2025, AYR Wellness Inc. (“AYR”), which operated at two of the Company’s properties located in Pottsville, PA and Sparks, NV, announced that it had entered into a restructuring support agreement with its senior noteholders. Under the restructuring support agreement, certain AYR assets and operations will be acquired by the senior noteholders, while the remaining assets and operations, including those at the Company’s leased properties, are to be sold or wound down.

The cultivation properties leased to AYR accounted for approximately 5.9% of the Company’s rental income for the nine months ended September 30, 2025. AYR satisfied its rent obligations through July 2025; however, beginning in August 2025 through the end of the quarter, the Company did not receive rent for its Pottsville, PA and Sparks, NV cultivation properties, which AYR vacated during the quarter. The Company applied approximately $505.1 thousand of AYR’s security deposits toward unpaid rent in the third quarter for the Pottsville and Sparks properties. At the end of the quarter, the combined remaining security deposits held by the Company totaled approximately $408.4 thousand across both properties. The Company intends to enforce all rights available under the applicable lease agreements.

Fitchburg, MA Cultivation Facility

Revolutionary Clinics, Inc. (“Revolutionary Clinics”), which leased the Company’s Fitchburg, MA cultivation property, has experienced operational challenges that impaired its ability to meet contractual rent obligations. Beginning in June 2024, Revolutionary Clinics remitted approximately 50% of rent due. On December 13, 2024, the tenant 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 until the property was vacated and operations ceased. In July 2025, Revolutionary Clinics vacated the property, and rental payments ceased. The Company has engaged a broker and is actively marketing the property for lease and leasing efforts remain ongoing.

Financing Activity

Revolving Credit Facility

As of September 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 September 30, 2025, the interest rate was at 8.25%.

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 September 30, 2025, the Company was in compliance with the financial covenants under the agreement.

Dividend

On September 12, 2025, the Company’s Board of Directors declared a third 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 October 15, 2025, to stockholders of record at the close of business on September 30, 2025, and represents an AFFO payout ratio of 82%.

Recent Developments

On October 23, 2025, the Company amended its lease agreements with C3 Industries (“C3”) to modify the terms of both the Hartford and Missouri leases. Under the amended Hartford lease, the Company agreed to pursue a sale of the Hartford property, and in connection with that agreement, C3 is required to reimburse the Company for any shortfall if the sale proceeds are less than the Company’s investment basis. Conversely, if sale proceeds exceed the Company’s basis, a portion of the excess will be paid to C3 as reimbursement for their investment in the property. C3 will continue to pay monthly base rent through the sale date. Upon completion of the sale, a portion of the rent previously allocated to the Hartford property will be reallocated to the Missouri lease, to compensate the Company for a portion of the income no longer received from the Hartford property. C3 will continue to pay this incremental rent under the Missouri lease until the Company invests in new properties with C3 pursuant to its right of first refusal agreement.

Conference Call and Webcast Details:

Management will host a conference call and webcast at 11:00 a.m. Eastern Time on November 6, 2025, to discuss its quarterly financial results and answer questions about the Company’s operational and financial highlights for the third quarter ended September 30, 2025.

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until November 20, 2025, and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13756168.

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-