NewLake Capital Partners Beats Estimates: Q4 and Annual Results

The TDR Three Key Takeaways for NewLake:

1. NewLake Capital Partners reports Q4 revenue growth of 6.4% year-over-year.

2. Net income for NewLake reached $7.0 million in Q4, exceeding prior year.

3. NewLake Capital Partners boosts quarterly dividend to $0.41 per share.

NewLake Capital Partners, Inc. (OTC:NLCP), a real estate investment trust specializing in providing capital to state-licensed cannabis operators, announced its fourth quarter and full-year financial results this morning, revealing continued growth despite the challenges faced by the cannabis industry. The company, based in New Canaan, Connecticut, showcased its ability to generate revenue and maintain profitability while also rewarding shareholders through dividend increases.

For the fourth quarter ended December 31, 2023, NewLake Capital Partners reported revenue of $13.0 million, marking a 6.4% increase compared to the same period in the previous year. This performance beat analyst estimates and was highlighted as a significant achievement by the company. The net income attributable to common stockholders for Q4 was $7.0 million, slightly up from $6.7 million in the previous year’s quarter, reflecting the company’s operational efficiency and financial discipline.

Throughout 2023, NewLake Capital Partners maintained a strong financial position, evidenced by its ability to collect 100% of contractual rent during the fourth quarter. This reliability demonstrates the company’s strong relationship with its tenants and the strength of its leasing agreements. Additionally, NewLake reported that its funds from operations (FFO) for the quarter were $10.7 million, a slight increase from the $10.5 million reported the previous year, while adjusted funds from operations (AFFO) saw a minor decline to $10.8 million from $10.9 million.

The company’s full-year financials also provided a similar story of stability and growth. NewLake generated record revenue of $47.3 million for the year, up from $45.0 million in 2022, reflecting a year-over-year increase of 5.1%. The net income for the full year was $24.6 million, up from the previous year’s $22.0 million, indicating improved profitability.

In his statement, Anthony Coniglio, President and Chief Executive Officer of NewLake, highlighted the company’s accomplishments in 2023, including record revenue and AFFO figures. Despite the challenging environment for the cannabis industry, NewLake managed to increase its dividend distributions by 9.0% year-over-year. The company’s decision to raise the quarterly dividend to $0.41 per share for the first quarter of 2024 reflects confidence in its financial health and future prospects.

Looking forward, NewLake Capital Partners remains committed to growth and value creation, as evidenced by its strategic investments and stock repurchase program. The company’s focus on high-quality assets and unencumbered balance sheet positions it well for continued success in the cannabis market. Want to keep up to date with all of TDR’s research, subscribe to our daily Baked In newsletter.   

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