NewLake Capital Partners, Inc. reported a total revenue of approximately $50.1 million for the fiscal year ending December 31, 2024, marking an increase of $2.8 million from the previous year’s revenue of $47.3 million. The growth in revenue was primarily driven by a rise in rental income, which increased by approximately $2.6 million to $48.9 million, attributed to new acquisitions and annual rent escalations. The company’s net income attributable to common stockholders also saw an increase, rising to $26.1 million from $24.6 million in 2023. This performance reflects the company's strategic focus on the cannabis sector, where it leases properties to state-licensed operators under long-term, triple-net leases.
In terms of operational changes, NewLake Capital expanded its portfolio to include 32 properties across 12 states, comprising 17 dispensaries and 15 cultivation facilities. The company made significant investments in its properties, including approximately $15.1 million in improvements across various cultivation facilities. However, the company faced challenges with two tenants, Revolutionary Clinics and Calypso Enterprises, which experienced operational difficulties leading to partial rent payments and defaults. These issues highlight the risks associated with tenant concentration in the cannabis industry, where financial stability can be affected by regulatory changes and market conditions.
The company’s financial position remains strong, with $102.6 million in liquidity as of December 31, 2024, including $20.2 million in cash and $82.4 million available under its Revolving Credit Facility. NewLake Capital's leverage is conservative, with only $7.6 million drawn from the credit facility. The company declared cash dividends totaling $1.70 per share during the year, consistent with its strategy to distribute at least 90% of its taxable income to maintain its REIT status.
Looking ahead, NewLake Capital anticipates continued growth in the cannabis market, with legal sales projected to reach $32.4 billion in 2024 and $46 billion by 2028. The company is well-positioned to capitalize on this growth through its focus on acquiring properties in limited-license jurisdictions, which tend to have higher demand and less competition. However, the company also acknowledges the ongoing risks associated with federal regulations and the potential impact of economic conditions on its tenants' ability to meet lease obligations. The management remains committed to monitoring these factors closely to ensure the stability and growth of its operations.
About NewLake Capital Partners, Inc.
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