Fourth Quarter 2025 Revenue totaled $12.3 Million
Full Year 2025 Revenue totaled $51.1 Million
Fourth Quarter 2025 Net Income Attributable to Common Stockholders totaled $6.0 Million, Funds From Operations totaled $10.0 Million, and Adjusted Funds From Operations totaled $10.6 Million
Full Year 2025 Net Income Attributable to Common Stockholders totaled $26.3 Million, Funds From Operations totaled $42.3 Million, and Adjusted Funds From Operations totaled $43.8 Million
Conference Call and Webcast Scheduled for March 6, 2026 at 11 a.m. Eastern Time
NEW CANAAN, Conn., March 05, 2026 (GLOBE NEWSWIRE) — NewLake Capital Partners, Inc. (OCTQX: NLCP) (the “Company” or “NewLake”), a leading provider of real estate capital to state-licensed cannabis operators, today announced its financial results for the fourth quarter and full year ended December 31, 2025, and declared its first quarter 2026 cash dividend.
“Our fourth quarter results were in line with expectations, delivering AFFO of $0.51 per share and an AFFO payout ratio of 85%. Notably, our full‑year performance exceeded 2024 levels, which is a meaningful accomplishment given the continued tenant dislocations across the industry,” said Anthony Coniglio, NewLake’s President and Chief Executive Officer. “As we look ahead to 2026, we are pleased to declare our first‑quarter dividend of $0.43 per share. Our team remains focused on disciplined portfolio management, advancing re‑tenanting initiatives, and sourcing high‑quality investment opportunities to drive long‑term value for our shareholders.”
Fourth Quarter 2025 Financial Highlights
- Total revenue of $12.3 million.
- Net income attributable to common stockholders totaled $6.0 million, or $0.29 per share of common stock.
- Funds From Operations(1) (“FFO”) totaled $10.0 million or $0.48 per share of common stock.
- Adjusted Funds From Operations(1) (“AFFO”) totaled $10.6 million or $0.51 per share of common stock.
- Declared a fourth quarter dividend of $0.43 per share of common stock, equivalent to an annualized dividend of $1.72 per common share.
Full Year 2025 Financial Highlights
- Total revenue of $51.1 million.
- Net income attributable to common stockholders totaled $26.3 million or $1.28 per share of common stock.
- FFO(1) totaled $42.3 million or $2.02 per share of common stock.
- AFFO(1) totaled $43.8 million or $2.09 per share of common stock.
- For the twelve months ended December 31, 2025, the Company declared dividends of $1.72 per share of common stock.
Full Year 2025 Operational Highlights and Recent Developments
- During the year ended December 31, 2025, the Company purchased two dispensaries in Ohio for approximately $0.8 million and committed to fund approximately $1.1 million of improvements, of which the Company funded approximately $0.7 million as of December 31, 2025. The properties were leased to an existing tenant.
- During the year ended December 31, 2025, the Company completed a like-kind exchange involving the transfer of its dispensary located in Mokena, IL for a dispensary located in Brookville, PA.
- On March 4, 2026, the Company’s board of directors declared a first quarter 2026 dividend of $0.43 per share of common stock.
Balance Sheet Highlights as of December 31, 2025:
- Cash and cash equivalents as of December 31, 2025 were $23.9 million, with approximately $0.4 million committed to fund improvements at an existing dispensary in Ohio.
- Total liquidity of $106.3 million, consisting of cash and cash equivalents and availability under the Company’s Revolving Credit Facility.
- Gross real estate assets of $432.9 million, including one property classified as Real Estate Held for Sale.
- 1.6% debt to total gross assets and a debt service coverage ratio of approximately 77.9x.
- No debt maturities until May 2027.
________________________________________________________________________________
(1) FFO and AFFO are presented on a dilutive basis.
Financial Results
The following table summarizes the Company’s financial results for the three and twelve months ended December 31, 2025 (dollars in thousands, except per share amounts):
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenue | $ | 12,343 | 12,514 | $ | 51,071 | 50,131 | ||||||
| Net Income Attributable to Common Stockholders | $ | 6,036 | $ | 6,029 | $ | 26,318 | $ | 26,115 | ||||
| Net Income Attributable to Common Stockholders Per Share – Diluted | $ | 0.29 | $ | 0.29 | $ | 1.28 | $ | 1.27 | ||||
| FFO Attributable to Common Stockholders – Diluted | $ | 10,020 | $ | 9,922 | $ | 42,305 | $ | 41,278 | ||||
| FFO Per Share – Diluted | $ | 0.48 | $ | 0.47 | $ | 2.02 | $ | 1.97 | ||||
| AFFO Attributable to Common Stockholders – Diluted | $ | 10,624 | $ | 10,949 | $ | 43,823 | $ | 43,689 | ||||
| AFFO Per Share – Diluted | $ | 0.51 | $ | 0.52 | $ | 2.09 | $ | 2.08 | ||||
For the three months ended December 31, 2025, the Company generated total revenue of approximately $12.3 million, a modest decline of 1.4% compared to $12.5 million for the same period in 2024. This decrease was primarily driven by vacancies at two properties previously leased to AYR Wellness, Inc. (“AYR”) and one property previously leased to Revolutionary Clinics, Inc. During the fourth quarter of 2025, the Company applied the remaining AYR security deposits of approximately $408 thousand to rent, to partially offset unpaid amounts. The impact of these vacancies, which resulted in lower rental income and additional property carrying costs, also contributed to a 3.0% decline in AFFO for the quarter compared to the same period in the prior year.
For the year ended December 31, 2025, the Company generated total revenue of approximately $51.1 million, a modest increase of 1.9% compared to $50.1 million for the same period in 2024. The increase was primarily driven by income from 2025 acquisitions, a full year of rent from properties acquired in 2024, rent generated from funded improvement allowances, annual contractual rent escalations and the timing of reimbursable revenue, partially offset by the impact of vacancies. Together, these revenue drivers, partially offset by the impact of vacancies, also contributed to a modest 0.3% increase in AFFO for the year ended December 31, 2025.
2025 Investment Activity
Acquisitions
The following table presents the Company’s investment activity for the twelve months ended December 31, 2025 (dollars in thousands):
| Tenant | Market | Site Type | Closing Date | Acquisition | |||||
| Cresco Labs | Ohio | Dispensary | February 19, 2025 | $ | 285 | ||||
| Cresco Labs | Ohio | Dispensary | April 25, 2025 | 500 | |||||
| Curaleaf | (1) | Pennsylvania | Dispensary | June 12, 2025 | 950 | ||||
| Total | $ | 1,735 | |||||||
(1) This dispensary was acquired through a like-kind exchange and was recorded at its fair value.
Real Estate Commitments
Improvement Allowances
The following table presents the funded and remaining unfunded commitments for the twelve months ended December 31, 2025 (dollars in thousands):
| Tenant | Market | Site Type | Closing Date | Funded Commitments | Unfunded Commitments | |||||||
| Cresco Labs | Ohio | Dispensary | February 19, 2025 | $ | 705 | $ | — | |||||
| Cresco Labs | Ohio | Dispensary | April 25, 2025 | — | 375 | |||||||
| Total | $ | 705 | $ | 375 | ||||||||
Portfolio and Tenant Updates
Hartford, CT Cultivation Facility
In October 2025, the Company amended its lease agreements with C3 Industries (“C3”). Under the amended Hartford, CT lease, the Company agreed to pursue a sale of the Hartford, CT 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, CT property will be reallocated to the Missouri lease, to compensate the Company for a portion of the income no longer received from the Hartford, CT property. C3 will continue to pay incremental rent under the Missouri lease until the Company invests in new properties with C3 pursuant to its right of first refusal agreement. In November 2025, the Company entered into an agreement with a broker to market the Hartford, CT property for sale.
Financing Activity
Revolving Credit Facility
As of December 31, 2025, the Company had $7.6 million in borrowings outstanding under its 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 bears interest at a variable rate based upon the greater of (a) the Prime Rate quoted in the Wall Street Journal (Western Edition) (“Base Rate”) plus an applicable margin of 1.0% or (b) 4.75%. As of December 31, 2025, the interest rate was 7.75%.
As of December 31, 2025, the Company was in compliance with the covenants under the agreement.
Dividend
On December 15, 2025, the Company’s board of directors declared a fourth 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 January 15, 2026 to stockholders of record at the close of business on December 31, 2025 and represents an AFFO payout ratio of 85%.
For the year ended December 31, 2025, the Company’s board of directors declared an aggregate cash dividends of $1.72 per share of common stock and represents an annual AFFO payout ratio of 82%. The dividend has grown 79% since the Company’s initial public offering in 2021.
On March 4, 2026, the Company’s board of directors declared a first quarter 2026 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 is payable on April 15, 2026 to stockholders of record at the close of business on March 31, 2026.
Recent Development
The Cannabist Company (“Cannabist”) is currently operating under a forbearance agreement with its senior noteholders, which has been extended through March 6, 2026. As of the date of this release, the Cannabist remains in compliance with all material terms of its lease agreement with the Company. The Company continues to monitor the situation. Refer to our Form 10-K for details.
Conference Call and Webcast Details:
Management will host a conference call and webcast at 11:00 a.m. Eastern Time on March 6, 2026 to discuss its fourth quarter and full year 2025 financial results and answer questions about the Company’s operational and financial highlights.
| Event: | NewLake Capital Partners Inc. Fourth Quarter and Full Year 2025 Earnings Call |
| Date: | Friday, March 6, 2026 |
| Time: | 11:00 a.m. Eastern Time |
| Live Call: | 1-877-407-3982 (U.S. Toll-Free) or +1-201-493-6780 (International) |
| Webcast: | https://ir.newlake.com/news-events/ir-calendar |
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until March 20, 2026 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: 13758166.
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-to-suit projects. As of December 31, 2025, NewLake owns a portfolio of 34 properties comprised of 15 cultivation facilities and 19 dispensaries that are primarily leased to single tenants on a triple-net basis. For more information, please visit www.newlake.com.
Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “ongoing,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, tenant performance, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.
Use of Non-GAAP Financial Information
FFO and AFFO are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to FFO and AFFO and definitions of terms are included at the end of this release.
Contact Information:
Lisa Meyer
Chief Financial Officer, Treasurer and Secretary
NewLake Capital Partners, Inc.
lmeyer@newlake.com
Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
NewLake@KCSA.com
PH: (212) 896-1254
Media Contact:
Ellen Mellody
KCSA Strategic Communications
EMellody@KCSA.com
PH: (570) 209-2947
| NEWLAKE CAPITAL PARTNERS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) |
|||||||
| December 31, 2025 |
December 31, 2024 |
||||||
| Assets: | |||||||
| Real Estate | |||||||
| Land | $ | 22,903 | $ | 22,891 | |||
| Building and Improvements | 404,983 | 408,552 | |||||
| Total Real Estate | 427,886 | 431,443 | |||||
| Less Accumulated Depreciation | (57,916 | ) | (44,709 | ) | |||
| Net Real Estate | 369,970 | 386,734 | |||||
| Real Estate Held for Sale | 4,802 | – | |||||
| Cash and Cash Equivalents | 23,937 | 20,213 | |||||
| In-Place Lease Intangible Assets, net | 15,710 | 17,794 | |||||
| Loan Receivable, net (current expected credit loss $71 and $116, respectively) | 4,929 | 4,884 | |||||
| Other Assets | 1,481 | 1,911 | |||||
| Total Assets | $ | 420,829 | $ | 431,536 | |||
| Liabilities and Equity: | |||||||
| Liabilities: | |||||||
| Accounts Payable and Accrued Expenses | $ | 1,307 | $ | 1,515 | |||
| Revolving Credit Facility | 7,600 | 7,600 | |||||
| Dividends and Distributions Payable | 9,169 | 9,246 | |||||
| Security Deposits | 6,728 | 8,117 | |||||
| Rent Received in Advance | 1,013 | 684 | |||||
| Other Liabilities | 324 | 402 | |||||
| Total Liabilities | 26,141 | 27,564 | |||||
| Equity: | |||||||
| Preferred Stock, $0.01 Par Value, 100,000,000 Shares Authorized, 0 Shares Issued and Outstanding, respectively | – | – | |||||
| Common Stock, $0.01 Par Value, 400,000,000 Shares Authorized, 20,552,632 and 20,514,583 Shares Issued and Outstanding, respectively | 205 | 205 | |||||
| Additional Paid-In Capital | 447,185 | 446,627 | |||||
| Accumulated Deficit | (59,449 | ) | (50,067 | ) | |||
| Total Stockholders’ Equity | 387,941 | 396,765 | |||||
| Noncontrolling Interests | 6,747 | 7,207 | |||||
| Total Equity | 394,688 | 403,972 | |||||
| Total Liabilities and Equity | $ | 420,829 | $ | 431,536 | |||
| NEWLAKE CAPITAL PARTNERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) |
|||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue: | |||||||||||||||
| Rental Income | $ | 12,052 | $ | 12,270 | $ | 49,537 | $ | 48,926 | |||||||
| Interest Income from Loans | 137 | 134 | 545 | 533 | |||||||||||
| Fees and Reimbursables | 154 | 110 | 989 | 672 | |||||||||||
| Total Revenue | 12,343 | 12,514 | 51,071 | 50,131 | |||||||||||
| Expenses: | |||||||||||||||
| Reimbursable Property Expenses | 98 | 60 | 811 | 239 | |||||||||||
| Property Carrying Costs | 229 | — | 379 | — | |||||||||||
| Depreciation and Amortization Expense | 3,886 | 3,792 | 15,520 | 14,713 | |||||||||||
| General and Administrative Expenses: | |||||||||||||||
| Compensation Expense | 960 | 1,120 | 3,768 | 4,675 | |||||||||||
| Professional Fees | 287 | 387 | 1,424 | 1,506 | |||||||||||
| Other General and Administrative Expenses | 616 | 427 | 1,929 | 1,733 | |||||||||||
| Total General and Administrative Expenses | 1,863 | 1,934 | 7,121 | 7,914 | |||||||||||
| Total Expenses | 6,076 | 5,786 | 23,831 | 22,866 | |||||||||||
| Loss on Sale of Real Estate | — | — | (34 | ) | — | ||||||||||
| Provision for Current Expected Credit Loss | 11 | 13 | 45 | 51 | |||||||||||
| Impairment Loss on Warrants | — | (522 | ) | — | (522 | ) | |||||||||
| Income From Operations | 6,278 | 6,219 | 27,251 | 26,794 | |||||||||||
| Other Income (Expense): | |||||||||||||||
| Other Income | 83 | 92 | 357 | 354 | |||||||||||
| Interest Expense | (223 | ) | (177 | ) | (839 | ) | (565 | ) | |||||||
| Total Other Income (Expense) | (140 | ) | (85 | ) | (482 | ) | (211 | ) | |||||||
| Net Income | 6,138 | 6,134 | 26,769 | 26,583 | |||||||||||
| Net Income Attributable to Noncontrolling Interests | (102 | ) | (105 | ) | (451 | ) | (468 | ) | |||||||
| Net Income Attributable to Common Stockholders | $ | 6,036 | $ | 6,029 | $ | 26,318 | $ | 26,115 | |||||||
| Net Income Attributable to Common Stockholders Per Share – Basic | $ | 0.29 | $ | 0.29 | $ | 1.28 | $ | 1.27 | |||||||
| Net Income Attributable to Common Stockholders Per Share – Diluted | $ | 0.29 | $ | 0.29 | $ | 1.28 | $ | 1.27 | |||||||
| Weighted Average Shares of Common Stock Outstanding – Basic | 20,629,734 | 20,580,337 | 20,617,807 | 20,564,179 | |||||||||||
| Weighted Average Shares of Common Stock Outstanding – Diluted | 21,021,427 | 20,984,471 | 20,991,540 | 20,963,532 | |||||||||||
Non-GAAP Financial Information
Funds From Operations
The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently and therefore the Company’s computation of FFO may not be comparable to such other REITs.
Adjusted Funds From Operations
The Company calculates AFFO by starting with FFO and adjusting for non-cash and certain non-recurring transactions, including non-cash components of compensation expense and the effect of provisions for credit losses. Other REITs may not define AFFO in the same manner and therefore the Company’s calculation of AFFO may not be comparable to such other REITs. You should not consider FFO and AFFO to be alternatives to net income as a reliable measure of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.
The table below is a reconciliation of net income attributable to common stockholders to FFO and AFFO for the three and twelve months ended December 31, 2025 and 2024 (in thousands, except share and per share amounts):
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net Income Attributable to Common Stockholders | $ | 6,036 | $ | 6,029 | $ | 26,318 | $ | 26,115 | |||||||
| Net Income Attributable to Noncontrolling Interests | 102 | 105 | 451 | 468 | |||||||||||
| Net Income | 6,138 | 6,134 | 26,769 | 26,583 | |||||||||||
| Adjustments: | |||||||||||||||
| Real Estate Depreciation and Amortization | 3,882 | 3,788 | 15,502 | 14,695 | |||||||||||
| Loss on Sale of Real Estate | — | — | 34 | — | |||||||||||
| FFO Attributable to Common Stockholders – Diluted | 10,020 | 9,922 | 42,305 | 41,278 | |||||||||||
| Impairment Loss on Warrants | — | 522 | — | 522 | |||||||||||
| Non-cash Write-off of Deferred Offering Costs | 233 | — | 233 | — | |||||||||||
| Provision for current expected credit loss | (11 | ) | (13 | ) | (45 | ) | (51 | ) | |||||||
| Stock-Based Compensation | 316 | 452 | 1,066 | 1,674 | |||||||||||
| Non-Cash Interest Expense | 67 | 67 | 269 | 269 | |||||||||||
| Amortization of Straight-Line Rent Expense | (1 | ) | (1 | ) | (5 | ) | (3 | ) | |||||||
| AFFO Attributable to Common Stockholders – Diluted | $ | 10,624 | $ | 10,949 | $ | 43,823 | $ | 43,689 | |||||||
| FFO per share – Diluted | $ | 0.48 | $ | 0.47 | $ | 2.02 | $ | 1.97 | |||||||
| AFFO per share – Diluted | $ | 0.51 | $ | 0.52 | $ | 2.09 | $ | 2.08 | |||||||
