NewLake Capital Partners Q2 Revenue Grows 59% YoY, Here Are The Details

NewLake Capital Partners, Inc. NLCP revenue in Q2 2022 was $10.5 million, a 3% increase compared to $10.2 million in Q1 2022, and a 59% increase compared to $6.6 million in Q2 2021.

Q2 2022 Financial Highlights

Comparison to Q1 2022

• Net income attributable to common stockholders totaled $3.8 million, as compared to $5.0 million.

• Funds from operations (“FFO”) totaled $6.5 million, as compared to $7.7 million.

• Adjusted funds from operations (“AFFO”) totaled $8.7 million, as compared to $8.1 million.

• Net income and FFO were impacted by one-time severance costs of $1.6 million in connection with certain executive separation agreements. Such agreements were contemplated as part of the succession plan at the time of the Company merger in March 2021.

• Cash and cash equivalents as of June 30, 2022, was $49.6 million. As of June 30, 2022, $12.2 million was committed to funding tenant improvements.

Comparison to Q2 2021

• Net income attributable to common stockholders totaled $3.8 million, as compared to $2.7 million.

• FFO totaled $6.5 million, as compared to FFO of $4.8 million.

• AFFO totaled $8.7 million, as compared to AFFO of $4.9 million.

Q2 2022 Operational Highlights and Subsequent Events:

• Declared second quarter 2022 dividend of $0.35 per share of common stock, an increase of $0.02 per common share from the prior quarter.

• In April 2022, signed a $34 million aggregate three-part commitment for a cultivation property in Missouri consisting of $7.3 million to purchase a 40,000 square foot cultivation facility, a commitment to fund additional $5.2 million to finish construction, $16.5 million to expand the facility by purchasing an adjacent parcel of land and fund construction and part three an interest-only four-year $5 million loan that can be drawn over the next year. Once fully built, the combined property will be a state-of-the-art 105,000 square foot cultivation facility.

• Entered into a revolving credit facility in May 2022 with a $30.0 million initial commitment, which was expanded to $90.0 million in July 2022, maturing in May 2027 with a fixed interest rate of 5.65% for the first three years and a floating rate thereafter.

• On June 30, 2022, invested $28 million in two cultivation facilities from a leading publicly-traded U.S. multi-state cannabis operator.

• Invested $21.0 million and amended an existing lease for a property expansion with another leading publicly-traded U.S. multi state cannabis operator.

• Appointed Anthony Coniglio as CEO and Lisa Meyer as CFO.

Anthony Coniglio, president and CEO, stated, “We continue to be pleased with our AFFO growth, which has allowed us to increase our dividend for the fifth consecutive quarter. While our pipeline is as robust as we have seen in our company history, we remain disciplined in our underwriting approach and focus on quality over quantity. Subsequent to the quarter, we successfully increased our credit facility from $30 million to $90 million, which will allow us to continue investing in high quality assets. We believe our ability to consistently evaluate high quality transactions with the best operators in the space and have access to capital from banking partners that believe in our ability to execute is a testament to our team, model and disciplined approach.”

Photo by Richard T on Unsplash

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