Marijuana REIT NewLake Q2 Revenue Up 9.48% YoY, Reports Third Consecutive Quarterly Dividend Increase

Cannabis REIT NewLake Capital Partners, Inc. (OCTQX:NLCP) reported second-quarter earnings with revenue of $12.5 million, up 9.48% from $11.38 million.

"We are pleased with our second quarter results, which led to our third consecutive quarterly dividend increase," Anthony Coniglio, president and chief executive officer stated. "We believe there are many positive catalysts on the horizon for the cannabis sector and it is an exciting time to be part of this growing industry. With an under-levered balance sheet and ample capital availability, we are well positioned to build upon our Q2 acquisition activity and continue to invest in cannabis real estate."

Q2 2024 Financial Highlights Compared Q2 2023

• Net income attributable to common stockholders totaled $6.8 million, as compared to $5.8 million.
• Funds from operations totaled $10.5 million., as compared to $9.5 million, an increase of 11.3% year-over-year.
• Adjusted funds from operations amounted to $11.0 million, as compared to $9.9 million, an increase of 11.2% year-over-year.
• At the end of the quarter, on June 30, NewLake had $20.7 million in cash and cash equivalents, with $15.8 million committed to fund building and tenant improvements.

At the end of the reporting period, 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.

Read Also: High-Yield Dividends In The Cannabis REIT Market: Why Debt-Free NewLake Capital Stands Out

Dividend

On June 12, 2024, the company's board of directors declared a second-quarter 2024 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 July 15, 2024, to stockholders of record at the close of business on June 28, 2024, and represents an AFFO payout ratio of 82%.

Recent Operational Milestones

In May 2024, the company purchased a cultivation facility in Connecticut for approximately $4.0 million and committed to fund approximately $12.0 million of improvements.

For the three months ended June 30, 2024, NewLake funded approximately $3.5 million of building and tenant improvements.

In June 2024, the company entered into an equity distribution agreement for a $50 million at the market program.

Price Action

New Lake Capital Partners shares closed Wednesday's market session 2.81% lower at $20.51 per share.

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