Cannabis REIT NewLake: YoY Increase In Q4 & FY 2023 Revenue Amid 'Challenging Environment,' CEO Says

Cannabis REIT NewLake Capital Partners, Inc. NLCP announced its financial results on Monday for the fourth quarter and full year ended Dec. 31, 2023.

The Connecticut-based company reported a 6.4% year-over-year increase in revenue to $13 million in the fourth quarter. Full-year revenue totaled $47.3 million, representing an increase of 5.1% year-over-year.

"In 2023, we generated record revenue of $47.3 million, record AFFO of $40.7 million, and paid out $33.0 million or $1.57 per share in dividends to shareholders," said Anthony Coniglio, the company's president and CEO. "During a very challenging environment for the cannabis industry, we were able to grow our dividend distributions by 9.0% year-over-year and for the first quarter of 2024 raised our quarterly dividend from $0.40 to $0.41 per share."

Q4 2023 Financial Highlights

• Net income attributable to common stockholders totaled $7 million, up from $6.7 million in the prior year's period.
• Funds from operations diluted totaled $10.7 million, as compared to $10.5 million, an increase of 1.3% year-over-year.
• Adjusted funds from operations-diluted totaled $10.8 million, as compared to $10.9 million, a decrease of 1.2% year-over-year.
• Total expenses amounted to $5.8 million, up from $5.3 million in the fourth quarter of last year.
• Declared a fourth-quarter dividend of $0.40 per share of common stock, an increase of 2.6% year-over-year.

FY 2023 Financial Highlights

• Net income attributable to common stockholders totaled $24.6 million, as compared to $22 million.
• Funds from operations diluted totaled $39.3 million, as compared to $35.2 million, an increase of 11.5% year-over-year.
• Adjusted funds from operations-diluted totaled $40.7 million, as compared to $38.7 million, an increase of 5.2% year-over-year.
• Cash and cash equivalents as of Dec. 31, 2023, were $25.8 million, with $14.4 million committed to fund tenant improvements.
• Total expenses amounted to $22.5 million, up from $22.4 million in 2022.
• For the twelve months ended Dec. 31, 2023, the company declared dividends of $1.57 per share of common stock, an increase of 9% year-over-year.

In 2023, NewLake exercised its option and invested approximately $ 350,000 to acquire an adjacent parcel of land at an existing cultivation facility in Missouri. In connection with the move, the company committed to fund approximately $16.2 million to expand the existing cultivation facility.

In October NewLake closed on a $2 million sale of its cultivation facility in Palmer, Massachusetts, which was then leased to Mint.

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NLCP Price Action

NewLake Capital's shares traded 3.11% higher at $16.6 per share at the time of writing on Monday morning.