First Quarter 2026 Revenue Totaled $12.3 Million
First Quarter 2026 Net Income Attributable to Common Stockholders Totaled $5.8 Million, Funds from Operations Totaled $9.7 Million, and Adjusted Funds from Operations Totaled $10.1 Million
Conference Call and Webcast Scheduled for May 8, 2026, at 11 a.m. Eastern Time
NEW CANAAN, Conn., May 07, 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 first quarter ended March 31, 2026.
"Our first quarter results were in line with expectations, highlighted by 100% collection of contractual rent during the period," said Anthony Coniglio, NewLake's President and Chief Executive Officer. "We remain focused on disciplined capital management and proactively reducing risk while improving the quality and resilience of our portfolio."
"The rescheduling of medical cannabis represents a historic shift in the federal government's approach and is a pivotal moment for the industry," continued Mr. Coniglio. "While implementation will take time and further guidance is needed from federal authorities, we believe increased regulatory clarity marks an important step forward and has the potential to strengthen the operating environment for our tenants."
First Quarter 2026 Financial Highlights
-- Total revenue of $12.3 million.
-- Net income attributable to common stockholders totaled $5.8 million, or
$0.28 per share of common stock.
-- Funds From Operations ("FFO")(1) totaled $9.7 million, or $0.46 per share
of common stock.
-- Adjusted Funds From Operations ("AFFO")(1) totaled $10.1 million, or
$0.48 per share of common stock.
-- Declared a first quarter dividend of $0.43 per share of common stock,
equivalent to an annualized dividend of $1.72 per common share.
Balance Sheet Highlights as of March 31, 2026
-- Cash and cash equivalents as of March 31, 2026, were $24.8 million, with
approximately $0.4 million committed to fund future improvements at an
existing dispensary in Ohio.
-- Total liquidity of $107.2 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 72x.
-- 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 months ended March 31, 2026 (dollars in thousands, except per share amounts):
Three Months Ended March 31,
----------------------------------
2026 2025
------------
Total Revenue $ 12,309 $ 13,209
Net Income Attributable to Common
Stockholders $ 5,775 $ 6,297
------------ ------------
Net Income Attributable to Common
Stockholders Per Share - Diluted $ 0.28 $ 0.31
============ ============
FFO Attributable to Common Stockholders
- Diluted $ 9,737 $ 10,283
------------ ------------
FFO per share -- Diluted $ 0.46 $ 0.49
============ ============
AFFO Attributable to Common Stockholders
- Diluted $ 10,091 $ 10,724
------------ ------------
AFFO per share -- Diluted $ 0.48 $ 0.51
============ ============
For the three months ended March 31, 2026, the Company generated total revenue of approximately $12.3 million, representing a 6.8% decrease compared to $13.2 million for the same period in 2025. The decline was partially offset by a full quarter of rental income from two Ohio dispensaries acquired in 2025, as well as annual contractual rent escalators. The net decrease was primarily due to vacancies at three properties located in Pottsville, PA; Sparks, NV; and Fitchburg, MA. The impact of these vacancies resulted in lower rental income and additional property carrying costs, which also contributed to a 5.9% decline in AFFO for the quarter compared to the same period in the prior year.
Investment Activity
Real Estate Commitments
As of March 31, 2026, we had aggregate unfunded commitments of $0.4 million to develop and improve our dispensary in Ohio.
Portfolio and Tenant Updates
The Cannabist Company
On March 24, 2026, The Cannabist Company ("Cannabist"), which operates at four of the Company's properties, including two properties located in Illinois and two properties located in Massachusetts, publicly announced that it has entered into definitive agreements to sell certain assets and has commenced restructuring proceedings under Cannabist's Companies' Creditors Arrangement Act in Canada, with the intention to seek recognition of such proceedings in the United States under Chapter 15 of the U.S. Bankruptcy Code. As disclosed by Cannabist, they entered into a non-binding memorandum of understanding for the sale of certain of its production, manufacturing, distribution and sale operations (through the sale of equity or assets) in six states, including Illinois and Massachusetts, where we lease properties to Cannabist. The Company continues to monitor developments related to this tenant and its restructuring proceedings.
During the three months ended March 31, 2026, we collected full rent for each of the four properties leased to Cannabist and the tenant remains current on its contractual lease obligations to us. We hold aggregate security deposits totaling approximately $481.6 thousand across these four properties.
Lease Modifications
San Diego, CA
On January 28, 2026, we entered into a First Amendment to the Lease Agreement (the "Amendment") for our dispensary property located in San Diego, California. Pursuant to the Amendment, we consented to a change in control of the tenant, pursuant to which Wellgreens acquired the tenant entity formerly operated by Cannabist. In connection with the Amendment, the lease term was extended by five years, through December 31, 2034, with three renewal options and annual contractual rent escalators. In addition, the existing purchase option under the lease remained with the tenant. All other material terms of the lease remain unchanged.
Sinking Springs, PA
As a result of a third--party transaction involving Acreage Holdings, Inc.'s Pennsylvania cultivation operations (Prime Wellness) during March 2026, we added Holistic Industries as an additional guarantor under the lease for our Sinking Springs, Pennsylvania property. As part of this same transaction, we also added Canopy USA as an additional guarantor under the lease with Acreage Holdings' Massachusetts subsidiary, The Botanist, for our Sterling, Massachusetts cultivation facility.
Other than the addition of these guarantors, there were no modifications to the economic or non--economic terms of either lease, and the Company did not provide capital, financing, or other consideration in connection with these arrangements.
Re-leasing Activity
As of March 31, 2026, three of our cultivation facilities, located in Pottsville, PA, Sparks, NV, and Fitchburg, MA, remained vacant following tenant departures in 2025. During the three months ended March 31, 2026, we continued to actively market these properties for lease. There was no rental income recognized for these properties during the three months ended March 31, 2026.
Financing Activity
Revolving Credit Facility
As of March 31, 2026, the Company had approximately $7.6 million in borrowings 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 March 31, 2026, the interest rate on the revolving credit facility was 7.75%.
As of March 31, 2026, the Company was in compliance with the covenants under the revolving credit facility agreement.
Dividend
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 was paid on April 15, 2026, to stockholders of record at the close of business on March 31, 2026, and represents an AFFO payout ratio of 90%.
Conference Call and Webcast Details:
Management will host a conference call and webcast at 11:00 a.m. Eastern Time on May 8, 2026, to discuss its quarterly financial results and answer questions about the Company's operational and financial highlights for the first quarter ended March 31, 2026.
Event: NewLake Capital Partners Inc. First Quarter 2026 Earnings
Call
Date: Friday, May 8, 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
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