NewLake Capital Partners Reports Strong Q4 and Full-Year 2025 Results, Declares Q1 2026 Dividend

Key Highlights for Investors

• Q4 2025 Revenue: \$12.3 million
• Full-Year 2025 Revenue: \$51.1 million
• Q4 2025 Net Income Attributable to Common Stockholders: \$6.0 million (\$0.29 per share, diluted)
• Full-Year 2025 Net Income Attributable to Common Stockholders: \$26.3 million (\$1.28 per share, diluted)
• Q4 2025 FFO (Funds From Operations): \$10.0 million (\$0.48 per share, diluted)
• Full-Year 2025 FFO: \$42.3 million (\$2.02 per share, diluted)
• Q4 2025 AFFO (Adjusted Funds From Operations): \$10.6 million (\$0.51 per share, diluted)
• Full-Year 2025 AFFO: \$43.8 million (\$2.09 per share, diluted)
• Q4 2025 Dividend: \$0.43 per share (annualized \$1.72 per share, 85% payout ratio)
• No Debt Maturities Until May 2027
• Strong Liquidity: \$7.6 million drawn, \$82.4 million undrawn on credit facility as of Dec 31, 2025

Detailed Results and Analysis

NewLake Capital Partners, Inc. (OTCQX: NLCP), a leading provider of real estate capital to state-licensed cannabis operators, reported robust financial results for the fourth quarter and full year ended December 31, 2025.

Financial Performance

• Q4 2025:
  • Total revenue of \$12.3 million, reflecting the company’s ability to generate steady rental income from its cannabis-focused real estate portfolio.
  • Net income attributable to common stockholders reached \$6.0 million, or \$0.29 per diluted share.
  • FFO totaled \$10.0 million (\$0.48 per diluted share), while AFFO was \$10.6 million (\$0.51 per diluted share), indicating strong cash generation above net income, a key REIT metric.
  • The company declared a Q4 dividend of \$0.43 per share, maintaining an attractive yield and a prudent 85% AFFO payout ratio.
• Full-Year 2025:
  • Total revenue of \$51.1 million, a testament to the resilience and scalability of NewLake’s business model.
  • Net income attributable to common stockholders was \$26.3 million (\$1.28 per diluted share).
  • FFO totaled \$42.3 million (\$2.02 per diluted share), and AFFO reached \$43.8 million (\$2.09 per diluted share).
  • Total dividends declared for the year were \$1.72 per share, fully covered by AFFO.

Operational and Strategic Developments

• No Debt Maturities Until May 2027: This provides significant financial flexibility and reduces refinancing risk in a higher interest rate environment.
• Credit Facility: As of December 31, 2025, the company had \$7.6 million outstanding under its revolving credit facility, with \$82.4 million available (subject to collateral). The facility bears interest at the greater of a 1% margin over the WSJ Prime Rate or 4.75%; as of year-end, the rate was 7.75%. The company remained in compliance with all covenants.
• Dividend Policy: On December 15, 2025, the board declared a Q4 cash dividend of \$0.43 per share, paid on January 15, 2026. This payout represents an 85% AFFO payout ratio, reflecting management’s commitment to returning capital to shareholders while maintaining balance sheet strength.
• Quarterly Performance Trends: The company demonstrated consistent revenue and profitability throughout 2025, with net income per diluted share ranging from \$0.29 to \$0.36 per quarter, and FFO per diluted share in the \$0.47-\$0.54 range. AFFO per share was stable at \$0.51-\$0.55, supporting a reliable dividend.

Balance Sheet Strength

• Total Assets: \$431.5 million as of December 31, 2025.
• Total Stockholders’ Equity: \$387.9 million, indicating a well-capitalized position.
• Low Leverage: Only \$7.6 million in borrowings as of year-end, with no preferred stock outstanding.

Guidance and Forward-Looking Statements

Management highlighted the company’s strong liquidity, absence of near-term debt maturities, and the ongoing opportunity set for real estate investments in the cannabis sector. The company’s steady payout ratio and consistent AFFO growth position it as a leading dividend payer in the sector. However, management cautioned that forward-looking statements are subject to risks including capital market conditions, tenant performance, and broader economic trends.

Potential Share Price Catalysts

• Consistent Dividend and High AFFO Coverage: Attractive for income investors and may support share valuation.
• Strong Balance Sheet and Low Leverage: Reduces financial risk and provides capacity for future growth or acquisitions.
• Lack of Near-Term Debt Maturities: Minimizes refinancing risk and exposure to rising interest rates.
• Steady Revenue and Profitability: Demonstrates business resilience, which may attract new shareholders seeking stable returns in the volatile cannabis sector.

Shareholder Information

• Next earnings call scheduled for March 6, 2026, at 11 a.m. Eastern Time.
• Investor presentation and detailed financials available on the company’s website.
• Contact: Lisa Meyer, Chief Financial Officer, Treasurer and Secretary (PH: 570-209-2947)

Disclaimer: This article is for informational purposes only. It does not constitute investment advice or an offer to buy or sell securities. Investors should conduct their own due diligence and consult with a qualified financial advisor before making investment decisions. All forward-looking statements are subject to risks and uncertainties as outlined in the company’s filings with the SEC.

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