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Zoned Properties Enters Long-Term Amended Cannabis Lease Agreements

Story Highlights
  • Zoned Properties signed long-term net leases for three cannabis properties, effective 2026-2039, contingent on tenant ownership changes.
  • The deal includes a $9 million purchase option with seller financing and a consent requiring cure of arrears and new guarantees, repositioning the assets and landlord risk profile.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Zoned Properties Enters Long-Term Amended Cannabis Lease Agreements

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Zoned Properties ( (ZDPY) ) has provided an update.

On December 31, 2025, Zoned Properties, Inc., through its subsidiaries Chino Valley Properties, LLC, Green Valley Group, LLC and Kingman Property Group, LLC, entered into amended and restated absolute net lease agreements with cannabis tenants Broken Arrow Herbal Center, Inc. and CJK, Inc., effective January 1, 2026, for an initial 14-year term through December 31, 2039. The leases are contingent on a change-of-control transaction transferring majority ownership of the tenants and the associated cannabis licenses to A&R Consultants, LLC (or its designee), which will guarantee lease payments and performance; they set property-specific base rents and embed both a right of first refusal and a short-term exclusive option for the tenants to acquire all three leased properties for $9 million, with a mix of cash and $5 million in seller financing at 7% interest over 36 months if exercised by March 30, 2026. In connection with the anticipated change of control for the Chino Valley tenant, a December 30, 2025 consent agreement requires the buyer to cure nearly $390,000 of past-due obligations and pay $965,000 for rent concessions at closing, in exchange for releasing the existing guarantor from post-closing liabilities and substituting A&R Consultants, LLC as the new guarantor, tightening landlord protections while potentially positioning Zoned Properties for an eventual asset sale and loan receivable tied to the three cannabis properties.

The most recent analyst rating on (ZDPY) stock is a Buy with a $0.54 price target. To see the full list of analyst forecasts on Zoned Properties stock, see the ZDPY Stock Forecast page.

Spark’s Take on ZDPY Stock

According to Spark, TipRanks’ AI Analyst, ZDPY is a Outperform.

Zoned Properties scores well due to its strong financial performance, particularly in terms of revenue growth and cash flow generation. The technical indicators suggest a stable market position, while the valuation indicates potential upside. The positive corporate event further strengthens the outlook, although low profitability margins remain a concern.

To see Spark’s full report on ZDPY stock, click here.

More about Zoned Properties

Zoned Properties, Inc. operates through real-estate subsidiaries that act as landlords to cannabis-related businesses, leasing specialized properties such as cultivation and dispensary facilities to licensed operators in regulated cannabis markets.

Average Trading Volume: 8,873

Technical Sentiment Signal: Sell

Current Market Cap: $5.68M

For an in-depth examination of ZDPY stock, go to TipRanks’ Overview page.

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