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Newlake Capital Partners, Inc. (NLCP)
:NLCP
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NewLake Capital Partners
(OTC:NLCP)
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Rating:75Outperform
Price Target:
$14.50
â–˛(11.88% Upside)
NewLake Capital Partners scores well due to its strong financial performance and attractive valuation, with a solid balance sheet and high dividend yield. However, bearish technical indicators and challenges in the cannabis sector, including rent collection issues, moderate the overall score.
NewLake Capital Partners (NLCP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$268.25M
Dividend Yield13.31%
Average Volume (3M)52.50K
Price to Earnings (P/E)10.4
Beta (1Y)0.56
Revenue Growth1.19%
EPS Growth-2.80%
CountryUS
Employees8
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.32
Shares Outstanding20,552,631
10 Day Avg. Volume36,027
30 Day Avg. Volume52,502
Financial Highlights & Ratios
PEG Ratio1.81
Price to Book (P/B)0.91
Price to Sales (P/S)7.18
P/FCF Ratio8.30
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue5.26
Enterprise Value/Gross Profit5.80
Enterprise Value/Ebitda6.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NewLake Capital Partners Business Overview & Revenue Model
Company DescriptionNewLake Capital Partners (NLCP) is a real estate investment trust (REIT) that specializes in the acquisition and leasing of properties within the regulated cannabis industry. The company focuses on properties that are occupied by licensed operators across various segments, including cultivation, processing, and retail. By providing capital solutions through sale-leaseback transactions and long-term leases, NLCP supports the growth of the cannabis sector while generating stable rental income.
How the Company Makes MoneyNewLake Capital Partners generates revenue primarily through leasing its properties to tenants in the cannabis industry. The company's revenue model is centered around long-term leases, typically structured as triple net leases, where tenants are responsible for property expenses like maintenance, taxes, and insurance. This arrangement not only provides a steady income stream but also mitigates operational risks for NLCP. Additionally, the company engages in sale-leaseback transactions, allowing cannabis operators to raise capital by selling their real estate assets and leasing them back, which further enhances NLCP's property portfolio and rental income. Key revenue streams include rental income from its growing portfolio of cannabis-related properties and potential appreciation in property value. Partnerships with established cannabis operators and a focus on compliant, licensed facilities contribute significantly to NLCP's earnings stability and growth prospects.
NewLake Capital Partners Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with positive aspects such as improved AFFO, strong tenant performance, and a solid financial position being offset by challenges in the cannabis sector and issues with rent collection and vacancies. The company's cautious approach to new investments and focus on managing risk is evident.Q3-2025 Updates
Positive Updates
AFFO Increase
Adjusted Funds from Operations (AFFO) increased more than 2% compared to the third quarter of 2024, with an AFFO payout ratio of 82%, within the target range of 80% to 90%.
Strong Tenant Performance
Tenants representing approximately 50% of annual base rent reported solid results. Curaleaf expanded adjusted gross margins and generated over $100 million in cash flow year-to-date. Cresco delivered positive cash flow, reduced debt, and completed a refinancing. Trulieve delivered nearly 60% gross margins and over $60 million of free cash flow during the quarter. Green Thumb reported $23 million of net income and $74 million of operating cash flow.
Solid Financial Position
Generated total revenue of $12.6 million, a 0.3% increase year-over-year. Declared a cash dividend of $0.43 per share. The balance sheet remains strong with $432 million in gross real estate assets and a conservative debt profile of 1.6% debt to total gross assets.
Negative Updates
Limited Growth in Cannabis Sector
The cannabis sector faces challenges with limited access to capital, slower market growth, and ongoing regulatory uncertainty. Federal reform is delayed, affecting the operating environment for state-legal businesses.
Vacancy and Rent Collection Challenges
The company applied $505,000 of security deposits from AYR to cover August and September rent due to nonpayment. The Fitchburg, Massachusetts property remains vacant following a tenant departure.
Company Guidance
During the NewLake Capital Partners Third Quarter 2025 Conference Call, key metrics and guidance highlighted the company's financial performance and strategic outlook. The company reported a 0.3% year-over-year increase in total revenue, reaching $12.6 million, driven by rental income from Cresco dispensaries and improvements at Arizona and Connecticut facilities, despite vacancies affecting some properties. Adjusted funds from operations (AFFO) increased by over 2% compared to the previous year, with a payout ratio of 82%, comfortably within the target range of 80% to 90%. The company's balance sheet remains strong, with $432 million in gross real estate assets and a conservative debt profile of 1.6% debt to total gross assets, with no maturities until May 2027. Liquidity is robust, with $106 million available, including cash and credit facility capacity. Strategic guidance emphasizes maintaining a strong balance sheet, sustaining dividend coverage, and supporting tenants through lease amendments to manage risk amid ongoing regulatory uncertainty in the cannabis sector.NewLake Capital Partners Financial Statement Overview
Summary
NewLake Capital Partners demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is particularly strong with low leverage, enhancing financial stability. While cash flow generation remains solid, the significant drop in free cash flow growth warrants attention.Income Statement
NewLake Capital Partners demonstrates strong profitability with a high gross profit margin of 83.85% and a net profit margin of 50.35% in TTM. The company has shown impressive revenue growth of 94% over the TTM period, indicating robust expansion. However, the slight decline in margins compared to the previous year suggests potential pressure on profitability.85
Very Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.019, indicating minimal leverage and financial risk. The return on equity is healthy at 6.42%, reflecting efficient use of equity capital. The equity ratio remains strong at approximately 92.2%, showcasing a stable financial structure.90
Very Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 58.4% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is strong at 1.65, and the free cash flow to net income ratio is stable at 1.0, indicating good cash generation relative to earnings.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.24M | 50.13M | 47.30M | 44.79M | 28.20M | 11.66M |
| Gross Profit | 46.45M | 49.89M | 46.65M | 44.73M | 28.06M | -3.96M |
| EBITDA | 43.21M | 42.03M | 39.67M | 35.34M | 19.59M | -7.83M |
| Net Income | 26.31M | 26.11M | 24.59M | 21.98M | 11.23M | -10.67M |
Balance Sheet | ||||||
| Total Assets | 424.00M | 431.54M | 433.29M | 454.25M | 460.88M | 144.18M |
| Cash, Cash Equivalents and Short-Term Investments | 23.57M | 20.21M | 25.84M | 45.19M | 127.10M | 19.62M |
| Total Debt | 7.60M | 7.60M | 2.19M | 2.99M | 3.76M | 598.00K |
| Total Liabilities | 26.39M | 27.56M | 21.34M | 23.31M | 21.55M | 3.15M |
| Stockholders Equity | 390.81M | 396.76M | 404.58M | 423.55M | 427.56M | 134.76M |
Cash Flow | ||||||
| Free Cash Flow | 42.99M | 43.35M | 40.08M | -8.24M | 11.53M | 7.35M |
| Operating Cash Flow | 42.99M | 43.35M | 40.08M | 37.01M | 26.70M | 7.35M |
| Investing Cash Flow | -1.96M | -19.14M | -12.84M | -86.45M | -39.91M | -65.05M |
| Financing Cash Flow | -37.30M | -29.84M | -46.60M | -32.46M | 120.69M | 10.42M |
NewLake Capital Partners Technical Analysis
Negative
12.96
Price Trends
13.18
Negative
13.37
Negative
13.63
Negative
Market Momentum
-0.05
Negative
43.06
Neutral
60.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLCP, the sentiment is Negative. The current price of 12.96 is below the 20-day moving average (MA) of 13.01, below the 50-day MA of 13.18, and below the 200-day MA of 13.63, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NLCP.
NewLake Capital Partners Risk Analysis
NewLake Capital Partners disclosed 14 risk factors in its most recent earnings report. NewLake Capital Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NewLake Capital Partners Peers Comparison
UnderperformOutperform
Sector (65)
NLCP
NewLake Capital Partners
12.92
-2.43
-15.83%
PW
Power REIT
0.63
-0.43
-40.57%
AFCG
AFC Gamma
3.24
-4.74
-59.40%
NewLake Capital Partners Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
NewLake Capital Partners Reports Q3 2025 Financial Results
Neutral
Nov 6, 2025
NewLake Capital Partners reported its third quarter 2025 financial results, highlighting a revenue of $12.6 million, which remained flat year-over-year, and a net income of $6.7 million. The company declared a dividend of $0.43 per share, consistent with the previous year, and maintained a strong balance sheet despite challenges in the cannabis industry. The company also engaged in investment activities, including acquisitions and a like-kind exchange, and addressed tenant issues, such as the restructuring of AYR Wellness Inc., which affected rental income from certain properties.
The most recent analyst rating on (NLCP) stock is a Buy with a $15.50 price target. To see the full list of analyst forecasts on NewLake Capital Partners stock, see the NLCP Stock Forecast page.
NewLake Capital Partners Reports Steady Q2 2025 Growth
Aug 8, 2025
NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and other real estate investments. The company owns a portfolio of properties leased to single tenants on a triple-net basis, focusing on the cannabis industry.
NewLake Capital Partners’ Earnings Call Highlights Growth Amid Challenges
Aug 8, 2025
NewLake Capital Partners, Inc. recently held its earnings call, reflecting a balanced sentiment. The company showcased stable financial performance and growth in revenue and acquisitions, yet acknowledged challenges due to industry-specific pressures and tenant defaults.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.