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NewLake Capital Partners (NLCP)
OTHER OTC:NLCP
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NewLake Capital Partners
(OTC:NLCP)
77Outperform
NewLake Capital Partners (NLCP) vs. S&P 500 (SPY)
Market Cap
$309.71M
Dividend Yield11.92%
Average Volume (3M)45.07K
Price to Earnings (P/E)11.7
Beta (1Y)0.58
Revenue Growth5.98%
EPS Growth9.23%
CountryUS
Employees8
SectorReal Estate
Sector Strength80
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.31
Shares Outstanding21,447,880
10 Day Avg. Volume31,924
30 Day Avg. Volume45,072
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.17
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.25
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside17.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
NewLake Capital Partners Business Overview & Revenue Model
Company DescriptionNewLake Capital Partners is a leading provider of real estate capital to state-licensed cannabis operators. Founded in 2019, it is a triple-net lease REIT that acquires industrial and retail properties through sale-leaseback transactions, third-party purchases and build-to-suit projects. Its tenants are some of the leading operators in the U.S. state-licensed cannabis industry and it is a trusted partner for their real estate needs.
How the Company Makes MoneyNewLake Capital Partners makes money by acquiring properties and leasing them to cannabis operators under long-term, triple-net lease agreements. These agreements require tenants to cover property expenses such as taxes, insurance, and maintenance, providing NLCP with a stable and predictable cash flow. The company's revenue is primarily derived from rental income, which is typically subject to annual escalations, ensuring growth over time. Additionally, NLCP may benefit from property value appreciation and strategic partnerships within the cannabis sector, further enhancing their earnings potential.
NewLake Capital Partners Financial Statement Overview
Summary
NewLake Capital Partners exhibits strong financial health across income, balance sheet, and cash flow metrics. The company demonstrates robust revenue growth and profitability, coupled with a solid, debt-free balance sheet. Cash flow performance is impressive, despite some historical fluctuations. Overall, the financials suggest a stable and growth-oriented outlook, with minimal financial risk.Income Statement
NewLake Capital Partners shows strong growth in revenue and profitability. The gross profit margin is exceptionally high, indicating efficient cost management. Net profit margin and EBIT margins are robust, suggesting strong operational performance. The revenue growth rate has been positive year-over-year, showcasing a healthy upward trajectory in sales.―
Balance Sheet
The company maintains a healthy balance sheet with zero total debt, resulting in a strong equity ratio. The debt-to-equity ratio is exceptionally low, indicating minimal leverage risk. Return on equity is impressive, reflecting effective use of shareholders' funds. The high stockholders' equity compared to total assets suggests financial stability.90
Cash Flow
Operating cash flow is strong and consistently covers net income, indicating solid cash generation from core operations. Free cash flow has shown significant growth over the years, reflecting efficient capital management. However, fluctuations in free cash flow in earlier years highlight potential investment volatility.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 50.13M | 47.30M | 44.79M | 28.20M | 11.66M | Gross Profit |
| 49.89M | 46.65M | 44.73M | 28.06M | -3.96M | EBIT |
| 26.79M | 24.66M | 22.52M | 11.49M | 436.00K | EBITDA |
| 41.86M | 38.92M | 35.34M | 19.59M | -7.83M | Net Income Common Stockholders |
| 26.11M | 24.59M | 21.98M | 11.23M | -10.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.21M | 25.84M | 45.19M | 127.10M | 19.62M | Total Assets |
| 431.54M | 433.29M | 454.25M | 460.88M | 144.18M | Total Debt |
| 7.60M | 2.19M | 2.99M | 3.76M | 598.00K | Net Debt |
| -12.61M | -23.66M | -42.21M | -123.34M | -19.02M | Total Liabilities |
| 27.56M | 21.34M | 23.31M | 21.55M | 3.15M | Stockholders Equity |
| 396.76M | 404.58M | 423.55M | 427.56M | 134.76M |
| Cash Flow | Free Cash Flow | |||
| 43.35M | 40.08M | -8.24M | 11.53M | 7.35M | Operating Cash Flow |
| 43.35M | 40.08M | 37.01M | 26.70M | 7.35M | Investing Cash Flow |
| -19.14M | -12.84M | -86.45M | -39.91M | -65.05M | Financing Cash Flow |
| -29.84M | -46.60M | -32.46M | 120.69M | 10.42M |
NewLake Capital Partners Technical Analysis
Neutral
14.42
Price Trends
14.49
Negative
15.44
Negative
16.89
Negative
Market Momentum
0.02
Negative
51.96
Neutral
64.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLCP, the sentiment is Neutral. The current price of 14.42 is above the 20-day moving average (MA) of 14.19, below the 50-day MA of 14.49, and below the 200-day MA of 16.89, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NLCP.
NewLake Capital Partners Risk Analysis
NewLake Capital Partners disclosed 45 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Performance Comparison
NLCP
NewLake Capital Partners
14.53
-4.14
-22.17%
PW
Power REIT
1.14
0.70
159.09%
AFCG
AFC Gamma
5.50
-1.68
-23.40%
NewLake Capital Partners Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook with stable rent collections, strategic acquisitions, and a strong balance sheet, countered by ongoing challenges in the cannabis industry, issues with specific tenants, and a slight decline in AFFO. The company maintains a cautious but strategic approach to navigate the current landscape.Q1-2025 Updates
Positive Updates
Stable Rent Collections and Property Acquisitions
Rent collections remain stable and two new property acquisitions were completed, aligning with the disciplined investment strategy.
AFFO Payout Ratio within Target Range
The first quarter AFFO payout ratio was 84%, consistent with the target range of 80% to 90%, supporting the dividend.
Revenue Growth and Strong Balance Sheet
Total revenue increased by 4.8% year-over-year to $13.2 million, with a solid balance sheet featuring $432 million in gross real estate assets and only $8 million in debt.
Strategic Tenant Developments
Calypso secured a strategic investment, enhancing its value, especially as Pennsylvania nears adult use market approval.
Negative Updates
Challenges in the Cannabis Industry
Continued headwinds in the cannabis industry with distressed headlines, small-scale M&A, and tougher financing conditions.
Issues with REV Clinics
REV Clinics remains in receivership, paying 50% of contractual rent, with challenges anticipated in re-leasing the property.
Decline in EBITDAR Coverage
Average EBITDAR coverage declined slightly for both cultivation and dispensaries, with concerns about price compression across the industry.
AFFO Decline
AFFO decreased by 2.2% compared to the previous year, driven by higher professional fees and timing of tenant billbacks.
Company Guidance
During the New Lake Capital Partners First Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics. Rent collections remained stable, aligning with previous expectations, and the AFFO payout ratio was 84%, within their target range of 80% to 90%. The company reported total revenue of $13.2 million for the quarter, a 4.8% increase from the previous year, with net income attributable to common shareholders totaling $6.3 million or $0.31 per share. Adjusted funds from operations were $10.7 million or $0.51 per share, reflecting a modest decline of 2.2% compared to the same period in 2024. The company declared a cash dividend of $0.43 per share, with an 84% payout ratio. New Lake maintains a strong balance sheet with $432 million in gross real estate assets and only $8 million in debt, resulting in a debt to EBITDA ratio of less than 0.2 times. The company has $102 million in liquidity, including $19.9 million in cash and $82.4 million in untapped credit facility capacity.NewLake Capital Partners Corporate Events
Business Operations and StrategyFinancial Disclosures
NewLake Capital Partners Reports Q1 2025 Financial Results
Positive
May 7, 2025
NewLake Capital Partners reported its financial results for the first quarter of 2025, highlighting a revenue increase of 4.8% year-over-year to $13.2 million and a net income of $6.3 million. The company maintained a strong liquidity position with $102.3 million available and a low debt ratio, despite challenges from tenant defaults. The results reflect the company’s resilience and strategic risk management in a volatile industry.
Spark’s Take on NLCP Stock
According to Spark, TipRanks’ AI Analyst, NLCP is a Outperform.
NewLake Capital Partners is financially robust with strong growth and a debt-free balance sheet, making it a stable investment. The stock’s technicals suggest a neutral short-term trend, while the valuation indicates potential undervaluation. Earnings call insights reflect cautious optimism amid industry challenges, and recent corporate events further support strategic growth and shareholder value.
To see Spark’s full report on NLCP stock, click here.
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
NewLake Capital Partners Reports Strong 2024 Financial Results
Positive
Mar 5, 2025
NewLake Capital Partners reported its financial results for the fourth quarter and full year of 2024, showing a 6.0% increase in full-year revenue to $50.1 million despite challenges in the cannabis industry. The company declared a first quarter 2025 dividend of $0.43 per share, reflecting an 8.3% increase in annual dividends, and highlighted its strong financial metrics and strategic investments, including a stock repurchase program and a $50 million At The Market Program.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.