NewLake Capital Partners (NLCP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $12.3 million, net income attributable to common stockholders was $5.8 million, and AFFO was $10.1 million, with a 90% payout ratio and a $0.43 dividend per share.

• Portfolio consists of 34 properties in 12 states, with 31 leased and 3 vacant cultivation facilities actively marketed for lease.

• Maintains a conservative balance sheet with debt-to-gross-assets at 1.6%, $107.2 million in liquidity, and no debt maturities until May 2027.

• Regulatory milestones, including federal rescheduling of medical cannabis to Schedule III, are expected to improve tenant cash flows and credit profiles.

• Active risk management includes re-tenanting properties, enhancing guarantor structures, and monitoring tenant credit risk.

Financial highlights

• Q1 2026 total revenue was $12.3 million, down 6.8% year-over-year, mainly due to three vacant cultivation facilities.

• Net income attributable to common stockholders was $5.8 million ($0.28 per share), down from $6.3 million ($0.31 per share) in Q1 2025.

• AFFO was $10.1 million ($0.48 per share), FFO was $9.7 million ($0.46 per share), and the annualized dividend yield was 11.8%.

• General and administrative expenses were 1.5% of total assets.

• Cash and cash equivalents at quarter-end were $24.8 million.

Outlook and guidance

• Management expects sufficient liquidity from operations, cash, and credit to fund operations, dividends, and commitments over the next 12 months.

• Anticipates further regulatory progress at federal and state levels, including a potential ban on synthetic THC and expanded medical cannabis programs.

• Leasing pipeline activity has increased, especially in Pennsylvania and Nevada, with active efforts to re-lease three vacant cultivation facilities.

• Growth in AFFO expected from rent escalators, leasing vacant properties, and new transactions.

• Management targets an AFFO payout ratio of 80–90%.