NewLake Capital Partners Inc - NLCP stock
About NLCP[edit]
NewLake Capital Partners (OTC: NLCP) provides real estate for state-licensed cannabis companies, mainly by purchasing the real estate and leasing it back to the operator or building the necessary facility and then leasing it to the operator. [1] It has a variety of tenant types, including dispensaries, cultivation facilities, and processing plants. This type of arrangement is beneficial to cannabis operators because it allows them to use capital for operations and growth instead of tying the capital up in buildings and land. They can quickly raise large sums of money without incurring debt, or in the case of publicly traded companies, diluting the stock. [2]
The company refers to itself as a triple net lease Real Estate Investment Trust (REIT). In a triple net lease arrangement, the lease pays all of the expenses for the property, including taxes, insurance, repairs and maintenance, utilities, and of course, rent. [3] The company was founded in 2019 by Anthony Coniglio who currently serves as the President and Chief Executive Officer.
GreenAcreage Merger[edit]
In March, 2021, New Lake Capital Partners merged with GreenAcreage Real Estate Corp., resulting in a combined rentable space of 900,000 square feet in nine states. At the time of the merger the companies controlled a total of 24 properties and $75 million in cash. [4] Other sources site $110 million in cash and $325 million in assets. Like NewLake, GreenAcreage was founded in 2019. [2]
Dividends[edit]
NewLake Capital Partners pays a quarterly dividend, and payouts for 2022 ranged from $0.33 to $0.39. [g] It is common for REIT’s to pay dividends due to the significant cash flows they receive and investor expectations. [5] Therefore, investing in real estate companies like NewLake is a way to benefit financially from the legalization of cannabis, without the variability of returns from an new, growing and evolving industry. Of course, stable returns like those from a REIT will likely mean the chance for big gains in the share price is limited.
Properties[edit]
An additional three properties were added to the company’s portfolio with $28 million for two purchases and a $21 million investment in an existing facility. These moves were announced in July, 2022. The purchases add 94,000 square feet of space to NewLake’s portfolio, which grew to a total of 31 properties housing cannabis facilities and dispensaries. [6]
Leadership[edit]
The skilled leadership team includes officers and directors with a wealth of experience in the real estate and cannabis industries. [7]
Officers[edit]
- Anthony Coniglio - President, Chief Executive Officer and Director
- Lisa Meyer - Chief Financial Officer
- Jarrett Annenberg - Director of Acquisitions
Directors[edit]
- Gordon DuGan (Chairman)
- David Weinstein
- Joyce Johnson
- Alan Carr
- Peter Kadens
- Peter Martay
- ↑ Yahoo Finance. NLCP Stock Profile. Retrieved on 1/11/2023.
- ↑ 2.0 2.1 MJBizDaily. Marijuana real estate merger creates firm worth $435 million in assets, cash. March 18, 2021.
- ↑ Hatrman. Triple Net Lease. Retrieved on 2/2/2023.
- ↑ Proactive Investors. NewLake Capital Partners closes merger to form one of 'largest real estate companies in cannabis'. April 6, 2021
- ↑ Wall Street Journal. NewLake Capital Partners, Inc. Announces Tax Characteristics of 2022 Dividends. January 30, 2023.
- ↑ NewLake IR. NewLake Capital Partners Invests $50 Million Across Three Properties. July 6, 2022.
- ↑ NewLake.com. NewLake Team. Retrieved on 2/2/2023.
OTC Symbol: NLCP | OTC Tier: OTCQX U.S.
