NewLake Capital Partners Q2 2026 Earnings Report

NewLake Capital Partners EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.28
• Beat/Miss: N/A
• One Year Ago EPS: N/A

NewLake Capital Partners Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $12.00 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

NewLake Capital Partners Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 11:00AM ET

NewLake Capital Partners (OTCMKTS:NLCP) is a publicly traded real estate investment trust that focuses on the acquisition, development and operation of self-storage properties across the United States. Established in the mid-2010s, the company seeks to generate stable, long-term cash flows through a portfolio of facilities that serve both individual and commercial customers. By structuring investments through its operating partnership, NewLake delivers a REIT structure to investors while maintaining operational flexibility on the ground.

The company’s core activities include identifying value-add or newly developed self-storage facilities in growth-oriented markets, negotiating acquisitions or ground leases, and overseeing construction or renovation. Once properties are stabilized, NewLake leverages an in-house asset management platform to handle day-to-day operations, marketing and customer service. This vertically integrated approach allows the company to streamline costs, optimize occupancy rates and enhance returns on individual assets.

NewLake’s portfolio is geographically diversified, with concentrations in high-growth regions of the Southeast, Sun Belt and select Midwestern markets. By targeting markets characterized by rising household formation, limited competition and favorable supply dynamics, the company aims to capitalize on sustained demand for storage solutions. Its regional focus also enables NewLake to deploy capital efficiently and build economies of scale in select metropolitan areas.

Since its inception, NewLake Capital Partners has grown through a combination of acquisitions and ground-up developments, adapting its strategy to evolving market conditions and customer preferences. The company is led by a management team with experience in real estate investing, finance and operations, and maintains a disciplined underwriting process to guide its investment decisions. Through its REIT structure, NewLake offers investors exposure to the self-storage sector’s potential for stable cash distributions and long-term growth.

NewLake Capital Partners Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Regulatory momentum improved, with medical cannabis rescheduling to Schedule III and NYSE listings for Trulieve and Glass House viewed as steps toward broader institutional participation and capital-market access.
• Positive Sentiment: NewLake reported quarterly AFFO of $10.3 million, or $0.49 per diluted share, in line with expectations, while maintaining its $0.43 quarterly dividend and an 88% AFFO payout ratio within its 80%-90% target range.
• Positive Sentiment: The company acquired a $2.1 million Kentucky dispensary leased to C3 Industries and said its investment pipeline has become more active, although management emphasized disciplined underwriting over growth for its own sake.
• Positive Sentiment: NewLake amended its $90 million revolving credit facility, reducing borrowing costs by 100 basis points and extending maturity to May 2029; it ended the quarter with $25.8 million of cash, only $7.6 million drawn, and very low leverage.
• Negative Sentiment: Three cultivation facilities remain vacant, reducing rental income and increasing carrying costs; management said re-leasing discussions have improved but may ultimately lead to non-cannabis use or property sales. The Cannabist remains current through August rent, but its bankruptcy process and potential ownership transition could still create rent disruption or require concessions.

Presentation

[Operator]

Good morning. Welcome to the NewLake Capital Partners second quarter 2026 earnings conference call. Today's call is being recorded. I will now turn the call over to Valter Pinto, Investor Relations. Please go ahead.

[Valter Pinto, Managing Director at KCSA Strategic Communications]

Thank you, operator, and good morning, everyone. Welcome to the NewLake Capital Partners Second Quarter 2026 financial results conference call. Joining me on the call today are Anthony Coniglio, President and Chief Executive Officer, and Lisa Meyer, Chief Financial Officer. Before we begin, please note that certain statements made during today's call may be considered forward-looking under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks and uncertainties.

[Valter Pinto, Managing Director at KCSA Strategic Communications]

For more detailed discussion of these factors, please refer to the company's filings with the Securities and Exchange Commission, including our Form 10-Q for the quarter ended June 30th, 2026. During the call, we'll also reference non-GAAP financial measures, including FFO and AFFO. Reconciliations to the most directly comparable GAAP measures are included in our earnings release. With that, I'd now like to turn the call over to Anthony Coniglio, President and Chief Executive Officer. Please go ahead, Anthony.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Thank you, Valter, and good morning, everyone. The past few months have been among the most constructive for the cannabis industry that we've seen in some time. The rescheduling of medical cannabis to Schedule III, the continued momentum toward broader reform, and the New York Stock Exchange listings of Trulieve and Glass House are all meaningful milestones that reflect the continued normalization of the industry. While additional reform is still needed before the industry has unfettered access to the U.S. capital markets, we are encouraged by the progress made over the last several months and believe it represents an important step towards a more stable and sustainable operating environment. As I mentioned on our last call, the impact of medical rescheduling extends beyond the elimination of 280E taxation. DEA registration transforms registered medical cannabis operators into federally legal businesses.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

All of our tenants operating medical-only facilities, which represents approximately 50% of our portfolio, have indicated that they've submitted applications for DEA registrations. We view this as another important step toward broader institutional participation and improved access to capital markets, including the potential for listing on major U.S. exchanges. Against this backdrop, NewLake delivered another solid quarter. Revenue and AFFO were in line with our expectations, and our AFFO payout ratio was 88% for the quarter, supporting our 43% per-share dividend and within our guided range of 80%-90%. Our portfolio continues to demonstrate the resilience that comes from disciplined underwriting, conservative balance sheet management, and our focus on property-level performance. Turning to our portfolio, we continue to closely monitor developments related to our tenant, The Cannabist.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

As we discussed last quarter, The Cannabist filed for bankruptcy in Canada earlier this year and has been working through a court-supervised process. We lease four properties to The Cannabist, including a dispensary and cultivation facility in Illinois and a dispensary and cultivation facility in Massachusetts. Recently, Vireo Growth announced the acquisition of certain assets from The Cannabist across five markets, including Illinois and Massachusetts. The Cannabist remains current through and including August rent, and we're actively engaged with The Cannabist and other parties to minimize the potential for rent disruption at our properties. We will update stakeholders as we have more definitive information to share. We continue to hold approximately one month of security deposit across those properties.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Turning to investment activity, we are excited to have recently closed on a $2.1 million transaction for a 3,200 sq ft dispensary in Wilder, Kentucky, which will be leased to C3 Industries. This transaction expands our presence into Kentucky's emerging medical cannabis market and will be accretive to earnings. More importantly, it reflects a pipeline that has become increasingly active over the past several months. More broadly, we are seeing renewed optimism across the industry regarding opportunities to deploy capital, pursue growth initiatives, and participate in industry consolidation. As a result, we're actively evaluating new investments. That said, our underwriting standards remain unchanged. We will continue to be disciplined and selective, prioritizing capital preservation and risk-adjusted returns over growth for growth's sake. Our three properties available for lease continue to be actively marketed.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

While retenanting opportunities do take time to develop, the quality and pace of discussions have improved over the past few months. Looking ahead, we believe there's a growing stack of potential catalysts for the industry. These include medical rescheduling, progress towards broader rescheduling of cannabis, exchange listing opportunities for plant-touching businesses, potential for banking reform, and increasing scrutiny of intoxicating hemp-derived products. While the timing and outcome of these developments remain uncertain, we believe the direction of travel continues to be favorable for the industry. I'd also like to address a topic where we've received a number of questions about following the New York Stock Exchange listings of Trulieve and Glass House. We're not announcing anything today, but we are actively evaluating whether there is a path for NewLake to uplist to a major exchange.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

To remind our investors, NewLake satisfies the listing requirements for both the NYSE and Nasdaq, other than the exchange's restrictions on cannabis-related businesses. As regulatory developments continue to unfold, we'll continue evaluating potential paths forward so that we are prepared to act if and when the opportunity becomes available. While no decisions have been made, we do believe that broader exchange access would create additional value for our shareholders over time. Finally, subsequent to quarter end, we extended the maturity of our revolving credit facility to May 2029 while lowering our borrowing costs and enhancing our financial flexibility.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

In an environment where capital for the cannabis sector remains scarce and expensive, our ability to extend our credit facility on improved terms while continuing to pursue accretive investment opportunities speaks to the strength of our balance sheet, the quality of our portfolio, and the confidence our lending partners have in our business. Before turning the call over to Lisa, I'd like to recognize David Weinstein, who stepped down from our board of directors at the end of July.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

David has been part of NewLake since our founding in 2019 and served as Chief Executive Officer through the company's transition to the public markets. On behalf of our board, management team, and shareholders, I want to thank David for his years of service and many contributions to the company. We wish him all the best in his future endeavors. With that, I'll turn the call over to Lisa to review our financial results in more detail.

[Lisa Meyer, CFO, Treasurer, and Secretary at NewLake Capital Partners]

Thank you, Anthony, and good morning. For the second quarter of 2026, total revenue was $12.1 million, compared to $12.9 million in the prior year period. Net income attributable to common stockholders was $5.9 million or $0.29 per diluted share. Funds from operations totaled $9.9 million or $0.47 per diluted share, and adjusted funds from operations totaled $10.3 million or $0.49 per diluted share. For the first six months of 2026, total revenue was $24.4 million, compared to $26.1 million in the prior year period. Net income attributable to stockholders was $11.7 million or $0.56 per diluted share. Funds from operations totaled $19.6 million or $0.93 per diluted share, and adjusted funds from operations totaled $20.4 million or $0.97 per diluted share. The drivers of the year-over-year results were generally consistent for both the three and six-month periods ended June 30th, 2026.

[Lisa Meyer, CFO, Treasurer, and Secretary at NewLake Capital Partners]

Revenue and AFFO were primarily impacted by three cultivation facilities available for lease in Pennsylvania, Nevada, and Massachusetts, reducing rental income and increasing property carrying costs. The impact was partially offset by the following: annual contractual rent escalations averaging 2.6% across the portfolio, rental income from the two Ohio dispensaries acquired in 2025, and rental income associated with funded improvement allowances. On June 12th, 2026, our board of directors declared a second quarter cash dividend of $0.43 per share, or $1.72 per share on an annualized basis. The dividend was paid on July 15th, 2026, to stockholders of record as of June 30th, 2026. This represents an AFFO payout ratio of approximately 88%, which remains within our target range of 80%-90%. The earnings power of our portfolio continues to support our dividends. Turning to the balance sheet.

[Lisa Meyer, CFO, Treasurer, and Secretary at NewLake Capital Partners]

As of June 30th, 2026, we had $25.8 million in cash. We continue to maintain a very conservative leverage profile with only $7.6 million outstanding on our $90 million credit facility, a debt to total asset ratio of 1.6%, and a debt to EBITDA ratio of approximately 0.2 times. In August, we amended our $90 million revolving credit facility, reducing our interest rate by 100 basis points from prime +1% to prime, and extended the maturity date to May of 2029. We believe this amendment further strengthens our balance sheet by lowering our cost of capital and extending our maturity date. Also, in August, as Anthony mentioned, we acquired a dispensary property in Kentucky for approximately $0.6 million and committed to fund approximately $1.6 million for improvements. This property was simultaneously leased to an existing tenant.

[Lisa Meyer, CFO, Treasurer, and Secretary at NewLake Capital Partners]

Overall, our results for the quarter were in line with expectations, we remain focused on maintaining a strong balance sheet while prudently managing risk across our portfolio. With our liquidity, conservative leverage profile, and no debt maturities until 2029, we believe we are well positioned to pursue attractive opportunities as the regulatory environment for cannabis continues to evolve. Operator, please open up the line for questions.

[Operator]

Thank you. We will now be conducting a question and answer session. Our first question will come from Pablo Zuanic with Zuanic & Associates.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

Thank you. Good morning, everyone. Anthony, can we

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Good morning

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

start by talking about lead times? I'm thinking about Georgia, Virginia, Texas. When, supposedly in the case of Georgia, flower is already legal since, allowed since July 1st, right? I hear companies are running out of flower there very quickly. Virginia starting July 1st next year. I'm just wondering, because with lead times to get up and running on production of 18 months to 24 months, you would think that those companies would be talking to you already in terms of leasing potential properties. I'm just surprised we're not seeing that yet, especially with Georgia and Virginia. I realize that Texas may take a bit longer. Thanks.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Yeah, I think Kentucky is a good indicator of what we would expect to see, in this environment where companies are less enthusiastic about aggressive build-out of capacity, even into some of these newer markets. We find that the discussion with us is often delayed than, say, where those discussions were back in the 2022, 2023 timeframe when there was a more aggressive posture towards expansion. Yes, we do have some conversations going across these states. I think overall, CapEx and expansion is at a slower pace into the new states than it was in, say, the 2021, 2022 cohort.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

Okay, thank you. That's good color. In terms of the vacant properties, the Nevada and Pennsylvania ex-Acreage Cultivation and the Revolutionary Clinics cultivation in Massachusetts, can you give an update on that? Are they more likely to be sold maybe for other use or even rented for other use? Do you believe that you'll be able to lease them out for cultivation of cannabis?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

First off, our guiding principle when it comes to tenanting those facilities is what is the best net present value for our shareholders. We have everything on the table. We look at cannabis as an opportunity, non-cannabis. Because these are cultivation facilities and they're purpose-built as existing cultivation facilities, typically the best use for our shareholders is try to get the premium rent from a cannabis operator versus a non-cannabis operator. Yes, we pursue all of them. I think the longer it goes that we're not able to identify a credit-worthy cannabis tenant, the increased likelihood is we pivot to either a non-cannabis tenant or a potential sale of the property.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

On that point, would you want to handicap the three? It seems that Massachusetts is taking a lot longer than expected. I realize Nevada and Pennsylvania, it's more recent. Do you want to give a bit more color there?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

No, I don't because it's so variable, Pablo. There's so many different factors that go into it. What I would say to you is that when you look at Pennsylvania, given it's still a medical market and it is a market that will have adult use at some point, it's a more limited license market. There's probably more demand for those types of facilities than you would find, say, in Massachusetts. When you look at, say, in Nevada, while activity was slow, we do see hemp as a real big issue in Nevada, and with hemp receding and hemp-derived products competing with the marketplace in Nevada with hemp receding, there has been some recent uptick in interest. I don't want to go farther than that in terms of handicapping because nothing's ever done until it's done. That's why we don't announce letters of intent. We only announce signed lease agreements.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

Thank you. Just moving on to the cannabis properties, now taking over by Vireo Growth. I heard your comment about the conversations ongoing, I guess let me give you a couple of examples. I hear sometimes when dispensaries change hands, because of a restructuring or the owner going on default, the new buyer buys a dispensary, sometimes they don't recognize the receivables. Whoever was holding the receivables, the wholesaler or vendor to a dispensary, ends up losing the money. What's the precedent? I realize the case is very different for rented property, right?

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

You would think Vireo, if they want to hold on to those dispensaries and the cultivation, they will have to honor the leasing agreements and pay the rent. Maybe I'm stating something that's obvious, I'm just trying to understand what's the precedent, not so much about Vireo specifically, but it would seem that when these properties change hands, the new owner has to honor the lease agreement. Or is that very naive thinking of me?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

No, I think that is accurate. First, I want to reiterate that in my prepared remarks, I informed investors that The Cannabist has paid rent on all four properties through and including August rent. That's telling me that there's a deal to be had, and nothing's ever done till it's done. These properties are obviously have some value to continue paying the rent. Yes, when someone acquires a license in an operating business, they typically will step in to that facility and they will continue paying rent.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

From time to time, there may be a negotiation about reducing rent as part of the overall transaction. That's always something that's in the cards in these types of transactions. Then I think what you're referring to is there have been cases where people have purchased the licenses not necessarily the operating businesses. When you purchase the license, you can leave certain liabilities behind through a Canadian bankruptcy process. They're very complicated and highly negotiated.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

Thank you. One last one from me. In the thank you, there's something there about the Acreage property that it's guaranteed by Canopy USA. Can you give more color in terms of how that works in practice?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Yes. When the transaction with Acreage was executed way back in 2019, 2020, there was a direct Acreage parent guarantee. Given the restructuring that occurred between Canopy and Acreage. Excuse me. Started with the closing of the acquisition of Acreage by Canopy and the creation of Canopy USA, Acreage now has a parent, Canopy USA, and Canopy USA not only holds the interest in Acreage, but also holds interests in Wana, Jetty, as well as shares in TerrAscend. Through dialogue and a transaction earlier this year around Pennsylvania, we were able to negotiate an additional guarantee from Canopy USA. We were able to get what we think is additional protection for our shareholders by adding Canopy USA as a guarantee and not only having an Acreage guarantee on the lease.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

Right. Thank you. Look, I guess I want to add one more, Anthony, and apologies if there's someone else on the Q&A queue. Just in terms of the macro, obviously, always very interested to hear your perspective. We know August 17th, right? Then Judge Julius has to go through all the documents he receives, look at the hearing, and write his report. Question mark how long that will take. Then that goes to the DOJ, and then DEA director, administrator has to write the final rule, right? Of course, we're all speculating how long that would take. Do you want to give your impressions in terms of how long that process could take?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

It is a guess, so I will give you an answer, but it is a guess. My best guess is it's mid to end of October. Why I get there is when we study the Administrative Procedure Act and how these types of processes work, as you indicated, we need the ALJ recommendation. The post-hearing briefs are due by August 17th. The ALJ needs to have time to consider what's submitted, and we don't expect those to be submitted until the very end. It's going to take probably a couple of weeks for the ALJ to complete his report and his recommendation, call that beginning of September. Once his recommendation comes out, there is what's called a 30-day exception period where parties who participated in the hearing have the opportunity to file exceptions to what the ALJ recommendation is.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

That takes us into early October, and now the DEA has to file the final rule, and they likely can't do that the day after the exception period ends because they will need to consider the exceptions that were submitted towards the end of that period. I add all of that up, and there's a lot of work to be done, even though the DEA is probably doing work on a final rule now. They do need time to incorporate what comes in during that exception period, to incorporate what the ALJ recommendation is. That's why I think the earliest is probably mid-October.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

My guess, mid to end of October, and I get a little aggressive in that timing only because I do believe in the political overlay that this action has and that there's probably a desire of the administration to get this completed and get that final rule filed before midterms. That's how I conclude. I do want to remind everybody, once the filing occurs of the final rule, it's a 30-day implementation period, and we'll all buckle up for the resulting litigation that'll commence from there.

[Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates]

That's right. Thank you very much. That's great color. Thank you, Anthony.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Thank you, Pablo.

[Operator]

We'll go next to Craig Cucchiara with Lucid Capital Markets.

[Craig Cucchiara, Analyst at Lucid Capital Markets]

Yeah. Hey, good morning. You guys

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Morning

[Craig Cucchiara, Analyst at Lucid Capital Markets]

a decline in property carrying costs sequentially and, understanding that you wouldn't have them if you leased up some vacancy, but if those assets remain vacant, how should we think about that for the remainder of the year?

[Lisa Meyer, CFO, Treasurer, and Secretary at NewLake Capital Partners]

The reason there was a decline in the second quarter was a result of a reimbursement that we received from a previous tenant that had vacated. It reduced the property expenses a little bit more than what it should have. I would think that Q1 is a good run rate for what those expenses should be.

[Craig Cucchiara, Analyst at Lucid Capital Markets]

Okay. That's helpful. I believe both Trulieve and Glass House deconsolidated their recreational operations in order to uplist. Just curious, given the legalization of medical, are you seeing any of your other tenants moving in that direction to take advantage of the legislation?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Most of our other tenants that are public have a more intertwined business between their medical and their adult use programs. What we're seeing is most of the others are taking a wait approach. Well, let me restate that. They're taking steps such as reverse splits in order to meet listing requirements for minimum stock price, but they are stopping short of restructuring their business, given the nature of their business or how large the adult use component is, with the expectation that we will see rescheduling get completed later this year, and then the entire business could get up listed to the New York or Nasdaq.

[Craig Cucchiara, Analyst at Lucid Capital Markets]

Okay. That makes sense, putting off that decision certainly until back half of the year. I guess against that backdrop, are you seeing any pickup in transactional activity for medical only? If so, any movement in cap rates, or is it still too early?

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

I would say there's been no pickup in medical versus adult use. The pickup in activity is really driven by the market opportunities. I don't yet see people making decisions in their business purely to orient towards medical versus adult use. In terms of cap rates, cap rates continue to be in the same range that they've been for some time in the marketplace. We've not seen compression in that.

[Craig Cucchiara, Analyst at Lucid Capital Markets]

Got it. Outside of Cannabist, which sounds like there's some positive movement there, are there any other tenants that are on watchlist negative, or is everybody still performing well? I know your four-wall coverage still looks really good.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

We watch all of them. This is the cannabis industry. This is a volatile and emerging industry, we're watching all of them. The ones that we've identified in the past on these calls would be a Cannabist or an Acreage. Those were the ones in the portfolio versus, say, a Cresco, which just issued really good results this morning, or Curaleaf, our largest tenant, issued last night, very good performance. When we look at the portfolio, we don't publish a watchlist per se, but we're certainly looking at the operators in the portfolio that have historically underperformed their peers, such as Acreage.

[Craig Cucchiara, Analyst at Lucid Capital Markets]

Oh. Got it. Okay. Thanks. That's it for me.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Okay. Thanks, Craig.

[Operator]

This now concludes our question and answer session. I would like to turn the floor back over to Anthony Coniglio for closing comments.

[Anthony Coniglio, President and CEO at NewLake Capital Partners]

Thank you, operator. Thank you everybody for joining us today. We hope you have a wonderful remaining of the summer, and we look forward to connecting with you all in the coming months.

[Operator]

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.

Participants

Executives

• Anthony Coniglio, President and CEO
• Lisa Meyer, CFO, Treasurer, and Secretary

Analysts

• Valter Pinto, Managing Director at KCSA Strategic Communications
• Pablo Zuanic, Founder and Managing Partner at Zuanic & Associates
• Craig Cucchiara, Analyst at Lucid Capital Markets