NewLake Capital Partners Reports Revenue and Net Income Decline in Q2 2026

NewLake Capital Partners, Inc. reported its financial results for the second quarter of 2026, revealing a decline in revenue and net income compared to the same period in 2025. The company generated total revenue of $12.1 million for the three months ended June 30, 2026, down from $12.9 million in the prior year. This decrease was primarily driven by a reduction in rental income, which fell to $11.8 million from $12.6 million, attributed to properties that became available for lease following tenant departures. Net income attributable to common stockholders also decreased to $5.9 million, or $0.29 per share, compared to $7.3 million, or $0.36 per share, in the same quarter of 2025.

For the first half of 2026, NewLake reported total revenue of $24.4 million, down from $26.1 million in the prior year. The decline in rental income was again a significant factor, with a drop of approximately $1.6 million attributed to properties that were not leased during the period. The company’s net income for the six months ended June 30, 2026, was $11.9 million, compared to $13.8 million in the previous year. The decrease in profitability was also reflected in the company's general and administrative expenses, which rose to $3.8 million from $3.6 million, largely due to increased compensation and professional fees.

NewLake's operational metrics indicate that as of June 30, 2026, the company owned 34 properties across 12 states, with 31 properties leased to tenants in the cannabis industry. The company is actively marketing three cultivation facilities that are currently available for lease. The weighted average remaining lease term for the portfolio is 11.6 years, with an average annual rent escalation of 2.6%. The company continues to monitor the financial condition of its tenants, particularly The Cannabist Company, which is undergoing restructuring proceedings but has remained current on its lease obligations.

In terms of liquidity, NewLake reported cash and cash equivalents of $25.8 million and $82.4 million available under its revolving credit facility as of June 30, 2026. The company has maintained a conservative leverage position, with only $7.6 million outstanding under the facility. Looking ahead, NewLake anticipates that its cash flows from operations, combined with available liquidity, will be sufficient to meet its operational needs, including dividend payments and capital expenditures. The company declared a cash dividend of $0.43 per share for the second quarter of 2026, consistent with the previous year, reflecting its commitment to returning value to shareholders while navigating the evolving regulatory landscape of the cannabis industry.