NewLake Capital Partners Reports 4.8% Revenue Growth to $13.2 Million in Q1 2025

NewLake Capital Partners, Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $13.2 million, a 4.8% increase from $12.6 million in the same period last year. The growth was primarily driven by a rise in rental income, which reached $12.6 million, up from $12.1 million in the prior year. This increase was attributed to additional rental income from a dispensary acquired in Ohio and a cultivation facility in Connecticut, as well as annual rent escalations across the portfolio. However, the company faced challenges with one of its tenants, Revolutionary Clinics, which only paid 50% of its contractual rent during the quarter due to operational difficulties.

Total expenses for the quarter increased to $6.7 million from $5.6 million, largely due to higher property expenses and depreciation costs. Property expenses rose significantly, reflecting real estate taxes and utility payments made on behalf of tenants. General and administrative expenses also saw a slight increase, primarily due to higher professional fees associated with audit procedures. As a result, NewLake reported a net income of $6.4 million, down from $7.0 million in the previous year, with net income attributable to common stockholders at $6.3 million, or $0.31 per share, compared to $6.9 million, or $0.33 per share, in Q1 2024.

In terms of operational developments, NewLake Capital Partners owned 33 properties across 12 states as of March 31, 2025, with a diversified tenant base in the cannabis industry. The company completed the acquisition of a dispensary in Ohio for approximately $285,000 and committed to funding $705,000 in improvements. The company’s portfolio continues to be strategically focused on long-term, single-tenant, triple-net leases, which obligate tenants to cover ongoing property expenses.

Looking ahead, NewLake Capital Partners remains cautious about the economic environment, particularly regarding the cannabis industry, which is subject to evolving regulations and market dynamics. The company has emphasized the importance of prudent financial management in light of potential economic downturns and the challenges posed by high-interest rates and inflation. NewLake's liquidity position remains strong, with $19.9 million in cash and $82.4 million available under its revolving credit facility, which positions the company well for future investments and operational needs.

Overall, while NewLake Capital Partners has demonstrated revenue growth and maintained a solid portfolio, it faces ongoing challenges related to tenant performance and broader economic conditions. The company continues to monitor these factors closely as it navigates the complexities of the cannabis real estate market.