Zoned Properties, Inc. reported a total revenue of $773,977 for the three months ended June 30, 2026, a decrease of 17.5% from $937,774 in the same period last year. For the six months ended June 30, 2026, total revenue increased slightly to $1,946,413 compared to $1,912,326 in the prior year. The decline in quarterly revenue was primarily attributed to a decrease in property investment portfolio revenues, which fell to $656,370 from $757,626 year-over-year. However, real estate services revenues increased significantly to $117,607 from $180,148, reflecting a growing demand for advisory and brokerage services.
Operating expenses for the second quarter of 2026 rose to $820,213, up 23.2% from $665,586 in the same quarter of 2025. The increase was driven by higher professional fees, which surged to $287,565 from $58,013, largely due to legal and consulting costs associated with the management buyout and property sales. In contrast, compensation and benefits expenses decreased by 22.2% to $265,395, reflecting a reduction in overall compensation costs. The company reported a loss from operations of $46,236 for the quarter, a significant decline from an income of $272,188 in the prior year.
Zoned Properties has undergone significant strategic changes, including the sale of several properties. The company completed the sale of its Green Valley and Kingman properties for a total of $9 million, with the closing of these transactions occurring on June 30, 2026. This sale is part of a broader management buyout agreement, which is pending shareholder approval. The company anticipates that the sale will allow it to pay off remaining debts and potentially distribute cash to shareholders as a return of capital.
As of June 30, 2026, Zoned Properties reported total assets of $13,476,364, a decrease from $13,932,476 at the end of 2025. The company’s cash position improved significantly, rising to $2,446,418 from $837,767. However, total liabilities also decreased to $10,045,716 from $10,864,850, primarily due to the repayment of notes payable. The company’s stockholders’ equity increased to $3,430,648, up from $3,067,626, reflecting the net income of $73,787 for the quarter.
Looking ahead, Zoned Properties faces challenges related to its ongoing operations and the potential impact of the management buyout. The company has indicated that if the buyout is approved and executed, it may lead to a significant reduction in operations, raising concerns about its ability to continue as a going concern. The company expects to reassess its financial position and operational strategy in light of these developments, with a special shareholder meeting scheduled for September 11, 2026, to discuss the asset sale and management buyout proposal.
About Zoned Properties, Inc.
Zoned Properties, Inc. is a real estate investment company specializing in acquiring, developing, and leasing properties within the regulated cannabis industry in the U.S. It focuses on properties leased to licensed cannabis retailers, cultivators, and processors, primarily in states with established cannabis markets. The company leverages proprietary technology, targets long-term tenants, and operates through property management, leasing, and advisory services, avoiding direct involvement in cannabis cultivation or distribution.
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