Zoned Properties Reports 16.4% Revenue Growth to $974,552 in Q1 2025

Zoned Properties, Inc. reported a total revenue of $974,552 for the three months ended March 31, 2025, marking a 16.4% increase from $837,052 in the same period last year. The revenue growth was driven by a 10% rise in property investment portfolio revenues, which reached $760,892, primarily due to new leases signed at recently acquired properties in Chicago, Illinois, and Surprise, Arizona. Additionally, real estate services revenues surged by 46.6% to $213,660, attributed to increased commissions and assignment fees, despite a decline in advisory fees.

Operating expenses for the first quarter of 2025 decreased significantly to $545,781 from $708,143 in the prior year, a reduction of 22.9%. This decline was largely due to lower professional fees and the absence of brokerage fees, which had totaled $103,330 in the previous year. Compensation and benefits expenses rose slightly by 7.7% to $285,668, influenced by increased stock-based compensation and health insurance costs. As a result, income from operations soared to $428,771, a 232.6% increase compared to $128,909 in the first quarter of 2024.

The company reported a net income of $145,858, or $0.01 per share, for the first quarter of 2025, compared to a net income of $96,473, also $0.01 per share, in the same period last year. The increase in net income was tempered by a significant rise in other expenses, which totaled $282,913, up from $32,436 in the prior year, primarily due to increased interest expenses and losses from an interest rate swap.

Operationally, Zoned Properties maintained a portfolio of properties fully leased to cannabis tenants, achieving 100% occupancy. The company’s total assets increased to $16,616,349 as of March 31, 2025, up from $16,182,139 at the end of 2024. The increase in assets was supported by the acquisition of new properties and capitalized project costs. The company also reported a cash balance of $993,918, reflecting a slight decrease from $1,019,980 at the end of the previous fiscal year.

Looking ahead, Zoned Properties anticipates continued growth driven by its strategic focus on the regulated cannabis industry. The company plans to leverage its existing properties and explore new acquisitions to enhance its portfolio. Management believes that the current cash position and positive cash flows from operations will be sufficient to meet obligations for at least the next twelve months, although they may seek additional financing to support future growth initiatives.