Zoned Properties Reports 35.4% Revenue Growth in Q2 2025

Zoned Properties, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenues reaching $937,774, a 35.4% increase from $692,326 in the same period last year. The property investment portfolio revenues contributed $757,626, up from $679,326, while real estate services revenues surged to $180,148 from just $13,000, reflecting a substantial rise in advisory fees and commissions. For the first half of 2025, total revenues amounted to $1,912,326, compared to $1,529,378 in the prior year, marking a 25% increase.

Operating expenses for the second quarter increased to $665,586 from $589,188, primarily due to higher compensation and benefits costs, which rose by 24.6% to $341,306. However, the company managed to reduce overall operating expenses for the first half of 2025 to $1,211,367, down from $1,297,331 in the previous year. This resulted in a net income of $26,326 for the second quarter, a recovery from a loss of $32,283 in the same quarter of 2024, and a net income of $172,184 for the first half of 2025, compared to $64,190 in the prior year.

Strategically, Zoned Properties has focused on expanding its property investment portfolio, particularly in the regulated cannabis industry. The company has recently acquired properties in Chicago, Illinois, and Surprise, Arizona, which have begun generating rental income. As of June 30, 2025, the company’s rental properties, net of depreciation, totaled $13,449,638, an increase from $13,024,936 at the end of 2024. The company also reported a total asset value of $16,675,653, up from $16,182,139.

Operationally, Zoned Properties has maintained a 100% occupancy rate across its properties, which are leased to licensed cannabis tenants. The company’s significant tenants accounted for 61.4% of total revenues in the first half of 2025, down from 77.2% in the previous year, indicating a diversification in its tenant base. The company’s employee headcount has also increased, reflecting its growth strategy and the need for additional resources to support its expanding operations.

Looking ahead, Zoned Properties anticipates continued growth driven by its strategic acquisitions and the increasing demand for cannabis-related real estate. The company believes it has sufficient cash reserves, totaling $985,847 as of June 30, 2025, to meet its operational needs for at least the next twelve months. However, management acknowledges the potential need for additional capital to support future growth initiatives and investments in new properties.