NewLake Capital Partners Reports First Quarter 2025 Financial Results

Financial Performance - First Quarter 2025 revenue totaled $13.2 million, representing an increase of 4.8% year-over-year compared to $12.6 million in the same quarter of 2024 [1][7] - Net income attributable to common stockholders for the first quarter 2025 was $6.3 million, a decrease from $6.9 million in the first quarter of 2024 [1][7] - Funds from Operations (FFO) totaled $10.3 million, down 2.6% year-over-year from $10.6 million [7][31] - Adjusted Funds from Operations (AFFO) amounted to $10.7 million, a decrease of 2.2% from $11.0 million in the previous year [7][31] - The company declared a first quarter dividend of $0.43 per common share, which is an increase of approximately 4.9% compared to the same quarter in 2024 [7][16] Operational Highlights - The company collected approximately 98% of contractual rent during the quarter, which included applying the remaining escrow deposit and security deposit from one tenant [7] - The company reported an 84% AFFO payout ratio, indicating strong cash flow management [2] - As of March 31, 2025, cash and cash equivalents were $19.9 million, with $11.7 million committed to fund future improvements [7] Investment Activity - The company acquired a dispensary from Cresco Labs in Ohio for $285,000 on February 19, 2025 [8] - Total gross real estate assets were valued at $431.7 million, with a debt to total gross assets ratio of 1.6% [7] Balance Sheet Highlights - Total liquidity as of March 31, 2025, was $102.3 million, consisting of cash and cash equivalents and availability under the company's revolving credit facility [7] - The company had no debt maturity until May 2027, providing a stable financial outlook [7] Tenant Conditions - Two tenants defaulted on their lease agreements, impacting net income and FFO metrics [6] - Revolutionary Clinics paid approximately 50% of its contractual rent from June 2024 through March 2025, and entered receivership in December 2024 [10][11] - Calypso Enterprises utilized escrow and security deposits to cover contractual rent due for January and February 2025, resulting in full rent collection for the first quarter [12]