NewLake Capital Partners Reports Fourth Quarter and Full-Year 2025 Financial Results; Declared First Quarter 2026 Common Stock Dividend of $0.43 per Share

Core Insights - NewLake Capital Partners, Inc. reported fourth quarter 2025 revenue of $12.3 million and full year 2025 revenue of $51.1 million, reflecting a modest increase of 1.9% compared to 2024 [1][11] - The company declared a first quarter 2026 cash dividend of $0.43 per share, maintaining a strong AFFO payout ratio of 85% for the fourth quarter [3][19] Financial Highlights - Fourth quarter 2025 net income attributable to common stockholders was $6.0 million, with funds from operations (FFO) totaling $10.0 million and adjusted funds from operations (AFFO) at $10.6 million [2][8] - For the full year 2025, net income attributable to common stockholders reached $26.3 million, with FFO of $42.3 million and AFFO of $43.8 million [2][11] Operational Highlights - The company experienced a 1.4% decline in fourth quarter revenue compared to the same period in 2024, primarily due to vacancies at properties previously leased to AYR Wellness, Inc. and Revolutionary Clinics, Inc. [10] - Full year 2025 revenue growth was driven by acquisitions, a full year of rent from properties acquired in 2024, and annual contractual rent escalations, despite the impact of vacancies [11] Investment Activity - In 2025, the company acquired two dispensaries in Ohio for approximately $0.8 million and committed to fund improvements totaling approximately $1.1 million [8][12] - The company completed a like-kind exchange involving a dispensary in Mokena, IL for one in Brookville, PA [8] Balance Sheet Highlights - As of December 31, 2025, the company had total liquidity of $106.3 million, with cash and cash equivalents of $23.9 million [13] - The company maintained a low debt to total gross assets ratio of 1.6% and a debt service coverage ratio of approximately 77.9x [13] Dividend Information - The board of directors declared a fourth quarter 2025 cash dividend of $0.43 per share, equivalent to an annualized dividend of $1.72 per share, representing a 79% growth since the company's IPO in 2021 [19][20] - The total dividends declared for the year ended December 31, 2025, were also $1.72 per share, with an annual AFFO payout ratio of 82% [20]