NewLake Capital Partners, Inc.

For Q2, total revenue was $12.1 million, down from $12.9 million in the prior-year period. Net income attributable to common stockholders was $5.9 million, or $0.29 per diluted share. FFO was $9.9 million, or $0.47 per diluted share, and AFFO was $10.3 million, or $0.49 per diluted share. For the first 6 months, revenue was $24.4 million versus $26.1 million a year ago; net income was $11.7 million, or $0.56 per diluted share; FFO was $19.6 million, or $0.93 per diluted share; and AFFO was $20.4 million, or $0.97 per diluted share. The quarterly dividend was $0.43 per share, or $1.72 annualized, with an 88% AFFO payout ratio, within the 80% to 90% target range. As of 6/30/2026, cash was $25.8 million, borrowings were $7.6 million on the $90 million credit facility, debt to total assets was 1.6%, and debt to EBITDA was approximately 0.2x. After quarter-end, the revolver maturity was extended to May 2029 and the rate was lowered to Prime.

Anthony Coniglio framed the quarter around improving industry regulation and normalization, citing Schedule III rescheduling, broader reform momentum, and exchange listings by Trulieve and Glasshouse as meaningful signs for the sector. He said NewLake is encouraged by the direction of travel, but remains disciplined on underwriting and focused on capital preservation over growth for growth’s sake. He also said the company is actively evaluating a possible uplist path, though no decision has been made.

Lisa Meyer said results were in line with expectations and pointed to the main year-over-year pressure points: three vacant cultivation facilities in Pennsylvania, Nevada, and Massachusetts that reduced rental income and increased property carrying costs. Offsetting that were 2.6% average contractual rent escalations, rent from two Ohio dispensaries acquired in 2025, and funded improvement allowances. She highlighted a very conservative balance sheet with $25.8 million in cash, only $7.6 million drawn on the revolver, a 1.6% debt-to-total-assets ratio, and roughly 0.2x debt-to-EBITDA, plus the post-quarter-end amendment that cut revolver pricing by 100 basis points and pushed maturity to May 2029.

Analysts focused on whether recent regulatory changes were speeding up tenant activity and real estate demand in newer medical markets such as Georgia, Virginia, Texas, and Kentucky. Management said conversations are happening, but capex and expansion are slower than in prior years, and they are not yet seeing a broad pickup in medical-only transactional activity or cap-rate compression. Questions also addressed vacant properties, The Cannabist/C3-style lease dynamics, and whether other tenants might restructure to take advantage of rescheduling; management said most public tenants are taking a wait-and-see approach, often using reverse splits rather than business restructurings.