NewLake Capital Partners (NLCP) investor relations material

Business overview and portfolio

• Operates as a real estate investment trust focused exclusively on the cannabis industry, owning 34 properties across 12 states, including 15 cultivation facilities and 19 dispensaries, with 1.7 million square feet under management.

• Maintains a virtually unlevered balance sheet, with $435 million in assets, $7 million in debt, and $24 million in cash, and delivers a 13% top-line yield to investors.

• 31 properties are leased, while three are currently vacant and available for lease, with active efforts underway to re-tenant them.

• All leases are triple net, placing operating costs, taxes, and insurance on tenants; the average remaining lease term is 12 years.

• Top three tenants—Curaleaf, Cresco, and Trulieve—account for 50% of annualized base rent, with Curaleaf alone representing 25%.

Industry catalysts and regulatory developments

• The rescheduling of medical cannabis from Schedule I to Schedule III is considered the most significant catalyst in 50 years, eliminating Section 280E tax burdens and improving tenant cash flows.

• The Department of Justice is advancing the rescheduling process for non-medical cannabis, with hearings set to conclude by July 15 and potential full rescheduling by year-end.

• 55% of revenues are now federally legal, with the remainder expected to become legal following adult-use rescheduling, paving the way for potential uplisting to major exchanges.

• State-level reforms are accelerating, with new medical and adult-use programs emerging in states like Indiana, Idaho, Pennsylvania, Florida, Texas, and Georgia.

• Veterans Administration doctors may soon be able to prescribe medical cannabis, following recent legislative progress.

Market dynamics and growth drivers

• The legal U.S. cannabis market is over $100 billion, but $70 billion remains in the illicit channel; growth is driven by conversion to legal sales and expanding state programs.

• Younger consumers are increasingly choosing cannabis over alcohol, supporting long-term industry growth.

• Four main growth drivers: annual rent escalators (2.2%-2.6%), capital improvements, leasing pipeline (240,000 sq ft available), and a $90 million credit facility for new transactions.

• Premium rents for cannabis tenants are 300-500 basis points above market, especially for industrial properties; lease rates do not adjust down upon legalization.

• Most leases are fixed escalators, not CPI-linked; focus is on experienced operators in limited license jurisdictions for better margins and tenant stability.