NewLake Capital Partners (NLCP) LD Micro Main Event XVI summary

Financial performance and portfolio highlights

• Achieved nearly 80% dividend growth since IPO, with a current yield close to 9%.

• 100% of the portfolio is leased, with an AFFO payout ratio of 82%.

• Maintains a strong balance sheet with under $8 million in debt and $90 million in available capacity.

• Portfolio consists of 32 properties across 12 states, with 13 tenants including industry leaders.

• Average property yield is close to 12%, with 14-year average remaining lease terms.

Industry trends and growth opportunities

• Cannabis is a high-growth sector, with half of U.S. states legalizing adult-use cannabis.

• Large states like Florida and Texas present significant future growth as legalization expands.

• 90% of Americans live in a state with some form of legal cannabis, and 70% support full legalization.

• Younger demographics are increasingly substituting cannabis for alcohol.

Regulatory and legislative catalysts

• DEA is expected to reschedule cannabis from Schedule I to III by mid-2025, improving tenant cash flows.

• Both major presidential candidates have expressed support for cannabis reform.

• Legal challenges regarding cannabis and gun rights may reach the Supreme Court, potentially impacting federal policy.

• SAFE Banking Act and STATES Act are potential catalysts for exchange uplisting and increased liquidity.