NewLake Capital Partners (NLCP) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was $47.304 million, up 5.1% YoY; diluted AFFO reached a record $40.654 million, up 5.2%.

• Q4 revenue was $13.021 million, net income attributable to common stockholders was $6.962 million, and diluted EPS was $0.34.

• Collected 100% of contractual rent in Q4; portfolio comprised 31 properties across 12 states, with 1.6 million square feet and 100% occupancy.

Financial highlights

• Q4 revenue was $13.021 million; income from operations was $7.042 million versus $6.904 million in Q3.

• FY revenue was $47.304 million versus $45.000 million in 2022; income from operations was $24.655 million versus $22.516 million.

• FY net income attributable to common stockholders was $24.585 million versus $21.976 million; diluted EPS was $1.16 versus $1.03.

• Q4 diluted AFFO per share was $0.51; FY diluted AFFO was $40.654 million, up from $38.661 million in 2022.

Outlook and guidance

• Q1 2024 dividend increased from $0.40 to $0.41 per share, up 2.5% sequentially and 5.1% YoY; annualized dividend was $1.64 per share.

• Target AFFO payout ratio was 80%–90%; Q4 payout ratio was 78%.

• Management cited a growing investment pipeline, strong operating results and cash flow, and an unencumbered balance sheet as foundations for future growth.

• Management’s stated focus was continued growth in AFFO and dividends, supported by demand for real estate capital in the cannabis industry.