NewLake Capital Partners (NLCP) Planet MicroCap Showcase: Toronto 2026 summary

Business and portfolio

• Second-largest U.S. cannabis real estate owner; rents properties to operators and pays quarterly dividends.

• Portfolio: 35 properties across 13 states, 12 tenants; 32 leased and 3 available for lease.

• Weighted average remaining lease term is nearly 12 years; leases have 2.6% annual rent increases and are triple-net, with tenants responsible for property costs.

• Leased properties yield over 13% on invested capital; 15 properties are indoor cultivation buildings and 20 are retail sites.

U.S. market and regulatory outlook

• Medical cannabis was rescheduled to Schedule III; compliant operators could seek DEA registration, and 50% of properties are dedicated to medical cannabis.

• Full-plant rescheduling remained in process after a July hearing; management estimated earliest action at end-2026, more likely December or Q1.

• A federal hemp-definition change is expected to make intoxicating hemp-derived products illegal on December 12; Ohio's ban coincided with 5%-25% growth in state-legal sales.

• Georgia and Texas medical programs are viewed as significant growth opportunities over the next 5 years; no interstate commerce requires operators to build in-state infrastructure.

• Management cited younger consumers shifting from alcohol to cannabis and potential movement from illicit sales into state-licensed channels as demand drivers.

Growth strategy and underwriting

• Four growth avenues: 2.6% annual lease escalators, acquisition and tenant-improvement funding, leasing 3 available properties, and new transactions.

• An August transaction included a planned dispensary build and $1.6 million of tenant-improvement funding; transaction pipeline grew after rescheduling strengthened operator confidence to restart CapEx.

• Portfolio is concentrated in leading tenants Curaleaf, Cresco Labs and Trulieve, with a focus on limited-license markets and tenant/property-level cash-flow coverage.

• Blended four-wall EBITDAR coverage was 3.9x; quarterly property and parent financials are used to monitor tenant performance and parent guarantees.