NewLake Capital Partners (NLCP) reported third‑quarter 2025 results that surpassed consensus expectations, with revenue of $12.6 million—an increase of 0.3% year‑over‑year—and net income attributable to common shareholders of $6.7 million. The company’s earnings per share of $0.32 exceeded the consensus estimate of $0.2733 by $0.0467, a 17% beat that reflects disciplined cost management and a favorable tenant mix.
Revenue growth was modest, driven largely by a full quarter of rental income from the two Cresco dispensaries acquired earlier in the year. Compared with Q3 2024 revenue of $12.6 million, the year‑over‑year increase is essentially flat, underscoring the company’s focus on maintaining a stable top line amid a challenging cannabis‑real‑estate market. The slight uptick is attributable to incremental rent from new acquisitions and a modest rebound in occupancy rates at existing properties.
The earnings beat was largely a result of lower general and administrative expenses, which helped preserve margins even as revenue growth remained modest. CFO Lisa Meyer noted that “AFFO increased by 2.4% year‑over‑year, primarily driven by lower G&A expenses.” CEO Anthony Coniglio added that “we remained focused on proactive tenant management while maintaining the strength of our balance sheet, which positioned us to deliver lasting value for shareholders.”
Net of operating expenses, NLCP generated $11.0 million in adjusted funds from operations (AFFO), a 2.4% increase from the prior year. The company declared a quarterly cash dividend of $0.43 per share, resulting in an AFFO payout ratio of 82%, comfortably within its target range of 80‑90%. The dividend sustainability is reinforced by the company’s strong cash‑generating ability and the fact that AFFO exceeds the dividend by a comfortable margin.
Liquidity remains robust, with total liquidity reported at $106 million—up from $104.3 million in Q2 2025—and only $7.6 million of the $90 million revolving credit facility drawn. The facility carries an 8.25% interest rate and has no maturity until May 2027, giving NLCP ample financial flexibility to support dividend payments and pursue future acquisitions in a competitive sector.
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