Cannabis REIT NewLake: YoY Increase In Q4 & FY 2023 Revenue Amid 'Challenging Environment,' CEO Says

Author: Jelena Martinovic | March 11, 2024 10:09am

Cannabis REIT NewLake Capital Partners, Inc. (OCTQX: NLCP) announced its financial results on Monday for the fourth quarter and full year ended Dec. 31, 2023.

The Connecticut-based company reported a 6.4% year-over-year increase in revenue to $13 million in the fourth quarter. Full-year revenue totaled $47.3 million, representing an increase of 5.1% year-over-year.

"In 2023, we generated record revenue of $47.3 million, record AFFO of $40.7 million, and paid out $33.0 million or $1.57 per share in dividends to shareholders," said Anthony Coniglio, the company's president and CEO. "During a very challenging environment for the cannabis industry, we were able to grow our dividend distributions by 9.0% year-over-year and for the first quarter of 2024 raised our quarterly dividend from $0.40 to $0.41 per share."

Q4 2023 Financial Highlights

Net income attributable to common stockholders totaled $7 million, up from $6.7 million in the prior year's period.
Funds from operations diluted totaled $10.7 million, as compared to $10.5 million, an increase of 1.3% year-over-year.
Adjusted funds from operations-diluted totaled $10.8 million, as compared to $10.9 million, a decrease of 1.2% year-over-year.
Total expenses amounted to $5.8 million, up from $5.3 million in the fourth quarter of last year.
Declared a fourth-quarter dividend of $0.40 per share of common stock, an increase of 2.6% year-over-year.

FY 2023 Financial Highlights

Net income attributable to common stockholders totaled $24.6 million, as compared to $22 million.
Funds from operations diluted totaled $39.3 million, as compared to $35.2 million, an increase of 11.5% year-over-year.
Adjusted funds from operations-diluted totaled $40.7 million, as compared to $38.7 million, an increase of 5.2% year-over-year.
Cash and cash equivalents as of Dec. 31, 2023, were $25.8 million, with $14.4 million committed to fund tenant improvements.
Total expenses amounted to $22.5 million, up from $22.4 million in 2022.
For the twelve months ended Dec. 31, 2023, the company declared dividends of $1.57 per share of common stock, an increase of 9% year-over-year.

In 2023, NewLake exercised its option and invested approximately $ 350,000 to acquire an adjacent parcel of land at an existing cultivation facility in Missouri. In connection with the move, the company committed to fund approximately $16.2 million to expand the existing cultivation facility.

In October NewLake closed on a $2 million sale of its cultivation facility in Palmer, Massachusetts, which was then leased to Mint.