NewLake Capital Partners, a Connecticut-based company (OTCQX: NLCP), reported a net profit of $26.1m for 2024, with $6m in the final quarter that ended on December 31. NewLake was able to pay a dividend per common share of $1.70, a rise of 8.3% over the previous year.
Revenue for the cannabis real estate trust in 2024 increased 6% from last year to $50.1m, up from $47.3m. However, revenue decreased 3.9% to $12.5m during the final quarter. The company attributes the decline in revenue for the final quarter to an “unique non-cash receipt of tenant warrants from the fourth quarter 2023, and subsequent impairment loss.”
The decline in sales was partly caused by the Massachusetts-based Revolutionary Clinics going into receivership last year. This meant it did not pay the full rent to NewLake due for the entire calendar year. That cost NewLake approximately $522,000.
NewLake reported that Calypso Enterprises, a Pennsylvania-based tenant, had not paid its rent between September and December of last year. It is now in default. NewLake is not in the red yet because Calypso has an escrow with six months of rent. NewLake tapped into the $1.2million fund already, so it will only have $446,000 left at the end 2024. NewLake and Calypso are still in talks to solve the problem.
NewLake, during its most recent quarterly report, reauthorized an equity buyback program. They also signed two equity distribution contracts with banks to fund a 50 million dollar at-the market program.
The company highlighted the purchase of Connecticut cannabis grows from C3 Industries last year for $3.9 Million and their investment of $15,1 million in improvements at four of its other cultivation facilities.
NewLake already has another Ohio dispensary in its 2025 portfolio, and it only cost $276,000. It is leased. NewLake’s board of directors approved a $0.43 dividend per share to be paid out by the company on March 4.
NewLake’s total assets at the end 2024 were $431.5 millions, which included $20.2 million cash. Total liabilities totaled $27.5 million, and there was no debt maturity until May 2027.