NewLake Capital Partners, Inc. · OTC:NLCP
NewLake Capital Partners — Investor Presentation (December 2022)
22 slides from NewLake Capital Partners's investor presentation, Dec 8, 2022
Slide 1: To State-Licensed Cannabis Operators A Leading Provider of Real Estate Capital
To State-Licensed Cannabis Operators A Leading Provider of Real Estate Capital
Slide 2: Safe Harbor Statement
This presentation contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by words like “may,” “will,” “would,” “should,” “could,” “likely,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,”
Slide 3: Experienced Executive Management Team
newlake.com 3OTCQX: NLCP Experienced Executive Management Team Anthony Coniglio Chief Executive Officer & President, Director Lisa Meyer Chief Financial Officer, Treasurer & Secretary Jarrett Annenberg Director of Acquisitions Former CEO of Primary Capital Mortgage, a residential mortgage company
Slide 4: Experienced Board of Directors
newlake.com 4OTCQX: NLCP Experienced Board of Directors Gordon DuGan Chairman of the Board, Independent Director Alan Carr Independent Director Joyce Johnson Independent Director Co-Founder and Chairman of the Board of Blackbrook Capital Chairman of the Board of INDUS Realty Trust (Nasdaq: INDT)
Slide 5: Experienced Board of Directors
newlake.com 5OTCQX: NLCP Experienced Board of Directors Peter Kadens Independent Director Peter Martay Independent Director David Weinstein Director Co-Founder and former CEO of Green Thumb Industries, Inc., one of the leading public cannabis companies Co-Founder and former CEO of SoCore Energy,
Slide 6: Table of Contents
newlake.com 6OTCQX: NLCP 1. Long Term Opportunity 2. Investment Process Overview 3. Geographic Footprint Table of Contents
Slide 7: Long Term Opportunity in Cannabis Real Estate
newlake.com 7OTCQX: NLCP Long Term Opportunity in Cannabis Real Estate Gordon DuGan Chairman of the Board of Directors
Slide 8: Superior Earnings Growth Model
newlake.com 8OTCQX: NLCP Superior Earnings Growth Model 3 Months 9 Months September 30 Growth % September 30 Growth % 2022 2021 2022 2021 Revenues $12,073 $8,048 50% $32,618 $19,083 71% Net Income $6,623 $2,779 138% $15,547 $7,133 118% AFFO $10,623 $6,059 75% $27,777 $14,550 91% AFFO/Share $0.49 $0.
Slide 9: Superior Earnings Model
newlake.com 9OTCQX: NLCP Superior Earnings Model 9 Months ended September 30, 2022 Revenues $32,618 $2,455,031 $212,230 $1,065,959 AFFO $27,777 $1,767,000 $153,013 $790,922 AFFO/Revenues 85% 72% 72% 74% ($ in Thousands) Source: Company public filings
Slide 10: NewLake Capital Partners vs. Gaming REITs and Net Lease REITs
NewLake Capital Partners Gaming REIT’s Net Lease REIT’s, focused on capital-intense, highly regulated industries Closest Comparables: VICI (Q3 2022) Revenue $751.5M AFFO $470.7M % Margin 63% GLPI (Q3 2022) Revenue $333.8M AFFO $235.0M % Margin 70%
Slide 11: Overview and Discussion of Investment Process
newlake.com 11OTCQX: NLCP Overview and Discussion of Investment Process Anthony Coniglio Chief Executive Officer & President, Director, NewLake
Slide 12: By the Numbers
newlake.com 12OTCQX: NLCP — All Triple-Net Leases — 2021 IPO — Invested & Committed Capital — Industry Leader — 12 States, 1.7 Million Square Feet — $89 Million Available Credit Facility — 2.7% Annual Rent Escalations — Remaining Lease Term — G&A Ratio — In Dividend By the Numbers Data as of Septemb
Slide 13: Proven Track Record of Success
newlake.com 13OTCQX: NLCP Proven Track Record of Success $81 $212 $337 $422 2019 2020 2021 2022 1. Formerly, PurePenn 2. A subset of properties acquired in this period were formally Grassroots * Denotes multiple properties acquired Columbia Care* Trulieve1 Acreage* Curaleaf*2 PharmaCann* Cresco RevC
Slide 14: Delivering Growth
newlake.com 14OTCQX: NLCP Delivering Growth 1.1% 2.8% 1.4% 1.4% 2019 2020 2021 2022 G&A as Percentage of Total Assets $0 $9 $21 $28 2019 2020 2021 2022 AFFO Growth $1 $12 $28 $41 2019 2020 2021 2022 Revenue Growth ($ in Millions, expect per share amounts) $0.24 $0.31 $0.33 $0.35 $0.37 3Q21 4Q21 1Q22
Slide 15: NewLake Process Overview
newlake.com 15OTCQX: NLCP NewLake Process Overview 8-12 Weeks Location Quality Financials Cashflow Deal Sourcing Screening Initial Deal Review Deal Structuring Deal Proposal / LOI Diligence Investment Committee Board of Directors
Slide 16: How it All Comes Together
newlake.com 16OTCQX: NLCP How it All Comes Together Perspective Makes the Difference in Quality Real Estate Location Quality Basis Financial Services Refinance Risk Capital Structure Financial Analysis Cannabis Risk Operations Jurisdiction Financial Cash Flow Licensing Evolution Structure Metrics
Slide 17: NewLake Geographic Footprint
newlake.com 17OTCQX: NLCP NewLake Geographic Footprint Retail Cultivation
Slide 18: Geographic Footprint - Retail Properties
newlake.com 18OTCQX: NLCP Primary Rural Key EBITDAR Coverage 9.4x 10.4x Rent as a % of Revenue 2.8% 2.7% Average Revenue PSF $2,009 $1,718 NewLake Geographic Footprint - Retail Properties
Slide 19: Retail Sales per SF
newlake.com 19OTCQX: NLCP Retail Sales per SF ICSC and Datex as of March 2022, management estimates $0.00 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 Specialty Food Restaurant Beauty Supplies Fast Food Rural Primary $2,009 $1,718 $725 $660 $650 $565 Non-Cannabis Retail
Slide 20: Geographic Footprint - Cultivation Properties
newlake.com 20OTCQX: NLCP Primary Rural Key EBITDAR Coverage(1) 5.5x 4.8x 1. Only includes properties that have been operational for at least one quarter NewLake Geographic Footprint - Cultivation Properties
Slide 21: Thank You
Thank You Investor Relations Contact: Valter Pinto or Jack Perkins KCSA Strategic Communications NewLake@KCSA.com (212) 896-1254 Company Contact: Lisa Meyer CFO, Treasurer and Secretary Lmeyer@newlake.com
Slide 22: Non-GAAP Financial Information
newlake.com 22OTCQX: NLCP Non - GAAP Financial Information Funds From Operations The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance w
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