NewLake Capital Partners, Inc. · OTC:NLCP
NewLake Capital Partners — Q3 2024 Earnings Presentation
29 slides from NewLake Capital Partners's earnings presentation, Nov 13, 2024
Slide 1: A Leading Provider of Real Estate Capital To State-Licensed Cannabis Operators
A Leading Provider of Real Estate Capital To State-Licensed Cannabis Operators November 14, 2024
Slide 2: Safe Harbor Statement
newlake.comOTCQX: NLCP 2 This presentation has been prepared by NewLake Capital Partners, Inc. (“we,” “us” or the “Company”) solely for informational purposes. This presentation and related discussion shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be an
Slide 3: Investment Highlights
newlake.comOTCQX: NLCP 3 Investment Highlights Experienced Team Experienced team with a strong track record investing in cannabis real estate and delivering returns for investors Growth-Oriented Focus Cannabis is positioned for sustained long-term growth and requires significant real estate capital
Slide 4: By The Numbers
newlake.comOTCQX: NLCP 4 By The Numbers 100% Leased — All Triple-Net Leases Founded in 2019 — 2021 IPO ~$445 Million Deployed — Invested & Committed 84% AFFO Payout Ratio — Strong Dividend Coverage 32 Properties — 12 States, 1.7 Million Square Feet >0.2x Debt to EBITDA — $82 Million Available Credit
Slide 5: Experienced Management Team
newlake.comOTCQX: NLCP 5 Experienced Management Team Anthony Coniglio Chief Executive Officer & President, Director Lisa Meyer Chief Financial Officer, Treasurer & Secretary Jarrett Annenberg Senior Vice President & Head of Investments Former CEO of Primary Capital Mortgage, a residential mortgage
Slide 6: Experienced Board of Directors
newlake.comOTCQX: NLCP 6 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 Former Chairman of the Board of INDUS Realty Trust (Nasdaq
Slide 7: Experienced Board of Directors Continued
newlake.comOTCQX: NLCP 7 Experienced Board of Directors Continued 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 SoCo
Slide 8: NewLake is Focused on a Growing Industry
newlake.comOTCQX: NLCP 8 NewLake is Focused on a Growing Industry Meaningful Demand for Real Estate Capital Positions NewLake for Continued Growth Adult-Use & Medical Markets Fully Legal – Adult-use, sales not yet available Fully Legal Medical Legal Limited Medical & Low- THC Hemp Derived Oil $26.4
Slide 9: Continued Acceptance of Cannabis Nationally
newlake.comOTCQX: NLCP 9 Continued Acceptance of Cannabis Nationally Americans Increasingly Embrace the Use of Cannabis • 90% of the U.S. population (309 million people) reside in Medical Markets(1) • 52% of the U.S. population (176 million people) reside in Adult-Use Markets(2) • 88% of U.S. adults
Slide 10: Industry Catalysts at Federal Level
newlake.comOTCQX: NLCP 10 Industry Catalysts at Federal Level Legislative SAFER Banking Act, supported by President-elect Trump, creates easier banking access for operators. STATES Act, supported by President-elect Trump, decriminalizes cannabis and allows States to decide. Administrative DEA hearin
Slide 11: Portfolio Overview
newlake.comOTCQX: NLCP 11 Portfolio Overview Early Mover Advantage Created Diverse National Platform • 12 states • 1.7M square feet • Primarily limited-license jurisdictions • 100% leased Note: Data as of September 30, 2024 based on current annualized base rent. Curaleaf 22.9% Cresco 13.0% Trulieve
Slide 12: NewLake's Underwriting Approach
newlake.comOTCQX: NLCP 12 3.4x 3.5x 3.3x 2.9x 2.5x NLCP Retail NLCP Cultivation Ground Lease Hospital Gaming Net Lease NewLake’s Underwriting Approach Tenant Quality Real Estate In-Depth Industry Knowledge and Proven Underwriting Approach Mitigates Portfolio Risk Strong financial profiles Experience
Slide 13: Deal Structure & Risk Management
newlake.comOTCQX: NLCP 13 Deal Structure & Risk Management Deal Structure • 100% triple net leases • 15-20 year lease terms • Parent company guarantees • Annual escalations • Security deposits • Cross-collateralization and cross-securitization • Ability to substitute to better performing assets • St
Slide 14: Tenant Composition by Annualized Base Rent
newlake.comOTCQX: NLCP 14 Tenant Composition by Annualized Base Rent Tenant Annualized Base Rent (%) SF # of Leases Q2 2024(1) Tenant Information Revenue Adj. EBITDA(2) Market Capitalization(3) MSO / SSO Curaleaf 22.9% 462,980 10 $342 $73 $1,701 MSO Cresco 13.0% 222,455 1 $184 $54 $572 MSO Trulieve
Slide 15: Portfolio Composition by State
newlake.comOTCQX: NLCP 15 Portfolio Composition by State State Annualized Base Rent (%) Square Feet # of Properties Cultivation Dispensary Total Cultivation Dispensary Pennsylvania 24.7% 312,421 8,949 321,370 4 3 Florida 18.8% 417,350 - 417,350 1 - Illinois 17.5% 255,257 21,927 277,184 2 5 Massachus
Slide 16: Financial Overview
newlake.comOTCQX: NLCP 16 Financial Overview Shareholder Equity $400 Million Invested & Committed Capital $445 Million Cash $20 Million Debt $8 Million Market Capitalization1 $351 Million Stock Price1 $17.13 Dividend Yield2 10.0% Common Shares Outstanding 20,511,508 Book Value per share $19.48 3Q24
Slide 17: Undervalued vs. REIT Peers
newlake.comOTCQX: NLCP 17 Undervalued vs. REIT Peers 1) Calculated using the November 12, 2024 closing stock price divided by Q3 annualized AFFO 2) Calculated as Q3 2024 annualized dividend divided by the November 12, 2024, closing stock price 3) Average of NNN, PSTL, VICI, FCPT, NTST, EPRT 4) Avera
Slide 18: Investment Highlights
newlake.comOTCQX: NLCP 18 Investment Highlights Experienced Team Experienced team with a strong track record investing in cannabis real estate and delivering returns for investors Growth-Oriented Focus Cannabis is positioned for sustained long-term growth and requires significant real estate capital
Slide 19: How to Buy Our Stock
newlake.comOTCQX: NLCP 19 How to Buy Our Stock E-Trade ----------------------------------------------- 800.387.2331 Charles Schwab ------------------------------------ 866.855.9102 Interactive Brokers --------------------------------- 877.442.2757 StoneX ---------------------------------------------
Slide 20: NewLake Supplemental Information
NewLake Supplemental Information
Slide 21: Quarterly Performance Summary
newlake.comOTCQX: NLCP 21 Quarterly Performance Summary 2024 2023 (In thousands, except share amounts) Q3 2024 Q2 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 Total Revenue $12,554 $12,455 $12,608 $13,021 $11,491 $11,376 $11,416 General and Administrative Expense(1) $1,628 $1,424 $1,705 $1,436 $1,56
Slide 22: Balance Sheet
newlake.comOTCQX: NLCP 22 Balance Sheet (In thousands, except share amounts) September 30, 2024 December 31, 2023 Assets: Real Estate Land $21,717 $21,397 Building and Improvements 408,548 390,911 Total Real Estate 430,265 412,308 Less Accumulated Depreciation (41,417) (31,999) Net Real Estate 388,8
Slide 23: Statement of Operations
newlake.comOTCQX: NLCP 23 Statement of Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands, except share amounts) 2024 2023 2024 2023 Revenue: Rental Income $12,276 $11,297 $36,657 $33,637 Interest Income from Loans 134 131 399 390 Fees and Reimb
Slide 24: Non-GAAP Financial Information
newlake.comOTCQX: NLCP 24 Non-GAAP Financial Information For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands, except share amounts) 2024 2023 2024 2023 Net Income Attributable to Common Stockholders $6,422 $5,958 $20,087 $17,623 Net Income Attributable to N
Slide 25: Capital Commitments
newlake.comOTCQX: NLCP 25 Capital Commitments As of September 30, 2023(1) Tenant Location Site Type Amount Mint Arizona Cultivation $800 C3 Connecticut Cultivation $11,424 Total $12,224 (1) $’s in thousands
Slide 26: Lease Expiration Schedule
newlake.comOTCQX: NLCP 26 Lease Expiration Schedule 1.7% 0.8% 3.4% 1.2% 92.9% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Thereafter Less than 5% of leases expiring in the next 10 years Year # of Leases Rentable SF Annualized Base Rent SF % ABR % 2024 - - - - - 2025 - - - - - 2026 - - - - - 20
Slide 27: Cultivation Property List
newlake.comOTCQX: NLCP 27 Cultivation Property List Tenant State City Date Acquired % Leased Square Feet Invested / Committed Capital $ In Place Under Development Invested Committed Total $ Total $ PSF Acreage Massachusetts Sterling 10/31/2019 100% 38,380 $9,787,999 - $9,787,999 $255 Acreage Pennsyl
Slide 28: Dispensary Property List
newlake.comOTCQX: NLCP 28 Dispensary Property List Tenant State City Date Acquired % Leased Square Feet Invested / Committed Capital $ Total Invested Total $ PSF Acreage Connecticut Uncasville 10/31/2019 100% 2,872 $925,751 $322 The Cannabist Company Illinois Chicago 12/23/2019 100% 4,736 $1,127,931
Slide 29: Thank You
Thank You Company Contact: Lisa Meyer CFO, Treasurer and Secretary Lmeyer@newlake.com Investor Relations Contact: Valter Pinto / Jack Perkins KCSA Strategic Communications NewLake@KCSA.com (212) 896-1254
NewLake Capital Partners — Q3 2024 Earnings Presentation on 6ix