NewLake Capital Partners, Inc. · OTC:NLCP
NewLake Capital Partners — Q4 2023 Earnings Presentation
28 slides from NewLake Capital Partners's earnings presentation, Mar 11, 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 March 11, 2024
Slide 2: Safe Harbor Statement; Use of Non-GAAP Financial Information
newlake.comOTCQX: NLCP 2 This presentation has been prepared by the 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 b
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 High-Growth Focus Focus on a high-growth industry with meaningful demand for real estate capital positions NewLake to con
Slide 4: By The Numbers
newlake.comOTCQX: NLCP 4 By The Numbers 100% Leased — All Triple-Net Leases Founded in 2019 — 2021 IPO ~$428 Million Deployed — Invested & Committed 78% AFFO Payout Ratio — Strong Dividend Coverage 31 Properties — 12 States, 1.6 Million Square Feet >0.1x Debt to EBITDA — $89 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 High-Growth Industry
newlake.comOTCQX: NLCP 8 NewLake is Focused on a High-Growth 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 $2
Slide 9: Continued Acceptance of Cannabis Nationally
newlake.comOTCQX: NLCP 9 Continued Acceptance of Cannabis Nationally Americans Increasingly Embrace the Use of Cannabis 0% 20% 40% 60% 2015 2016 2017 2018 2019 2020 2021 2022 % of Young Adults that Consume Alcohol & Marijuana Alcohol Marijuana • 90% of the U.S. population (309 million people) reside
Slide 10: Industry Catalysts at Federal Level
newlake.comOTCQX: NLCP 10 Industry Catalysts at Federal Level Legislative SAFER Banking Act introduced to both chambers to create easier banking access for operators. Cannabis Research Bill was signed into law, removing barriers to conducting research and increasing access to cannabis. Medical Marij
Slide 11: Portfolio Overview
newlake.comOTCQX: NLCP 11 Portfolio Overview Early Mover Advantage Created Diverse National Platform • 12 states • 1.6M square feet • Primarily limited-license jurisdictions • 100% leased Note: Data as of December 31, 2023 based on current rent. Curaleaf 23.7% Cresco 13.9% Trulieve 11.5%The Cannabis
Slide 12: NewLake's Underwriting Approach
newlake.comOTCQX: NLCP 12 3.7x 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 Third Quarter 2023(1) Tenant Information Revenue Adj. EBITDA(2) Market Capitalization(3) MSO / SSO Curaleaf 23.7% 462,980 10 $333 $75 $3,089 MSO Cresco 13.9% 222,455 1 $191 $49 $699 MS
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 25.5% 312,458 8,949 321,407 4 3 Florida 18.8% 417,350 - 417,350 1 - Illinois 18.0% 255,257 21,927 277,184 2 5 Massachus
Slide 16: Financial Overview
newlake.comOTCQX: NLCP 16 Financial Overview Shareholder Equity $405 Million Invested & Committed Capital $428 Million Cash $26 Million Debt1 $2 Million Market Capitalization2 $330 Million Stock Price2 $16.10 Dividend Yield3 10.2% Common Shares Outstanding 20,503,520 Book Value per share $19.73 1Q24
Slide 17: Undervalued vs. REIT Peers
newlake.comOTCQX: NLCP 17 Undervalued vs. REIT Peers 1) Calculated using the March 8, 2024 closing stock price divided by Q4 annualized AFFO 2) Calculated as Q1 2024 annualized dividend divided by the March 8, 2024, closing stock price 3) Average of NNN, PSTL, VICI, FCPT, NTST, EPRT 4) Average of RE
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 High-Growth Focus Focus on a high-growth industry with meaningful demand for real estate capital positions NewLake to co
Slide 19: NewLake Supplemental Information
NewLake Supplemental Information
Slide 20: Quarterly Performance Summary
newlake.comOTCQX: NLCP 20 Quarterly Performance Summary For the Three Months Ended (In thousands, except share amounts) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Total Revenue $13,021 $11,491 $11,376 $11,416 General and Administrative Expense(1) $1,436 $1,561 $1,648 $1,705 Ge
Slide 21: Balance Sheet
newlake.comOTCQX: NLCP 21 Balance Sheet (In thousands, except share amounts) December 31, 2023 December 31, 2022 Assets: Real Estate Land $21,397 $21,427 Building and Improvements 390,911 378,047 Total Real Estate 412,308 399,474 Less Accumulated Depreciation (31,999) (19,736) Net Real Estate 380,30
Slide 22: Statement of Operations
newlake.comOTCQX: NLCP 22 Statement of Operations For the Three Months Ended December 31, For the Year Ended December 31, (In thousands, except share amounts) 2023 2022 2023 2022 Revenue: Rental Income $12,704 $12,000 $46,341 $42,216 Interest Income from Loans 131 128 521 2,429 Fees and Reimbursable
Slide 23: Non-GAAP Financial Information
newlake.comOTCQX: NLCP 23 Non-GAAP Financial Information For the Three Months Ended December 31, For the Year Ended December 31, (In thousands, except share amounts) 2023 2022 2023 2022 Net Income Attributable to Common Stockholders $6,962 $6,690 $24,585 $21,976 Net Income Attributable to Noncontrol
Slide 24: Capital Commitments
newlake.comOTCQX: NLCP 24 Capital Commitments As of December 31, 2023(1) Tenant Location Site Type Amount Mint Arizona Cultivation $3,788 C3 Missouri Cultivation $8,826 Ayr Pennsylvania Cultivation $750 Calypso Pennsylvania Cultivation $987 Total $14,351 (1) $’s in thousands
Slide 25: Lease Expiration Schedule
newlake.comOTCQX: NLCP 25 Lease Expiration Schedule 0.7% 0.9% 2.7% 0.6% 95.1% 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 26: Cultivation Property List
newlake.comOTCQX: NLCP 26 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 27: Dispensary Property List
newlake.comOTCQX: NLCP 27 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 28: 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 — Q4 2023 Earnings Presentation on 6ix