NewLake Capital Partners (OTCMKTS:NLCP) reported second-quarter revenue of $12.1 million, down from $12.9 million a year earlier, as vacant cultivation properties reduced rental income and added carrying costs. The cannabis real estate investment trust said adjusted funds from operations, or AFFO, totaled $10.3 million, or $0.49 per diluted share, while net income attributable to common stockholders was $5.9 million, or $0.29 per diluted share.
For the first six months of 2026, revenue was $24.4 million, compared with $26.1 million in the prior-year period. AFFO for the period was $20.4 million, or $0.97 per diluted share, and net income attributable to stockholders was $11.7 million, or $0.56 per diluted share.
Dividend and Balance Sheet
The company declared a second-quarter cash dividend of $0.43 per share, equivalent to $1.72 on an annualized basis. The dividend was paid July 15 to stockholders of record as of June 30. The payout represented approximately 88% of AFFO, within NewLake’s target payout range of 80% to 90%.
As of June 30, NewLake had $25.8 million in cash and $7.6 million outstanding under its $90 million credit facility. Meyer said the company’s debt-to-total-assets ratio was 1.6%, while debt to EBITDA was approximately 0.2 times.
In August, NewLake amended its revolving credit facility, lowering the interest rate by 100 basis points from prime plus 1% to prime and extending the maturity to May 2029. Chief Executive Officer Anthony Coniglio said the revised facility improves the company’s financial flexibility in a cannabis industry where capital remains “scarce and expensive.”
Kentucky Investment and Leasing Pipeline
NewLake recently completed a Kentucky investment involving a 3,200-square-foot dispensary in Wilder that will be leased to C3 Industries. The company acquired the property for approximately $0.6 million and committed about $1.6 million for improvements, for a total investment of roughly $2.1 million.
Coniglio said the transaction expands NewLake’s presence in Kentucky’s emerging medical cannabis market and is expected to be accretive to earnings. He also said the company’s investment pipeline has become more active in recent months, though NewLake intends to maintain disciplined underwriting and prioritize capital preservation and risk-adjusted returns.
The company continues to market its three vacant properties. During the question-and-answer session, Coniglio said NewLake is considering cannabis and non-cannabis tenants, as well as potential sales, depending on which approach offers the best net present value for shareholders. He said Pennsylvania may have stronger demand for cultivation space because it remains a limited-license medical market that could eventually add adult-use sales. In Nevada, interest has recently increased as hemp-derived products have become less of a competitive factor, he said.
Meyer said second-quarter property carrying costs declined sequentially because the company received a reimbursement from a former tenant that had vacated a property. She said the first-quarter expense level is a better run rate if the properties remain vacant.
Cannabist Developments
NewLake continues to monitor developments involving tenant The Cannabist, which filed for bankruptcy in Canada earlier in 2026. NewLake leases four properties to the company: dispensary and cultivation facilities in both Illinois and Massachusetts.
Coniglio said The Cannabist remained current on rent through August and that NewLake is working with the tenant and other parties to limit potential rent disruption. The company holds approximately one month of security deposits across the four properties.
Vireo Growth has announced an acquisition of certain Cannabist assets across five markets, including Illinois and Massachusetts. Coniglio said that when an operator acquires a licensed operating business, it would typically continue to pay rent under the existing lease, although rent reductions can be part of transaction negotiations. He added that outcomes can differ when an acquirer purchases licenses rather than the operating businesses themselves.
NewLake also said it negotiated an additional guarantee from Canopy USA related to an Acreage lease in Pennsylvania. Coniglio said the added guarantee provides further protection beyond the existing Acreage parent guarantee.
Regulatory and Exchange Listing Outlook
Coniglio described recent regulatory and market developments as constructive for the cannabis industry, citing medical cannabis rescheduling efforts, broader reform momentum and New York Stock Exchange listings by Trulieve and Glass House.
According to Coniglio, tenants operating medical-only facilities, which account for about half of NewLake’s portfolio, have indicated they submitted applications for DEA registrations. He said the company views registration as a potential step toward institutional participation and improved access to capital markets.
NewLake is also evaluating whether it could uplist to a major exchange, though Coniglio said the company was not announcing a listing plan. He said NewLake meets NYSE and Nasdaq listing requirements other than exchange restrictions concerning cannabis-related businesses.
During the call, Coniglio said he expects the next stage of the cannabis rescheduling process could potentially conclude around mid- to late October, while emphasizing that the timing is his estimate and that litigation could follow implementation of a final rule.
The company also recognized David Weinstein, who stepped down from NewLake’s board at the end of July. Coniglio said Weinstein had been with the company since its founding in 2019 and served as chief executive officer during its transition to public markets.
About NewLake Capital Partners (OTCMKTS:NLCP)
NewLake Capital Partners, Inc is a publicly traded real estate investment trust that focuses on the acquisition, development and operation of self-storage properties across the United States. Established in the mid-2010s, the company seeks to generate stable, long-term cash flows through a portfolio of facilities that serve both individual and commercial customers. By structuring investments through its operating partnership, NewLake delivers a REIT structure to investors while maintaining operational flexibility on the ground.
The company’s core activities include identifying value-add or newly developed self-storage facilities in growth-oriented markets, negotiating acquisitions or ground leases, and overseeing construction or renovation.
