NewLake Capital Partners

NewLake keeps 51 cents of every revenue dollar as profit, a margin almost no company in any industry reaches. Their leases push the taxes, insurance, and upkeep onto the tenant, so the rent arrives with very little cost attached. Add in one of the biggest dividend payouts in real estate and almost no debt, and you get a small company that throws off a lot of cash.

Cannabis is moving toward a friendlier federal tax classification, a shift that could hand operators back roughly 400 million dollars a year they currently lose to taxes. Stronger tenants means safer rent across all 34 buildings NewLake owns. If banking rules loosen too, the company can move its stock to a major exchange and open the door to a much wider pool of buyers.

The three largest tenants account for close to half of all the rent NewLake collects, and a few cannabis operators are still carrying heavy debt loads. Three of the 34 properties are currently sitting empty. If one big renter stops paying, the income drops fast and the dividend would feel it.

Revenue grew just 1.88% over the past year, which tells you this is a rent collector, not a rocket ship. With the stock still trading off the main exchanges, most large investors cannot buy it at all, so the price can sit flat for long stretches. Every delay in federal reform pushes that repricing further out.