NewLake Capital Partners

NewLake paid off its last 7.6 million dollars of debt this quarter, so it now owes nothing and holds 17.9 million dollars in cash. It still pays 43 cents per share every quarter, which at today's price works out to roughly 12 dollars a year for every 100 dollars invested. Most big banks still won't work with cannabis companies, so having no debt at all is a real advantage.

So far this year, tenants have paid 99.7% of the rent they owe, even while parts of the cannabis industry are under pressure. NewLake is buying again too. It has picked up three dispensaries in Kentucky and Michigan since August and has a 90 million dollar credit line ready for bigger deals. When one struggling tenant started winding down, a new operator signed on to take over its Illinois growing facility, so the building won't sit empty.

Revenue fell 4.5% from a year ago to 12.0 million dollars, mostly because three buildings lost their tenants in 2025. Profit fell harder, from 6.7 million dollars to 4.2 million, partly because NewLake now pays the upkeep on buildings nobody is renting. Until those spaces are rented again or sold, the rent coming in is shrinking, not growing.

Cannabist, which rents four NewLake buildings, is going through a financial restructuring. Meanwhile the dividend already uses about 88 cents of every dollar of cash NewLake brings in, and that cash fell 6.3% from a year ago, so there is little room for another tenant to stumble. The stock also trades outside the major exchanges, which keeps many big investors from buying it.