Fundamentals snapshot

NewLake Capital Partners, Inc.

NLCP · OQX · Real Estate · REIT - Specialty

Current price

$13.86

52-week range

$12.09 - $16.75

Market cap

$290.20M

One-glance verdict

Undervalued

$50.42 our estimate vs market $13.86

Wall Street consensus: $17.50 (-65.3% lower than our fair-value estimate)

Balance sheet

Healthy

32.52x Strong cushion

Net cash $0.00. Interest coverage shows how many times profit covers the interest bill.

What stands out

2 Rewards 1 Risk

2 rewards · 1 risks

Reward Free cash flow was positive in 4/10 years.
Reward Dividend yield is 12.6% with 6-year payout history.
Risk Operating margin compressed from 50.2% to 0.0% over 3 years.

View details ↓

What this company does

NewLake Capital Partners, Inc.

NewLake Capital Partners, Inc. is like a landlord that only rents to businesses in the cannabis industry, helping them buy or build the properties they need to operate. Their main income (recurring revenue) comes from rent payments from these businesses, which is important because it provides a steady stream of money for the company. This model means they make money by owning real estate that cannabis companies use to grow or sell their products.

How the company got here

NewLake Capital Partners, Inc. was established in April 2019 as a real estate investment trust (REIT). A REIT is a company that owns, operates, or finances income-generating real estate. NewLake focuses specifically on providing capital to businesses in the cannabis industry that are licensed by the state. They achieve this through sale-leaseback transactions, where they buy a property from an operator and then lease it back to them, and by funding the construction of new facilities for these operators.

What it actually does

NewLake Capital Partners acts as a landlord for cannabis businesses. Instead of directly selling cannabis products, NewLake owns the physical locations where these businesses operate, such as cultivation facilities (where cannabis is grown) and dispensaries (where it is sold to consumers). They generate revenue by collecting rent from these cannabis operators, who are their tenants. This model allows cannabis businesses to free up capital for their operations by selling their real estate assets to NewLake and then leasing them back.

Real Estate Investments

This is NewLake's primary business. The company owns a portfolio of properties, which includes facilities for growing cannabis (cultivation facilities) and stores where cannabis is sold to the public (dispensaries). These properties are typically leased to a single tenant under a 'triple-net lease' agreement. A triple-net lease means the tenant is responsible for paying not only rent but also property taxes, building insurance, and maintenance costs, which reduces the landlord's (NewLake's) expenses and provides a more predictable income stream.

What management is betting on now

NewLake's strategy centers on expanding its portfolio of properties leased to cannabis operators. They aim to grow by acquiring more cultivation facilities and dispensaries, and by funding new build-to-suit projects. This expansion is driven by the growth of the legal cannabis market, which creates more demand for specialized real estate. By providing essential real estate capital, NewLake positions itself as a key partner for cannabis businesses looking to grow and operate efficiently.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Revenue $12.02M

Net income $4.18M

Diluted EPS 0.20

Operating cash flow $9.59M

Free cash flow —

Revenue $12.09M

Net income $5.90M

Diluted EPS 0.29

Operating cash flow $10.45M

Free cash flow —

Revenue $12.31M

Net income $5.78M

Diluted EPS 0.28

Operating cash flow $10.39M

Free cash flow —

Revenue $12.34M

Net income $6.04M

Diluted EPS 0.30

Operating cash flow $10.10M

Free cash flow —

Revenue $12.59M

Net income $6.67M

Diluted EPS 0.32

Operating cash flow $10.74M

Free cash flow —

Revenue $12.93M

Net income $7.32M

Diluted EPS 0.35

Operating cash flow $11.46M

Free cash flow —

Revenue $13.21M

Net income $6.30M

Diluted EPS 0.31

Operating cash flow $10.16M

Free cash flow —

Revenue $12.51M

Net income $6.03M

Diluted EPS 0.30

Operating cash flow $10.63M

Free cash flow —

Is it cheap or expensive?

Fair value $50.42 vs current price $13.86

Wall Street consensus is the average analyst price target: $17.50 (-65.3% lower than our fair-value estimate).

Our most-likely fair value is $50.42 a share — about 263.8% above today's price of $13.86, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 7.5% · Discount 8.1% · Terminal 2.5%

$50.42

Bear

Growth 4.5% · Discount 8.1% · Terminal 2.5%

$42.44

Bull

Growth 9.0% · Discount 8.1% · Terminal 2.5%

$54.88

Is it drowning in debt?

Healthy

Net cash $0 - more cash than debt. Interest coverage 32.5x.

Net debt $0.00

Interest coverage 32.52x

NewLake Capital Partners, Inc.'s profit covers its interest bill about 32.5 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.

Healthy

Worse cushion Baseline Better cushion

NLCP BASELINE NewLake Capital Partners, Inc.

Total debt — Interest coverage 32.52x This is the baseline the peer rows are being compared against.

IIPR Innovative Industrial Properties, Inc.

Total debt $695.96M Interest coverage 6.83x -79% vs NLCP Carries about 4.8x less debt cushion than NLCP.

PW Power REIT

Total debt $19.65M Interest coverage -0.20x -100% vs NLCP This peer has almost no interest-payment cushion compared with NLCP.

GOOD Gladstone Commercial Corporation

Total debt $864.87M Interest coverage 1.39x -96% vs NLCP Carries about 23.3x less debt cushion than NLCP.

What you should know

The case for and against NLCP

2 Rewards 1 Risk

Rewards

Free cash flow was positive in 4/10 years.
Dividend yield is 12.6% with 6-year payout history.

Risks

Operating margin compressed from 50.2% to 0.0% over 3 years.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)

12.95x

Forward P/E

11.78x

P/B

0.73x

P/S

—

EV/EBITDA

—

PEG ratio

—

Profitability

How much profit each dollar creates

Gross margin

0.0%

Operating margin

0.0%

Net margin

0.0%

ROE

—

ROA

—

Health

Liquidity and balance-sheet strength

Debt / equity

—

Current ratio

—

Quick ratio

—

Total debt

—

Total cash

—

Growth

How the business has been compounding

Revenue TTM

$48.76M

Revenue 5Y CAGR

16.0%

EPS TTM

1.07

EPS 5Y CAGR

7.5%

Cash flow

How much cash the business throws off

Operating CF TTM

$40.53M

Free CF TTM

$42.46M

FCF margin

87.1%

Dividend

Shareholder payout

Yield

12.6%

Payout ratio

145.8%

Last ex-div date

2026-09-30

NewLake Capital Partners, Inc.

$50.42 our estimate vs market $13.86

32.52x Strong cushion

2 rewards · 1 risks

NewLake Capital Partners, Inc.

How the company got here

What it actually does

Real Estate Investments

What management is betting on now

How the share price has moved

Last 8 quarters — what happened

Fair value ? $50.42 vs current price $13.86

Healthy

The case for and against NLCP

Rewards

Risks

All the key metrics, grouped by purpose

How expensive the stock looks

How much profit each dollar creates

Liquidity and balance-sheet strength

How the business has been compounding

How much cash the business throws off

Shareholder payout

Fair value $50.42 vs current price $13.86