NewLake Capital Partners, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NewLake Capital Partners, Inc. (NLCP) has filed its 2023 10-K, detailing its real estate investment trust operations and property portfolio.</b>

AI Summary

NewLake Capital Partners, Inc. (NLCP) filed a Annual Report (10-K) with the SEC on March 11, 2024. NewLake Capital Partners, Inc. filed its 2023 Form 10-K on March 11, 2024. The filing covers the fiscal year ending December 31, 2023. The company is classified under Real Estate Investment Trusts (SIC code 6798). Key financial data from previous periods (2021, 2022) is included for comparison. The report details property segments including Dispensary and Cultivation across various states.

Why It Matters

For investors and stakeholders tracking NewLake Capital Partners, Inc., this filing contains several important signals. This 10-K provides a comprehensive overview of NLCP's financial performance and operational activities for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed breakdown of properties and their locations offers insights into the company's real estate strategy within the cannabis industry, highlighting specific tenant relationships and state-level operations.

Risk Assessment

Risk Level: medium — NewLake Capital Partners, Inc. shows moderate risk based on this filing. The company operates within the real estate investment trusts sector, which can be subject to market fluctuations and interest rate sensitivity, as indicated by the SIC code 6798 and the nature of real estate investments.

Analyst Insight

Investors should review the detailed property and financial statements in the 10-K to understand NLCP's asset base, revenue streams, and potential risks associated with its real estate holdings in the cannabis sector.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period for the 10-K.)
• 2024-03-11 — Filing Date (The date the 10-K was filed with the SEC.)
• 2023 — Reporting Period (The fiscal year covered by the 10-K filing.)
• 6798 — SIC Code (Standard Industrial Classification for Real Estate Investment Trusts.)

Key Players & Entities

• NewLake Capital Partners, Inc. (company) — Filer of the 10-K report.
• 0001854964 (company) — Central Index Key for NewLake Capital Partners, Inc.
• 6798 (company) — Standard Industrial Classification code for Real Estate Investment Trusts.
• MD (company) — State of incorporation for NewLake Capital Partners, Inc.
• Ayr Wellness Inc. (company) — Tenant mentioned in relation to properties in NV and PA.
• Bloom Medicinal (company) — Tenant mentioned in relation to properties in MO.
• Calypso (company) — Tenant mentioned in relation to properties in PA.
• Columbia Care (company) — Tenant mentioned in relation to properties in CA and IL.

FAQ

Risk Factors

• Real Estate Market Conditions [medium — market]: The company's financial performance is subject to the general conditions of the real estate market, including fluctuations in property values and rental income.
• Interest Rate Sensitivity [medium — financial]: As a real estate investment trust, the company's profitability can be affected by changes in interest rates, impacting borrowing costs and property valuations.
• Tenant Concentration Risk [medium — operational]: Reliance on a limited number of tenants for rental income could pose a risk if any of these tenants experience financial difficulties or terminate leases.

Key Financial Figures

• $0.01 — g) of the Act: Common Stock, par value $0.01 per share Indicate by check mark if th
• $29.5 billion — s in the U.S. are expected to grow from $29.5 billion of sales in 2023 to $43.4 billion in 20
• $43.4 billion — from $29.5 billion of sales in 2023 to $43.4 billion in 2027. This growth will likely drive
• $20.0 m — typically require capital in excess of $20.0 million, which could provide some barrier

Filing Documents

• nlcp-20231231.htm (10-K) — 2249KB
• a20231231nlcplistofsubsidi.htm (EX-21.1) — 18KB
• a2023nlcpconsent-exx231.htm (EX-23.1) — 2KB
• nlcp-20231231xexx311.htm (EX-31.1) — 11KB
• nlcp-20231231xexx312.htm (EX-31.2) — 11KB
• nlcp-20231231xexx321.htm (EX-32.1) — 7KB
• nlcp-20231231xexx322.htm (EX-32.2) — 7KB
• ex-971xclawbackpolicynovem.htm (EX-97.1) — 29KB
• nlcp-20231231_g1.jpg (GRAPHIC) — 206KB
• 0001854964-24-000007.txt (&nbsp;) — 10457KB
• nlcp-20231231.xsd (EX-101.SCH) — 58KB
• nlcp-20231231_cal.xml (EX-101.CAL) — 61KB
• nlcp-20231231_def.xml (EX-101.DEF) — 327KB
• nlcp-20231231_lab.xml (EX-101.LAB) — 720KB
• nlcp-20231231_pre.xml (EX-101.PRE) — 535KB
• nlcp-20231231_htm.xml (XML) — 1636KB

Business

Item 1. Business. 3

Risk Factors

Item 1A. Risk Factors. 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. 44

Cybersecurity

Item 1C. Cybersecurity. 44

Properties

Item 2. Properties. 45

Legal Proceedings

Item 3. Legal Proceedings. 48

Mine Safety Disclosure

Item 4. Mine Safety Disclosure . 48 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 49

Reserved

Item 6. Reserved. 50

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 50

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 63

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 63

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 63

Controls and Procedures

Item 9A. Controls and Procedures. 63

Other Information

Item 9B. Other Information. 64

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 66 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. 67

Executive Compensation

Item 11. Executive Compensation. 67

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 67

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. 67

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services. 67 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. 68

Form 10–K Summary

Item 16. Form 10–K Summary. 70

SIGNATURES

SIGNATURES Signatures . 71 T a b l e o f Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS We make statements in this Annual Report on Form 10-K that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, statements pertaining to our capital resources, property performance, leasing rental rates, future dividends and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our funds from operations, adjusted funds from operations, anticipated market conditions, demographics and results of operations are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as "believe," "continue," "could," "expect," "may," "will," "should," "would," "seek," "approximately," "intend," "plan," "pro forma," "estimates," "forecast," "project," or "anticipate" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: actions and initiatives of the U.S. or state governments and changes to government policies and the

BUSINESS

ITEM 1. BUSINESS General NewLake Capital Partners, Inc., ("the "Company" "we," "our," "us,"), a Maryland corporation, was formed on April 9, 2019 under the Maryland General Corporation Law, as GreenAcreage Real Estate Corp. ("GARE") and subsequently changed our name to NewLake Capital Partners, Inc. We are an internally managed real estate investment trust ("REIT") focused on providing real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third-party purchases and funding for build-to-suit projects. We elected to be taxed as a REIT beginning with our short taxable year ended December 31, 2019 and intend to continue to operate our business so as to continue to qualify as a REIT. Our properties are leased to single tenants on a long-term, triple-net basis, which obligates the tenant to be responsible for the ongoing expenses of a property, in addition to its rent obligations. Our tenants operate in the fast-growing cannabis industry. We supply necessary real estate capital primarily to companies that cultivate, produce and/or dispense cannabis. We believe we fill a need in an underserved market that has been created by, among other factors, the misalignment of federal and state legislation regarding cannabis. Moreover, we believe the banking industry's general reluctance to finance owners of cannabis-related facilities, coupled with the owners' need for capital to fund the growth of their operations, should result in significant opportunities for us to acquire cultivation properties and dispensaries that provide stable and increasing rental revenue along with the potential for long-term appreciation in value. As of December 31, 2023, we owned a geographically diversified portfolio consisting of 31 properties across 12 states with 13 tenants, comprised of 17 dispensaries and 14 cultivation facilities. Our leases include a parent or other affiliate guarantee. Our Investment Strategy The regulated state-legal cannabis industr

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View this 10-K filing on SEC EDGAR