NEW CANAAN, Conn. - NewLake Capital Partners, Inc. (OTCQX: NLCP), a real estate investment trust focusing on properties leased to cannabis operators, has raised its quarterly cash dividend to $0.43 per share. This adjustment represents an annualized dividend of $1.72 per common share. Shareholders on record as of the close of business on June 28, 2024, will be eligible for the dividend, which is scheduled for distribution on July 15, 2024.
The company, which specializes in sale-leaseback transactions, third-party purchases, and funding for build-to-suit projects within the cannabis industry, currently manages a portfolio of 32 cultivation facilities and dispensaries. These properties are leased on a triple-net basis, which typically includes the tenant being responsible for real estate taxes, building insurance, and maintenance.
NewLake Capital's decision to increase its dividend reflects the company's current operational and financial strategies. However, as with any forward-looking statements, this announcement contains expectations based on current beliefs, which are subject to risks and uncertainties that could cause actual results to differ materially.
The information in this article is based on a press release statement from NewLake Capital Partners, Inc.
In other recent news, NewLake Capital Partners has been a noteworthy performer in the net lease real estate investment trust sector, particularly within the challenging cannabis industry.
The company reported a significant year-over-year increase in Adjusted Funds From Operations (AFFO) for the first quarter of 2024, with a smaller gain from the preceding quarter, as noted by Compass Point. This firm maintained its Buy rating on NewLake and raised its price target to $23.50, up from $18.25.
NewLake's recent developments include a robust growth in AFFO of over 10% for the first quarter of 2024. The company also increased its quarterly dividend to $0.41 per share and announced a promising new transaction with tenant C3 Industries. Revenue increased by 10.4% year-over-year to $12.6 million, and net income reached $6.9 million, or $0.33 per share.
Despite industry-wide challenges, NewLake has proactively worked with its tenants to mitigate problems. This approach has resulted in fewer tenant issues compared to its peers, contributing to a stable earnings trajectory. Looking ahead, the company may have potential for upside if it can utilize its largely undrawn credit facility later in 2024 or 2025.
InvestingPro Insights
NewLake Capital Partners, Inc. (OTCQX: NLCP) has recently made headlines with its increased dividend, reflecting a positive outlook on its financial health and strategic growth. To provide investors with a deeper understanding of the company's performance, here are some key metrics and insights from InvestingPro:
The company boasts a market capitalization of $394.82 million, underscoring its substantial presence in the cannabis-focused real estate investment sector. Additionally, NewLake Capital's P/E ratio stands at 16.1, which aligns with the industry's average and suggests a balanced valuation of the company's earnings.
One of the most compelling InvestingPro Tips for NewLake Capital is that management has been aggressively buying back shares, a strong signal of confidence in the company's future prospects. Furthermore, the company holds more cash than debt on its balance and has raised its dividend for 3 consecutive years, highlighting its financial stability and commitment to shareholder returns.
Investors might also find the company's dividend yield particularly attractive, currently at 8.52%, which is significantly higher than the average yield found in the broader market. This, coupled with a consistent dividend growth rate of 5.13% over the last twelve months as of Q1 2024, positions NewLake Capital as an appealing option for income-focused investors.
For those looking to explore further, there are additional InvestingPro Tips available, providing a comprehensive analysis of NewLake Capital's performance and outlook. Get an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24 to access these valuable insights.
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