NewLake Capital Partners, Inc. (OTC: NLCP)

NewLake Capital Partners, Inc. is an internally managed real estate investment trust focused on providing real estate capital to state-licensed cannabis operators. The company engages in sale-leaseback transactions, third-party purchases, and funding for build-to-suit projects. It acquires and leases properties to single tenants on a long-term, triple-net basis, with tenants responsible for property expenses in addition to rent. NewLake Capital Partners targets cannabis cultivation and dispensary facilities in states where such operations are legal under state law.

The company generates revenue primarily through rental income from its portfolio of cannabis-related properties. As of December 31, 2025, it owned 34 properties across 12 states, consisting of 19 dispensaries and 15 cultivation facilities. Rental income is derived from long-term leases with cannabis operators who cultivate, produce, or dispense cannabis. NewLake Capital Partners also collects fees and reimbursables, which are included in reported rental income. Its revenue model relies on the triple-net lease structure, ensuring stable and predictable cash flow from tenants.

NewLake Capital Partners does not report distinct operating segments beyond its core real estate investment activities. The company manages its portfolio as a single business unit focused on cannabis-related real estate. It does not break out operations by property type, geography, or tenant type for segment reporting purposes. Therefore, no formal business segments are disclosed in its financial reporting.

NewLake Capital Partners operates in a niche segment of the real estate industry, serving the cannabis sector where traditional financing is limited due to federal restrictions. It competes with other real estate investors, hard money lenders, hedge funds, and cannabis operators seeking to acquire or finance cultivation and dispensary properties. The company’s competitive advantage lies in its focus on limited-license jurisdictions, which often feature higher barriers to entry and stronger tenant credit profiles. Its triple-net lease structure and rigorous underwriting criteria help mitigate risk in a market where many operators face financing constraints.

The company’s tenants are state-licensed cannabis operators engaged in cultivation, production, or dispensing of cannabis. As of December 31, 2025, NewLease Capital Partners leased its properties to 11 tenants across its 34-property portfolio. Specific tenant names are not disclosed in the filing, but the customer base consists of licensed cannabis businesses operating in states with medical or adult-use programs. The company evaluates tenant creditworthiness through financial performance, guarantee structures, and operational history to ensure rent coverage and long-term occupancy.