NewLake Capital Q2 revenue falls as rental income declines
NewLake Capital Q2 revenue falls as rental income declines
Overview
US cannabis real estate lender's Q2 revenue slightly beat analyst expectations, but fell 6.5% yr/yr
Q2 adjusted FFO totaled $10.3 million, or $0.49 per share of common stock
Revenue decline driven by loss of rental income from three properties available for lease
Outlook
Company did not provide specific financial guidance for the current or future periods
Result Drivers
PROPERTY VACANCIES - Loss of rental income from three properties available for lease drove revenue and AFFO declines
RENT ESCALATIONS AND ACQUISITIONS - Annual contractual rent escalations and rental income from Ohio dispensary acquisitions partially offset revenue decline
FULL RENT COLLECTION - Co said it collected 100% of contractual rent during the quarter, per CEO Anthony Coniglio
Company press release: ID:nGNX7Kcn4Z
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $12.10 mln | $11.99 mln (3 Analysts) |
Q2 Net Income Attributable to Common Stockholder |
| $5.90 mln |
|
Q2 Adjusted FFO | $10.30 mln |
| |
Q2 FFO |
| $9.90 mln |
|
Q2 Dividend |
| $0.43 |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Newlake Capital Partners Inc is $17.50, about 11.1% above its August 4 closing price of $15.75
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
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Aug 5 - Morguard Q2 normalized FFO falls as vacancy weighs on revenue
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)