Third Quarter 2023 Revenue Totaled
Third Quarter 2023 Net Income Attributable to Common Stockholders Totaled
The Company Repurchased 608,152 Shares of Common Stock During the Third Quarter 2023, Bringing Total Shares Repurchased to 713,831 for the First Nine Months of 2023
Conference Call and Webcast Scheduled for
Third Quarter 2023 Financial Highlights
Quarter-over-quarter revenue, net income, Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) were relatively flat. As a result, presented below are only the third quarter financial highlights.
- Revenue totaled
$11.5 million . - Net income attributable to common stockholders totaled
$6.0 million . - FFO(1) totaled
$9.6 million . - AFFO(1) totaled
$10.1 million . - Cash and cash equivalents as of
September 30, 2023 , were$31.1 million , with$20.2 million committed to fund Tenant Improvements (“TIs”).
Comparison to the third quarter ended
Quarterly year-over-year financial results were impacted by the non-payment of contractual rent from one tenant in 2023.
- Revenue totaled
$11.5 million as compared to$12.1 million , a decrease of 4.9% year-over-year. - Net income attributable to common stockholders totaled
$6.0 million , as compared to$6.5 million . - FFO totaled
$9.6 million , as compared to$10.3 million , a decrease of 6.0% year-over-year. - AFFO totaled
$10.1 million compared to$10.6 million , a decrease of 5.1% year-over-year.
Nine Months Ended
Comparison to the nine months ended
- Revenue totaled
$34.3 million as compared to$32.8 million , an increase of 4.7% year-over-year. - Net income attributable to common stockholders totaled
$17.6 million , as compared to$15.3 million . - FFO totaled
$28.6 million , as compared to$24.7 million , an increase of 15.8% year-over-year. - AFFO totaled
$29.9 million compared to$27.8 million , an increase of 7.7% year-over-year.
Third Quarter 2023 Operational Highlights and Recent Developments
- For the three months ended
September 30, 2023 , the Company acquired, pursuant to its repurchase program, 608,152 shares of its common stock at an average price, including commissions, of$13.02 . - Declared a third quarter dividend of
$0.39 per common share, equivalent to an annualized dividend of$1.56 per common share, paid onOctober 13, 2023 to stockholders of record on the close of business onSeptember 29, 2023 . - For the three months ended
September 30, 2023 , the Company funded approximately$2.6 million of TIs across three properties. - In
October 2023 , the Company entered into a lease amendment and forbearance agreement withRevolutionary Clinics for the Company’s cultivation facility inMassachusetts . - In
October 2023 , the Company closed on the sale of its cultivation facility located inPalmer, Massachusetts .
_________________________________________________________________________________
(1) FFO and AFFO is presented on a dilutive basis.
Investment Activity
The following tables present the Company's investment activity for nine months ended
Acquisitions
Tenant | Market | Site Type | Closing Date | Acquisitions | ||||||
Bloom Medicinal | Cultivation | $ | 350 | (1) | ||||||
Total | $ | 350 | ||||||||
(1) The Company exercised its option to purchase the adjacent parcel of land to expand its cultivation facility in |
Tenant Improvements Funded
Tenant | Market | Site Type | Closing Date | TI Funded | Unfunded Commitments | ||||||||
Mint | Cultivation | $ | 2,366 | $ | 5,703 | ||||||||
Organic Remedies | Cultivation | 282 | — | ||||||||||
Bloom Medicinal | Cultivation | 2,961 | 13,722 | ||||||||||
Ayr Wellness, Inc. | Cultivation | — | 750 | ||||||||||
Total | $ | 5,609 | $ | 20,175 | |||||||||
Financing Activity
RevolvingCredit Facility
As of
The facility is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants, and events of default. As of
Seller Financing
In
Stock Repurchase Program
On
Dividend
On
Recent Developments
Leases
In
Calypso
Calypso did not make its weekly October rent payments. However, it has resumed its weekly rent payments in November. Calypso continues to work towards a sale of its business.
Disposition of Real Estate
In
Outlook for 2023
Conference Call and Webcast Details:
Management will host a conference call and webcast at
Event: | |
Date: | |
Time: | |
Live Call: | 1-877-407-3982 ( |
Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1638874&tp_key=b6e61aa824 |
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until
About
Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. All of our statements regarding anticipated growth in our funds from operations, adjusted funds from operations, anticipated market conditions, and results of operations are forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.
Use of Non-GAAP Financial Information
FFO and AFFO are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to FFO and AFFO and definitions of terms are included at the end of this release.
Contact Information:
Chief Financial Officer, Treasurer and Secretary
lmeyer@newlake.com
Investor Contact:
Valter@KCSA.com
PH: (212) 896-1254
Media Contact:
MMiller@KCSA.com
PH: (212) 896-1254
CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) | |||||||
Assets: | (Unaudited) | ||||||
Real Estate | |||||||
Land | $ | 21,397 | $ | 21,427 | |||
Building and Improvements | 382,087 | 378,047 | |||||
403,484 | 399,474 | ||||||
Less Accumulated Depreciation | (28,931 | ) | (19,736 | ) | |||
374,553 | 379,738 | ||||||
Cash and Cash Equivalents | 31,065 | 45,192 | |||||
In-Place Lease Intangible Assets, net | 20,275 | 21,765 | |||||
Loan Receivable | 5,000 | 5,000 | |||||
Property Held for Sale | 1,949 | — | |||||
Other Assets | 2,300 | 2,554 | |||||
Total Assets | $ | 435,142 | $ | 454,249 | |||
Liabilities and Equity: | |||||||
Liabilities: | |||||||
Accounts Payable and Accrued Expenses | $ | 1,000 | $ | 1,659 | |||
Revolving Credit Facility | 1,000 | 1,000 | |||||
Loan Payable, net | 997 | 1,986 | |||||
Dividends and Distributions Payable | 8,231 | 8,512 | |||||
Security Deposits | 7,338 | 7,774 | |||||
Rent Received in Advance | 907 | 1,375 | |||||
Other Liabilities | 199 | 1,005 | |||||
Total Liabilities | 19,672 | 23,311 | |||||
Commitments and Contingencies | |||||||
Equity: | |||||||
Preferred Stock, | — | — | |||||
Common Stock, | 207 | 214 | |||||
447,531 | 455,822 | ||||||
Accumulated Deficit | (39,635 | ) | (32,487 | ) | |||
Total Stockholders' Equity | 408,103 | 423,549 | |||||
Noncontrolling Interests | 7,367 | 7,389 | |||||
Total Equity | 415,470 | 430,938 | |||||
Total Liabilities and Equity | $ | 435,142 | $ | 454,249 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue: | |||||||||||||||
Rental Income | $ | 11,297 | $ | 11,595 | $ | 33,637 | $ | 30,217 | |||||||
Interest Income from Loans | 131 | 434 | 390 | 2,301 | |||||||||||
Fees and Reimbursables | 63 | 49 | 256 | 239 | |||||||||||
Total Revenue | 11,491 | 12,078 | 34,283 | 32,757 | |||||||||||
Expenses: | |||||||||||||||
Depreciation and Amortization Expense | 3,568 | 3,630 | 10,698 | 9,113 | |||||||||||
General and Administrative Expenses: | |||||||||||||||
Compensation expense | 1,173 | 1,040 | 3,450 | 5,100 | |||||||||||
Professional fees | 300 | 279 | 986 | 1,486 | |||||||||||
Other general and administrative expenses | 467 | 419 | 1,537 | 1,387 | |||||||||||
Total general and administrative expenses | 1,940 | 1,738 | 5,973 | 7,973 | |||||||||||
Total Expenses | 5,508 | 5,368 | 16,671 | 17,086 | |||||||||||
Loss on Sale of Real Estate | — | — | — | (60 | ) | ||||||||||
Income From Operations | 5,983 | 6,710 | 17,612 | 15,611 | |||||||||||
Other Income (Expenses): | |||||||||||||||
Interest Income | 178 | 7 | 607 | 103 | |||||||||||
Interest Expense | (95 | ) | (94 | ) | (284 | ) | (167 | ) | |||||||
Total Other Income (Expense) | 83 | (87 | ) | 323 | (64 | ) | |||||||||
Net Income | 6,066 | 6,623 | 17,935 | 15,547 | |||||||||||
Net Income Attributable to Noncontrolling Interests | (108 | ) | (113 | ) | (312 | ) | (262 | ) | |||||||
Net Income Attributable to Common Stockholders | $ | 5,958 | $ | 6,510 | $ | 17,623 | $ | 15,285 | |||||||
Net Income Attributable to Common Stockholders Per Share - Basic | $ | 0.28 | $ | 0.30 | $ | 0.83 | $ | 0.71 | |||||||
Net Income Attributable to Common Stockholders Per Share - Diluted | $ | 0.28 | $ | 0.30 | $ | 0.83 | $ | 0.71 | |||||||
Weighted Average Shares of Common Stock Outstanding - Basic | 21,199,638 | 21,428,905 | 21,330,046 | 21,417,149 | |||||||||||
Weighted Average Shares of Common Stock Outstanding - Diluted | 21,582,314 | 21,802,487 | 21,710,101 | 21,815,763 |
Non-GAAP Financial Information
Funds From Operations
The Company calculates FFO in accordance with the current
Adjusted Funds From Operations
The Company calculates AFFO by starting with FFO and adding back non-cash and certain non-recurring transactions, including non-cash components of compensation expense. Other REITs may not define AFFO in the same manner and therefore the Company’s calculation of AFFO may not be comparable to such other REITs. You should not consider FFO and AFFO to be alternatives to net income as a reliable measure of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.
The table below is a reconciliation of net income attributable to common stockholders to FFO and AFFO for the three and three months ended
Three Months Ended | Nine Months Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Net Income Attributable to Common Stockholders | $ | 5,958 | $ | 6,510 | $ | 17,623 | $ | 15,285 | ||||
Net Income Attributable to Noncontrolling Interests | 108 | 113 | 312 | 262 | ||||||||
Net Income | 6,066 | 6,623 | 17,935 | 15,547 | ||||||||
Adjustments: | ||||||||||||
Real Estate Depreciation and Amortization | 3,568 | 3,630 | 10,698 | 9,113 | ||||||||
Loss on Sale of Real Estate | — | — | — | 60 | ||||||||
FFO Attributable to Common Stockholders - Diluted(1) | 9,634 | 10,253 | 28,633 | 24,720 | ||||||||
Severance | — | 25 | — | 1,752 | ||||||||
Stock-Based Compensation | 379 | 280 | 1,060 | 1,201 | ||||||||
Non-cash Interest Expense | 71 | 59 | 211 | 92 | ||||||||
Amortization of Straight-line Rent Expense | — | 6 | — | 12 | ||||||||
AFFO Attributable to Common Stockholders - Diluted | $ | 10,084 | $ | 10,623 | $ | 29,904 | $ | 27,777 | ||||
FFO per share – Diluted | $ | 0.45 | $ | 0.47 | $ | 1.32 | $ | 1.13 | ||||
AFFO per share – Diluted | $ | 0.47 | $ | 0.49 | $ | 1.38 | $ | 1.27 |
Source:
2023 GlobeNewswire, Inc., source