First Quarter 2024 Revenue Totaled
First Quarter 2024 Net Income Attributable to Common Stockholders Totaled
Conference Call and Webcast Scheduled for
First Quarter 2024 Financial Highlights
Quarter-over-quarter Revenue, Net Income, Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) were impacted by non-recurring revenue recognized in the fourth quarter 2023. As a result, presented below reflects only the first quarter financial results.
First quarter 2024 financial results
- Revenue totaled
$12.6 million . - Net income attributable to common stockholders totaled
$6.9 million . - FFO(1) totaled
$10.6 million . - AFFO(1) totaled
$11.0 million . - Cash and cash equivalents as of
March 31, 2024 , were$21.5 million , with$6.5 million committed to fund Tenant Improvements (“TIs”).
Comparison to the first quarter ended
Quarterly year-over-year financial results were impacted by the non-payment of contractual rent from one tenant in 2023.
- Revenue totaled
$12.6 million , as compared to$11.4 million , a increase of 10.4% year-over-year. - Net income attributable to common stockholders totaled
$6.9 million , as compared to$5.9 million . - FFO totaled
$10.6 million , as compared to$9.5 million , an increase of 10.8% year-over-year. - AFFO totaled
$11.0 million , as compared to$9.9 million , an increase of 10.6% year-over-year.
First Quarter 2024 Operational Highlights and Recent Developments
- Increased our first quarter dividend to
$0.41 per common share, equivalent to an annualized dividend of$1.64 per common share. - For the three months ended
March 31, 2024 , the Company funded approximately$7.9 million of TIs across two properties. - In
May 2024 , the Company purchased a cultivation facility inConnecticut for approximately$4 million and committed to fund$12 million for TI. The property was leased to an existing tenant.
_________________________________________________________________________________
(1) FFO and AFFO are presented on a dilutive basis.
Investment Activity
Tenant Improvements Funded
The following table presents the tenant improvements funded and the remaining unfunded tenant improvement commitments for the three months ended
Tenant | Market | Site Type | Closing Date | TI Funded | Unfunded Commitments | ||||||||
Mint | Cultivation | $ | 2,361 | $ | 1,427 | ||||||||
Organic Remedies | Cultivation | 5,533 | 3,294 | ||||||||||
Bloom Medicinal | Cultivation | — | 750 | ||||||||||
Ayr Wellness, Inc. | Cultivation | — | 987 | ||||||||||
Total | $ | 7,894 | $ | 6,458 | |||||||||
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
Loan Payable
On
Dividend
On
Tenant Improvements
Subsequent to
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:
EMellody@KCSA.com
PH: (570) 209-2947
CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) | |||||||
Assets: | |||||||
Real Estate | |||||||
Land | $ | 21,397 | $ | 21,397 | |||
Building and Improvements | 398,805 | 390,911 | |||||
420,202 | 412,308 | ||||||
Less Accumulated Depreciation | (35,066 | ) | (31,999 | ) | |||
385,136 | 380,309 | ||||||
Cash and Cash Equivalents | 21,546 | 25,843 | |||||
In-Place Lease Intangible Assets, net | 19,283 | 19,779 | |||||
Loan Receivable, net (Current Expected Credit Loss of | 4,848 | 4,833 | |||||
Other Assets | 2,304 | 2,528 | |||||
Total Assets | $ | 433,117 | $ | 433,292 | |||
Liabilities and Equity: | |||||||
Liabilities: | |||||||
Accounts Payable and Accrued Expenses | $ | 697 | $ | 1,117 | |||
Revolving Credit Facility | 4,000 | 1,000 | |||||
Loan Payable, net | — | 1,000 | |||||
Dividends and Distributions Payable | 8,577 | 8,385 | |||||
Security Deposits | 8,342 | 8,616 | |||||
Rent Received in Advance | 668 | 990 | |||||
Other Liabilities | 170 | 227 | |||||
Total Liabilities | 22,454 | 21,335 | |||||
Commitments and Contingencies | |||||||
Equity: | |||||||
Preferred Stock, | — | — | |||||
Common Stock, | 205 | 205 | |||||
445,590 | 445,289 | ||||||
Accumulated Deficit | (42,479 | ) | (40,909 | ) | |||
Total Stockholders' Equity | 403,316 | 404,585 | |||||
Noncontrolling Interests | 7,347 | 7,372 | |||||
Total Equity | 410,663 | 411,957 | |||||
Total Liabilities and Equity | $ | 433,117 | $ | 433,292 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenue: | |||||||
Rental Income | $ | 12,127 | $ | 11,157 | |||
Interest Income from Loans | 131 | 128 | |||||
Fees and Reimbursables | 350 | 131 | |||||
Total Revenue | 12,608 | 11,416 | |||||
Expenses: | |||||||
Property Expenses | 22 | 94 | |||||
Depreciation and Amortization Expense | 3,568 | 3,561 | |||||
General and Administrative Expenses: | |||||||
Compensation expense | 1,235 | 1,127 | |||||
Professional fees | 402 | 322 | |||||
Other general and administrative expenses | 418 | 470 | |||||
Total general and administrative expenses | 2,055 | 1,919 | |||||
Total Expenses | 5,645 | 5,574 | |||||
Provision for Current Expected Credit Loss | 14 | — | |||||
Income From Operations | 6,977 | 5,842 | |||||
Other Income (Expense): | |||||||
Interest Income | 100 | 220 | |||||
Interest Expense | (83 | ) | (92 | ) | |||
Total Other Income (Expense) | 17 | 128 | |||||
Net Income | 6,994 | 5,970 | |||||
Net Income Attributable to Noncontrolling Interests | (125 | ) | (102 | ) | |||
Net Income Attributable to Common Stockholders | $ | 6,869 | $ | 5,868 | |||
Net Income Attributable to Common Stockholders Per Share - Basic | $ | 0.33 | $ | 0.27 | |||
Net Income Attributable to Common Stockholders Per Share - Diluted | $ | 0.33 | $ | 0.27 | |||
Weighted Average Shares of Common Stock Outstanding - Basic | 20,541,840 | 21,423,470 | |||||
Weighted Average Shares of Common Stock Outstanding - Diluted | 20,942,254 | 21,797,316 |
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 adjusting for non-cash and certain non-recurring transactions, including non-cash components of compensation expense and the effect of provisions for credit loss. 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 | |||||||
2024 | 2023 | ||||||
Net Income Attributable to Common Stockholders | $ | 6,869 | $ | 5,868 | |||
Net Income Attributable to Noncontrolling Interests | 125 | 102 | |||||
Net Income | 6,994 | 5,970 | |||||
Adjustments: | |||||||
Real Estate Depreciation and Amortization | 3,564 | 3,561 | |||||
FFO Attributable to Common Stockholders - Diluted | 10,558 | 9,531 | |||||
Provision for Current Expected Credit Loss | (14 | ) | — | ||||
Stock-Based Compensation | 350 | 308 | |||||
Non-cash Interest Expense | 67 | 68 | |||||
Amortization of Straight-line Rent Expense | (1 | ) | — | ||||
AFFO Attributable to Common Stockholders - Diluted | $ | 10,960 | $ | 9,907 | |||
FFO per share – Diluted | $ | 0.50 | $ | 0.44 | |||
AFFO per share – Diluted | $ | 0.52 | $ | 0.45 |
Source:
2024 GlobeNewswire, Inc., source