Tenant default and non-payment
Rental income depends on a small number of cannabis operators meeting lease obligations.
- Scope
- Single-tenant triple-net leases
- Materiality
- high
NewLake Capital Partners, Inc.
NewLake Capital Partners is a Maryland-based internally managed REIT that owns and finances real estate used by state-licensed cannabis operators in the United States. Its portfolio is built through sale-leaseback transactions, third-party property purchases, and build-to-suit funding, with properties typically leased on a long-term triple-net basis to single tenants.
83,7 %
51,5 %
+1,9 %
| % | |
|---|---|
| Sale-leaseback transactions | 45% Acquisition of operating real estate from cannabis companies with simultaneous long-term leasebacks. |
| Owned cannabis properties | 45% Rental income from dispensaries and cultivation facilities leased to single tenants. |
| Build-to-suit funding | 5% Capital provided to develop or customize facilities for licensed cannabis operators. |
| Fees and reimbursables | 3% Property-related fees and reimbursed expenses associated with leased assets. |
| Interest income from loans | 2% Interest earned on loans or similar financing arrangements tied to real estate capital. |
NewLake's customers are state-licensed cannabis operators that need real estate capital to acquire, expand, or...
- Cannabis cultivation operatorsprimary
Buy sale-leaseback or build-to-suit capital for cultivation facilities and production sites.
- Dispensary operatorsprimary
Lease retail dispensary properties on long-term triple-net terms.
- Multi-state cannabis operatorsprimary
Use NewLake for financing across multiple licensed markets and facility types.
- Cannabis real estate ownerssecondary
Sell properties to unlock capital while retaining operational use through leaseback.
NewLake's portfolio is geographically diversified across 12 U.S. states, reflecting the state-by-state structure of...
- •Portfolio spans 34 properties across 12 U.S. states
- •Properties are located in state-licensed cannabis markets
- •Exposure is tied to state-level cannabis regulation
- •Geographic diversification reduces reliance on any single market
- •U.S. footprint matters because federal law still limits banking access
NewLake's strategy is to provide specialized real estate capital to cannabis operators through disciplined underwriting...
01
Acquire specialized cannabis real estatemedium-term
The business depends on sourcing properties that fit regulated cannabis use and can be leased long term.
02
Protect tenant credit qualityshort-term
Rent collection and asset value depend on operators' ability to meet lease obligations.
03
Maintain diversified lease portfoliomedium-term
Diversification across tenants and states reduces concentration risk in a niche asset class.
The main risks come from tenant credit quality, lease concentration, and the regulatory uncertainty surrounding...
Cannabis regulatory uncertainty
The business model relies on state-licensed operations while federal law remains restrictive.
- Scope
- U.S. cannabis real estate
- Materiality
- high
Asset re-leasing and resale risk
Specialized facilities may have limited alternative uses if a tenant exits.
- Scope
- Dispensaries and cultivation facilities
- Materiality
- high
Competition for scarce properties
More capital providers or alternative financing can reduce acquisition opportunities and pricing power.
- Scope
- Cannabis real estate acquisitions
- Materiality
- medium
Investment property valuation and depreciation
Affects depreciation expense and carrying value of real estate
Current expected credit loss provision
Affects operating income and balance sheet reserves
Rental income classification
Affects revenue mix and comparability across periods
: 29.4.2026