NewLake Capital Partners: 6.95% Yield, 79% Upside, 100% Risk

Summary

  • NewLake Capital Partners is a small copycat REIT, modeled closely on Innovative Industrial Properties.
  • NLCP's price performance since inception has been pretty much all downhill.
  • NLCP's returns YTD, along with those of other Cannabis REITs, are underperforming even the struggling REIT average.
  • Quarterly results look good compared to Q1 2021, but quarter-over-quarter results are obscure.
  • In this article, we take a quick overview of the company and dive into growth, balance sheet, dividend, and valuation metrics.
  • This idea was discussed in more depth with members of my private investing community, Hoya Capital Income Builder. Learn More »

Pattern of cannabis leaves in the form of numbers 2021 on a dark background. The concept of a new year. Cannabis plant background. Copy space. The concept of marijuana love

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NewLake Capital Partners, Inc. (OTCQX:NLCP) is a small copycat REIT, modeled closely on Innovative Industrial Properties (IIPR). It buys marijuana grow houses (and a few retail properties), and leases them back to the growers on a triple-net basis.

NLCP's price

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This article was written by

2.9K Followers

Philip Eric Jones is a financial writer, educator, artist, and inspirational speaker. He writes about investing for retirement with a focus on Growth stocks and REITs.

He is a contributor to the investing group iREIT®+HOYA Capital. The service features a team of analysts focusing on real income-producing asset classes that offer the opportunity for reliable income, diversification, and inflation hedging. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of IIPR, PW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

A Buy or Sell rating in this article does not constitute a Buy or Sell recommendation. All investors should do their own due diligence, before investing in any stock.

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