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New Lake Capital Partners NLCP, which owns, operates or finances income-producing cannabis-focused real estate, is gaining traction among investors, evidenced by an 11% rise in stock price over the past 90 days.
The company’s financial health and growth potential present a less volatile yet promising opportunity for investors in the cannabis sector, according to senior analyst Pablo Zuanic from Zuanic & Associates.
In a recent company update Zuanic noted: “With a favorable industry backdrop and strategic positioning, NLCP is well-equipped to deliver above-average shareholder returns.”
Portfolio Expansion And Financial Health
NLCP recently announced a $16 million investment in Connecticut, acquiring a 58.5k sq ft industrial property for cannabis cultivation and manufacturing. This transaction, representing 4% growth of its real estate book, signals confidence in the cannabis sector’s expansion.
“NLCP’s unlevered balance sheet and strategic investments limit downside risks and provide growth opportunities,” Zuanic wrote.
The company’s portfolio, valued at $385 million, is concentrated in 31 properties with 13 operators.
Key players include Curaleaf CURLF with $87 million (~23% of the book) spread across 10 leases in Connecticut, Florida, Illinois, North Dakota, Ohio, and Pennsylvania; Cresco Labs CRLBF at $44.6 million (~11.5% of the book) with one lease in Illinois; Trulieve TCNNF at $39.7 million (>10% of the book)
