TCNNF - Investment Potential: Financial Performance Portfolio And Growth Of Leading Public Sale-Leaseback Stock In Cannabis | Benzinga
Zuanic & Associates' latest report, which initiates coverage of New Lake Capital Partners (OTC: NLCP) with an Overweight rating explains their motivation. "As of the third quarter of 2023, its net real estate assets were valued at $375 million, a significant increase from $124 million in 2020."
- NLCP is one of only two publicly traded sale-leaseback stocks providing capital to the cannabis sector.
- NLCP's niche positioning gains significance as the cannabis industry expands and contends with a capital supply-demand gap due to regulatory hurdles and federal illegality in the U.S., offering favorable economics for capital providers like NLCP.
Financial Performance And Growth
While NLCP has amassed $427 million in committed capital across 31 properties in 12 states, senior analyst Pablo Zuanic points out that the company has encountered challenges over the past year, resulting in stagnant adjusted funds from operations (AFFO) per share.
To navigate these challenges, NLCP has bought back over $9 million in stock, with further authorization for stock buybacks through December 2024?.
Dividends And Valuation
NLCP offers a 12% dividend yield and currently trades at a 30% discount to its net asset value (NAV). This discount is considered unwarranted, particularly when compared to its peers, such as IIPR (NASDAQ: IIPR), which trades at ...