NewLake Capital Partners at LD Micro: cash flow, custody and growth

On Wednesday, October 21, 2026, NewLake Capital Partners (NLCP) showcased its position as a reliable, cash-flow generating landlord during the LD Micro 20th Annual Main Event Conference. NLCP highlighted strong rent collections, a debt-free balance sheet, and a high dividend yield, while also acknowledging that custody restrictions and federal cannabis rules remain barriers to broader investor access and valuation.

The company collected 100% of contractual rent year-to-date and maintained an 88% AFFO payout ratio. NLCP emphasized its zero-debt balance sheet, which provides growth opportunities without diluting shareholder equity. Management noted that federal rescheduling and the end of Section 280E are improving tenant profitability and could support future growth.

Custody restrictions, not portfolio quality, were cited as the primary reason for NLCP's elevated dividend yield and limited institutional ownership. NLCP, led by CEO Anthony Coniglio, is the second-largest owner of cannabis real estate in the U.S. The company owns 35 properties across 13 states, with 13 tenants, focusing on higher-quality credits and a weighted average lease term of nearly 12 years.

NLCP's portfolio yield is 13%, and its top three tenants are Curaleaf, Trulieve, and Cresco. The company's dividend yield of 13% is significantly higher than the 4.5% to 6% range typical for net lease REITs. NLCP's financial profile remains strong despite the challenging cannabis financing environment, with a P/E ratio of 13.6 and a debt-to-equity ratio of just 0.02, placing it on InvestingPro's list of undervalued stocks.