Q3 FY2026
Filed Nov 4, 2026NewLake Q3 2026 revenue fell 4.5% to $12.0 million and AFFO fell to $10.3 million; the company ended the quarter with no debt outstanding and $17.9 million in cash.
Revenue, net income, FFO and AFFO were all lower than in Q3 2025 and the nine months ended September 30, 2026. The company reports 99.7% year-to-date rent collection, a debt-free balance sheet, and an extended revolving credit facility, but it also reports a lower AFFO payout cushion (88% payout ratio), higher depreciation and property carrying costs, and an unresolved Cannabist lease termination.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenue (Q3 2026, three months ended September 30)GAAP | $12.02M | – | 4.5% decrease |
| Rental Income (Q3 2026)GAAP | $11.83M | – | – |
| Interest Income from Loans (Q3 2026)GAAP | $138K | – | – |
| Fees and Reimbursables (Q3 2026)GAAP | $58K | – | – |
| Reimbursable Property Expenses (Q3 2026)GAAP | $48K | – | – |
| Property Carrying Costs (Q3 2026)GAAP | $276K | – | – |
| Depreciation and Amortization Expense (Q3 2026)GAAP | $5.72M | – | – |
| Total General and Administrative Expenses (Q3 2026)GAAP | $1.65M | – | – |
| Total Expenses (Q3 2026)GAAP | $7.70M | – | – |
| Income From Operations (Q3 2026)GAAP | $4.34M | – | – |
| Interest Expense (Q3 2026)GAAP | −$146K | – | – |
| Net Income (Q3 2026)GAAP | $4.25M | – | – |
| Net Income Attributable to Common Stockholders (Q3 2026)GAAP | $4.18M | – | – |
| Net Income Attributable to Common Stockholders Per Share - Diluted (Q3 2026)GAAP | $0.20 | – | – |
| FFO Attributable to Common Stockholders - Diluted (Q3 2026)non-GAAP | $9.97M | – | – |
| FFO per share - Diluted (Q3 2026)non-GAAP | $0.47 | – | – |
| AFFO Attributable to Common Stockholders - Diluted (Q3 2026)non-GAAP | $10.33M | – | approximately 6.3% decrease |
| AFFO per share - Diluted (Q3 2026)non-GAAP | $0.49 | – | – |
| Total Revenue (nine months ended September 30, 2026)GAAP | $36.42M | – | 6.0% decrease |
| Rental Income (nine months ended September 30, 2026)GAAP | $35.38M | – | – |
| Interest Income from Loans (nine months ended September 30, 2026)GAAP | $415K | – | – |
| Fees and Reimbursables (nine months ended September 30, 2026)GAAP | $629K | – | – |
| Depreciation and Amortization Expense (nine months ended September 30, 2026)GAAP | $13.45M | – | – |
| Total General and Administrative Expenses (nine months ended September 30, 2026)GAAP | $5.43M | – | – |
| Total Expenses (nine months ended September 30, 2026)GAAP | $19.96M | – | – |
| Income From Operations (nine months ended September 30, 2026)GAAP | $16.48M | – | – |
| Interest Expense (nine months ended September 30, 2026)GAAP | −$576K | – | – |
| Net Income (nine months ended September 30, 2026)GAAP | $16.12M | – | – |
| Net Income Attributable to Common Stockholders (nine months ended September 30, 2026)GAAP | $15.85M | – | – |
| Net Income Attributable to Common Stockholders Per Share - Diluted (nine months ended September 30, 2026)GAAP | $0.77 | – | – |
| FFO Attributable to Common Stockholders - Diluted (nine months ended September 30, 2026)non-GAAP | $29.56M | – | – |
| FFO per share - Diluted (nine months ended September 30, 2026)non-GAAP | $1.41 | – | – |
| AFFO Attributable to Common Stockholders - Diluted (nine months ended September 30, 2026)non-GAAP | $30.68M | – | approximately 7.6% decrease |
| AFFO per share - Diluted (nine months ended September 30, 2026)non-GAAP | $1.46 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Declared a third quarter 2026 cash dividend of $0.43 per share of common stock on September 14, 2026, equivalent to an annualized dividend of $1.72 per share; paid October 15, 2026 to holders of record on September 30, 2026.
- The filing states the dividend represents an AFFO payout ratio of 88%.
- Dividends and Distributions Payable were $9,041 thousand at September 30, 2026, versus $9,169 thousand at December 31, 2025.
- In November 2026, the Board authorized extending the expiration date of the stock repurchase program to December 31, 2028; approximately $8.2 million remains available for future repurchases under the program.
- No share repurchase amount for Q3 2026 or the nine months is printed in the filing.
What drove it
- The company states that the decrease in Q3 2026 total revenue was driven by the loss of rental income from three properties that became available for lease during 2025.
- The company states the Q3 revenue decrease was partially offset by annual contractual rent escalations, a full quarter of rental income from two Ohio dispensaries acquired in 2025 (including rent from funded tenant allowances), and rental income from the August 4, 2026 Kentucky dispensary acquisition.
- The company states the nine-month revenue decrease was driven by the same loss of rental income from three properties, partly offset by contractual escalations, a full nine months of rent from the two Ohio dispensaries, and the Kentucky acquisition.
- The company states the AFFO decline for Q3 and the nine months was primarily driven by the loss of rental income and additional property carrying costs associated with properties available for lease.
- The company recognized approximately $100.0 thousand of Cannabist security deposit forfeiture as rental income during Q3 2026, in connection with September 2026 lease termination agreements for the Aurora, Illinois cultivation facility.
- The company reports it collected 99.7% of contractual rent year to date.
- Q3 2026 Depreciation and Amortization Expense was $5,724 thousand versus $3,874 thousand in Q3 2025; the filing does not state a cause for this increase.
Concerns
- Total revenue declined 4.5% in Q3 2026 and 6.0% in the nine months, and AFFO declined approximately 6.3% and 7.6% respectively.
- Net income attributable to common stockholders fell to $4,176 thousand from $6,666 thousand in Q3 2025, and diluted EPS fell to $0.20 from $0.32.
- The AFFO payout ratio on the Q3 dividend is 88% per the filing, against Q3 AFFO per share of $0.49 and a dividend of $0.43 per share.
- Property Carrying Costs rose to $276 thousand from $145 thousand in Q3 2025.
- Cannabist remains in restructuring proceedings. The Aurora, Illinois lease termination remained pending as of September 30, 2026, and the company holds aggregate security deposits of approximately $381.5 thousand related to its other three Cannabist properties.
- Accumulated deficit increased to $(70,381) thousand from $(59,449) at December 31, 2025.
- Cover page of the release shows the ticker as "OCTQX: NLCP", while the header and the Form 8-K show NLCP. The filing does not explain the difference.
What to watch
- Closing of the pending Cannabist Aurora, Illinois lease termination and commencement of the new lease with the acquirer of Cannabist's cultivation operations.
- Whether the properties that became available for lease during 2025 are re-leased, given the company attributes the revenue and AFFO decline to their lost rental income.
- Rent collection and tenant performance, including the other three Cannabist properties and the PharmaCann Penn change of control with Cresco Labs Inc. as guarantor.
- Use of the approximately $8.2 million remaining repurchase authorization and the debt-free balance sheet, given the company's stated intent to pursue growth opportunities.
- Funding commitments for the Kentucky property (approximately $1.6 million) and the Michigan and Kentucky properties acquired after quarter end (approximately $1.7 million in property improvements).
- The AFFO payout ratio of 88% relative to the $1.72 annualized dividend in future quarters.
Balance sheet and cash flow
- Cash and cash equivalents were $17,860 thousand ($17.9 million) at September 30, 2026, versus $23,937 thousand at December 31, 2025.
- Revolving Credit Facility balance was $0 at September 30, 2026, versus $7,600 thousand at December 31, 2025. The company states it repaid $7.6 million during Q3 2026 and has no outstanding debt.
- The $90.0 million revolving credit facility was amended in August 2026: maturity extended from May 6, 2027 to May 6, 2029; variable rate set at the greater of the WSJ Prime Rate and 6.25%; the company states it was in compliance with covenants as of September 30, 2026.
- Total Assets were $402,031 thousand at September 30, 2026, versus $420,829 thousand at December 31, 2025.
- Total Liabilities were $17,901 thousand at September 30, 2026, versus $26,141 thousand at December 31, 2025.
- Total Stockholders' Equity was $377,574 thousand at September 30, 2026, versus $387,941 thousand at December 31, 2025.
- Accumulated Deficit was $(70,381) thousand at September 30, 2026, versus $(59,449) thousand at December 31, 2025.
- Gross real estate assets were $433.8 million, including one property classified as Real Estate Held for Sale, per the highlights section.
- Accumulated depreciation was $(68,019) thousand at September 30, 2026, versus $(57,916) thousand at December 31, 2025.
- Security Deposits were $6,664 thousand at September 30, 2026, versus $6,728 thousand at December 31, 2025.
- Operating cash flow, investing cash flow and financing cash flow are not included in the filing text provided.
Analysis
NewLake reported Q3 2026 total revenue of $12,024 thousand, a 4.5% decrease from $12,587 thousand in Q3 2025, and nine-month revenue of $36,420 thousand, a 6.0% decrease from $38,728 thousand. The company attributes the decline to the loss of rental income from three properties that became available for lease during 2025, partly offset by contractual escalations, a full period of rent from two Ohio dispensaries acquired in 2025, and rent from a Kentucky dispensary acquired on August 4, 2026. Rental Income was $11,828 thousand in Q3 2026 against $12,335 thousand a year earlier, and Fees and Reimbursables fell to $58 thousand from $115 thousand. The Q3 revenue figure includes approximately $100.0 thousand of Cannabist security deposit forfeiture that the company recognized as rental income.
Profitability fell more sharply than revenue. Q3 Total Expenses rose to $7,695 thousand from $5,682 thousand, with Depreciation and Amortization Expense of $5,724 thousand against $3,874 thousand and Property Carrying Costs of $276 thousand against $145 thousand. Income From Operations was $4,338 thousand against $6,916 thousand, and Net Income Attributable to Common Stockholders was $4,176 thousand, or $0.20 per diluted share, against $6,666 thousand, or $0.32. The filing does not state the cause of the depreciation increase. On a non-GAAP basis, FFO was $9,968 thousand ($0.47 per diluted share) against $10,651 thousand ($0.51), and AFFO was $10,332 thousand ($0.49) against $11,022 thousand ($0.52). The company states the AFFO decline was primarily driven by lost rental income and carrying costs on properties available for lease, and quantifies it at approximately 6.3% for the quarter and 7.6% for the nine months.
Capital allocation focused on the balance sheet and the dividend. The company repaid $7.6 million on its revolving credit facility and reports no outstanding borrowings at September 30, 2026, against $7,600 thousand at December 31, 2025. Cash was $17,860 thousand, down from $23,937 thousand at year-end 2025. The facility was amended to extend maturity to May 6, 2029, and the company states it was in compliance with covenants. The Q3 dividend of $0.43 per share was declared, and the filing states it represents an AFFO payout ratio of 88%. The company also extended its repurchase program to December 31, 2028, with approximately $8.2 million remaining, and it reports two acquisitions after quarter end with an aggregate purchase price of approximately $1.3 million plus approximately $1.7 million of committed improvements.
Tenant credit is the main area to watch. The company reports 99.7% year-to-date rent collection and says it collected all contractual rent from three of four Cannabist properties through September 30, 2026. The Aurora, Illinois lease termination remained pending at quarter end, and PharmaCann Penn's change of control added Cresco Labs Inc. as a guarantor. Total assets declined to $402,031 thousand from $420,829 thousand, with accumulated depreciation rising to $(68,019) thousand from $(57,916) thousand. The filing does not provide a cash flow statement, so operating cash flow cannot be assessed from this document.
Overall, the quarter shows a debt-free balance sheet, high reported rent collection and a stated focus on property-level cash flow, against lower revenue, lower FFO and AFFO, a high stated payout ratio and an unresolved Cannabist lease transition. Management describes the quarter as in line with its expectations, but the filing contains no prior outlook or guidance figures to test that statement against.
Management, verbatim
Our third quarter financial results were in line with our expectations, and year to date we collected 99.7% of contractual rent. Notably, we strengthened our balance sheet by repaying $7.6 million of debt, ending the quarter with no debt outstanding and $17.9 million in cash.
Anthony Coniglio, President and Chief Executive Officer
With a disciplined focus on property-level cash flow, a debt-free balance sheet and available credit capacity, we believe NewLake is well positioned to pursue growth opportunities as the cannabis regulatory landscape matures.
Anthony Coniglio, President and Chief Executive Officer
Not in the filing
stated, not guessed- No prior-period outlook or guidance was provided, so vs_prior_guidance is empty and no forward guidance is reported in the filing.
- Prior-quarter (Q2 2026) figures are not printed, so all qoq_change and prior_quarter fields are null.
- Year-over-year dollar changes for net income, EPS, FFO, AFFO, rental income, expenses and operating income are not printed as percentages in the filing, so those fields are null.
- Income tax expense or tax rate is not presented.
- Operating, investing and financing cash flows are not presented in the filing text.
- Q3 2026 share repurchase activity during the quarter is not stated.
- Segment or geographic revenue breakdown is not presented; the filing shows revenue by type only (rental income, loan interest, fees and reimbursables).
- Cash and balance sheet comparisons are against December 31, 2025, not against a prior-year quarter, so they are shown in balance_sheet_cash_flow and not as prior_year values.
- Non-GAAP FFO and AFFO are presented on a dilutive basis per the filing footnote; no non-dilutive figures are provided.
- Cover page ticker reads "OCTQX: NLCP", which differs from the NLCP ticker in the filing header; the filing does not explain it.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.