Newlake Cap Partners Inc

good morning i'll be your conference operator today at this time i'd like to welcome everyone to the new lake capital partners fourth quarter and full year 2022 earnings conference call today's call is being recorded i will now turn the call over to walter pinto managing director of kcsa strategic communications please go ahead thank you operator good morning and welcome everyone the new lake capital partners fourth quarter and full year

2022 Earnings Conference Call. I'm joined today by Gordon Dugan, Chairman of the Board, Anthony Coniglio, President and Chief Executive Officer, Lisa Meyer, Chief Financial Officer, and Jared Annenberg, Senior Vice President and Head of Investment. Before we begin, I'd like to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. and actual results may differ materially due to a variety of risks and uncertainties and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I refer you to the press release issued yesterday evening and filed with the SEC on Form 8-K, as well as the company's 10-K and other reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. FFO and AFFO are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common shareholders to FFO and AFFO and definitions of terms are included at the end of our press release. Please refer to that press release for more information. The company's guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in the company's filings with the SEC. This outlook reflects management's view of current and future market conditions, including assumptions such as the pace of future acquisitions and dispositions, rental rates, occupancy levels, leasing activity, uncollectible rents, operating and general administrative expenses, weighted average diluted shares outstanding, and interest rates. With that, it's my pleasure to turn the call over to Mr. Gordon DeGann. Gordon, please go ahead.

Thanks, Walter, and good morning, and thank you all for joining our call. During 2022, New Lake delivered outstanding financial results despite a challenging year for the cannabis industry, which continues into this year. With 100% of 2022 rent collected, our annual revenue grew nearly 60%, and our annual AFFO grew more than 75% versus the prior year. Additionally, we continue to consistently raise our dividend each quarter during the year. And in fact, our fourth quarter dividend, which was paid in January, was our sixth consecutive quarterly increase to $0.39 per share of common stock or $1.56 annualized. These are impressive results in any year, but particularly so in a year where the sector experienced such significant headwinds. And as many of you have heard me say, I like to think of our business model supplying the shovels and picks. We give the cannabis industry capital and capacity through our real estate transactions, and that will continue to be a very important part of the cannabis sector going forward. I would also like to point out, if you look at our income statement, our revenue of roughly $44.8 million and AFFO of $38.7 million. Those are the best margins of any REIT So, you know, we have a terrific business model as we drive very significant earnings from the revenues we receive. We are proud of these results and believe we have benefited from a rigorous underwriting process developed over the years. Having said that, we are cognizant of the continuing challenges in the cannabis sector, some of which will impact our Q1 2023 revenue. While we have had an impressive track record since the company's founding four years ago, New Lake is not immune to the issues surrounding the cannabis sector. While there have been ups and downs for the cannabis industry in the past, the sector is going through a particularly difficult period. We can't underestimate the difficult environment the operators are enduring. However, if we've learned anything from our collective experience in observing other industries that have gone through similar difficulties, it's those operators that make it to the other side that are well-positioned to dominate the industry for years to come. Now more than ever, it's critical to work with the operators that will truly be the long-term winners in this sector. Having said that, my conviction remains very strong regarding the long-term growth of this industry. The cannabis industry has evolved from sales of $15 billion in 2019 when we started the company to over $26 billion in 2022. And according to Cowen Securities, they expect the U.S. cannabis market to be in excess of $40 billion by 2027. There are few industries that continue to present such attractive growth dynamics, and New Lake will be a key real estate partner for the industry as it scales up by providing attractive non-dilutive capital. I believe our team is well positioned to navigate the credit challenges of today and take advantage of the growth prospects ahead. We benefit from an experienced management team and board, that collectively have diverse backgrounds and expertise in real estate, cannabis, and financial services. In particular, we have a number of team members with significant backgrounds in distressed asset investments and restructuring, which is particularly beneficial in dealing with the issues that may arise in our portfolio. I would recommend that anyone go on our website and look specifically at Joyce Johnson and Alan Carr's resumes as they're both very experienced workout people. We utilize this cumulative experience to manage through difficult situations and maximize long-term value for shareholders. Before I turn it over to Anthony, I just want to say, I think despite the difficulty in the cannabis industry currently, we are extremely well positioned. We have no debt to speak of, essentially. We have a reasonable payout ratio on our dividend, which we have managed conservatively. and we have a $90 million credit facility available to us, so tons of liquidity and capital available to take advantage of opportunities. With that, I'll turn the call over to Anthony.