Newlake Cap Partners Inc

Good morning. I will be your conference operator today. At this time, I would like to welcome everyone to Newly Capital Partners' third quarter 2023 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 Newly Capital Partners' third quarter 2023 earnings conference call. I'm joined today by Gordon Dugan, Chairman Anthony Coniglio, President and Chief Executive Officer, Lisa Meyer, Chief Financial Officer, and Jarrett Annenberg, Senior Vice President and Head of Investments. 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 this morning and filed with the FCC on Form 8K, as well as the company's 10-K, 10-Q, and other reports filed periodically with the FCC. The committee 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 using 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. We're fully describing the company's filings with the U.S. Securities and Exchange Commission. 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 dilutive shares outstanding, and interest rates. With that, it's my pleasure to turn the call over to Mr. Gordon Dugan. Gordon, please go ahead.

Thank you, Walter, and thank you, everyone, for joining our call today. During a period of volatility in the markets broadly, in the cannabis industry specifically, we are pleased with our 2023 third quarter results, which were in line with the guidance we provided last quarter. For the quarter, we maintained our dividend of 39 cents per share, which was well covered with a payout ratio of 82% for the quarter. After a period of increasing our dividends since going public in 2021, we have maintained our dividend during 2023 as we navigate the challenging environment for the cannabis industry. Also, during 2023, we have maintained our payout ratio within our previously stated range of 80 to 90%. Our balance sheet remains very strong. Today, we are operating effectively with no leverage and ample capacity to invest in the cannabis sector when we determine that the risk profile and return dynamics will create value for our investors. Until then, we have taken the opportunity to create value for our shareholders by investing in our own stock at accretive prices during the quarter and authorizing a second $10 million tranche of capital to continue doing so at these levels. We continue to believe in the long-term investment opportunities around cannabis real estate, but we'll continue to seek opportunities to create value through our repurchase program. It is important to note that we recently announced an amendment with one of our tenants, Revolutionary Clinics. I am pleased the team was able to diligently work through the issues to get a good outcome for our shareholders. Jarrett will provide more details in a moment. But as we have commented many times, we know there will always be the potential for portfolio issues in the net lease business in general and in the cannabis net lease business specifically. And coming up with solutions is important to maximizing value for our shareholders. That's what we've done in the case of Revolutionary Clinics, we believe, and we're pleased to see this property once again generating income for our shareholders. and brought to a successful conclusion at this point. More broadly, though, the cannabis industry continues to work through this period of retrenchment, and I applaud those tenants of ours that have worked hard to address not only their cost structure, but near-term debt maturities, and in one case, issuing equity to pay off debt. I continue to believe this period of difficulty will serve to separate the wheat from the chaff and the survivors will be long-term winners in this sector. While headwinds remain, I continue to believe in the long-term growth prospects for the industry and see potential catalysts in the form of DEA rescheduling and the recently filed lawsuit by the industry challenging the federal government's ability to regulate interstate commerce for cannabis. While these initiatives take time, it is undeniable that the march towards a more constructive federal regulatory scheme continues. With that, I'll turn it over to Anthony.