Newlake Cap Partners Inc

Good morning. I will be your conference operator today. At this time, I would like to welcome everyone to the New Lake Capital Partners First Quarter 2024 Earnings Conference Call. Today's call is being recorded. I would now like to turn a call over to Walter Pinto, Managing Director of KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good morning and welcome everyone to the New Lake Capital Partners First Quarter 2024 Earnings earnings conference call. I'm joined today by Gordon Dugan, Chairman, Anthony Coniglio, President and Chief Executive Officer, Lisa Meyer, Chief Financial Officer, and Jared 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 SEC on Form 8K, as well as the company's 10Q 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 the risks and uncertainties more fully described in 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 diluted 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. It's an exciting time in the cannabis industry. Recent news regarding the DEA's forthcoming proposed rule to reschedule cannabis from Schedule 1 to Schedule 3 has created significant buzz around the industry and on Capitol Hill. While there is still a lot of work to be done by the DEA before their proposed rule becomes final, it is a very significant milestone for the cannabis industry and those serving it, such as New Lake. Anthony will discuss this further in a minute. Turning to the first quarter of 2024, we are very pleased with our Q1 results, which underscored a credit quality, resilience, and strength of our portfolio. New York delivered, New Lake delivered very strong growth in AFFO of over 10%, reflecting our consistent performance and strategic execution. Moreover, we were proud to have increased our quarterly dividend to shareholders to 41 cents a share, or $1.64 a share annualized. following a similar increase in the fourth quarter of 2023. These consistent dividend hikes reflect our dedication to delivering attractive returns to our shareholders while prioritizing prudent investment in our future, signaling our confidence in the stability and growth prospects of our business. Earlier this week, we unveiled a new transaction with our existing tenant, C3 Industries, which will fuel future growth in AFFO while maintaining a REIT industry low leverage profile It has been a very solid start to the year for New Lake. Turning to the cannabis market, it's no secret that the industry has faced challenges in recent times while awaiting federal reform. While the sector continues to navigate regulatory hurdles and market dynamics, we remain vigilant and proactive in our approach. Our investment thesis is always centered on identifying resilient operators that will be long-term winners in the sector, and our portfolio's performance speaks to the validity of this approach. We maintain our conviction that federal reform is a matter of when, not if. As we look to the future, we see ample opportunities for growth. With only $4 million of debt and over $85 million available to us under our current credit facility, which has a very attractive interest rate and does not mature until 2027, we are in very good position to remain patient and invest capital into quality transactions. while maintaining steady cash flow for our portfolio. With that, I'll turn the call over to Anthony.