Newlake Cap Partners Inc

Good morning and welcome to the New Lake Capital Partners Second Quarter 2026 Earnings Conference Call. Today's call is being recorded. I will now turn the call over to Walter Pinto, Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to the New Lake Capital Partners Second Quarter 2026 Financial Results Conference Call. Joining me on the call today are Anthony Coniglio, President and Chief Executive Officer, and Lisa Meyer, Chief Financial Officer. Before we begin, please note that certain statements made during today's call may be considered forward-looking under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks and uncertainties. For more detailed discussion of these factors, please refer to the company's filings with the Securities and Exchange Commission, including our Form 10-Q for the quarter ended June 30th, 2026. During the call, we'll also reference non-GAAP financial measures, including FFO, and AFFO. Reconciliations to most directly comparable GAAP measures are included in our earnings release. With that, I'd now like to turn the call over to Anthony Coniglio, President and Chief Executive Officer. Please go ahead, Anthony.

Thank you, Walter, and good morning, everyone. The past few months have been among the most constructive for the cannabis industry that we've seen in some time. The rescheduling of medical cannabis to schedule three, the continued momentum toward broader reform and the New York Stock Exchange listings of truly even glass house are all meaningful milestones that reflect the continued normalization of the industry. While additional reform is still needed before the industry has unfettered access to the U.S. capital markets, We are encouraged by the progress made over the last several months and believe it represents an important step towards a more stable and sustainable operating environment. As I mentioned on our last call, the impact of medical rescheduling extends beyond the elimination of 280E taxation. DEA registration transforms registered medical cannabis operators into federally legal businesses. all of our tenants operating medical only facilities, which represents approximately 50% of our portfolio, have indicated that they've submitted applications for DEA registrations. We view this as another important step toward broader institutional participation and improved access to capital markets, including the potential for listing on major US exchanges. Against this backdrop, New Lake delivered another solid quarter. Revenue and AFFO were in line with our expectations, and our AFFO payout ratio was 88% for the quarter, supporting our 43% per share dividend and within our guided range of 80% to 90%. Our portfolio continues to demonstrate the resilience that comes from disciplined underwriting, conservative balance sheet management, and our focus on property-level performance. Turning to our portfolio, we continue to closely monitor developments related to our tenant, the cannabis. As we discussed last quarter, the cannabis filed for bankruptcy in Canada earlier this year and has been working through a court supervised process. We lease four properties to the cannabis, including a dispensary and cultivation facility in Illinois and a dispensary and cultivation facility in Massachusetts. Recently, Vireo Growth announced the acquisition of certain assets from the cannabis across five markets, including Illinois and Massachusetts. The cannabis remains current through and including August rent, and we're actively engaged with the cannabis and other parties to minimize the potential for rent disruption at our properties. We will update stakeholders as we have more definitive information to share. We continue to hold approximately one month of security deposit across those properties. Turning to investment activity, we are excited to have recently closed on a $2.1 million transaction for a 3,200 square foot dispensary in Wilder, Kentucky, which will be leased to C3 Industries. This transaction expands our presence into Kentucky's emerging medical cannabis market and will be accretive to earnings. More importantly, it reflects a pipeline that has become increasingly active over the past several months. More broadly, We are seeing renewed optimism across the industry regarding opportunities to deploy capital, pursue growth initiatives and participate in industry consolidation. As a result, we're actively evaluating new investments. That said, our underwriting standards remain unchanged. We will continue to be disciplined and selective, prioritizing capital preservation and risk-adjusted returns over growth for growth's sake. Our three properties available for lease continue to be actively marketed. While retenanting opportunities do take time to develop, the quality and pace of discussions have improved over the past few months. Looking ahead, we believe there's a growing stack of potential catalysts for the industry. These include medical rescheduling, progress towards broader rescheduling of cannabis, exchange listing opportunities for plant touching businesses, potential for banking reform, and increasing scrutiny of intoxicating hemp derived products. While the timing and outcome of these developments remain uncertain, we believe the direction of travel continues to be favorable for the industry. I'd also like to address a topic where we've received a number of questions about following the New York Stock Exchange listings of Trulieve and Glasshouse. We're not announcing anything today, but we are actively evaluating whether there is a path for New Lake to uplist to a major exchange. To remind our investors, New Lake satisfies the listing requirements for both the NYSE and NASDAQ other than the exchange's restrictions on cannabis-related businesses. As regulatory developments continue to unfold, we'll continue evaluating potential paths forward so that we are prepared to act if and when the opportunity becomes available. While no decisions have been made, we do believe that the broader exchange access would create additional value for our shareholders over time. Finally, subsequent to quarter end, we extended the maturity of our revolving credit facility to May 2029 while lowering our borrowing costs and enhancing our financial flexibility. In an environment where capital for the cannabis sector remains scarce and expensive, our ability to extend our credit facility on improved terms while continuing to pursue accretive investment opportunities speaks to the strength of our balance sheet, the quality of our portfolio, and the confidence our lending partners have in our business. Before turning the call over to Lisa, I'd like to recognize David Weinstein, who stepped down from our board of directors at the end of July. David has been part of New Lake since our founding in 2019 and served as chief executive officer through the company's transition to the public markets. On behalf of our board, management team, and shareholders, I want to thank David for his years of service and many contributions to the company. We wish him all the best in his future endeavors. With that, I'll turn the call over to Lisa to review our financial results in more detail.