NewLake Capital Partners: This Double-Digit Yield Cannabis REIT Is Just Getting Started

IWA Research2.46K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryNewLake Capital Partners is reiterated as a Strong Buy, driven by robust AFFO, prudent management, and a nearly debt-free balance sheet.NLCP offers a sustainable double-digit dividend yield with an ~82.5% payout ratio, underpinned by resilient financials and long-term leases.Recent cannabis rescheduling and federal policy shifts present major catalysts for the industry, enhancing tenant stability and long-term industry prospects for NLCP.Despite macro headwinds and tenant concentration risks, NLCP's intrinsic value is estimated well above current levels even when using conservative estimates. Tinnakorn Jorruang/iStock via Getty Images Introduction The last time I covered NewLake Capital Partners (NLCP), I reiterated their Strong Buy rating, backed by significant undervaluation, a sustainable double-digit yield, and a nearly spotless balance sheet, with one of the lowest leverageThis article was written byIWA Research2.46K FollowersFollowI've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NLCP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.