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Posted by
Two Blokes Jun 9 -
Filed in
Stock
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9 views
NewLake Capital Partners, Inc. offers a compelling double-digit yield, reflecting market pessimism over tenant risk and regulatory delays, but I believe the balance sheet provides a strong margin of safety. Despite tenant volatility and sector headwinds, NLCP's conservative leverage and high profit margins position it to weather even severe downturns in the cannabis REIT space. The current steep NLCP discount and 12% yield are overdone; even in draconian rent-cut scenarios, downside appears limited compared to NNN REIT peers.
