Newlake Capital at Sidoti Conference: Cannabis Real Estate Insights

On Thursday, 20 March 2025, Newlake Capital Partners (OTC Markets: NLCP) participated in the Sidoti Small-Cap Virtual Conference. Anthony Coniglio, the company’s President, CEO, and Founder, offered a strategic overview of Newlake’s role as a real estate capital provider to the cannabis industry. He highlighted both opportunities and challenges in the sector, emphasizing the company’s strong financial position and potential for growth despite current undervaluation.

Key Takeaways

• Newlake is a leading real estate provider to the cannabis industry, focusing on states with limited licenses for higher margins.
• The company maintains a low debt to EBITDA ratio and has increased its dividend by nearly 80% since its IPO in 2021.
• Despite moderated growth in the cannabis sector, Newlake remains optimistic about future expansion driven by legal sales and state-level legalization efforts.
• Newlake’s portfolio consists of 33 properties with long-term leases, providing a stable revenue stream.
• Potential federal cannabis reform and state-level initiatives could catalyze further growth.

Financial Results

Newlake Capital Partners, founded in February 2019 and public since 2021, has deployed almost $450 million in the cannabis real estate market. The company boasts a 12% yield on its real estate portfolio and has increased its dividend by nearly 80% since its IPO. The company’s low leverage, with only $7.6 million in debt outstanding, supports a robust AFFO payout ratio of 83% in dividends, retaining 17% for future growth.

Operational Updates

Newlake’s portfolio includes 33 properties, with 15 cultivation facilities and 18 dispensaries. The company’s underwriting approach prioritizes tenant quality, cannabis market dynamics, and real estate fundamentals. Its focus on limited license jurisdictions like Pennsylvania aims to achieve better margins. The company’s top tenants include Cresco, Curaleaf, and Trulieve, and it currently has 13 tenants in total.

Future Outlook

Newlake anticipates a 7% compounded annual growth rate in the cannabis industry through 2029. State-level catalysts such as new programs in Kentucky, Minnesota, and Pennsylvania’s transition to adult use are expected to drive growth. Although the pipeline isn’t as robust as two years ago, opportunities are expected to expand with developments in states like Kentucky and Ohio. The company is evaluating whether to use capital for new transactions or stock buybacks.

Q&A Highlights

During the Q&A session, potential state-level catalysts were discussed, including legalization efforts in Kentucky, Pennsylvania, Minnesota, and Georgia. Barriers to entry in the cannabis capital market have increased, limiting new competition. Ohio and Kentucky were highlighted as attractive states for new investments. Additionally, the Safe Banking Act could address digital payment laws and cash requirements, facilitating market growth.

Readers are encouraged to refer to the full transcript for a detailed account of the conference call.

Full transcript - Sidoti Small-Cap Virtual Conference:

Michael: We wanted to just share with you as we encourage questions. You’ll see a q and a box at the bottom of your screen. Type your questions in there, and, the management will respond. We have with us Anthony Coniglio, CEO of New Lake. Anthony, why don’t you get started?

Anthony Coniglio, President, CEO and Founder, New Lake Capital Partners: Great. Thank you very much, Michael, and thanks everybody for joining us today. My name again is Anthony Coniglio. I’m the President, CEO and Founder of New Lake Capital Partners. We are a leading real estate per capital provider to the cannabis industry, and so kind of a unique sector.

And what I wanna talk to you all about today, we could obviously read our safe harbor statement. What what I’m gonna talk today and try to move through in really twelve to fifteen minutes so we could open it up for q and a. I think that’s really the the great opportunity for the Sudoti Conferences to have that engagement. I’m gonna touch on our experience team, and it’s really important because it directly impacts the quality of the portfolio and the durability of our cash flows. We talk about cannabis as a growth story.

It is absolutely in a long term growth trajectory. We were one of the first early movers and that’s allowed us to create scale and actually have less competition today than we did when we started the company six years ago. We’ll talk about our portfolio as well as our financial position and we can certainly get on my favorite, but not so favorite topic of being undervalued versus peers. Before I get into the numbers, I do want to draw a contrast with potentially some of the other companies that you may be looking at with the Sidoti conference because we’ve done the conference great conference a couple of times, but we often hear from investors, boy, I’m surprised that you’re trading on the OTC. I’m surprised that you’re only in a small cap conference.

So I want to be clear, the reason we’re trading on the OTC is because we focus on the cannabis industry. We run our company to comply in all respects to be listed on New York or NASDAQ, but the only reason we’re not listed on those exchanges, they won’t have us because our tenant base is entirely the cannabis industry. We do have one competitor that’s listed on the New York Stock Exchange. They went public in 2016 and were grandfathered in. So some of you that know the sector may be thinking, why are they on and you’re not?

They were grandfathered in before the rules changed. And so again, we run our business to comply in all respects from a governance perspective with New York and NASDAQ requirements. We also from a financial profile perspective compared to a lot of companies, we’ve been profitable from the inception of our business. We’ve generated significant free cash flow last year, and we pay a dividend. We’ve raised our dividend nearly 80% since our IPO in 2021.

Percent, and I’ll talk a little bit about why that dividend yield is so high. So let’s hit us by the numbers. Founded in 02/2019, IPO’d in 2021, as I said, we have deployed almost $450,000,000 over the last six years. As a real estate investment trust, a key metric for us, for those of you not familiar with REITs, is our available funds from operation or AFFO. Let’s think of that as our measure of free cash flow.

And so what we did last year is we paid out 83% of our free cash flow in the form of dividends and obviously retained the other 17% on the balance sheet for future growth. Today, we have 33 properties. And so to understand our business, within those 33 properties, 15 of those properties are cultivation facilities and 18 of them are dispensaries. So those of you not familiar with cultivation or marijuana cultivation, don’t think outdoor. There is that segment and there are some people that grow, but this industry has become fairly sophisticated.

So when you hear us talk about cultivation facilities, while it’s 15 out of 33 properties, it’s 92 of our capital. Think industrial buildings. So these are 100,000, two hundred thousand square foot industrial buildings that have been modified or specialty built to grow cannabis in an indoor environment. They tend to have HVAC, water, and electric over and above what a normal industrial piece of real estate would have. And therefore, these properties have a premium value in the context of the cannabis industry.

So that’s our 33 properties. Because we’re focused on a nascent industry and a growth industry that’s highly regulated such as cannabis, we do get a premium on the rents that we charge, what we refer to as a cap rate. When you look at the yield on our real estate portfolio, it’s yielding 12% on revenue. So that’s before we even talk about what, what leverage we have. Just the raw investment dollars that we’ve put into these buildings in terms of rent is yielding us 12%.

So that’s a real premium over industrial and retail properties. And we’re getting that premium because of the risk profile of the customer base and that disconnect between state and federal law, which is really why we stepped in and there were few providers at the time. I wanna talk about our very low debt to EBITDA. We think this is probably the lowest levered real estate investment trust that’s publicly traded out there. We have $7,600,000 of debt outstanding on April of assets.

So almost not even levered up at all. We do have a long duration portfolio. Again, our model as a sale leaseback REIT is we purchase properties from and for the cannabis industry, and we enter into long term leases typically fifteen plus years. And the remaining weighted average lease term on our properties today is over thirteen years. So we have long duration with an above market yield, that’s generating that significant free cash flow that we have.

Talk about our team. You could look at the details. Suffice to say, our management team has significant experience across financial services, real estate, as well as banking, restructuring, etcetera. I do want to touch on our board though because when we started New Lake in 02/2016, ’1 of the things we recognized is this is not only a real estate business, it is very much a cannabis business. And we needed to make sure that we had expertise in cannabis within our organization.

Couple of people I’ll point out on these pages. One, Pete Cadence, who joined us from Green Thumb Industries. He was the founder and co CEO of that company. Really, really understood and understands the cannabis industry, the facilities, the licensing, the regulations, the balance sheet, the P and Ls, the people. And what we’ve worked what we’ve done over the last six years is institutionalized his knowledge in creating our underwriting approach.

I think that’s why we have, in my opinion, one of the best portfolios of anybody that focuses on providing capital to the cannabis industry. And so there would be Pete. Dina Roman recently joined us, also spent nearly a decade at GTI. On the previous page was Joyce Johnson, who’s a lead director at Air Strategies, another leading cannabis company. But we also have significant real estate experience, whether it’s Gordon Dugan on the previous page, our chairman, who has over thirty years of net lease REIT experience.

He was the CEO at WP Carey as well as Gramercy Property Trust and brings us decades along with Pete Cadence and David excuse me, along with Pete Marte and David Weinstein, decades and decades of real estate experience. And so we’re combining the real estate and the, cannabis experience to come up with an underwriting and portfolio management approach that we think has a differentiated performance versus any of our peers. So let’s talk about growth. Growth in the cannabis industry has moderated recently, but there are long term growth trends at at play here. And you can see that one of the leading organizations that tracks performance in the cannabis industry is showing that we should have a 7% compounded annual growth rate through 2029.

This growth will come as the market continues to expand, as the industry converts illicit sales into legal sales. And here’s where I wanna pause. What people don’t realize is there is a very significant, cannabis market today in The United States. It’s estimated to be over $100,000,000,000 The problem is two thirds of that roughly is sitting in the illicit market. So part of this story is about converting those illicit sales into the legal channel.

And so we see as states continue to legalize for medical and recreational purposes, as we sit here today, nearly half the country, resides in a state that has recreational cannabis that’s accessible to its residents. So we’re gonna continue to see these states turn on, again, medical and recreation, and that’s gonna be part of fueling that growth as well as that conversion from, from the illicit channel to the legal channel. One of the interesting underlying trends here is this conversion of a younger cohort moving away from alcohol and to cannabis as a way to obtain the effect that they’re looking for, whether it be on a Thursday, Friday, Saturday night. Not only are people consuming cannabis to help sleep, for other medical purposes, to help deal with nausea, vomiting, whether it’s a cancer patient or anxiety and depression or as a way to move off of opiates, but we are seeing cannabis step in as a replacement and I would argue a healthier replacement to alcohol. And that trend has been occurring and we think that trend will continue and will add to the state turn ons and add to the growth in the category.

Couple of catalyst here, and I’m gonna talk for five more minutes and we’ll open it up for Q and A. So I hope you’re populating the Q and A. That’s the the better part of this session is when we get to interact. A few catalyst at the federal level. It’s great to see that there’s potential reform across all three segments of our federal government.

So in the administrative segment, you’ve got for the first time ever, you had both presidential candidates in the last election embracing cannabis and supporting cannabis reform. President Trump supported recreational cannabis in Florida where he’s a resident, and he said he was voting for recreational cannabis in the state. He also supports the rescheduling of cannabis to schedule three as well as various legislation that has been proposed over the past couple of congresses, that could have meaningful change for the industry. Within the legislative segment of our government, we do see that legislation getting proposed each congress. And so we’ll see what happens under this administration.

We’ve certainly been disappointed in previous administrations, but heading into the election and voicing specific support for some of these acts, we think we could see in this administration some movement, in Congress. And then within the legal channel, let’s not ignore that there are various legal routes, various legal processes unfolding. Two of note, one, very popularly, David Boyse, who is a a very famous, and well regarded lawyer who has argued in front of the Supreme Court, has taken on a case in the state of Massachusetts where the plaintiffs are arguing that the Controlled Substances Act, in terms of its ability to regulate cannabis within state lines is unconstitutional. They have made their way through a couple of circuit courts, and now they’re in the appellate federal appellate court. And this case is designed to get to the Supreme Court.

And in fact, one of the Supreme Court justices, justice Thomas, really invited this type of case a few years ago in one of his dissenting opinions, for another cannabis related case that they that the court decided not to take. So we’ll have to watch that one. It could be really interesting because some of the low of the lower courts said there is a case there. They just don’t have the authority to overturn a Supreme Court precedent. And so it’ll be interesting to see how it gets to the Supreme Court.

In addition, we’re following very closely various cases around the country and various, federal circuit courts around gun rights. We have, a number of federal circuit courts have ruled that the federal government cannot take away your second amendment rights, and some federal circuit courts have said it is constitutional, that you could allow a state legal cannabis user to be prohibited from possessing firearms. So we have that disconnect in the federal circuit court, and that’s really ripe again to get to the Supreme Court and have the Supreme Court adjudicate what would what would happen. So my takeaway from this is there’s many catalysts for additional cannabis reform on the horizon. It’s great to see all three branches, getting involved.

I’m gonna skip over our our our port we’ll stop briefly on our portfolio of overview. I wanna get to questions. We have 13 tenants. We have our top three tenants are some of the leading tenants in the industry, Cresco, Curaleaf, and Trulieve. These are companies that reported earlier.

Trulieve in particular I’d note has significant gross margins generating free cash flow. These are companies that are certainly leaders in the industry and we think will be the long term winners in the sector. When we look at our underwriting approach, this really is key. I talked to an investor recently and they said, wow, you put up 10% AFFO per share growth in 2024 in the face of what was very, very difficult cannabis environment. What did you do in ’24 that allowed you to have such great performance and outperformance versus peers?

My comment was, we didn’t do anything in ’24 that did that. It was really what we did in ’21 and ’22 in making the right investment decisions in the previous years that set us up to be able to collect rent, and deliver that performance for our shareholders. And there’s three key pillars to our underwriting approach. Obviously, tenant quality because these are long duration contracts that we enter into the leases. But importantly, within tenant quality, it’s that tenant’s ability to survive within that state construct, be able to grow and be able to raise capital.

And so we take our collective experience to make that assessment. Number two, the cannabis market. We’ve been focusing since inception on limited license jurisdictions. And you can see in the chart here that some jurisdictions like in Oregon or Washington state, these they have thousands of operators. So it’s a lot of competition, very low margin, very difficult to be profitable.

But if you focus on state like Pennsylvania, one of our top three states, where there’s a limited number of operators, means better margins, better cash flow, better ability to pay rent. Also, it means that we’ll have the opportunity to repurpose that property to another cannabis user because that that license in and of itself has intrinsic value and that we will see demand. And that’s how we’ve seen by and large this play out over the last three years during the difficult period of the industry. And then, of course, real estate. We’re always looking at the real estate, its value within the cannabis ecosystem, but also its value away from the cannabis arena if ever we had to repurpose it away from cannabis.

And importantly, within this segment, we focus on EBITDAR. That’s EBITDA plus rent. We want to make sure that that property can generate sufficient free cash flow over the term of the lease to be able to pay rent. It’s a simple concept, but critically important in underwriting the industry. And when you look at most of the problems that have occurred across our competitive landscape in their portfolios, I think it’s been lack of EBITDAR that has created those issues.

Let me skip over some of our portfolio statistics because I do want to get to Q and A, but I’d like to close out on being undervalued versus our peers. So again, here on every metric, I would view that we’re undervalued versus our direct equity REIT peer or even our mortgage REIT peer. And so people say, but, alright, Anthony, you have over a 10% dividend yield. That means one of two things. It either means you have a leverage problem or you have a terrible portfolio.

Well, at an 83% payout ratio, the inverse of that means 17% of our portfolio can stop paying rent. We could still cover our dividend. And I do think we have one of the best portfolios in the industry. I’d put it up against anybody’s. So I don’t think it’s a portfolio issue.

And from a leverage perspective, 0.2 times debt to EBITDAR, $7,000,000 of debt on $430,000,000 4 40 million dollars of assets. So it’s not a debt problem. So people say, well, then why are you trading at such a high dividend yield? And it’s all about the exchange. It’s all about the liquidity.

Because we’re traded on the OTC, there’s limited custody available, which limits the institutional bid. And so here’s the opportunity for the smaller organizations and the retail investors out there who can step in front of that institutional demand before those catalysts occur. We could get uplisted to an exchange that allows institutions to participate. And so there were some real technical features that are keeping us on the OTC and keeping the liquidity down and keeping, this valuation inversion at play. With that, I do want to open it up for q and a.

I’m gonna stop sharing so I can see the questions. Okay. Can you share some potential state level catalysts which may be most beneficial? Yeah. I’d love to share actually a couple of statistics.

In the last election, Florida was voting for recreational cannabis, and the governor, DeSantis, ran very, very hard against the, against the ballot initiative. But it still received over a majority, even with the governor running so hard, received 53, 50 four percent approval. It needed 60% to amend the state constitution. So it failed, but it absolutely garnered a majority of support. Also, Missouri, a couple of years ago, again, a red state, Missouri approved legalizing recreational cannabis at the ballot box with, I think, it was 57% of, of voters approving.

Kentucky, which announced a medical marijuana program last year at the ballot box this past November, voters had the opportunity to say if they wanted a cannabis business in their community. Of the 106 communities within Kentucky that went to the ballot box to to vote on a cannabis initiative, every single one of those supported, having cannabis businesses in their area. And that’s significant because there’s very much a NIMBY element to that ballot, to that ballot question. And so all of them passed, some of them with as much as 70% were support. Again, Kentucky being a red state.

And so Kentucky is a catalyst. They’re going to put a new program in place, that was announced last year that they started handing out licenses, and so that’s one of those states. Pennsylvania converting from medical to adult use is another exciting catalyst for the industry. The governor’s proposed it in his budget this year, and it’s being talked about in the state house, and we’ll see if they can get that done. But with five of six border states having adult use cannabis, Pennsylvania really is left out, particularly with its key competitor, Ohio, in terms of not having a, an adult use program.

Minnesota is set to launch their adult use program hopefully later this year, and there are other states that are looking at various programs. We know Virginia’s put a adult use bill on the governor’s desk. We actually don’t think he’s gonna sign it, but we do see more and more states taking on, cannabis reform or even, Georgia, as an example, has a medical program and is currently considering expanding the conditions available, for medical marijuana to be prescribed, which would significantly expand the availability of product in that state. How has the competitive landscape changed, evolved, and have the barriers to entry changed? I think the barriers to entry have completely changed.

I have not seen a new competitor get created for this sector in years, literally in a couple of years. And I’ve been around, you know, I’ve been at it for over thirty five years, various businesses. I’ve not seen a business that has fewer competitors six years after it started. And that’s really a testament to the portfolio. There are a number of competitors that started in 2019, ’20 ’20 that had portfolio issues and have not had the opportunity to continue to persist, gather capital the way we have and have the capital availability to continue doing transactions.

In fact, we closed the transaction in the first quarter that we announced. It was a dispensary for Cresco. So the competitive landscape has only shrunk, expanding our opportunity to invest. What states currently look most attractive for new investments? I’d say Ohio is interesting to see as that adult use program continues to grow.

And in fact, that is that deal I just mentioned was in Ohio for the dispensary. I think Kentucky can be pretty exciting. It looks like it’s going to be set up as a limited license jurisdiction. And so we think there’s some real good opportunities in Kentucky in the near term. Can you talk about cultivation versus dispensary profitability?

Sure. First off, we like both cultivation and dispensary properties. We like investing across the ecosystem. In terms of profitability, unfortunately, it depends. It depends on the state.

It also depends on the operator. And it depends on how that state is set up. For vertically integrated companies, typically, we see some of the best margins. The example I would show you is is Trulieve. They have some of the better margins in the industry and they’re vertically integrated in Florida.

It’s their home state. They’re the largest in the state of Florida. And it allows you by selling into your own retail outlet, it allows you to preserve margin for your own bottom line. And so we look we very much look from credit perspective at those vertically integrated platforms as having a better, a better platform. But there are some states, like Massachusetts where they limit the number of dispensaries you can have.

And so if your cultivation isn’t sized properly for your distribution capability, you can end up having to sell into the wholesale market at lower margins. And so I apologize, but it’s a little bit of a depends there. And it’s a key part of what we look at when we’re underwriting transactions. What does your pipeline of deals look like? Pipeline in this industry is variable.

I would say our pipeline isn’t as robust as it was two years ago. And part of that is the CapEx cycle has diminished for the industry. If you went back a couple of years ago, we were having more build out in Florida, we were having more build out in Pennsylvania. People were getting excited heading into the Ohio ballot initiative. Missouri was getting off the ground.

There were many more state initiatives that were driving demand for real estate capital. We just have fewer initiatives today. And so we’re looking now at at what would be a smaller pipeline relative to where it was a few years ago. We think that pipeline will evolve and expand as Kentucky starts to get ramped up, as Ohio launches more of what we would call a traditional product set for an adult use market as we see New York really get its feet under it for a, for an adult use program. How has how is how is the pricing dynamic evolved?

And is there much in the way of pricing power to the end consumer? Again, that is a state specific question. If you were to look at at Florida well, you look at most states. As you see more and more dispensaries, come into the state and open up in a state, you actually see pricing to the end consumer go down, as you get more competition. Interestingly, you actually start to see volumes go up and sales go up because the lower the price point, the easier the conversion from the illicit market, and and the more cost competitive, legal product can be with an illicit product.

And so those dynamics do play out from state to state, but they vary. An example of how significant it varies, Michigan pricing there is significant competition in Michigan given the unlimited nature of the licensing. So there’s a lot of retail outlets there. And from Illinois with more limited license construct, the pricing is higher. And so you get some Illinois residents going over to Michigan in order to take advantage of a more competitive pricing environment.

Have you been active on the share repurchase program, and how do you view that use of capital versus other options? So I can’t speak to what we’ve been doing in the first quarter. We did report in the fourth quarter that we had not yet tapped into our share repurchase program during 2024. But, if you were to go back in previous years, we did aggressively utilize our share repurchase program when we think our stock is undervalued. And we’re always looking from a corporate finance perspective, we’re always looking at utilizing our capital to invest in a new property, or to invest in our own stock and and make a accretive acquisitions.

And the last time around when we deployed over $10,000,000 in our stock repurchase program, the average repurchase price was about $13.13.01 dollars creating significant value for our investors. And so we’re not afraid to use it and we’re always looking at deals deciding is it a better return for our investors to utilize that capital in new transactions or to be buying back our stock. Is there an adequate level of talent and expertise available within the industry in order to support the long term growth rates forecasted? Yes, I do believe that. And it’s it’s part of what we do in our underwriting process.

And the more that cannabis becomes normalized, the more we see people attracted to the industry. People are surprised that there’s nearly a half a million people employed by the legal cannabis industry in The United States. It’s a significant component of job or was a significant component of job growth over the last five to seven years. And with the normalization of cannabis and when we see positive articles in the New York Times or recently over the weekend, the Wall Street Journal ran a very positive article on the Missouri market. As we see this industry more mainstreamed and more normalized, we see really talented individuals coming from outside the industry in financials and in leadership roles that I think will be part of growing this industry into the future.

Some great questions. Some great questions.

Michael: If you don’t mind mind one more, Anthony, by way Please, Michael.

Anthony Coniglio, President, CEO and Founder, New Lake Capital Partners: I’d love it.

Michael: We’re heading out of time. Could you just summarize the value proposition for New Lake? Why should an investor consider investing in your company and why now?

Anthony Coniglio, President, CEO and Founder, New Lake Capital Partners: Yes. So I go back to the dividend yield. And at well over 10% with a well covered dividend, an 83% payout ratio, we believe that dividend is safe for investors. And with those catalysts on the horizon that I talked about across all three branches of our government, we think investors are getting well rewarded to wait for those catalysts and to be in front of those institutional investors. And there’s a drop down on our website.

Because of the custody issue I was talking about before, we do have a page on our about about the company, which is where you can buy our stock. Charles Schwab is where I’ve bought my secondary purchase shares. We know people have purchased at Fidelity, and other platforms, Stonex as well as Interactive Brokers, but there is a drop down of organizations. And so that value proposition is investing in a business with a very attractive yield that’s very well covered, one of the best portfolios in the industry that focuses on cannabis, and you get paid for those catalysts that are on the horizon, whether they be legislative or administrative in nature.

Michael: It looks like we have time to squeeze in one more question. Could we just come back to the illicit market, you know, two thirds of the volume? What’s the catalyst that will convert that illicit market into the legal market?

Anthony Coniglio, President, CEO and Founder, New Lake Capital Partners: Safety, I think, is a is a big one. When I talk to people, I think a lot of us probably know people who’ve got their guy, as as they would say, or have been consuming cannabis out of the illicit market. But when I talk to people, they’d rather buy a product that’s been tested, and they know exactly where it’s coming from. And so safety is a key concern as well as price point. And so as the price comes down, you see the illicit market diminishing in relevance.

We’ve seen that happen in Germany. Quite frankly, Germany legalized last year and you saw a significant transition from the illicit market to the legal market. It also helps that, it’s being covered under insurance in Germany. We’ve seen similar dynamics in Canada as well, our friends to the north when they legalized in 02/2018. That price point came down significantly and really converted.

So I think it’s about safety and it’s about price. And I see a question here. Do you see any potential changes in digital payment laws and the cash requirement situation? I do. And I think that would come with the Safe Banking Act.

This is an act that’s passed Congress eight times, but never passed the Senate. It did have a hearing and passed out of committee, the banking committee in 2023, but never was brought to the floor by Schumer for a floor vote. So if you were to get the safe banking act, that that that act is entirely about getting well, it’s not entirely anymore, but but it was created about getting this industry out of cash and into the traditional payment system. The reason I say not entirely is because, the only thing that’s been added was debanking. We all know at the beginning of this administration, debanking and in January, February, there are a lot of hearings around debanking.

So debanking is part of safe banking, but also getting cash out of the system. And I do want to address one potential misnomer. Some people think we take cash for rent. If you can’t figure out how to get banks, there’s over 500 banks that serve the cannabis industry today. If you can’t figure out banking, you shouldn’t be a tenant of ours.

So we get all of our rent through traditional wires.

Michael: Terrific. Excellent presentation, Anthony. Thank you very much, Anthony and New Lake Capital, and thank you all for joining us.

Anthony Coniglio, President, CEO and Founder, New Lake Capital Partners: Thank you, Michael. Appreciate having you, and thank you everybody for the great questions. Newlake.com.

Michael: Great.

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