NewLake Capital Partners: A Regulatory Arbitrage Play With A Very Attractive Risk-Reward

NewLake Capital Partners offers high-yield REIT exposure to the cannabis sector, currently yielding over 12% with a healthy 84% payout ratio. NLCP trades at a significant discount (~0.75x book, 7x AFFO) due to OTCQX listing and regulatory overhang, providing a margin of safety. Regulatory reclassification of cannabis could double NLCP's valuation (to 15x AFFO), enable NYSE listing, and compress yields to ~8%.