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

Impact · against what's priced in

NLCP presents a high-convexity play where the current valuation reflects a deep discount due to regulatory constraints. The potential for a valuation rerating to 15x AFFO upon cannabis reclassification provides a significant catalyst that exceeds current market pricing.

NLCP+0.70

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In context

The combination of a 12% dividend yield and a valuation of 0.75x book value offers a strong floor, while regulatory reclassification could double the valuation to 15x AFFO.

Read from the article alone

• valuation
• NLCP
• cannabis
• high yield
• otcqx
• regulatory change
• reit

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