NewLake Capital Partners, Inc.

General

We derive substantially all our revenue from rents received from single tenants at each of our 34 properties, all of which are under triple-net leases. As of September 30, 2025, our portfolio remains conservatively leveraged, with only $7.6 million outstanding under our Revolving Credit Facility. Additionally, we maintain low general and administrative expense with an annualized ratio of 1.2% of total assets.

Comparison of the three months ended September 30, 2025 and 2024 (in thousands):

Revenues

Rental income for the three months ended September 30, 2025 and 2024 remained relatively flat at approximately $12.3 million. Below summaries notable factors impacting rental income during the period:

•A full quarter of rental income from the from two dispensaries acquired during the first half of 2025 generated an increase of approximately $24 thousand of rental income during the three months ended September 30, 2025.

•A full quarter of rental income from the funding of improvement allowances subsequent to September 30, 2024, at our Arizona and Connecticut cultivation facilities generated approximately $74 thousand of additional rental income during the three months ended September 30, 2025.

•Annual rent escalations on our portfolio generated an increase of approximately $241 thousand of rental income during the three months ended September 30, 2025.

•These increases were offset by a decline in rental income of approximately $281 thousand, attributable to Revolutionary Clinics vacating our Fitchburg, MA property during July 2025.

•Our two cultivation facilities leased to AYR satisfied its rent obligations for July 2025, however, beginning in August 2025 through the end of the third quarter of 2025, we did not receive rent for the Pottsville, PA and Sparks, NV properties. We applied approximately $505 thousand of AYR's security deposits covering August and September rent for these properties during the three months ended September 30, 2025.

Interest Income from Loans

Interest income from loans increased slightly due to the annual interest rate increase on our one loan receivable.

Fees and Reimbursables

Fees and reimbursables decreased slightly due to timing of revenue reimbursements during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Expenses

Reimbursable Property Expenses

In certain circumstances we will pay for certain expenses on behalf of the tenant with the tenant being obligated to reimburse us. However, timing differences may cause the recognition of expenses and corresponding reimbursement income to vary between periods. Reimbursable property expenses remained relatively flat quarter over quarter.

Property Carrying Costs

Property carrying costs are expenses we incur to maintain vacant or partially vacant properties. These costs typically include real estate taxes, utilities, property management fees, security, and other expenses needed to keep the properties functional and marketable for leasing. During the three months ended September 30, 2025, we incurred approximately $145.0 thousand of carrying costs related to our Fitchburg, MA, Pottsville, PA and Sparks, NV properties, which were vacant as of September 30, 2025.

Depreciation and Amortization Expense

Depreciation and amortization for the three months ended September 30, 2025 increased by approximately $0.2 million to approximately $3.9 million compared to approximately $3.7 million for the three months ended September 30, 2024. The increase is primarily attributable to: (i) approximately $37.3 million of improvements placed into services during 2024 related to four cultivation facilities; and (ii) our 2025 acquisitions of two dispensaries, contributing approximately $1.3 million in depreciable assets. These depreciation increases were slightly offset by a decrease of approximately $0.2 million in depreciable assets, which became fully depreciated as of March 31, 2025 and therefore did not incur depreciation expense for three months ended September 30, 2025.

General and Administrative Expenses

The decrease in general and administrative expense is described below by category.

Compensation Expense

Compensation expense includes salaries and benefits for directors, employees and officers, as well as stock-based compensation. For the three months ended September 30, 2025 compensation expense decreased by approximately $0.2 million to $0.9 million compared to $1.2 million for the three months ended September 30, 2024. The decrease was primarily driven by an employee resignation, resulting in a reduction in salary, bonus accruals and stock-based compensation.

Professional Fees

Professional fees generally include fees paid for audit, tax, legal and consulting services. Professional fees for the three months ended September 30, 2025 decreased by approximately $141 thousand, to approximately $334 thousand compared to approximately $475 thousand for the three months ended September 30, 2024. The decrease was mainly attributable to lower legal fees incurred during the third quarter of 2025.

Other General and Administrative Expenses

Other general and administrative expenses decreased moderately by approximately $83 thousand to $350 thousand during the three months ended September 30, 2025, compared to approximately $433 thousand during three months ended September 30, 2024. Other general and administrative expenses are primarily comprised of director and officer insurance, information technology fees, public relations fees, filing and regulatory fees, public reporting fees, corporate rent and various other expenses.

Provision for Current Expected Credit Loss

Provision for current expected credit loss remained relatively flat quarter over quarter.

Other Income (Expense)

Other Income

Other income, which is mainly comprised of interest income remained relatively flat quarter over quarter.

Interest Expense

Interest expense for the three months ended September 30, 2025, was approximately $232 thousand an increase of $55 thousand, compared to $177 thousand in the same period of 2024. This increase primarily reflects higher borrowing costs under our Revolving Credit Facility, which transitioned to a variable interest rate of Prime plus 1% effective May 6, 2025. The Revolving Credit Facility interest rate at the end of the third quarter was 8.25%, which contributed to the increase in interest expense during the three months ended September 30, 2025.

Comparison of the nine months ended September 30, 2025 and 2024 (in thousands):

Revenues

Rental income for the nine months ended September 30, 2025 increased by approximately $0.8 million to approximately $37.5 million, compared to approximately $36.7 million for the nine months ended September 30, 2024. The increase in rental income was primarily attributable to:

•The full nine months of rental income in 2025 from the purchase of a cultivation facility in Connecticut in May 2024, which generated an increase of approximately $0.2 million of rental income during the nine months ended September 30, 2025.

•During the nine months ended September 30, 2025, we earned approximately $43.1 thousand of rental income from the acquisition of two dispensaries during the period.

•Funding of improvement allowances at our Arizona, Connecticut, Missouri and Pennsylvania cultivation facilities, which generated approximately $0.6 million of additional rental income during the nine months ended September 30, 2025. The additional rental income from our Missouri cultivation facility was derived from the expansion and development of the adjacent land parcel we acquired during the first quarter of 2023.

•Annual rent escalations on our portfolio, which generated an increase of approximately $0.8 million of rental income during the nine months ended September 30, 2025.

•These increases were offset by a decline in rental income of approximately $0.8 million, attributable to Revolutionary Clinics paying only approximately 50% of its contractual rent through July 2025 when the tenant vacated the property. Beginning in June 2024 and throughout the second half of the 2024, the tenant encountered significant operational challenges that impaired its ability to meet full rent obligations. In December 2024, these challenges culminated in the tenant entering receivership and ultimately vacating the property in 2025. For further information refer to Note 4 - "Leases".

•Our two cultivation facilities leased to AYR satisfied its rent obligations for July 2025, however, beginning in August 2025 through the end of the third quarter of 2025, we did not receive rent for the Pottsville, PA and Sparks, NV properties. We applied approximately $505 thousand of AYR's security deposits covering August and September rent for these properties during the nine months ended September 30, 2025.

Interest Income from Loans

Interest income from loans increased slightly due to the annual interest rate increase on our one $5.0 million loan receivable.

Fees and Reimbursables

Fees and reimbursables for the nine months ended September 30, 2025 increased by approximately $273 thousand to approximately $835 thousand from approximately $562 thousand for the nine months ended September 30, 2024, due to timing of revenue reimbursements year over year.

Expenses

Reimbursable Property Expenses

For the nine months ended September 30, 2025, reimbursable property expenses increased by approximately $534 thousand to approximately $713 thousand compared to approximately $179 thousand for the nine months ended September 30, 2024. This increase is mainly attributable to real estate taxes, insurance and utility payments primarily made on behalf of three tenants. In certain circumstances we will pay for certain expenses on behalf of the tenant with the tenant being obligated to reimburse us. However, timing differences may cause the recognition of expenses and corresponding reimbursement income to vary between periods.

Property Carrying Costs

Property carrying costs are expenses we incur to maintain vacant or partially vacant properties. These costs typically include real estate taxes, utilities, property management fees, security, and other expenses needed to keep the properties functional and marketable for leasing. During the nine months ended September 30, 2025, we incurred approximately $150 thousand in property operating costs across three properties: (i) our Fitchburg, Massachusetts property, which was vacated by Revolutionary Clinics in July 2025; (ii) our Pottsville, PA property which was vacated by AYR during the period; and (iii) our Sparks, Nevada property which was vacated by AYR during the period.

Depreciation and Amortization Expense

Depreciation and amortization expense for the nine months ended September 30, 2025 increased by approximately $0.7 million to approximately $11.6 million compared to approximately $10.9 million for the nine months ended September 30, 2024. The increase is primarily attributable to: (i) approximately $37.3 million of improvements placed into services during 2024 related to four cultivation facilities; (ii) our 2025 acquisitions of two dispensaries, contributing approximately $1.3 million in depreciable assets; and (iii) our 2024 acquisition of a cultivation facility, contributing approximately $3.7 million in depreciable assets. These depreciation increases were slightly offset by a decrease of approximately $0.2 million in depreciable assets, which became fully depreciated during the nine months ended September 30, 2025.

General and Administrative Expenses

The decrease in general and administrative expense is described below by category.

Compensation Expense

Compensation expense includes salaries and benefits for directors, employees and officers, as well as stock-based compensation. For the the nine months ended September 30, 2025, compensation expense decreased by approximately $0.7 million, to approximately $2.8 million compared to approximately $3.6 million for the nine months ended September 30, 2024. The decrease was primarily driven by an employee resignation, resulting in reduced salary, bonus accruals, and stock-based compensation.

Professional Fees

Professional fees generally include fees paid for audit, tax, legal and consulting services. While professional fees remained relatively flat year over year, we saw a shift to lower legal fees and higher audit fees during the nine months ended September 30, 2025, compared to the same period in 2024. The increase in audit fees during 2025 was primarily driven by higher audit expenses incurred during the first quarter of 2025 as most audit fieldwork related to our annual financial statements occurred during this period. Additionally, we incurred incremental costs associated with obtaining consent from our former auditor in connection with our Form 10-K filing.

Other General and Administrative Expenses

Other general and administrative expenses remained relatively flat year over year. These expenses are primarily comprised of director and officer insurance, information technology fees, public relations fees, filing and regulatory fees, public reporting fees, corporate rent and various other expenses.

Loss on Sale of Real Estate

The loss on sale of real estate during 2025 was recognized in connection with the Mokena/Brookville like-kind exchange, reflecting the difference between the carrying value of the Mokena property and the fair value allocation of the Brookville property received.

Provision for Current Expected Credit Loss

Provision for current expected credit loss remained relatively year over year.

Other Income (Expense)

Other Income

Other income remained relatively flat year over year and is primarily comprised of interest income..

Interest Expense

Interest expense for the nine months ended September 30, 2025 was approximately $0.6 million, an increase of approximately $0.2 million to compared to $0.4 million in the same period of 2024. This increase primarily reflects higher borrowing costs under our Revolving Credit Facility which transitioned to a variable interest rate of Prime plus 1% effective May 6, 2025. The Revolving Credit Facility rate, ending the quarter at 8.25%, contributed to the increase in interest expense during the nine months ended September 30, 2025.

Non-GAAP Financial Information and Other Metrics

Funds from Operations and Adjusted Funds from Operations

Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") are non-GAAP financial measures and should not be viewed as alternatives to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.

We calculate FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently than we do and therefore our computation of FFO may not be comparable to such other REITs.

We calculate AFFO by starting with FFO and adjusting for non-cash and certain non-recurring transactions, including non-cash components of compensation expense and the effect of provisions for credit loss. Other REITs may not define AFFO in the same manner as we do and therefore our calculation of AFFO may not be comparable to such other REITs. You should not consider FFO and AFFO to be alternatives to net income as a reliable measure of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.

The table below is a reconciliation of net income attributable to common stockholders to FFO and AFFO for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Liquidity and Capital Resources

Our cash requirements include the payment of dividends to our shareholders, distributions to our holders of LPI Units ("LPI Unitholders"), general and administrative expenses, debt service, other expenses related to managing our existing portfolio as well as acquisition and unfunded improvement commitments on our properties. The sources of liquidity to fund these cash requirements include rental income from the leasing of our properties, which is our primary source of cash flows, borrowings under our Revolving Credit Facility and equity and debt issuances, including issuance of common stock under our ATM Program, if markets permit. Where possible, we also may issue LPI Units to acquire properties from existing owners seeking a tax-deferred transaction.

As of September 30, 2025, our liquidity total included $23.6 million of cash and cash equivalents along with $82.4 million available on our Revolving Credit Facility, subject to sufficient collateral in the borrowing base. Additionally, the ATM Program allows us to issue equity to raise capital up to $50.0 million. We cannot, however, be certain that these sources of funds will be available at a time and upon terms acceptable to us in sufficient amounts in the future.

Following a cumulative 100 basis point reduction in interest rates during the second half of 2024, the U.S. Federal Reserve held its policy stance through mid-September 2025, before implementing a modest 25 basis point cut on September 18, 2025. Despite this action, the prime lending rate remained elevated at 7.5% for most of the period, which provided limited relief to borrowers. As of September 30, 2025, the annual inflation rate in the United States was approximately 3.0% for the twelve-month period then ended. While inflation has shown signs of moderation, persistent macroeconomic headwinds including elevated interest rates and residual inflationary pressures may continue to impact our cash flow from ongoing operations. Subsequent to quarter-end, the Federal Reserve implemented an additional 25 basis point rate cut in late October 2025, signaling a gradual shift toward a more accommodative monetary policy.

We expect that our cash flow from continuing operations over the next twelve months, combined with our cash reserves, will be sufficient to fund our business operations, pay cash dividends to our shareholders, make distributions on our LPI Units, and cover debt service.

Acquisitions and unfunded improvement allowance costs may require funding from borrowings, equity issuance and/or issuances of LPI Units.

Summary of Cash Flows

The following summary discussion of our cash flows is based on the consolidated statements of cash flows in our consolidated financial statements and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below (in thousands):

Net Cash Provided by Operating Activities:

Net cash provided by operating activities for the nine months ended September 30, 2025 and 2024 were approximately $32.4 million and $32.7 million, respectively. Net cash flows provided by operating activities for the nine months ended September 30, 2025 and 2024 were primarily related to contractual rent received from our properties, partially offset by our general and administrative expenses and property carrying costs.

Net Cash Used in Investing Activities:

Net cash used in investing activities for the nine months ended September 30, 2025 and 2024 were approximately $0.8 million and $18.0 million, respectively. Net cash used in investing activities for the nine months ended September 30, 2025 related to approximately $0.8 million used to purchase two dispensaries in Ohio. Net cash used in investing activities for the nine months ended September 30, 2024 related to approximately $4.0 million used to purchase a cultivation facility in

Connecticut and approximately $14.0 million used to fund improvement allowances at our cultivation facilities in Arizona, Connecticut, Missouri and Pennsylvania.

Net Cash Used in Financing Activities:

Cash used in financing activities for the nine months ended September 30, 2025 and 2024 were approximately $28.2 million and $20.8 million, respectively. Net cash used in financing activities for the nine months ended September 30, 2025, was mainly related to approximately $26.9 million in dividend payments to holders of our common stock and vested RSUs, approximately $0.5 million in distributions on our LPI Units, approximately $0.3 million paid to redeem 15,198 LPI Units in cash, approximately $0.4 million related to cash paid for taxes in lieu of issuance of common stock on vested RSUs and PSUs and approximately $0.3 million to issue PSUs in cash. Net cash used in financing activities for the nine months ended September 30, 2024, was mainly related to approximately $25.6 million in dividend payments to holders of our common stock and vested RSUs, approximately $0.5 million in distributions on our LPI Units, $1.0 million to pay down our loan payable, approximately $0.3 million of deferred financing costs incurred in connection with our ATM Program and approximately $46 thousand related to cash paid for taxes in lieu of issuance of common stock on vested RSUs. These cash outflows were offset by $6.6 million drawn on our Revolving Credit Facility.

To maintain our qualification as a REIT, U.S. federal income tax law generally requires that we distribute at least 90% of our REIT taxable income annually, determined without regard to the deduction for dividends paid and excluding capital gains. We must pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our taxable income. We evaluate each quarter to determine our ability to pay dividends to our stockholders based on our net taxable income if and to the extent authorized by our board of directors. Before we pay any dividend, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and debt service payments. If our cash available for distribution is less than our net taxable income, we could be required to sell assets or borrow funds to make cash distributions or we may make a portion of the required distribution in the form of a taxable stock distribution.

As a result of this distribution requirement, our Operating Partnership cannot rely on retained earnings to fund its ongoing operations to the same extent that other companies whose parent companies are not REITs can. During the nine months ended September 30, 2025, we declared and our board of directors approved, cash dividends on our common stock and restricted stock units and in our capacity as general partner of our Operating Partnership, we authorized distributions on our LPI Units of $1.29 per share.

During the nine months ended September 30, 2024, we declared and our board of directors approved, cash dividends on our common stock and restricted stock units and in our capacity as general partner of the Operating Partnership, we authorized distributions on our LPI Units of $1.27 per share.

Contractual Obligations and Commitments

Unfunded Commitments

As of September 30, 2025, we had aggregate unfunded commitments of $1.1 million to develop and improve our two dispensaries in Ohio.

Corporate Office Lease

As of September 30, 2025, we were the lessee under one office lease for a term of four years, subject to annual escalations. The annual rent payments range from approximately $72 thousand in year one to approximately $85 thousand in year four. The office lease has a remaining weighted average term of approximately 0.92 years.

Revolving Credit Facility

The Revolving Credit Facility accrued interest at a fixed rate of 5.65% through May 5, 2025. Effective May 6, 2025, the Revolving Credit Facility transitioned to a variable rate structure, bearing interest at a variable rate based upon the greater of (a) the Prime Rate published in the Wall Street Journal (Western Edition) plus a margin of 1.0%, or (b) 4.75%. As of September 30, 2025, the interest rate on our Revolving Credit Facility was 8.25% and we had $7.6 million outstanding under the facility. Refer to Note 6 - "Financings" for additional details.

Adoption of New or Revised Accounting Standards

We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that we: (i) are no longer an emerging growth company; or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

Interest Rate Risk

Interest rates are influenced by a range of factors, including fiscal and monetary policy, global economic conditions, and other variables beyond our control. We are exposed to interest rate risk through our Revolving Credit Facility, which bears a floating interest rate indexed to the Prime Rate published in the Wall Street Journal (Western Edit). As of September 30, 2025, we had $7.6 million in principal outstanding under the facility, bearing interest at 8.25%, which reflects a 100 basis point spread over the prevailing Prime Rate of 7.25%. Our cost of financing increased following the transition from a fixed rate of 5.65% through May 2025 to a variable structure thereafter. Although the Prime Rate remained relatively stable during the third quarter, including a modest decline in September, our effective interest rate remains subject to future fluctuations in benchmark rates. To manage this exposure, we may evaluate the use of interest rate derivative instruments or other hedging strategies.

Impact of Inflation

During the nine months ended September 30, 2025, inflation showed signs of easing but remained elevated with the CPI rising approximately 3.0% over the period. This reflects a modest increase compared to the 2.8% inflation rate recorded during the same nine month period in 2024. While inflation continues to trend downward from the peaks of 2022, it remains above the Federal Reserve's long-term 2% target.

We enter into leases that generally provide for annual fixed increases in rent at a predetermined rate. In some instances, leases provide for annual increases in rent based on the increase in the CPI. We expect these lease provisions to result in rent increases over time. During periods when inflation exceeds the rent increases stipulated in the leases, rent increases may not keep pace with the rate of inflation.

Seasonality

Our business is not, and we do not expect our business to be, subject to material seasonal fluctuations.