Operator: Good morning, and welcome to the New Lake Capital Partners Second Quarter 2020 Earnings Conference Call. Today's call is being recorded. Will now turn the call over to Valter Pinto, Investor Relations. Please go ahead.

Valter Pinto: Thank you, operator, and good morning, everyone. Welcome to the New Lake Capital Partners Second Quarter 2020 Financial Results Conference Call. Joining me on the call today are Anthony Coniglio, President and Chief Executive Officer and Lisa Meyer, Chief Financial Officer. Before we begin, please note that certain statements made during today's call may be considered forward looking under the safe harbor provisions of the Private Securities Litigation Reform Act of 2 thousand. Actual results may differ materially due to a variety of risks and uncertainties. For a more detailed discussion of these factors, refer to the company's filings with the Securities and Exchange Commission, including our Form 10 Q, the quarter ended 06/30/2026. During the call, we will also reference non GAAP financial measures, including FFO, and AFFO. Reconciliations to the most directly comparable GAAP measures are included in our earnings release. With that, I would now like to turn the call over to Anthony Coniglio, President and Chief Executive Officer Please go ahead, Anthony.

Anthony Coniglio: Thank you, Valter, and good morning, everyone. The past few months have been among the most constructive for the cannabis industry that we have seen in some time. The rescheduling of medical cannabis to Schedule III the continued momentum toward broader reform and the New York Stock Exchange listings of Trulieve and Glasshouse are all meaningful milestones that reflect the continued normalization of the industry. While additional reform is still needed before the industry has unfettered access to The US capital markets, we are encouraged by the progress made over the last several months and believe it represents an important step towards a more stable and sustainable operating environment. As I mentioned on our last call, the impact of medical rescheduling extends beyond the elimination of 280E taxation. DEA registration transforms registered medical cannabis operators into federally legal businesses. All of our tenants operating medical only facilities which represents 50% of our portfolio, have indicated that they have submitted applications for DEA registrations. We view this as another important step toward broader institutional participation and improved access to capital markets, including the potential for listing on major US exchanges. Against this backdrop, NewLake delivered another solid quarter Revenue and AFFO were in line with our expectations and our AFFO 88% for the quarter, supporting $0.43 per share dividend and with our within our guided 80% to 90%. Our portfolio continues to demonstrate the resilience that comes from disciplined underwriting, conservative balance sheet management, and our focus on property level performance. Turning to our portfolio, we continue to closely monitor developments related to our tenant the cannabis. As we discussed last quarter, the cannabis filed for bankruptcy in Canada earlier this year and has been working through a court supervised process. We lease 4 properties to the cannabis, including a dispensary and cultivation facility, in Illinois and a dispensary cultivation facility in Massachusetts. Recently, Vireo Growth announced the acquisition of certain assets from the cannabis across 5 markets including Illinois and Massachusetts. The Cannabist remains current through and including August rent, and we are actively engaged with The Cannabist and other parties to minimize the potential for rent disruption at our properties. We will update stakeholders as we have more definitive information to share. We continue to hold approximately 1 month of security deposit across those properties. Turning to investment activity, we are excited to have closed on a $2.1 million transaction for a 3.2 thousand square foot dispensary in Wilder, Kentucky which will be leased to C3 Industries. This transaction expands our presence into Kentucky's emerging medical cannabis market and will be accretive to earnings. More importantly, it reflects a pipeline that has become increasingly active over the past several months. More broadly, we are seeing renewed optimism across the industry regarding opportunities to deploy capital pursue growth initiatives, and participate in industry consolidation. As a result, we are actively evaluating new investments. That said, our underwriting standards remain unchanged. We will continue to be disciplined and selective prioritizing capital preservation and risk adjusted returns over growth for growth's sake. Our 3 properties available for lease continue to be actively marketed. While re-tenanting opportunities do take time to develop, the quality and pace of discussions have improved over the past few months. Looking ahead, we believe there is a growing stack of potential catalysts for the industry. These include medical rescheduling, progress towards broader rescheduling of cannabis, exchange listing opportunities for plant touching businesses, potential for banking reform, and increasing scrutiny of intoxicating hemp derived products. While the timing and outcome of these developments remain uncertain, we believe the direction of travel continues to be favorable for the industry. I would also like to address a topic we received where we have received a number of questions about following the New York Stock Exchange listings of Trulieve and Glasshouse. We are not announcing anything today, but we are actively evaluating whether there is a path for New Lake to uplist to a major exchange. To remind our investors, New Lake satisfies the listing requirements for both the NYSE and NASDAQ other than the exchanges restrictions on cannabis related businesses. As regulatory developments continue to unfold, we will continue evaluating potential paths forward so that we are prepared to act if and when the opportunity becomes available. While no decisions have been made, we do believe that the broader exchange access would create additional value for our shareholders over time. Finally, subsequent to quarter end, we extended the maturity of our revolving credit facility to May 2029 while lowering our borrowing costs and enhancing our financial flexibility. In an environment where capital for the cannabis sector remains scarce, and expensive, our ability to extend our credit facility on improved terms while continuing to pursue accretive investment opportunities speaks to the strength of our balance sheet, the quality of our portfolio, and the confidence our lending partners have in our business. Before turning the call over to Lisa, I would like to recognize David Weinstein, who stepped down from our board of directors at the end of July. David has been part of New Lake since our founding in 2019, and served as chief executive officer through the company's transition to the public markets. On behalf of our board, management team, and shareholders, I want to thank David for his years of service and many contributions to the company. We wish him all the best in his future endeavors. With that, I will turn the call over to Lisa to review our financial results in more detail.

Lisa Meyer: Thank you, Anthony, and good morning. For the second quarter of 2020, total revenue was $12.1 million compared to $12.9 million in the prior year period. Net income attributable to common stockholders was $5.9 million or $0.29 per diluted share. Funds from operation totaled $9.9 million or $0.47 per diluted share, and adjusted funds from operations totaled $10.3 million or $0.49 per diluted share. For the first 6 months of 2026, total revenue was $24.4 million compared to $26.1 million in the prior year period. Net income attributable to stockholders was $11.7 million or $0.56 per diluted share, Funds from operations totaled $19.6 million or $0.93 per diluted share and adjusted funds from operations totaled $20.4 million or $0.97 per diluted share. The drivers of the year over year results were generally for both the 3- and 6-month periods ended June 30, 2026. Revenue and AFFO were primarily impacted by 3 cultivation facilities available for lease in Pennsylvania, Nevada, and Massachusetts, reducing rental income and increasing property carrying costs. The impact was partially offset by the following: annual contractual rent escalations averaging 2.6% across the portfolio, rental income from the 2 Ohio dispensaries acquired in 2025 and rental income associated with funded improvement allowances. On 06/12/2026, our Board of Directors declared a second quarter cash dividend of $0.43 per share. Or $1.72 per share on an annualized basis. The dividend was paid on 07/15/2026, to stockholders of record as of 06/30/2026. This represents an AFFO payout ratio of 88%. Which remains within our target range of 80% to 90%. The earnings power of our portfolio continues to support our dividend. Turning to the balance sheet. As of 06/30/2026, we had $25.8 million in cash. We continue to maintain a very conservative leverage profile. With only $7.6 million outstanding on our $90 million credit facility, a debt to total assets of 1.6% and a debt to EBITDA ratio of approximately 0.2x. In August, we amended $90 million revolving credit facility reducing our interest rate by 100 basis points from Prime plus 1% to Prime. And extended the maturity date to May 2029. We believe this amendment further strengthens our balance sheet by lowering our cost of capital and extending our maturity date. Also, in August, as Anthony mentioned, we acquired a dispensary property in Kentucky for approximately $600 thousand and committed to fund approximately $1.6 million for improvement. This property was simultaneously leased to an existing tenant. Overall, the Overall, our results for the quarter were in line with expectations. And we remain focused on maintaining a strong balance sheet while prudently managing risk across our portfolio. With our liquidity, conservative leverage profile and no debt maturities until 2029, we believe we are well positioned to pursue attractive opportunities as the regulatory environment for cannabis continues to evolve. Operator, please open up the line for questions.

Operator: Thank you. We will now be conducting a question and answer session. It may be necessary to pick up your handset before pressing the star keys. And our first question will come from Pablo Zuanic with Zuanic & Associates.

Pablo Zuanic: Thank you, and good morning, everyone. Anthony, can we can we start by talking about lead times? I am thinking about Georgia, Virginia, Texas. When supposedly, in the case of Georgia, flower is already legal since, allowed since July 1. Right? And I hear companies are running out of flower there very quickly. Virginia starting July 1 next year, I am just wondering because we have lead times to get up and running on production of 18 months, 24 months, you would think that those companies would be talking to you already in terms of leasing potential properties. I am just surprised we are not seeing that yet, especially with Georgia and Virginia. I realized Texas may be may take a bit longer. Thanks.

Anthony Coniglio: Yeah. I think Kentucky is a good indicator of what we would expect to see in this environment where companies are less enthusiastic about aggressive build out of capacity even into some of these newer markets. We find that the discussion with us is often delayed than, say, where those discussions were back in the 2022-2023 timeframe when there was a more aggressive posture towards expansion. And so, yes, we do have some conversations going across these states. But I think overall, CapEx and expansion is at a slower pace into the new states than it was in, say, the 2012 cohort.

Pablo Zuanic: Thank you. that is good color. In terms of the vacant properties, the Nevada and Pennsylvania Ayr cultivation and the Revolutionary Clinics cultivation in Massachusetts, Can you give an update on that? Are they more likely to be sold? Maybe for, you know, for other use or even rented for other use? Or do you believe that you would be able to lease them out for cultivation of cannabis?

Anthony Coniglio: First off, our guiding principle when it comes to tenanting those facilities is what is the best net present value for our shareholders. And so we have everything on the table. We look at cannabis as an opportunity, non-cannabis. Because these are cultivation facilities and they are purpose built, as existing cultivation facilities typically, the best use for our shareholders is to try to get the premium rent from a cannabis operator versus a non cannabis operator. So, yes, we pursue all of them. I think the longer it goes that we are not able to identify a creditworthy cannabis tenant, the increased likelihood is we pivot to either a non cannabis tenant or a potential sale of the property.

Pablo Zuanic: But on that point, would you wanna handicap the 3? I mean, it seems that Nevada is taking a lot longer than expected. I realize Nevada and Pennsylvania are more recent. Do you want to give a bit more color there?

Anthony Coniglio: No. I do not because it is so variable, Pablo, there are so many different factors that go into it. What I would say to you is that when you look at Pennsylvania, given it is still a medical market, and it is a market that will have adult use at some point. it is a more limited license market. there is probably more demand for those types of facilities than you would find, say, in Massachusetts. And when you look at, say, in Nevada, while activity was slow, we do see hemp as a real big issue in Nevada. And with hemp receding and hemp derived products competing with the marketplace, in Nevada with hemp reseeding, there has been some recent uptick in interest. And so do not want to go farther than that in terms of handicapping because nothing's ever done till it is done. that is why we do not announce letters of intent. We only announce signed lease agreements.

Pablo Zuanic: Thank you. And just moving on to The Cannabist properties you know, now taking over Vireo Growth. I heard your comment about the conversations ongoing. But I guess let me give you a couple of examples. I hear sometimes when, dispensaries change hands, because of a restructuring or the owner going on default, the new buyer buys the dispensary, but, sometimes they do not recognize the receivables. So whoever was holding the receivables the wholesaler or vendor to a dispensary, end up losing the money. what is the precedent? but I realize the case is very different for rental property. Right? You would see Vireo if they want to hold on to those dispensaries and the cultivation they will have to honor the leasing agreements and pay the rent. I mean, maybe I am stating something that is obvious, but, I am just trying to understand what is the precedent, not so much about video specifically, but it would seem that when these properties change hands, new owner has to honor the lease agreement, or is that very naive thinking of me?

Anthony Coniglio: No. I think that is accurate. I think that is accurate. First, I want to reiterate that in my prepared remarks, I informed investors that The Cannabist has paid rent on all 4 properties through and including August rent. And that is telling me that there is a deal to be had, and nothing's ever done till it is done. But these properties obviously have some value to continue paying the rent. And yes, when someone acquires a license in an operating business, they typically will step into that facility and they will continue paying rent. From time to time, there may be a negotiation of that reducing rent as part of the overall transaction. that is always something that is in the cards in these types of transactions. And then I think what you are referring to is there have been cases where people have purchased the licenses and not necessarily the operating businesses. And when you purchase the license, you can leave certain assets behind excuse me, certain liabilities behind through a Canadian bankruptcy process. So they are complicated and highly negotiated.

Pablo Zuanic: Thank you. 1 last 1 for me. In the 10 Q, there is something there about the acreage property that is guaranteed by Canopy USA. Can you give more color in terms of how that works in practice?

Anthony Coniglio: Yes. When the transaction with Acreage was executed way back in 2019-2020, there was a direct acreage parent guarantee. Given the restructuring, that occurred between Canopy and Acreage excuse me, started with the closing of the acquisition of Canopy acquisition of Acreage by Canopy and the creation of Canopy USA, Acreage now has a parent, Canopy USA, And Canopy USA not only holds the interest in Acreage, but also holds interest in Wana Jetty, as well as shares in TerrAscend. And so through dialogue and a transaction, earlier this year around Pennsylvania, we were able to negotiate an additional guarantee from Canopy USA. And so we were able to get what we think is additional protection for our shareholders by adding Canopy USA as a guarantee and not only having an Acreage guarantee on the lease.

Pablo Zuanic: Right. Thank you. Look, and I guess I want to add 1 more, Anthony, and apologies if there is someone else on the Q and A. Queue. Just in terms of the macro, obviously, always very interested to hear your perspective. So, we know August 17. Right? The judge Julius has to, go through all the documents he receives, look at the hearing, and write his report. Question mark how long that will take, then that goes to a DOJ, and then a DA director, has to administrator has to write the final rule. Right? And, of course, we are speculating how long that would take. Do you want to give your impressions on how long that process would take?

Anthony Coniglio: It is a guess. I will give you an answer, but it is a guess. My best guess is it is mid to end of October. And why I get there is when we study the Administrative Procedures Act and how these types of processes work, As you indicated, the, we need the ALJ recommendation. Well, the post hearing briefs are due by August 17. The ALJ needs to have time to consider what is submitted, and we do not expect those to be submitted until the very end. So it is going to take probably a couple of weeks for the ALJ to complete his report and his recommendation. And so, call that beginning of September. Then once his recommendation comes out, there is a what is called a 30 day exception period where parties who participated in the hearing have the opportunity to file exceptions to what the ALJ recommendation is. That takes us into early October, and now the DEA has to file the final rule and they likely cannot do that the day after the exception period ends because they will need to consider the exceptions that were submitted towards the end of that period. So I add all of that up, and there is a lot of work to be done even though the DEA's probably doing work on a final rule now. They do need time to incorporate what comes in during that exception period to incorporate what the ALJ recommendation is. So that is why I think the earliest is probably mid October, and so my guess mid to end of October, And I get a little aggressive in that timing only because I do believe in the political overlay that this action has and that there is probably a desire of the administration to get this completed and get that final rule filed before midterms. And so that is how I conclude. But I do want to remind everybody once the filing occurs of the final rule, it is a 30 day implementation period, and we will all buckle up for the resulting litigation that will commence from there. that is right. Thank you very much. that is great color. Thank you, Anthony.

Operator: Thank you, Pablo. We will go next to Craig Kucera with Lucid Capital Markets.

Craig Kucera: Yeah. Hey. Good morning. You guys had a decline in property carrying costs sequentially, and understanding that you would not have them if you leased up some vacancy. But if those assets remain vacant, how should we think about that for the remainder of the year?

Lisa Meyer: The reason there was a decline in the second quarter was a result of a reimbursement that we received from a previous tenant that was in that had vacated. So it just it reduced the property expenses a little bit more than it would, what it should be. I would think that Q1 is a good run rate for what those expenses should be.

Craig Kucera: Okay. that is helpful. I believe both Trulieve and Glasshouse deconsolidated their recreational operations in order to uplist. Just curious, given the legalization of medical, are you seeing any of your other tenants moving in that direction?

Anthony Coniglio: To take advantage of the legislation? Most of our other tenants that are public have a more intertwined business and their adult use programs. And so what we are seeing is most of the others are taking a wait-and-see approach. Well, let me restate that. They are taking steps such as reverse splits in order to meet listing requirements for minimum stock price but they are stopping short of restructuring their business given the nature of their business or how large the adult use component is. With the expectation that we will see rescheduling get completed later this year, and then the entire business could get uplifted to the New York or Nasdaq.

Craig Kucera: Okay. Yeah, that makes sense-- putting off that decision certainly until back half of the year. And I guess against that backdrop, are you seeing any pickup in transactional activity for medical only? And if so, any movement in cap rates? Or is it still too early?

Anthony Coniglio: I would say there is no there is been no pickup in medical versus adult use. The pickup in activity is really driven by the market opportunities. I do not yet see people making decisions in their business purely to orient towards medical versus, versus adult use. And then in terms of cap rates, cap rates continue to be in the same range that they have been for some time. In the marketplace. We have not seen compression in that.

Craig Kucera: Got it. And outside of cannabis, which sounds like there is some positive, movement there, are there any other tenants that are on a watch list, negative, or is everybody still performing well?

Anthony Coniglio: Our 4-wall coverage still looks really good. We watch all of them. This is the cannabis industry; This is a volatile and emerging industry, so we are watching all of them. The ones that we have identified in the past on these calls would be The Cannabist or an Acreage. And so those were the ones in the portfolio. Versus, say, a Cresco, which just issued really good results this morning or Curaleaf our largest tenant issued last night. Very good performance. And so, you know, when we look at the portfolio, we do not publish a watch list per se. We are certainly looking at the operators in the portfolio that have historically underperformed their peers, such as Acreage. Oh, got it.

Craig Kucera: Okay. Thanks. that is it for me.

Anthony Coniglio: Okay. Thanks, Craig.

Operator: And this now concludes our question and answer session. I would like to turn the floor back over to Anthony Coniglio for closing comments.

Anthony Coniglio: Thank you, operator, and thank you, everybody, for joining us today. We hope you have a wonderful remaining of the summer, and we look forward to connecting with you all in the coming months.

Operator: Ladies and gentlemen, thank you for your participation This does conclude today's teleconference. You may disconnect your lines, have a wonderful day.