NewLake Capital Partners, Inc. (PNK:NLCP) Q3 2023 Earnings Call Transcript

And so, yes, as states come and approve adult use, there is a growing opportunity set. Having said that, quite a few of the operators are being fairly judicious. And I want to say I applaud their cautiousness around taking on new CapEx projects until they finalized the work that they’re doing on stabilizing their cash flows from operations today. And so, yes, there’s a confluence of growth opportunity because states are going adult use, but cautiousness on the part of the operators not to take on meaningful CapEx in this environment. But those are the deals for the future.

Pablo Zuanic: If I can add one more in terms of just the interest rate environment, obviously, at the end of the year coming down somewhat supposedly, interest rate is peaking some people think. How does that affect the way you think about the way you structure your loans, if in any way?

Anthony Coniglio: And, again, we primarily focus on sale leaseback transactions, and the capital markets environment, informs us around weighted average cost of capital for our business. And we look at that as we consider investment opportunities to make sure that we’re creating value for our shareholders. And so we’ll continue to look at that as the capital markets evolve.

Operator: [Operator Instructions] There are no further questions. I would like to turn the conference back over to Anthony for closing comments.

Anthony Coniglio: Thank you, everybody. We appreciate you joining our call today. Have a wonderful day.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.