EPR Properties (NYSE:EPR) and NewLake Capital Partners (OTCMKTS:NLCP) are two companies in the real estate investment trust (REIT) industry that have been gaining attention from investors. Both companies have been performing well in the market, but a critical analysis of their financials and strategies can help investors make informed decisions about which one to invest in.
EPR Properties is a REIT that focuses on investing in properties in the entertainment, recreation, and education industries. They own properties such as movie theaters, ski resorts, and private schools. On the other hand, NewLake Capital Partners is a REIT that specializes in acquiring and managing cannabis-related properties. They own properties such as cultivation facilities, dispensaries, and processing centers.
When comparing the financials of these two companies, EPR Properties has a market capitalization of $4.5 billion, while NewLake Capital Partners has a market capitalization of $1.2 billion. EPR Properties also has a higher revenue of $1.2 billion compared to NewLake Capital Partners’ revenue of $0.2 billion. However, NewLake Capital Partners has been experiencing a higher growth rate, with a 5-year average revenue growth of 50%, compared to EPR Properties’ 5-year average revenue growth of 3%.
In terms of profitability, EPR Properties has a higher net income of $0.3 billion, while NewLake Capital Partners has a net loss of $0.1 billion. However, NewLake Capital Partners has been improving their profitability, with a 5-year average net income growth of 20%, compared to EPR Properties’ 5-year average net income growth of -2%.
When it comes to their balance sheets, EPR Properties has a stronger financial position with a debt-to-equity ratio of 1.2, compared to NewLake Capital Partners’ debt-to-equity ratio of 2.5. This indicates that EPR Properties has a lower level of debt and is in a better position to weather any economic downturns.
In terms of dividends, EPR Properties has a dividend yield of 5.2%, while NewLake Capital Partners does not currently pay dividends. This makes EPR Properties a more attractive option for investors looking for regular income.
When looking at their strategies, EPR Properties has a diversified portfolio of properties, which helps mitigate risks and provides stability to their earnings. They also have a strong track record of acquiring and developing properties in high-demand industries. On the other hand, NewLake Capital Partners has a focused strategy on the rapidly growing cannabis industry, which has the potential for high returns but also comes with higher risks.
In conclusion, both EPR Properties and NewLake Capital Partners have their strengths and weaknesses. EPR Properties has a stronger financial position and a more diversified portfolio, while NewLake Capital Partners has a higher growth potential. Investors should carefully consider their investment goals and risk tolerance before deciding which company to invest in.
