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Zoned Properties Reports Strong Q2 2024 Financial Results with Continued Momentum in Shift to Direct-to-Consumer Real Estate Focus

In This Article:

  • Operating Cash Flow for the Six Months Ended June 30, 2024 Increased 71%;

  • Operating Expenses for the Three Months Ended June 30, 2024 Decreased 17%;

  • Announced Listing of Non-Core Asset in Chino Valley for $16 Million;

  • Announced Share Repurchase Program for up to $1 Million

SCOTTSDALE, AZ / ACCESSWIRE / August 13, 2024 / Zoned Properties®, Inc. ("Zoned Properties" or the "Company") (OTCQB:ZDPY), a technology-driven property investment company for emerging and highly regulated industries, including legalized cannabis, today announced its financial results for the second quarter ended June 30, 2024, as well as recent highlights related to the Company's ongoing progress.

Recent Highlights:

  • The Company continues to make material progress in expanding its portfolio, enhancing cash flow, and reducing expenses.

  • Subsequent to quarter end, the Company successfully acquired its next investment property in Surprise, AZ, leased to Sunday Goods which produces a 13.4% effective cap rate when straight lined over the life of the lease term. The strategic acquisition with a best-in-class operator in a prime retail location strengthens the Company's portfolio and brings the Company above $3 million in annualized rental revenue. Arizona's cannabis market is one of the strongest in the nation surpassing $1.4 Billion in total sales in 2023, with many projecting sales to reach over $1.5 Billion in 2024. The Company's retail dispensary real estate footprint now includes Arizona, Michigan, and Illinois; with prospective real estate acquisitions anticipated in Ohio.

  • Subsequent to quarter end, the Company secured five new retail dispensary locations in Ohio, working with tier-one dispensary operators as applicants through the state's lottery system. Several of the properties are in major metropolitan areas and are expected to be leased to the tier-one cannabis operators, further solidifying the Company's presence in key markets with best-in-class operating tenants, and driving future growth.

  • Recently announced strategic geographic expansion with the acquisition of a prime dispensary location in Chicago, Illinois leased to Justice Cannabis Co.'s BLOC, marking an entry into one of the largest urban markets for legalized cannabis, with a 16.5% effective cap rate when straight lined over the life of the lease term.

  • The Company announced the approval a stock repurchase program, pursuant to which the Company is authorized to purchase up to $1 million of its common stock over an unlimited period of time. The Company anticipates it will begin repurchases of its common stock in the coming months.

  • The Company recently listed one of its legacy cultivation property assets in Chino Valley, Arizona for sale at a purchase price of $16 million. This potential transaction marks a significant development in the Company's strategic real estate portfolio optimization. The Chino Valley property has been a valuable non-core asset within the Company's portfolio and this potential sale is part of a strategic shift to streamline the Company's portfolio and concentrate efforts on a direct-to-consumer real estate strategy.