SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Zoned Properties®, Inc. (OTCQB: ZDPY), a strategic real estate development firm whose primary mission is to provide real estate and sustainability services for the regulated cannabis industry, positioning the company for property acquisitions and revenue growth, today announced its financial results for the nine and three-month periods ended September 30, 2020.
Nine Months and Third Quarter 2020 Company Highlights
- Zoned Properties successfully leveraged its Arizona property portfolio to receive a commitment of at least $8 Million from our Significant Tenant, to be applied toward infrastructure expansion.
- To date, nearly $5 Million of the $8 Million committed has been invested in the expansion projects located in Arizona. Construction and development work has made significant progress toward completion of the current phase of expansion, with anticipated operational readiness in 2021.
- Zoned Properties completed a $100,000 strategic investment into a start-up cannabis franchise organization that is now in the final stages of its anticipated launch. Zoned Properties expects to play a significant role with the cannabis franchise related to the intricacies of strategic capital investment and commercial real estate development in the regulated cannabis industry.
- In Arizona, and across the nation, the passage of regulated cannabis ballot measures reflect the overwhelming support from the majority of American voters for the regulated cannabis industry.
Nine Months and Third Quarter 2020 Financial Results
- Revenue decreased 10.5% to $302,772 for the third quarter of 2020, compared to $338,339 for the third quarter of 2019. This decrease in revenues was primarily attributable to a decrease in advisory revenues of $42,191, or 70.2%, offset by an increase in rent revenues of $6,624, or 2.4%.
- Operating expenses decreased 18.1% to $249,021 for the third quarter of 2020, compared to $304,052 for the third quarter of 2019.
- Income from operations increased 56.8% to $53,751 for the third quarter of 2020, compared to income from operations of $34,287 for the third quarter of 2019, an increase of $19,464.
- Net income was $25,089, or $0.00 per basic and diluted share, for the third quarter of 2020, compared to net income of $3,987, or $0.00 per basic and diluted share, for the third quarter of 2019.
- Net cash provided by operating activities was $48,470 for the nine months ended September 30, 2020, compared to $219,433 for the nine months ended September 30, 2019.
- As of September 30, 2020, Zoned Properties had cash of $577,763, compared to $639,781 as of December 31, 2019.
“It has been an exciting year for Zoned Properties as we continue expanding our operational footprint in Arizona, developing our national advisory services with new client projects and advisory professionals, and prepare for the launch of a new cannabis franchise concept,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “We are empowered by Arizona voters and voters across the nation, who spoke up on election day to pass regulated cannabis measures on the ballot. Our expansion projects in Arizona could not have come at a better time, as we prepare for an exciting new adult-use marketplace and the completion of new operational square footage at our facilities in Arizona will lead to a material increase in leasing revenue for Zoned Properties.”
About Zoned Properties, Inc. (OTCQB: ZDPY):
Zoned Properties is a strategic real estate development firm whose primary mission is to provide real estate and sustainability services for clients in the regulated cannabis industry, positioning the company for real estate acquisitions and revenue growth. We intend to pioneer sustainable development for emerging industries, including the regulated cannabis industry. We are an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. We focus on investing capital to acquire and develop commercial properties to be leased on a triple-net basis, and engaging clients that face zoning, permitting, development, and operational challenges. We provide development strategies and advisory services that could potentially have a major impact on cash flow and property value. We do not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”).
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. We are monitoring this closely, and although operations have not been materially affected by the COVID-19 outbreak to date, the ultimate duration and severity of the outbreak and its impact on the economic environment and our business is uncertain. Currently, all of the properties in our portfolio are open to our Significant Tenants and their customers and will remain open pursuant to state and local government requirements. At this time, we do not foresee any material changes to our operations from COVID-19. Our tenants are continuing to generate revenue at these properties and they have continued to make rental payments in full and on time and we believe the tenants’ liquidity position is sufficient to cover its expected rental obligations. Accordingly, while we do not anticipate an impact on our operations, we cannot estimate the duration of the pandemic and potential impact on our business if the properties must close or if the tenants are otherwise unable or unwilling to make rental payments. In addition, a severe or prolonged economic downturn could result in a variety of risks to our business, including weakened demand for our properties and a decreased ability to raise additional capital when needed on acceptable terms, if at all. At this time, the Company is unable to estimate the impact of this event on its operations.