Zoned Properties, Inc. (ZDPY) research, news, and more from GeoInvesting

Company description

Thu, 02 Nov 2017 17:43:22 GMT

Zoned Properties, Inc. is a commercial property, project development and management services company. The Company is engaged in identifying, developing and managing properties in industries, including the licensed medical marijuana industry. The Company operates in the operating, leasing and managing commercial properties segment. The Company maintains a portfolio of properties that it owns, leases and manages. In addition, it provides direct consultation and support for the development of each property. Its development ranges from architectural design and build-out, utility installation, property management, facilities management and security systems. The Company's property portfolio includes land and real property constructed in Green Valley, Arizona; land and real property in Kingman, Arizona; vacant land in Gilbert, Arizona; a multi-tenant industrial park in Tempe Arizona, and land and real property of approximately 50 acres in Chino Valley, Arizona.

Research

Tue, 27 Jan 2026 20:46:03 GMT

Removing ZDPY From All Model Portfolios

On January 20, 2026 ZDPY entered into a definitive agreement to sell and liquidate all its assets. You can see our coverage here. While the company plans to pursue a reverse merger when the deal closes, we have decided to close the position out and reevaluate any future merger or transaction as they unfold.

Research

Tue, 20 Jan 2026 18:19:36 GMT

Zoned Properties, Inc. (OTCQB:ZDPY) ($0.45; $5.3M market cap) announced execution of definitive agreements to sell and liquidate 100% of its assets and operations:

Entered into multiple definitive agreements to sell and liquidate 100% of the Company’s assets and operations for $16 million.
Agreements include:
- $9 million exclusive option for sale of Arizona “CKG” properties (Chino Valley, Green Valley, Kingman).
- $7 million management buyout (MBO APA) of all remaining assets and operations.
If the CGK option is not exercised, those properties will be included in the MBO APA at the same valuation.
A Special Transactions Committee of independent directors was formed to negotiate and oversee the transactions.
The committee intends to engage a third-party expert to complete a fairness opinion on the MBO APA.
If approved, the Company plans to:
- Pay off remaining debt
- Settle outstanding accounts
- Liquidate preferred shares
- Distribute net proceeds via a special dividend to shareholders
Post-liquidation, the Board intends to pursue a reverse merger or other transaction involving the public company.

Management Commentary:

"Over the past decade, Zoned Properties has worked to pioneer real estate services and development in the emerging and regulated cannabis industry," said Bryan McLaren, Chief Executive Officer of Zoned Properties. "While we have built a strong organization that has surpassed many milestones, the challenges of operating as a public company in the cannabis space have limited our ability to deliver direct value to our shareholders. We believe that liquidating the Company's assets and operations and returning substantial capital to shareholders through a special dividend represents the optimal path forward to reward our loyal investors."

"Following an exhaustive review of the Company's strategic alternatives in a challenging industry environment, the Special Transactions Committee has concluded that the planned liquidation of the Company's assets and operations is in the best interests of the Company's shareholders and will maximize shareholder value," said Cole Stevens, Independent Director and Chair of the Special Transactions Committee of Zoned Properties. "We are confident that these transactions will deliver the greatest possible value to shareholders, compared to any other available option."

Our Quick Take:

Interestingly,in Q1 2024, management had stated that the China Valley property alone was worth $16 million. Per the Q1 2024 earnings release:

“A crucial element of our focused attention on direct-to-consumer real estate is the announcements related to our recent and upcoming acquisitions of significant dispensary assets with top-tier cannabis operators and the strategic listing of our non-core Chino Valley cultivation property for $16 million. This opens up the possibility of raising a sizable amount of non-dilutive capital, which would accelerate our growth initiatives significantly. Looking at the remainder of 2024, we are committed to our strategic growth path, with the expectation of continuing to post strong financial and operating results,"

The announcement represents the endpoint of a multi-year effort to address a repeatedly cited disconnect between the company’s public market valuation and the intrinsic value of its real estate assets, culminating in the decision to liquidate 100% of the company for a gross $16 million, a value long signaled through prior Chino Valley monetization discussions.

The value creation will depend on the reverse merger transaction. Too much unknown at this time.

Zoned Properties, Inc. is a property investment company that acquires, leases, and manages commercial real estate for the regulated cannabis industry, while also offering advisory, brokerage, and technology services related to cannabis-focused properties.

Research

Thu, 13 Nov 2025 05:00:00 GMT

Zoned Properties, Inc. (OTCQB:ZDPY) ($0.51; $6.2M market cap) announced Q3 2025 results:

Q3 2025 sales of $1.01 million vs. $1.02 million in the prior year
Q3 2025 EPS: $0.02 vs. $0.00 in the prior year

“During this year’s third quarter, our team focused on improving operational cash generation and optimizing our bottom line. This disciplined approach has delivered the increase in net income and cash flow from operations reflected in our financials,” said Bryan McLaren, Chief Executive Officer of Zoned Properties. “The Zoned Properties leadership team believes it has identified multiple potential solutions to deliver value directly to our shareholders and plans to provide an update prior to the end of the year.”

Research

Thu, 14 Aug 2025 17:24:51 GMT

Zoned Properties, Inc. (OTCQB:ZDPY) ($0.51; $6.2M market cap) announced Q2 2025 results:

Q2 2025 sales of $937,774 vs. $692,326 in the prior year
Q2 2025 EPS: $0.00 vs. $(0.00) in the prior year
Positive cash flow from operations: $569,790 for the six months ended June 30, 2025
170,687 common shares currently held in Treasury under its Repurchase Program

"Zoned Properties has delivered another strong quarter of financial results with positive net income, double-digit revenue growth, and positive cash flow from operations in the face of an incredibly challenging industry," said Bryan McLaren, Chief Executive Officer of Zoned Properties.

"While our team continues to create meaningful value for the Company through our cannabis real estate projects, we must identify solutions for how that value can best be delivered directly to our shareholders. After many strong quarters of growth, efficient operations, and executing on our share repurchase program, I believe the value we are creating has yet to be realized by the market. As such, it is imperative that we identify solutions for how shareholders can benefit directly from the Company's growth and value creation. This is the primary objective for our leadership team."

Our Quick Take:

While Zoned Properties (OTCQB: ZDPY) continues to deliver positive operating metrics, including 35% year-over-year Q2 revenue growth, stronger margins, and positive operating cash flow, EPS has still not reached meaningful levels. The cyclical and transactional nature of portions of the revenue base, the challenging cannabis real estate environment, will also be obstacles in the way of re-rating the shares. We are extremely intrigued by this statement from management:

“ As such, it is imperative that we identify solutions for how shareholders can benefit directly from the Company's growth and value creation.”

Research

Wed, 14 May 2025 14:44:58 GMT

Zoned Properties, Inc. (OTCQB:ZDPY) ($0.39; 4.71M market cap) announced Q1 2025 results:

Q1 sales of $974,552 vs. $837,052 in the prior year
Q1 EPS of $0.01 vs. $0.01 in the prior year
Our Quick take - The bulk of revenue for the quarter came from commissions from real estate transactions for its clients. This type of revenue could be inconsistent and will not carry a high valuation. However, the company’s strong capital allocation strategy may lift valuation if its dividend and share buyback commitments accelerate as cash flow increase.

Management Commentary:

"In what continues to be a highly challenging and rapidly evolving cannabis real estate environment, I am incredibly proud of our team's execution in delivering strong first quarter results," said Bryan McLaren, Chief Executive Officer of Zoned Properties. "We reported positive net income and double-digit revenue growth for the first quarter of 2025, and continued to deliver positive cash flow from operations, while simultaneously reducing our operating expenses by 23%. These results underscore the strength of our disciplined business model and our commitment to operational excellence."

"We're particularly excited about our success in Ohio, where we sponsored two high-quality transactions that have been leased to tier-one multi-state operators, Trulieve and Verano. These successful acquisitions not only validate our strategy but also demonstrate our ability to deliver for best-in-class operators in competitive markets. Our pipeline remains very active across the country, with projects advancing in multiple states, and we're seeing continued demand from our preferred tenant partners. With a strong balance sheet, proven model, and disciplined cost structure, we believe Zoned Properties is well-positioned to capitalize on strategic opportunities as market conditions improve.”

Research

Tue, 25 Mar 2025 15:06:01 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.36; $4.3M market cap), announced Q4 and full year 2024 results:

Q4 sales of $1.2 million vs $705,900 in the prior year
Q4 income from operations of $425,896 vs income of $78,656 in the prior year
Q4 EPS of $0.05 vs a loss of $0.03 in the prior year
Full year sales of $3.8 million vs $2.9 million in the prior year
Full year income from operations of $1.1 million vs $169,187 in the prior year
Full year EPS of $0.06 vs a loss of $0.04 in the prior year

"Our robust financial performance in 2024 in the midst of a challenged operating environment is a testament to the dedication and expertise of our team," said Bryan McLaren, Chief Executive Officer of Zoned Properties. "We recognize the disconnect between our current market valuation and the tangible book value of our real estate assets and business operations. To address this, we are utilizing our share repurchase program and will continue to do so to enhance shareholder value. Moreover, as we look ahead, we are excited about the scalability of our direct-to-consumer real estate portfolio, and the potential PropTech opportunities we have been exploring. By evaluating strategic positioning and partnership for REZONE, we are exploring how we can leverage its advanced AI capabilities to serve a broader user-base, with the goal of unlocking further value for our shareholders."

While the Q4 results seem to be very strong, we would like to see the 10-K filing to make sure there are no one time gains in the net income for the quarter.

Research

Thu, 14 Nov 2024 05:00:00 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.47; $5.7M market cap), announced Q3 2024 results:

Sales of $1,029,630 vs $720,450 in the prior year
Income from operations was $445,188 for the quarter ended September 30, 2024, compared to $49,112 for the quarter ended September 30, 2023, an increase of 806%.
Net income of $58,872 vs loss of $309,648

"We are incredibly proud of our third quarter results, which resulted in record revenue, robust operating cash flow, and a continued ability to deliver profitability, all of which underscore the credibility of our business model. This forward momentum is a testament to our core team and the operating ecosystem we have created, supporting strong tenant diversification and attractive geographic expansion opportunities. With our focus on value-add direct-to-consumer properties, we are well-positioned to capture above average cap rates in high-growth markets. Our property investment pipeline remains strong as we continue to secure new locations, bolstered by our deep industry relationships and disciplined investment process. In line with our strategic capital allocation priorities, we have been actively executing our share repurchase program, reaffirming our confidence in the intrinsic value of our company and our assets compared to our market cap, reflecting our ongoing commitment to delivering shareholder value. We expect this share repurchase activity will continue as part of our opportunistic approach to managing capital," said Bryan McLaren, Chief Executive Officer of Zoned Properties.

Research

Tue, 14 May 2024 18:28:37 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.45; $5.5M market cap), announced Q1 2024 results:

Sales of $837,052 vs $688,024 in the prior year
Net income of $96,473 vs loss of $309,648
EPS of $0.01 vs a loss of $0.03
Subsequent to quarter end, the Company announced the Board of Directors approved a stock repurchase program, pursuant to which the Company is authorized to purchase up to $1 million of its common stock over an unlimited time period.
We continue to watch the company to see if they can maintain profitability.
Potential real estate asset sale that could yield $16 million could significantly accelerate the company’s business model.

"Our team continues to execute despite a difficult operating climate in the cannabis industry, achieving very impressive financial and operational results. The transition to a direct-to-consumer property investment model was demonstrated by our first quarter results, which saw a revenue increase of 22%, positive net income, and significant operating cash flow growth, evidencing what we believe is Zoned Properties' firm trajectory of value generation and sustainable growth. In light of the discrepancy between our tangible book value and market capitalization, and our confidence in future growth, we are pleased to have initiated a share repurchase program to enhance shareholder value. Our capital allocation strategy will always be methodical and adaptable, and we think this is a great way to return capital to shareholders while progressing through our acquisition pipeline. A crucial element of our focused attention on direct-to-consumer real estate is the announcements related to our recent and upcoming acquisitions of significant dispensary assets with top-tier cannabis operators and the strategic listing of our non-core Chino Valley cultivation property for $16 million. This opens up the possibility of raising a sizable amount of non-dilutive capital, which would accelerate our growth initiatives significantly. Looking at the remainder of 2024, we are committed to our strategic growth path, with the expectation of continuing to post strong financial and operating results,"

ZDPY is a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry.

Research

Tue, 23 Apr 2024 14:34:11 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.57; $7.0M market cap), announced a $1 million share repurchase program. This equates to 8.1% of all outstanding shares.

"As our business continues to outperform in a challenging overall operating environment, we are thrilled to announce this share repurchase program. The approval of this program demonstrates the management team's and board's confidence in our prospects for the future, ongoing operational strength, and sound capital structure. As we scale the investment portfolio, we are keeping conservative in our capital allocation strategy while also acknowledging the significant valuation gap between our public valuation and tangible book value. Due to this, it is crucial for us to be adaptable and make sure we are doing everything possible to increase shareholder value. As always, we remain committed to our strategic focus, and look forward to updating shareholders on our progress," said Bryan McLaren, Chief Executive Officer of Zoned Properties.

ZDPY is a technology-driven property investment company focused on acquiring value-add real estate within the regulated cannabis industry in the United States.

Research

Tue, 05 Mar 2024 14:39:18 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.49; $5.9M market cap), announced that the Company plans to sell its Chino Valley, AZ property for $16 million.

"As part of our ongoing strategic review to enhance shareholder value, we are very pleased to announce our intention to sell our Chino Valley Property. The Chino Valley Property, which we now consider a non-core asset to our investment strategy, represents a significant capital reallocation opportunity for Zoned Properties. We expect that, if and when the Chino Valley Property is sold, the non-dilutive proceeds from the sale would be instrumental in supporting the Company's future real estate portfolio acquisition plans," commented Bryan McLaren, Chief Executive Officer of Zoned Properties. "This is a pivotal step in our ongoing efforts to scale our direct-to-consumer real estate portfolio and unlock value for our shareholders. We believe that this strategic shift will position us to capitalize on the growing demand for retail dispensary properties in the cannabis real estate industry with strong cap rates creating long-term shareholder value. We will continue our ongoing strategic review with the sole intention of growing shareholder value and look forward to updating shareholders as appropriate."

Since we’ve had several live Briefings with Bryan McLaren, engaging in another following the strategic intention to sell the Chino Valley Property, potentially generating proceeds equal to $1.33 per share, would make sense for gaining deeper insights into the company’s growth strategy, financial health, and future real estate acquisition plans. So, we’ll see what we can do about that.

We need a clearer understanding of ZDPY's commitment to raising non-dilutive capital, its response to market trends in the cannabis real estate industry, and its long-term vision for shareholder value, a term he referenced several times in the quote above, especially in light of the stock’s recent price decline.

The core of its ZDPY’s business involves identifying and developing commercial properties that intend to operate within regulated industries, including the legalized cannabis industry.

Research

Mon, 22 Jan 2024 15:17:06 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.43; $5.2M market cap), announced that the Company has acquired an investment property in Chicago, Illinois and entered into a long-term, absolute-net lease agreement with Justice Cannabis Co.'s BLOC Dispensaries to operate a Retail Dispensary.

Transaction Highlights

Zoned Properties has acquired a premier Investment Property in Chicago, Illinois that has been entitled and permitted as a cannabis retail dispensary.
The Investment Property was acquired for approximately $1.6 million, including all closing costs and fees. The transaction also includes a commitment from the tenant's operating partner of up to $1 million for renovation and construction improvements.
The Investment Property is leased to Justice Cannabis Co.'s BLOC Dispensaries under a long-term, absolute-net lease agreement, which will produce an approximate 16.5% Cap Rate when straight-lined over the 15-year term of the lease agreement. The lease includes 3% annual increases in base rent over the life of the lease term, yielding approximately $265,000 in annual base rental revenue when straight-lined over the life of the lease term.

Research

Tue, 14 Nov 2023 16:36:25 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.45; $5.5M market cap), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry announced Q3 2023 results:

Sales of $720,450 vs $614,988 in the prior year
Net income of $114,523 vs loss of $77,328

"We are delighted to report outstanding operating and financial performance for the third quarter whilst contending with challenging market conditions. As we move through the remainder of the year into 2024, we see our underlying business trends as extremely positive with our market strategy producing steady revenue growth, positive cash flow, and net profitability. With a focus on direct-to-consumer real estate that is leased to the best-in-class cannabis retailers in the industry, we have the balance sheet to support our near-term expansion objectives and plan to remain active. Maintaining a strong balance sheet in this market environment positions us extremely well to deploy capital on more favorable terms. We continue using our nationwide services network and property technology to provide the Company with a competitive edge when identifying excellent investment prospects. We have a full pipeline of acquisitions, and we continue to utilize our extremely disciplined capital allocation approach. Since we have a clear view of the properties we are pursuing, we anticipate further capital deployment over the near term," said Bryan McLaren, Chief Executive Officer of Zoned Properties.

WIth back to back quarters of profitability, the ZDPY story is starting to get interesting and makes us more eager to chat with the CEO, Bryan McLaren, during our upcoming Skull Session event with him tomorrow. (See Event Invite at bottom.)

Research

Mon, 14 Aug 2023 18:29:47 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.66; $8.0M market cap), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry announced Q2 2023 results:

Sales of $772,617 vs $498,652 in the prior year
Net income of $42,159 vs loss of $39,063

"With a full pipeline of acquisition prospects, a robust balance sheet, and a strategic capital allocation approach, we are incredibly enthusiastic about the growth opportunity for Zoned Properties. Given our line of sight on the properties we are pursuing, we anticipate capital deployment to be active for the remainder of the year," said Bryan McLaren, Chief Executive Officer of Zoned Properties.

"Moreover, as we look at our tangible book value, future growth prospects, and our current business in relation to our public valuation, we recognize the significant disconnect. Our leadership team is exploring all possible strategies to drive shareholder value, and we look forward to keeping shareholders apprised of our progress on a go-forward basis."

Research

Mon, 15 May 2023 14:57:19 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.65; $8.0M market cap), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry announced Q1 2023 results:

Sales of $688,204 vs $938,701 in the prior year
Loss of $309,648 vs loss of $25,696

“Our expansion strategies will continue to be guided by our emphasis on increasing cash-flow, innovation, and long-term value creation. We are well-positioned to take advantage of the significant opportunities being created as the cannabis industry continues to evolve," said Bryan McLaren, Chief Executive Officer of Zoned Properties. "The Company is currently working to further scale by exploring a number of investments in brand-new real estate acquisitions that are in various phases of development and underwriting in a number of new state markets. We will continue making use of our unique multi-divisional real estate services model to open up fresh, accretive acquisition and investment opportunities."

Research

Tue, 28 Mar 2023 13:50:28 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.70; $78.5M market cap), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry announced Q4 2022 results:

Sales of $607,751 vs $535,345 in the prior year
Loss of $220,000 vs loss of $111,000

“We believe that Zoned Properties is well positioned for strong growth and scalability as a result of the consistent, passive revenue that we derive from our property investment portfolio, as well as the clear roadmap that will allow us to expand into state-cannabis markets around the country. These opportunities for expansion are a direct result of our team's participation in hundreds of regulated projects across the nation. We were able to provide value for these projects because we have established a real estate ecosystem that provides a comprehensive selection of commercial real estate services. We would like to thank all of our shareholders, stakeholders, customers, and partners for putting their faith in Zoned Properties, and we will continue to work hard every day to create value."

We plan to invite the CEO back to a Management Morning Briefing (MMB) event to find out what is taking so long for the company to reach profitability.

Research

Mon, 31 Oct 2022 11:52:33 GMT

Zoned Properties Inc (OTCQX:ZDPY), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry released a new investor presentation that provides a look at the company’s revenue projections out to 2025.

Research

Mon, 05 Sep 2022 04:00:00 GMT

Zoned Properties Inc (OTCQX:ZDPY), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry, continues to see insiders buying shares on the open market. In a form 4 filed on August 31, 2022, it shows Director Jody Kane buying 5,000 shares at an average price of $0.68.

In light of the slew of purchases, we thought it appropriate to set up a call with Bryan McLaren, the company’s CEO. So, he has agreed to join us in a Management Morning Briefing this coming Thursday at 11 AM. You can find the details of the meeting here, but as usual we will send out a few invite reminders as we near the event.

Research

Thu, 11 Aug 2022 04:00:00 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.71; $8.7M market cap) a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry announced Q2 2022 results:

Sales of $498,652 vs $445,479 in the prior year
Net loss of $39,063 vs net income of $112,594 in the prior year

“We believe we have developed the right business mix of real estate services to effectively scale Zoned Properties along with the needs of our target industries, primarily the regulated cannabis industry. Our full spectrum of real estate services have been intentionally positioned and designed to feed a strong pipeline of acquisition targets for our Investment Portfolio. Now we must execute on scaling both our active real estate services for the national marketplace and also buying power to expand our Investment Portfolio.”

Research

Sun, 17 Jul 2022 04:00:00 GMT

Zoned Properties Inc (OTCQX:ZDPY), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry, announced it has secured a $4.5 million initial debt facility to acquire new properties to help facilitate future growth.

“We plan to utilize raised capital to invest in and acquire projects, which we are already in the underwriting and review stages,” said Dan Gauthier, Chief Legal Officer for Zoned Properties. “The Company’s newly formed Zoned Investment Committee has recruited underwriting expertise that we believe can help accelerate and improve our acquisition process. The Company has a growing pipeline of prospective property investment projects across the country. As we focus in on national expansion for our commercial real estate model, we believe the acquisition of new property investments into our portfolio will continue to fortify the Company for many future years of growth.”

Research

Thu, 12 May 2022 17:42:05 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.57; $7.0M market cap), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry, announced Q1 2022 results:

Sales of $938,701 vs $345,845 in the prior year

Net loss of $25,696 vs $71,335 in the prior year

“I am so impressed by our team, these key results and the culture we are building at Zoned Properties, which has resulted in such a great first quarter. As we continue to expand the Company through recruitment, partnerships, and strategic investments we are working to bring together an increasingly diverse group of experts with skillsets focused on cannabis real estate development,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “Our team established an aggressive framework for national expansion in 2022. The efforts are just starting to reflect in our quarterly results, which are focused on diversified revenue growth while maintaining healthy cash flow from operations.”

Research

Mon, 31 Jan 2022 15:57:16 GMT

We wanted to follow up and expand on yesterday’s weekly wrap up email with more details on valuations on ZDPY, MILC and their competitors.

Zoned Properties Inc (OTCQX:ZDPY), a commercial property, project development and management services company for emerging industries, including the licensed medical marijuana industry, announced the final completion of expansion at Chino Valley Cultivation facility.

Some of the transaction highlights

Effective March 1st, 2022, operational square footage will increase from 67,312 square feet to 97,312 square feet, and the new base rental payments at the facility will increase 59% from $55,195 per month to $87,580 per month reflecting both the increase in operational square footage and the increase to the base rent rate.
The final completion of this phase of expansion represents a year-over-year annualized base rental revenue increase from $393,600 to $1,050,970, reflecting a 167% increase for the property.
The Chino Valley Cultivation Facility also includes an approved master plan for additional future expansion that is construction ready. If completed in its entirety, the additional square footage of operational and rentable building space would increase another 60,000 square feet for a total of 157,312 square feet of operational and rentable space at the facility. This would equate to an annualized base rental revenue of $1,698,970 plus additional rental payments under the triple-net lease, reflecting an additional 62% increase.

While ZDPY is a microcap, we wanted to highlight the trading multiples of larger scale players like Power Reit (Md) (AMEX:PW) and Innovative Industrial Propertie (NYSE:IIPR), even after sharp pullbacks with the recent market volatility.

We also added Millennium Inv & Acquisition Co (OTC:MILC) to the table as another microcap cannabis cultivation facility operator, which is on our Select Longs Model Portfolio.

	P/S on 2022 EST	P/E 2022 Est	P/S on 2023 Est	P/E on 2023 Est
ZDPY	4.6	TBD	n/a	n/a
MILC	6.8	16.0	1.8	2.0
PW	11.8	16.6	n/a	n/a
IIPR	15.9	29.6	12.9	23.1

While ZDPY looks low on a P/S basis compared to industry leaders PW and IIPR, a few things have to occur for the company to gain valuation expansion:

Achieve consistent profitability
Generate revenues from unutilized land of approximately 1.8 million square feet (we extrapolate this could lead to an additional 3+ mil in revenues) vs. the cure run-rate of around $2 million.
Scale the business by acquiring additional land to expand current business model

Unlike ZDPY, MILC seems like the best candidate to experience an expansion in its valuation multiples due to current guidance from management and the scalability of its business, due to its relationship with PW.

Recall, management expects revenues to begin in mid-2022, so hopefully we are close to seeing how aggressively management will be executing on its guidance. We do see a scenario where the stock could double from its current price this year, but that’s going to partly depend on overall improvement in market sentiment.

Also, please keep in mind that IIPR and PW are not direct comps to MILC. PW and IIPR own land that they lease to operators. So they’re more relevant comps to ZDPY. Our next piece of analysis will be to look at operators of cannabis facilities and see how those valuations compare to MILC. We will also expand the valuation table to include enterprise value of the sales.

On a side note, our interactions with investors in our network who have been doing a significant amount of due diligence could suggest that the company’s guidance is on the conservative side and perhaps on an expedited track.

A great frame of reference with respect to our own diligence can be seen at the following Fireside Chats discussions with company executives::

Zoned Properties - Discussion with Bryan McLaren, CEO
Millennium - Discussion with Jared Schrader, President

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Research

Thu, 11 Nov 2021 18:05:32 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.82; $10.0M market cap), a commercial property, project development and management services company for emerging industries including the licensed medical marijuana industry announced Q3 2021 results:

Revenue increased 28% to $387,365 for the third quarter of 2021, compared to $302,772 for the third quarter of 2020.
Net loss was $(95,495), or $(0.01) per basic share and diluted share, for the third quarter of 2021, compared to net income of $25,089, or $0.00 per basic and diluted share, for the third quarter of 2020.

“Our value proposition and business thesis at Zoned Properties, which is centrally focused on real estate development in the regulated cannabis space, has never been stronger. We continue to strengthen our team of subject-matter experts who know how to navigate the complexity of cannabis real estate and deliver tangible value for our company and our clients across the county,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “We have successfully positioned the Company with a debt-free, cash-flowing portfolio of expanding properties that can support innovative and scalable growth for the future of the Company. One of the final puzzle pieces that will shape the future of Zoned Properties will be confirming long-term capital partners who understand our mission, vision, and capital opportunities we’ve spent years creating to build value for investors, shareholders, and stakeholders.”

Interviews

Thu, 30 Sep 2021 04:00:00 GMT

Fireside Chat with Bryan McLaren, Chairman & CEO, Zoned Properties Inc. (ZDPY)

The continual evolution of cannabis regulation presents many opportunities for companies involved in the various aspects of the industry to flourish. One microcap company, Zoned Properties Inc (OTC:ZDPY) , has been focused on providing and managing real estate for enterprises whose main focus is on the regulated medical marijuana sub-sector. Because it is only in the real estate segment and not the operational side of things, this puts ZDPY in a unique position to distance itself from the minutiae of the actual regulation, allowing it to build the business based on what growers need to scale their operations. In a fireside chat with GeoInvesting’s Maj Soueidan, Zoned Properties’ Chairman & CEO Bryan McLaren expanded on his company’s position in the ecosystem of roles involved with the marijuana sector.

“So for for our company, we are non plant touching. So we are specifically only on the real estate side. We never take ownership in cannabis operations we never participate in the cannabis operation…so strictly on the real estate…very important as a publicly traded company. And we were one of the first publicly traded companies that was fully audited, fully SEC reporting, that approached the cannabis space. I joined and took over the reins of the company in 2014. We were maybe, just by a day or two, the the second company at the time to list OTCQX market. Of course, now we’re on OTCQB, primarily just from a cost saving perspective. So, likely the next move for us as a publicly traded company…I’ll get into some of the details. But, our capital structure, really our philosophy for creating value as a public company…”

Research

Thu, 02 Sep 2021 19:51:36 GMT

Added ZDPY To Our Select Long and Run to One Model Portfolios

Yesterday during the open forum we briefly discussed Zoned Properties Inc (OTCQX:ZDPY) ($0.94; $11.4M market cap), a commercial property, project development and management services company for emerging industries including the licensed medical marijuana industry. The company derives the majority of its revenue from rental fees paid by tenants occupying its commercial property in Arizona.

In yesterday’s Forum discussion, we mentioned that the company has been making progress in its turnaround and that the momentum in stock price appreciation by comps such as Innovative Industrial Propertie (NYSE:IIPR), Power Reit (Md) (AMEX:PW) and Millennium Investment & Acquisition Company Inc. (OTC:MILC) has us looking closely at the likelihood of the same happening for ZDPY.

IIPR

MILC

We also mentioned that we would be inviting the CEO to present to GeoInvesting.

We do have to be cognizant that:

As of yesterday’s close of $0.94, ZDPY has appreciated in price by about 680% from it’s mid-June 2020 low of around 12 cents, and that historically, this kind of momentum in the stock’s price has been short-lived.
The company is still very early in the implementation of its growth plan
ZDPY is only generating modest revenue
The company may have to raise capital

However, in this instance, the rise in price has been slightly more protracted, and under more favorable circumstances, given the movement in the aforementioned comps and the U.S.’s increasingly cannabis-friendly environment, which could bleed into the need for services such as ZDPY’s, and that the company:

Has reached profitability
Reached agreements with a major tenant that should materially increase multi-year rental income

Ironically, after the completion of our open forum, we noticed two Form 4 filings showing CEO Bryan McLaren bought 22,162 shares at an average price of $0.74.

Based on our bullish momentum in the space and the CEO buying shares, we added the stock to our select long and Run to One Model Portfolios via a premium tweet yesterday.

We will begin working on some valuation scenarios.

Research

Mon, 16 Aug 2021 14:24:53 GMT

Zoned Properties Inc (OTCQX:ZDPY) a commercial property, project development and management services company for emerging industries including the licensed medical marijuana industry announced Q2 2021 results:

Sales of $550,064 vs $299,824 in the prior year
EPS of $0.01 vs small loss in the prior year

“The transition of legacy cannabis operators into a regulated cannabis marketplace has been emerging at a scale and pace beyond what most data projections have accounted for among industry experts. The leadership team at Zoned Properties has been expanding our real estate services and best practices to help integrate legacy operators into modern communities through a full-spectrum of real estate services, creating value and opportunity for business operators, local communities, and our own Company,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “This is such an exciting time for the regulated cannabis industry as a whole, and our team at Zoned Properties is proud to be working towards evolving commercial real estate development practices for emerging and highly regulated industries.”

ZDPY has been on our radar for several years, as we continue to watch the company to see if it can enter a consistent growth phase. It appears that the company’s tweak of its business model is paying off. We imagine that if the company can continue to make progress, cannabis investors might begin to take notice due to the performance of one of its high-flying comps, Innovative Industrial Properties (NYSE:IIPR).

Research

Fri, 01 Mar 2019 17:09:44 GMT

Zoned Properties Inc (OOTC:ZDPY) ($0.36, $6.3m market cap) - We noticed a fair amount of insider buying in recent days on ZDPY, a company is engaged in identifying, developing and managing properties in industries, including the licensed medical marijuana industry. ZDPY’s price has come down slightly relative to the rest of the sector, like peer Innovative Industrial Properties (NYSE:IIPR). We are continuing to watch the name closely in light of the insider purchases.

GeoInvesting analyst Chris Irons spoke with ZDPY CEO Bryan McLaren in May 2018 on various subjects, most notably the company’s pivot in its real estate development growth strategy by implementing a new lease and strategic advisor model for its tenants and clients operating in the licensed medical marijuana industry. You can listen to the segment here.

Research

Tue, 17 Apr 2018 14:19:47 GMT

Zoned Properties Inc (OTCQX:ZDPY) ($0.69; $12.1M market cap), a commercial property, project development and management services company for emerging industries including the licensed medical marijuana industry remains in focus as President Trump recently endorsed letting states decide how to regulate marijuana. Several marijuana related stocks have seen shares rebound slightly on this news.

Zoned Properties is a member of Executive Casts, a platform currently hosted on GeoInvesting as an additional outreach tool for small and microcap companies to supplement their communications to shareholders on a more intimate basis.

You can see all of ZDPY’s segments here.

Research

Tue, 13 Mar 2018 15:12:31 GMT

Zoned Properties Inc (OTCQX:ZDPY) today announced full year 2017 financial results.

Revenue increased 14% to $2.1 million, compared to $1.9 million for the full-year 2016.
Operating expenses decreased 33% to $1.4 million, down from $2.1 million for the full-year 2016.
Inclusive of the one-time gain of approximately $832,000 on the sale of a property in Tempe, AZ. recognized in the first quarter of 2017, net income was $1.4 million, or $0.07 per basic and diluted share, compared to a net loss of $(502,000), or $(0.03) per basic and diluted share, for the full-year 2016.
Net cash provided by operating activities was $54,000 for the full-year 2017 compared to net cash used in operating activities of $3,100 for the full-year 2016.

The company also issued a shareholder letter that touches upon the company’s mission and strategic objectives, financial accomplishments, capital allocation, and strategic advisory services and partnerships.

Of particular note are CEO Bryan McLaren's comments on the company's financial accomplishments:

“We have established long-term streams of cash flow from our primary rental properties with lease agreements in place that are designed to increase rental revenue over time. The structure of the lease agreements provides revenue and cash flow predictability and stability that allows us to create and execute our growth agenda with a higher degree of certainty. Recurring revenues and cash flow serve as buffers for income volatility resulting from investments we expect to make to grow recurring revenue.

In a short period of time for a small business, Zoned Properties has delivered net income and positive cash from operations. Our net income is derived from a base of long-term, recurring revenue with built-in rent escalators, and we expect to deliver increasing levels of profitability going forward. I cannot emphasize enough how valuable this is both for mitigating risk and for the long-term prospects of our business. Earnings and positive cash flow enable us to make the decisions and pursue the projects that will be most meaningful to shareholder returns and the financial condition and future of the company.

The strength of our balance sheet is unquestionable given the low debt-to-total capital ratio (21% as of December 31, 2017), cash on hand of $824,000 as of year-end, and an increasing return on rental property assets that directly generate cash. Our strong balance sheet, which has been built on the efficient management of an enviable portfolio of properties, is a differentiator for us in the marketplace. It also enables the selective pursuit of projects that we believe will be most meaningful to our business, provide the greatest opportunities for financial returns, and enable us to maintain cap rates that are highly competitive.

You can see all of ZDPY’s segments here.

Comments & Business Outlook

Mon, 31 Mar 2014 04:00:00 GMT

SCOTTSDALE, Ariz., March 31, 2014 /PRNewswire/ -- Zoned Properties, Inc. (OTC: ZDPY) http://www.zonedproperties.com, a lessor of land, facilities, and equipment to the medical marijuana industry announced that after careful consideration, the board has recommended that Marc Brannigan should step down as acting CEO and board member of the company. As such, effective immediately, Marc Brannigan has resigned as the company's CEO.

Zoned Properties, Inc. V.P. of Operations and Chief Sustainability Officer, Bryan McLaren, will serve as the company's interim CEO as the organization pursues its search for a permanent CEO.

Outgoing CEO Marc Brannigan has stated: "As this venture began, I previously stated that my position as CEO would be for a limited period of time and that more seasoned executives would have to take this company to the next level. Things are moving very fast at the company and it's now the perfect time for me to step down. The company has surrounded itself with very professional and competent people that will drive Zoned Properties to achieve its goals and create maximum shareholder value. I applaud this move as it's within the best interest of the company."

Interim CEO Bryan McLaren commented: "I would like to thank Mr. Brannigan for the work he has done as the founder of this organization. I wish him the best of luck as he pursues other ventures and am very excited to move into the next phase of our development."

Zoned Properties, Inc. expects to name new board members shortly who will assist Mr. McLaren in the pursuit to find the company's permanent CEO.

About Zoned Properties, Inc. (OTCPink: ZDPY):

Zoned Properties, Inc. is a strategic real estate investment firm whose primary focus is acquiring commercial properties that face unique zoning challenges. Zoned Properties, Inc. will acquire commercial properties zoned within a variety of usage types such as industrial, agricultural, as well as mixed use. Zoned Properties, Inc. also targets commercial properties that can be acquired and potentially re-zoned for specific purposes.