Designated Real Estate announces its financial results for the first quarter of 2022

Scottsdale, Arizona. – (work wire) – Zoned Properties®, Inc. (“Zoned Properties” or “the Company”) (OTCQB: ZDPY), a leading real estate developer for the emerging and highly regulated industries, including legal cannabis, today announced its financial results for the quarter ended March 31, 2022.

Financial results for the first quarter of 2022

  • Revenue was $938,701 for the quarter ended March 31, 2022, compared to $345,845 for the quarter ended March 31, 2021, an increase of 171.4%.

  • Operating expenses were $929,183 for the quarter ended March 31, 2022, compared to $389,213 for the quarter ended March 31, 2021, an increase of 138.7%.

  • The company reported a net loss of $25,696 for the quarter ended March 31, 2022, compared to a net loss of $71,335 for the quarter ended March 31, 2021.

  • The company had cash of $787,918 as of March 31, 2022, compared to $1,191,940 as of December 31, 2021, which primarily reflects $500,000 of cash used in a tenant improvement investment related to the expansion of the facility. Chino Valley Cultivation.

“I am very impressed with our team, these key results and the culture we are building at Zoned Properties, which have resulted in an impressive first quarter. As we continue to expand the company through hiring, partnerships, and strategic investments, we are bringing together an increasingly diverse group of skilled experts focused on cannabis property development,” commented Brian McClaren, CEO of Zoned Properties. “Our team has established a robust framework for national expansion in 2022. Efforts are just beginning to be reflected in our quarterly results, which focus on growing diversified revenues while maintaining healthy cash flow from operations.”

“We are putting a full range of integrated commercial real estate services into practice. With strong momentum and proof of concept, we believe we have a clear path to national growth and scalability,” commented Peric Blackwell, Chief Operating Officer at Zoned Properties. “We expect real estate technology to become a catalyst for expanding our commercial real estate services nationally, which we believe can open up an exciting range of real estate acquisitions to expand our real estate investment portfolio.”

Discuss management and company highlights

  • Zoned Real Estate has developed a full suite of integrated growth services to support its commercial real estate development model. company Proprietary Technology (“PropTech”)And Consulting servicesAnd commercial mediationAnd investment portfolio Mass pollination within the model to pay for the project value associated with complex real estate projects.

    • Zoned real estate technology: PropTech platforms have an opportunity at a national level to provide service and data solutions to complex markets such as regulated cannabis. Zoned Properties has partnered with the leading real estate subdivision experts at Zoneomics to solve one of the biggest challenges in cannabis real estate: how to identify properties for which zones can be permitted and licensed for cannabis operations. The project team officially launched the REZONE Beta platform to market in April 2022. Under the “Rezone” brand, PropTech’s data platform will focus on democratizing commercial real estate intelligence, providing hundreds of thousands of service professionals, business and real estate operators. Real estate investors with the data and information they need to successfully develop organized real estate projects.
    • District real estate advisory services: The company is expanding its advisory services team nationwide to enhance our region-specific real estate network and our best practices, specializing in commercial real estate solutions for the regulated cannabis industry. Since inception, the consulting team has served clients in more than 10 states, across more than 100 projects, and created $400,000 in advisory revenue.
    • Commercial mediation in real estate designated for regions: We established our own licensed brokerage firm in June 2021. Since the beginning, the brokerage team has served clients in multiple states, closed real estate transactions worth over $50 million, and is now involved in listings of over 1.5 million square feet of commercial real estate to cannabis dispensaries and cultivation And processing and warehouses of cannabis throughout the country. The brokerage team is implementing a growth strategy to establish Zoned Properties brokerage offices in new state markets and further strengthen existing brokerage partnerships that provide access to servicing the national cannabis market.
    • Investment Portfolio of Designated Real EstateZoned Properties owns properties within its investment portfolio that are leased to regulated cannabis operators. The company has a stable real estate portfolio generating $1.83 million annually in triple net negative rental income as of March 2022, and is expected to generate more than $30 million in cash flows over the contracted lease term.

      • Chino Valley Growing Facility, Arizona: The real estate expansion included more than $8 million in capital investment by the company’s senior tenant in the Chino Valley Cultivation Facility, significantly increasing operating volume and rental income for assigned properties. Effective March 1, 2022, Zoned Properties has provided the company’s large tenant with an initial tenant improvement allowance of $500,000 to advance the Chino Valley project into the next phase of expansion. In contrast, the base rental rate under the Chino Valley lease agreement increased from $0.82 per square foot per month to $0.90 per square foot per month over the lease term, equivalent to $1.05 million per year.
      • Open Door Clinics Franchise Investment: As part of the company’s commercial real estate strategy, Zoned Properties has invested in a national retail cannabis franchise company, Open Dør Dispensaries, which screens potential investment partners and franchisees from across the country to target new current and upcoming cannabis franchise locations. Organized cannabis markets. District real estate can benefit directly and indirectly from any growth achieved by Open Dør Clinics. As an investor, the company will receive a percentage of the initial franchise fee and renewal fee, and as the commercial partner in real estate, the company is in a position to provide commercial real estate services and investments to real estate franchise locations.

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

Zoned Properties is a leading real estate developer for the emerging highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investing through integrated growth services.

Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full range of integrated growth services to support its real estate development model; Real estate technology, advisory services, commercial brokerage and the company’s investment portfolio are mass-pollinating within the model to drive the project value associated with complex real estate projects. With national expertise and a team of experts dedicated to the emerging cannabis industry, Zoned Properties meets the specific needs of a modern market in highly regulated industries.

Zoned Properties is an approved member of the Better Business Bureau, the US Green Building Council, and the Forbes Real Estate Board. Zoned Properties does not grow, harvest, sell, or distribute hemp or any substances regulated by US law such as the Controlled Substances Act of 1970, as amended (“CSA”). Zoned Properties is headquartered at 8360 E. Raintree Dr., Suite 230, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.

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Safe Harbor Statement

This press release contains forward-looking statements. All statements other than statements of historical facts contained in this press release are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “expect,” “plan,” “potential,” “continue,” or similar expressions. These forward-looking statements involve risks and uncertainties, and there are significant factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These factors, risks, and uncertainties are discussed in the company’s filings with the Securities and Exchange Commission. Investors should not unduly rely on forward-looking statements because they include known and unknown uncertainties and other factors that are, in some cases, beyond the control of the Company and that are likely to materially affect actual results, activity levels, performance or achievements. Any forward-looking statement reflects the Company’s current views regarding future events and is subject to these and other risks, uncertainties and assumptions regarding its operations, results of operations, growth and liquidity strategy. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons why actual results may differ materially from those projected in these forward-looking statements, even if new information becomes available in the future.

COVID-19 Statement

In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The company is monitoring this closely, and while 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 properties in the company’s portfolio are open to prime tenants and will remain open as per state and local government requirements. The Company has not seen in 2020 or 2021 and does not expect any material changes to its operations from COVID-19 in 2022. The Company’s tenants continue to generate revenue on these properties, have continued to make rental payments in full and on time, and we believe that the tenants’ cash flow is sufficient to cover the liabilities Expected rent. Accordingly, while the company does not anticipate an impact on its operations, it cannot estimate the duration of the pandemic and the potential impact on its business if properties should close or if tenants are unable or unwilling to make rental payments. In addition, a severe or prolonged economic downturn can lead to a variety of risks to the company’s business, including weak demand for its property and a reduced ability to raise additional capital when needed on acceptable terms, if any.

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