Zoned Properties, Inc.

What they do

Zoned Properties acquires value-add commercial real estate that faces zoning or development challenges, resolves those challenges and secures long-term absolute-net leases. It operates two organized segments: a Property Investment Portfolio that owns, leases and manages commercial properties, and a Real Estate Services segment providing advisory, brokerage and technology services. The company states it does not grow, harvest, sell or distribute cannabis or any substances regulated under the Controlled Substance Act.

Revenue drivers

• Property Investment Portfolio — Rental income from owned commercial properties leased on long-term absolute-net terms, primarily to tenants in the regulated cannabis industry; this segment covers the operations, leasing and management of the company's commercial properties.
• Real Estate Services — Advisory, brokerage and technology services tied to commercial properties, delivered through subsidiaries including Zoned Advisory Services and Zoned Properties Brokerage (Arizona, Florida).
• State brokerage subsidiaries — Brokerage entities organized in Florida remained active, while Mississippi, Alabama and Missouri brokerage subsidiaries were inactive and dissolved in January 2025, indicating a narrowed geographic services footprint.
• Zoning and permitting expertise — The company targets properties with municipal zoning, permitting and 'cannabis approval' constraints, positioning itself to capture value where standard commercial real estate timelines and codes do not apply.

Recent performance

For the quarter ended June 30, 2026, total revenues were $773,977, down 17.5% from $937,774 a year earlier, while operating expenses rose 23.2% to $820,213. That produced a loss from operations of $46,236 versus income from operations of $272,188 in the prior-year quarter; net income was $73,787, or $0.01 per fully diluted share. For the six months ended June 30, 2026, revenues were $1,946,413, up 1.8%, but operating expenses rose 54.1% to $1,866,081 and income from operations fell 88.5% to $80,332. Net income for the six months was $19,127 versus $172,184 a year earlier, and cash provided by operating activities was $1,041,428.

Strategy

Zoned Properties describes a standardized investment model backed by proprietary property technology, targeting commercial properties that can be acquired, rezoned and leased to regulated operators. It has built a national ecosystem of real estate services, including a commercial real estate brokerage and advisory practice, to support that development model. The company maintains a portfolio of wholly owned subsidiaries organized by property and by state brokerage footprint. It also disclosed an Asset Purchase Agreement dated January 15, 2026 involving Zoned Arizona, ZP Dysart and ZPRE Holdings, alongside a series of material agreements reported in 8-K filings during 2026.

Risks

• Cannabis regulatory exposure — The company's tenants and target properties depend on state and local cannabis zoning and permitting rules, which can change and delay or block development timelines.
• Narrow revenue base — Annual revenue was $4.1 million in 2025, and quarterly revenue fell 17.5% year over year to $773,977 in the June 2026 quarter, so results are sensitive to a small number of properties and tenants.
• Operating expense growth — Operating expenses rose 23.2% in the June 2026 quarter and 54.1% in the first half of 2026, turning quarterly operations to a loss and cutting half-year operating income 88.5%.
• Earnings and leverage profile — Net income was negative $2.9 million in 2025, and at June 30, 2026 the company reported $10.0 million in total liabilities, including $6.0 million of long-term debt, against $3.4 million of shareholder equity.

Outlook

The company's August 14, 2026 release reported second quarter 2026 results and highlighted cash on hand of $2,446,418 as of June 30, 2026, up from $837,767 at December 31, 2025, and $1,041,428 of cash provided by operating activities in the first half. It also reported a January 15, 2026 Asset Purchase Agreement and multiple material agreements disclosed in 8-K filings between April and September 2026. Management's forward-looking statements are qualified by the risk factors in its annual report on Form 10-K for the fiscal year ended December 31, 2025. The excerpts provided do not include specific revenue or earnings guidance.