Top Cannabis REITs for Long-Term Growth in 2025
The U.S. cannabis industry continues to expand rapidly, creating strong momentum for related investments. In 2025, the market is expected to surpass $44 billion in value. Over the next five years, projections suggest it could reach more than $76 billion. This steady growth is driven by rising consumer demand and ongoing legalization across many states. Currently, nearly half of U.S. adults have tried cannabis at least once. Meanwhile, almost 80% of Americans live near a licensed dispensary. The industry also supports hundreds of thousands of jobs and contributes billions to the economy each year. Because of this, investors are watching cannabis real estate investment trusts (REITs) for potential gains.
At the same time, recent news around federal rescheduling of cannabis has added to investor optimism. If the government moves cannabis to a lower schedule, many operators could see reduced tax burdens. This change would likely attract new capital and improve profitability. States like Pennsylvania are also pushing forward with new legalization bills. These efforts could bring new business to cannabis REITs and boost long-term revenue. However, smart investors must still approach this sector carefully. Using technical analysis helps identify strong price trends and good entry points. Proper risk management, such as stop losses and position sizing, also protects capital. Altogether, staying informed and disciplined is key when trading cannabis REITs in today’s evolving market.
Cannabis REITs to Watch for Long-Term Gains in 2025
As the U.S. cannabis industry expands, real estate investment trusts (REITs) are becoming a critical financing source. These REITs provide essential capital to cannabis companies through sale-leaseback agreements and direct lending. In return, they generate consistent income and strong dividends for shareholders. Moreover, they offer exposure to the cannabis sector without the risks of direct plant-touching operations. In May 2025, three cannabis REITs stand out due to their growing portfolios and resilient financials. These include Innovative Industrial Properties (IIPR), NewLake Capital Partners (NLCP), and Chicago Atlantic Real Estate Finance (REFI).
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Top Cannabis REITs to Watch in May 2025
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- NewLake Capital Partners, Inc. (OTC: NLCP)
- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI)
Innovative Industrial Properties, Inc. (IIPR)
Innovative Industrial Properties is the first publicly traded cannabis REIT in the U.S. It focuses entirely on acquiring and leasing facilities to licensed cannabis operators. Founded in 2016, the company has grown steadily across the country. It operates in 19 states, with major footprints in California, Pennsylvania, and Illinois. These regions host large-scale cultivation and processing centers.
The company currently holds over 100 properties. These properties are mostly leased to single tenants under long-term triple-net leases. The tenants include some of the largest U.S. cannabis producers. As a result, IIPR maintains steady rental income even during market downturns. Its focus on real estate allows investors to gain indirect cannabis exposure with reduced volatility.
In Q1 2025, IIPR reported revenue of $71.7 million. This marked a slight increase from the previous quarter. Net income came in at $30.3 million, or $1.03 per share. The company declared a dividend of $1.90 per share. This represents a yield attractive to income-seeking investors. IIPR continues to maintain over $220 million in liquidity. Despite some tenant-related challenges, it has preserved healthy cash flow and balance sheet strength. Its portfolio is diversified, and management remains focused on strategic sale-leasebacks.
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NewLake Capital Partners, Inc. (NLCP)
NewLake Capital Partners is a cannabis-focused REIT that invests in cultivation and retail properties. Established in 2019, the company has built a diverse portfolio of assets. It currently owns 33 properties across the U.S. These include 15 cultivation facilities and 18 retail dispensaries. The properties are spread across 12 states, including strongholds like Pennsylvania and Ohio.
NewLake’s tenants are major multi-state operators. Companies like Curaleaf and PharmaCann lease several of their facilities. The company operates under a triple-net lease structure. This ensures tenants handle all property expenses while NewLake collects fixed rent. As of May 2025, NewLake’s portfolio is fully leased, and occupancy remains strong.
Financially, NewLake posted $13.2 million in revenue for Q1 2025. This reflected a 4.8% year-over-year increase. Net income was $6.3 million, while adjusted funds from operations totaled $10.7 million. The company declared a $0.43 quarterly dividend, rewarding long-term investors. With over $100 million in available liquidity and a low debt ratio, NewLake is well-positioned for expansion. It has a reputation for responsible capital allocation and consistent rent collections. Management remains focused on adding new properties and deepening relationships with top-tier tenants.
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Chicago Atlantic Real Estate Finance, Inc. (REFI)
Chicago Atlantic Real Estate Finance operates as a commercial mortgage REIT. Unlike IIPR and NLCP, it does not own physical properties. Instead, REFI provides secured loans to licensed cannabis operators. Its focus is on growth-stage companies with a strong operational history. The REIT specializes in senior secured loans, offering high-interest income and downside protection.
REFI’s portfolio includes 30 active loans totaling over $400 million. These loans are distributed across multiple states and sectors. Borrowers use funds for expansion, equipment, and facility improvements. The company works with experienced operators that meet strict underwriting criteria. This reduces credit risk and supports reliable income generation.
In Q1 2025, REFI reported net interest income of $13 million. Net income reached $10 million, or $0.47 per share. Operating expenses decreased, boosting overall profit margins. The company declared a quarterly dividend of $0.47 per share. This represents a high annualized yield, appealing to income investors. REFI also maintains access to a secured credit facility and holds strong liquidity. With its focus on short-duration loans and consistent underwriting, REFI remains a stable option in a volatile sector. It aims to scale its lending platform while preserving capital discipline.
Cannabis REITs Are Ideal for Long-Term Growth in 2025
Each of these cannabis REITs—Innovative Industrial Properties, NewLake Capital Partners, and Chicago Atlantic Real Estate Finance—brings a unique model to the table. IIPR focuses on real estate ownership and leasebacks. NLCP offers a diversified mix of retail and cultivation assets. REFI prioritizes high-yield lending with strong protections. All three demonstrate consistent revenue, strong dividends, and disciplined management. In a growing industry still underserved by traditional financing, these REITs continue to stand out. Investors seeking cannabis exposure with income stability should keep a close eye on these top-performing REITs in May 2025.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
