Top Cannabis Stocks For Your Long-term Portfolio
Have you considered long-term investments in the best marijuana stocks? In general, given the market volatility connected with the top cannabis stocks to follow right now, finding long-term investments with consistency may be difficult. Cannabis REITs have been among the best performers on the marijuana stock market in the long run. Given their excellent investor returns over the preceding five years, some may be preparing for another run.
In recent years, cannabis REITs have been among the best-performing marijuana enterprises. This is primarily due to marijuana REIT’s regular dividend distributions to shareholders, which is still atypical for cannabis businesses. A big number of institutional investors and private equity firms have expressed interest in these top marijuana stocks.
Furthermore, the cannabis market is expected to more than double in size over the next five years, enabling the steady rise of marijuana REITs. If you’re looking for long-term holdings in the cannabis sector, let’s take a look at two of the top cannabis companies for your long-term portfolio right now.
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Best Cannabis REITs For November 2022
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a cannabis REIT focused on the legal cannabis business in the United States. The corporation now has 7.7 million square feet of rentable space, with another 2.5 million square feet on the way. The majority of these structures are fully leased, with a lease duration of 16.4 years on average. The company now has 111 properties spread throughout 19 states. As of April, IIP has spent $2.4 billion on property upgrades, in addition to another $227.1 million in expected rent payments. IIP estimates that its lease portfolio will grow significantly in 2022 as a result of its ongoing real estate purchases, particularly in Pennsylvania and Massachusetts.
On November 2nd, the company announced its third quarter 2022 results, with total revenues of around $70.9 million, a 32% increase over the preceding year’s period. IIP reported net income attributable to common stockholders of about $37.3 million, or $1.32 per diluted share, for the quarter, and AFFO of approximately $60.1 million, or $2.13 per diluted share. In addition, on October 14, 2022, the corporation paid a quarterly dividend of $1.80 per common share to stockholders of record on September 30, 2022, for an annualized dividend of $7.20 per share. The common stock dividends declared for the fiscal year ended September 30, 2022, of $6.80 per common share, reflect a $1.34, or 25%, increase over dividends issued for the fiscal year ended September 30, 2021. Importantly, IIP achieved total sales of $205.9 million during the nine months ending September 30, 2022, a 41% increase over the previous year’s period.
IIPR Stock Performance
On November 9th, IIPR stock closed at $103.76 and is up 13.87% in the past month. The stock is currently trading in a 52-week price range of $87.47-$288.02, down 60.53% year to date. At the present time, IIPR stock has a 12-month median price target of $160.00 per share, according to CNN Business analysts. In this forecast, this would be a 54.20% increase over the previous trade price of $103.76.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis ancillary company with a healthy cash flow and sound management. The company, which launched in 2020, focused on supply and demand theories, supply and demand areas, real estate security, and other sorts of collateral. AFCG specializes in first-lien loans, mortgage loans, construction loans, bridge financings, and other unconventional financing options. AFC Gamma’s latest commercial efforts have been focused on the rapidly developing cannabis market. The company granted a credit increase of $250 million as well as a $100 million option with Verano Holdings Corp. (OTC: VRNOF).
In Q3 2022, AFC Gamma recorded a net income of $11.5 million, or $0.57 per basic weighted average share of common stock, a 45% increase over Q3 2021. Furthermore, the company reported distributable earnings1 of $11.8 million in Q3 2022, or $0.59 per basic weighted average share of common stock, a 64% increase over Q3 2021. AFC Gamma also paid a dividend of $0.56 per common share on October 14, 2022, for the third quarter of 2022, a 30% increase over the third quarter of 2021. As of November 1, 2022, the company had closed $203.8 million in new commitments and funded $167.6 million in new and existing commitments, including roughly $32.0 million refinanced from current debtors. AFCG paid a regular quarterly cash dividend of $0.56 per share of ordinary stock to stockholders of record on September 30, 2022, on October 14, 2022.
AFCG Stock Performance
On November 9th, AFCG shares closed at $15.35, an 8.41 percent decline in the last five trading days. The stock, which has a price range of $14.90 to $25.50, is down 32.56% year to date. Analysts at CNN Business predict that the 12-month average price for AFCG shares will be $22. In comparison to the stock’s most recent trading price of $22, this prediction shows a gain of 43.32 percent.
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Top Investments For Long-Term Cannabis Holds In 2022
For new investors searching for long-term investments to enter the cannabis business, cannabis REITs can be a great option. You should always conduct your own research before making an investment in a firm. To determine which companies are the best investments, it could only be necessary to quickly scan their financial statements and press releases. These marijuana stocks might be the ones to keep an eye on before November if you want to make long-term investments.
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