Top Cannabis Stocks As 2023 Begins
Are you looking for the top marijuana stocks to buy in 2023? Recent developments on Capitol Hill have created a downturn in pot stocks due to not passing federal cannabis reform. In addition, Congress did not pass banking regulations leaving the cannabis industry without the ability to bank in the US. Although in 2022, Congress fell short of passing cannabis legislation, we could see new attempts in 2023 for reform.
Investors might profit from the market trend by using the sector’s downfall. Additionally, it is anticipated that the cannabis market would more than double in size over the next five years, creating an opportunity for marijuana REITs to expand in value consistently. Let’s look at 2 of the top cannabis companies for your long-term portfolio right now if you’re seeking long-term investments in the industry.
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Top Cannabis REITs To Watch In 2023
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NYSE: AFCG)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a cannabis-focused real estate investment trust (REIT) in the United States. The corporation has access to 8.7 million square feet of rentable space right now, and 2.5 million square feet more will be available soon. With an average lease duration of 16.4 years, most of these structures are completely leased. At the present time, The company currently has 111 properties dispersed throughout 19 states. In addition to an additional $227.1 million in anticipated rent payments, IIP has invested $2.4 billion in property renovations since April. IIP estimates its lease portfolio will grow significantly in 2022 due to its ongoing real estate investments, particularly in Pennsylvania and Massachusetts.
On November 2, the business released its third-quarter 2022 earnings. Over $70.9 million in total revenues were brought in, a 32% increase from last year. IIP reported AFFO of about $60.1 million, or $2.13 per diluted share, for the quarter and net income for common investors of around $37.3 million, or $1.32 per diluted share. In addition, the corporation paid stockholders of record on September 30, 2022, a quarterly dividend of $1.80 per common share, for an annualized dividend of $7.20 per share, on October 14, 2022.
The dividends paid for the fiscal year ending September 30, 2021, increased by $1.34 or 25% compared to the $6.80 per common share dividends on common stock issued for the fiscal year ending September 30, 2022. On December 15th IIP announced a Q4 2022 cash dividend of $1.80 per common share, contributing to an aggregate of $7.10 per common share declared in 2022, Up $1.38, or 24%, Over 2021.
IIPR Stock Performance
On December 30th, IIPR stock closed at $105.49, down 16.38% in the last trading month. The stock is currently trading in a 52-week price range of $87.47-$249.38, down 61.45% year to date. 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 57.88% increase over the previous trade price of $105.49.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis ancillary company with a robust cash flow and good management. The company, launched in 2020, concentrated on supply and demand theories, markets for those theories, real estate security, and other forms of collateral. First-lien loans, mortgage loans, construction loans, bridge financings, and other unusual forms of financing are among AFCG’s areas of expertise. In general, the rapidly expanding cannabis market has been the focus of AFC Gamma’s most recent marketing initiatives. Verano Holdings Corp. received a $100 million option and a $250 million credit line from the corporation (OTC: VRNOF).
AFC Gamma had an increase in net income of 45% from the third quarter of 2021 to the third quarter of 2022, totaling $11.5 million, or $0.57 per basic weighted average share of common stock. Additionally, from the third quarter of 2021 to the third quarter of 2022, the company’s distributable earnings1 increased by 64%, from $6.7 million to $11.8 million, or $0.59 per basic weighted average share of common stock. On October 14, 2022, AFC Gamma also distributed a dividend for the third quarter of 2022 that was $0.56 per common share, a 30% increase over the third quarter of 2021.
By November 1, 2022, the company had closed $203.8 million in new commitments, funded $167.6 million in new and existing commitments, and refinanced $32.0 million in debt from existing creditors. AFCG paid a regular quarterly cash dividend of $0.56 per share of common stock to stockholders of record as of September 30, 2022, on October 14, 2022. In December, the company declared a $0.56 dividend per share for the quarter ending December 31, 2022.
AFCG Stock Performance
On December 30th, AFCG shares closed at $15.73, a 10.01 percent decline in the last trading month. The stock, which has a price range of $14.90 to $21.63, is down 30.89% year to date. Analysts at CNN Business predict that the 12-month average price for AFCG shares will be $22.00 In comparison to the stock’s most recent trading price of $15.73, this prediction shows a gain of 39.86 percent.
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Investing Long Term In Marijuana REITs For 2023
Cannabis REITs can be a fantastic choice for new investors looking for long-term investments to get into the cannabis industry. Before investing in a company, you should always do your research. In general, it may be necessary to check the companies’ financial statements and press releases to identify which ones represent the greatest investments. If you want to make long-term investments in 2023, these marijuana REIT stocks might be the ones to keep an eye on.
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