Maximizing Returns: Top Cannabis REITs with High Dividends for October
The US cannabis industry is growing rapidly, with sales projected to reach $46 billion by 2025. This growth opens opportunities for ancillary marijuana stocks, especially real estate investment trusts (REITs) that support cannabis companies. Cannabis REITs, like Innovative Industrial Properties (IIPR), offer high dividend yields, making them attractive to income-focused investors. News about potential federal legalization has recently stirred the market, with bipartisan efforts gaining momentum. As more states continue to legalize cannabis, ancillary stocks are positioned to benefit from increased demand for properties, lending, and services.
Technical analysis and proper risk management are essential when trading these volatile stocks. Technical analysis helps identify patterns and trends, allowing investors to make informed decisions. Indicators such as moving averages and support levels can highlight potential entry and exit points. Additionally, implementing risk management strategies, like setting stop-loss orders and diversifying, helps limit potential losses. Always ensure thorough research before investing in ancillary cannabis stocks.
The cannabis industry in the US continues to expand, and with it, ancillary companies are becoming crucial players. Ancillary marijuana stocks are those that don’t handle the plant directly but offer services, real estate, or other support to the industry. For investors, these stocks provide a unique opportunity. They are involved in the cannabis sector while often avoiding regulatory complexities. In October, three stocks stand out: Innovative Industrial Properties, Inc. (IIPR), AFC Gamma, Inc. (AFCG), and NewLake Capital Partners, Inc. (NLCP). Below is a breakdown of these top ancillary stocks, which could be worth adding to your watchlist.
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Top REITs in the Cannabis Sector with High Dividends for October
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
- NewLake Capital Partners, Inc. (OTC: NLCP)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. (IIPR) is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing industrial properties. The company leases these properties to state-licensed cannabis operators in the US. IIPR’s portfolio spans several states, including California, Colorado, and Illinois. The company has a significant presence in California, where it leases properties to some of the largest cannabis companies in the state. As of the latest data, IIPR has 108 properties across 19 states. These properties are essential for cannabis companies, as they provide cultivation and processing space.
IIPR’s financial performance has been strong despite recent market volatility. For the second quarter of 2024, the company reported revenues of $76.5 million, representing a 9% year-over-year increase. Additionally, net income for the quarter came in at $40.6 million, or $1.43 per share, showing consistent profitability. IIPR also paid a quarterly dividend of $1.80 per share, continuing to return value to shareholders. The company has maintained a healthy balance sheet, with $149.7 million in cash and short-term investments. However, the stock has experienced price fluctuation due to broader market trends, which may present a buying opportunity.
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AFC Gamma, Inc.
AFC Gamma, Inc. (AFCG) is a commercial real estate finance company that specializes in lending to cannabis-related businesses. Its main focus is providing loans to companies in the cannabis sector for expansion, operations, and acquisitions. AFCG operates across several key states in the US, with a particular focus on areas where cannabis is either fully or partially legalized. The company has made substantial investments in states such as Florida, California, and Michigan, where the demand for cannabis real estate financing is rapidly growing. AFCG’s portfolio has been diversifying, with investments in cultivation facilities and dispensaries.
Regarding financial performance, AFC Gamma reported strong results for the second quarter of 2024. The company’s revenue for the quarter reached $21.3 million, marking a 12% increase compared to the same quarter last year. Net income was $10.2 million, or $0.52 per share, demonstrating consistent earnings growth. AFC Gamma also declared a quarterly dividend of $0.48 per share, reflecting its commitment to shareholders. The company’s loan portfolio remains stable, with most loans backed by real estate assets. However, AFCG has indicated that it is cautious about future growth due to potential changes in the regulatory environment.
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NewLake Capital Partners, Inc.
NewLake Capital Partners, Inc. (NLCP) is another cannabis-focused real estate investment trust that provides real estate capital to licensed cannabis operators. The company’s business model involves acquiring properties and leasing them back to cannabis operators, primarily for cultivation and retail purposes. NLCP has a broad presence in the US, with properties in key markets like Arizona, Massachusetts, and New York. As of 2024, NLCP’s portfolio consists of over 30 properties across 12 states, and it continues to look for opportunities to expand. Its tenant base includes some of the largest multi-state operators (MSOs) in the cannabis industry.
Financially, NewLake Capital Partners reported impressive growth in the second quarter of 2024. The company generated $16.7 million in revenue, reflecting a 15% increase from the previous year. The net income for the quarter was $8.5 million, or $0.35 per share, which shows that NLCP is profitable and growing. The company also declared a quarterly dividend of $0.39 per share, underscoring its strong financial position. NLCP has a solid balance sheet with minimal debt, allowing it to continue its strategy of acquiring properties in high-demand cannabis markets. As the cannabis industry expands, NLCP is well-positioned to benefit from increased demand for real estate.
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Cannabis REITs with Top Dividends to Boost Income
Ancillary marijuana stocks provide a way for investors to participate in the growing cannabis industry without directly engaging in the plant-touching aspects of the business. Innovative Industrial Properties, AFC Gamma, and NewLake Capital Partners offer exposure to the expanding cannabis real estate market. Each of these companies has a strong presence in key US states, solid financials, and a clear strategy for growth. While the cannabis sector can be volatile, these ancillary stocks offer a unique combination of stability and growth potential, making them worthy of a spot on your October watchlist. As always, conducting thorough research and using proper risk management before making any investment decisions is essential.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
