High-Yield Cannabis REITs to Watch in October 2024
The cannabis industry in the US continues to experience rapid growth, with an estimated market size of $32 billion in 2024. This expansion is fueled by increasing state-level legalization and a growing consumer base. Cannabis REITs are emerging as key players, providing real estate and capital to cannabis operators. These REITs offer attractive dividend yields, often exceeding 7%, making them appealing to income-focused investors. Recently, headlines about potential federal legalization have sparked renewed interest in the sector. Investors are keen on capturing both short-term gains and long-term growth opportunities.
However, investing in cannabis REITs requires careful planning. Technical analysis can help identify optimal entry and exit points, ensuring better risk management. For instance, tracking moving averages and support levels can help investors avoid sharp downturns. Additionally, diversification within the cannabis sector is crucial to mitigating risk. Proper risk management and careful stock selection are essential to long-term success as the market remains volatile.
Cannabis-focused Real Estate Investment Trusts (REITs) have gained significant momentum in the US, becoming crucial players in the growing cannabis industry. These companies provide the real estate infrastructure that cannabis operators need to cultivate, process, and sell their products. With legalization efforts advancing, these REITs are poised for continued growth. In October, three standout cannabis REITs are Innovative Industrial Properties, Inc. (IIPR), AFC Gamma, Inc. (AFCG), and NewLake Capital Partners, Inc. (NLCP).
[Read More] 3 Marijuana Stocks To Watch Mid-October 2024
October 2024’s Best Cannabis REITs for Dividend Hunters
- Innovative Industrial Properties, Inc. (NASDAQ: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
- NewLake Capital Partners, Inc. (NASDAQ: NLCP)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. (IIPR) is one of the leading cannabis-focused REITs in the US. Founded in 2016, IIPR specializes in acquiring and leasing properties used by state-licensed cannabis operators. The company focuses on long-term, triple-net lease agreements with cannabis operators, which ensures consistent cash flow. IIPR’s presence spans 19 states, with properties supporting cultivation, processing, and retail dispensaries. Currently, the REIT has over 100 properties in its portfolio. IIPR’s largest footprint lies in California and Colorado, where cannabis legalization has been fully embraced, offering a stable growth environment for the company.
In its most recent financial report, IIPR posted solid growth numbers. For the second quarter of 2024, the company reported total revenues of $117.4 million, marking a 20% increase year over year. IIPR’s net income was $71.5 million, or $2.56 per diluted share, reflecting a steady financial standing. The company has continued expanding its portfolio with several new property acquisitions. Despite some concerns over tenant risks, IIPR’s diversified lease agreements and strong liquidity position make it a solid contender in the REIT space. Transitioning into October, investors should keep an eye on IIPR’s ability to manage tenant relationships while capitalizing on expanding legal markets.
[Read More] Best Ancillary Cannabis Stocks Gaining Attention After Last Week’s Rally
AFC Gamma, Inc.
AFC Gamma, Inc. (AFCG) is another top cannabis REIT to watch in October. The company primarily provides secured loans to cannabis operators involved in cultivation, processing, and distribution. Founded in 2020, AFCG operates across several US states, including major cannabis markets like Florida, New York, and Arizona. The REIT is relatively new compared to its peers but has quickly established itself as a key player in cannabis lending and real estate. AFCG’s unique focus on providing debt capital makes it an appealing option for investors seeking diversification within the cannabis sector.
In terms of financial performance, AFC Gamma has shown strong growth in 2024. For the second quarter, AFCG reported net income of $15.7 million, or $0.76 per share. This represents a substantial increase from the previous year, signaling the company’s continued success in the cannabis financing market. The company also declared a quarterly dividend of $0.50 per share, maintaining its appeal to income-focused investors. AFC Gamma’s portfolio comprises over $600 million in commitments, with an average loan size of approximately $20 million. While AFCG’s exposure to the cannabis market presents risks, its conservative lending practices and focus on collateral-backed loans make it a safer bet in this volatile sector.
[Read More] Top Performing Marijuana Stocks with Upward Momentum in the Last Month
NewLake Capital Partners, Inc.
NewLake Capital Partners, Inc. (NLCP) rounds out the top three cannabis REITs to watch in October. Founded in 2019, NLCP invests in industrial and retail properties used by cannabis operators, focusing on sale-leaseback transactions. The company is in 12 states, including major markets like California, Illinois, and Massachusetts. NLCP’s portfolio comprises more than 30 properties, including cultivation facilities and retail dispensaries. The REIT’s strong focus on sale-leaseback transactions has allowed it to provide capital to cannabis operators while maintaining ownership of valuable real estate.
Financially, NLCP continues to perform well. For the second quarter of 2024, the company reported total revenues of $45.6 million, a 16% increase compared to last year. NLCP’s net income stood at $28.2 million, or $0.68 per share, reflecting the company’s ability to generate consistent returns. The REIT also declared a dividend of $0.39 per share, highlighting its commitment to returning capital to shareholders. NewLake’s focus on financially stable tenants and long-term lease agreements has helped mitigate risks associated with the cannabis industry. As the legal cannabis market expands, NLCP is well-positioned for further growth, making it a top pick for investors this October.
[Read More] Top Performing Marijuana Stocks with Upward Momentum in the Last Month
Leading Cannabis REITs to Add to Your Portfolio
In conclusion, cannabis REITs remain essential to the US cannabis industry, offering growth potential and high dividend yields. With the US cannabis market projected to grow significantly in the coming years, these REITs provide operators crucial real estate infrastructure and capital. Recent headlines surrounding potential federal legalization further enhance the appeal of these stocks for investors seeking long-term growth.
Among the top cannabis REITs to watch this October are **Innovative Industrial Properties, Inc. (IIPR)**, **AFC Gamma, Inc. (AFCG)**, and **NewLake Capital Partners, Inc. (NLCP)**. Each of these companies has a strong presence in the cannabis market, offering substantial dividend yields while benefiting from the industry’s expansion. Investors can optimize their entry and exit strategies using technical analysis and proper risk management. As the cannabis industry continues to evolve, these REITs remain key players, providing opportunities for income- and growth-focused investors.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
