This Week’s Top Cannabis REITs: Strong Yields and Market Exposure
In the U.S., the cannabis industry’s growth remains strong and promising. The legal market was worth about $38.5 billion in 2024. It is forecasted to reach nearly $76.4 billion by 2030. That equates to an 11.5 percent compound annual growth rate. In addition, some forecasts see market expansion through 2029 at a whopping 37 percent CAGR. Meanwhile, federal policy remains dynamic. The DEA will have started rescheduling cannabis from Schedule I to III by late 2025. However, broader federal legalization seems delayed.
At the state level, new recreational markets are rising. For example, New York expects to grow from 275 licensed stores to over 625 by 2025. Florida and Pennsylvania may soon legalize recreational use. Therefore, investors can leverage technical analysis to time entries into cannabis REITs. They can identify better buy points by watching price trends and volume shifts. Moreover, combining technical tools with disciplined risk management is vital for protecting capital.
As cannabis legalization progresses, REITs tied to real estate and lending become attractive. They offer exposure without handling plants directly. Yet, they also carry unique risks. For instance, tenant performance depends on consumer demand and regulation. Accordingly, applying risk management can help balance risk and reward. First, setting stop-loss levels limits drawdowns if markets reverse sharply. Second, diversifying across equity and mortgage cannabis REITs also reduces reliance on single factors. For example, an equity REIT offers rent-based income.
Strong Yields and Market Exposure
Meanwhile, a mortgage REIT yields interest from secured loans. Additionally, monitoring legal news remains essential. Recent headlines show state expansion in New York and potential legalization in Florida and Pennsylvania. Investors should follow catalyst events. Then, they can adjust positions when legalization dates or license approvals come near. Finally, applying both fundamental and technical indicators can help navigate volatility. That approach supports more resilient investment in cannabis REITs this week.
As the cannabis industry grows, real estate investment trusts (REITs) focused on the sector remain key players. These REITs offer exposure to the cannabis space without handling the plant directly. Instead, they lease or finance properties tied to cultivation and retail. In June 2025, several cannabis REITs are gaining attention from investors. These include Innovative Industrial Properties, NewLake Capital Partners, and Chicago Atlantic Real Estate Finance. Each has shown resilience, strong yields, and growth potential in a volatile industry. Let’s explore why these three REITs stand out this month.
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Marijuana REIT Watchlist: High-Dividend Plays With Long-Term Potential
- 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 largest cannabis-focused REIT in the U.S. The company was founded in 2016. It operates by acquiring properties from licensed cannabis operators and leasing them back under long-term contracts. As of June 2025, IIPR owns over 110 properties across 19 states. These include major markets like California, Pennsylvania, and Illinois. Its tenants are multi-state operators involved in cultivation and processing. IIPR focuses on triple-net leases, meaning tenants pay property taxes, insurance, and maintenance. This structure allows IIPR to generate steady, low-risk income. Its national footprint gives the company strong exposure to the U.S. cannabis economy.
Recently, IIPR reported total revenue of approximately $71.7 million for the first quarter of 2025. Net income available to common shareholders was around $30.3 million. This translates to $1.03 per diluted share. Adjusted funds from operations (AFFO) came in at roughly $55.3 million. This equaled $1.94 per share. The company declared a quarterly dividend of $1.90, offering a solid yield. IIPR also maintained liquidity exceeding $220 million. Management emphasized tenant performance and collection strength despite recent industry headwinds. Additionally, the company repurchased shares and reduced debt levels. These moves aim to boost long-term shareholder value.
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NewLake Capital Partners, Inc. (NLCP)
NewLake Capital Partners is an equity REIT focused on cannabis real estate. The company owns a mix of retail and cultivation properties. As of June 2025, NLCP holds 33 properties across 12 U.S. states. This includes 15 cultivation facilities and 18 dispensaries. Tenants include well-known multi-state operators like Curaleaf and PharmaCann. NewLake signs long-term triple-net leases to ensure stable income. These contracts shift most property costs to tenants. This helps protect NLCP’s margins while delivering predictable revenue. The REIT strategically expands in limited-license states where real estate demand remains high.
In the first quarter of 2025, NLCP posted revenue near $13.2 million. This represented modest year-over-year growth. Net income totaled approximately $6.3 million for the quarter. The company’s adjusted funds from operations reached around $10.7 million. These results supported a quarterly dividend of $0.43 per share. Liquidity remained strong, with more than $100 million available. Debt levels were also low compared to assets. This gives NewLake financial flexibility for future acquisitions. Management continues to focus on disciplined growth and steady cash flow. The REIT remains well-positioned to benefit as cannabis legalization expands across more U.S. states.
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Chicago Atlantic Real Estate Finance, Inc. (REFI)
Chicago Atlantic Real Estate Finance is a mortgage REIT operating in the cannabis sector. Unlike equity REITs, REFI does not own property. Instead, it provides real estate-secured loans to licensed cannabis businesses. These loans typically fund facility buildouts, working capital, or expansion projects. As of June 2025, REFI manages a loan portfolio worth over $400 million. The company has more than 30 active loan deals. These are spread across cultivation, processing, and retail operators in multiple states. REFI targets senior secured loans with conservative loan-to-value ratios. This provides income with reduced credit risk exposure.
For the first quarter of 2025, REFI generated net interest income of about $13 million. Net income reached approximately $10 million, or $0.47 per share. Operating expenses were tightly controlled, boosting overall efficiency. REFI declared a dividend of $0.47 per share for Q2 2025. This continued its trend of delivering strong shareholder returns. The REIT also maintained access to a secured credit facility. Liquidity remains healthy, supporting further loan growth. Management remains focused on quality underwriting and risk-adjusted yield. This strategy has helped REFI thrive despite industry volatility. Investors seeking high-yield exposure to cannabis financing may find REFI especially attractive this month.
Top Marijuana Property REITs to Consider in a Shifting Market
Cannabis REITs continue to offer investors access to the industry without direct regulatory exposure. These companies provide essential infrastructure and financing to the sector. In June 2025, IIPR, NLCP, and REFI stand out as top options. IIPR brings scale and consistent earnings. NLCP offers a balanced portfolio and steady expansion. REFI provides a unique income opportunity through its lending model. However, investors must still manage risk. Legal uncertainty, tenant defaults, and capital availability remain concerns. Proper due diligence, diversification, and a focus on cash flow remain vital when considering cannabis REITs. Still, these three names may offer solid potential for long-term growth and income.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
