Top Cannabis REITs to Watch in December 2025
Cannabis real estate investment trusts remain a unique way to gain sector exposure. Instead of selling cannabis, these companies collect rent or interest. As a result, they reduce direct operational risk. Still, tenant health and capital markets remain critical factors. As December 2025 approaches, several names stand out for investors. In particular, Innovative Industrial Properties, NewLake Capital Partners, and Chicago Atlantic Real Estate Finance deserve attention. Each offers a different risk and income profile. Therefore, understanding their structures matters before committing capital.
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Top Cannabis REITs Offering Income Opportunities in December 2025
- Innovative Industrial Properties (NYSE: IIPR)
- NewLake Capital Partners (OTC: NLCP)
- Chicago Atlantic Real Estate Finance (NASDAQ: REFI)
Innovative Industrial Properties (IIPR)
Innovative Industrial Properties is one of the earliest cannabis-focused REITs in the market. The company focuses on acquiring specialized industrial facilities. These properties are then leased to licensed cannabis operators. As a result, IIPR avoids direct exposure to cannabis sales. Its largest presence spans multiple U.S. states rather than one region. As of late 2025, the company owned more than 110 properties nationwide. These properties covered roughly nine million rentable square feet. Importantly, IIPR does not operate dispensaries itself. Therefore, it reports zero company-run dispensary locations. Instead, its tenants operate cultivation, processing, and some retail facilities. This model allows broad geographic diversification. However, tenant performance still impacts rent collection. Recently, IIPR has expanded beyond cannabis-only assets. It has allocated capital toward life science investments. As a result, management aims to stabilize long-term cash flow.
From a financial perspective, IIPR continues to generate meaningful revenue. During its most recent quarter, revenue remained above $60 million. Net income also stayed positive despite tenant-related challenges. Meanwhile, funds from operations remained a key focus for investors. Adjusted FFO comfortably covered the company’s dividend. IIPR continued paying one of the sector’s highest dividends. However, management acknowledged pressure from tenant defaults and restructurings. Still, most properties remained operational. The balance sheet stayed relatively conservative compared to peers. In addition, development projects offered future growth potential. Therefore, IIPR remains a cornerstone cannabis REIT to monitor into year-end.
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NewLake Capital Partners (NLCP)
NewLake Capital Partners follows a more targeted cannabis real estate strategy. The company specializes in sale-leaseback transactions with operators. These deals often include triple-net lease terms. As a result, tenants cover taxes, insurance, and maintenance. This structure improves cash flow visibility. Unlike many competitors, NLCP owns dispensary properties directly. As of late 2025, its portfolio included 34 total properties. This number included 19 dispensaries and 15 cultivation facilities. Therefore, NLCP offers clearer retail exposure within cannabis real estate. Its properties span multiple regulated U.S. markets. This helps reduce reliance on any single state. Additionally, the company focuses on established operators. That approach aims to reduce default risk.
Financially, NLCP remained steady during 2025. The company consistently generated positive AFFO. Quarterly AFFO covered dividends with a reasonable margin. NLCP paid a quarterly dividend that translated into a strong annualized yield. Management remained transparent about tenant risks during the year. However, it emphasized liquidity and disciplined underwriting. The balance sheet included access to revolving credit capacity. This provided flexibility for acquisitions or tenant support. While growth slowed compared to earlier years, income stability remained intact. Therefore, NLCP stands out for investors seeking dispensary-backed real estate exposure.
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Chicago Atlantic Real Estate Finance (REFI)
Chicago Atlantic Real Estate Finance operates under a different model entirely. Rather than owning properties, it provides loans to cannabis operators. These loans are secured by real estate collateral. As a result, REFI earns interest income instead of rent. The company focuses on senior secured lending structures. Many loans also carry floating interest rates. This feature can be attractive during higher-rate environments. REFI operates nationwide but emphasizes limited-license states. Importantly, REFI does not own or operate dispensaries. Therefore, it reports zero dispensary locations. Its exposure is measured through borrower relationships instead. As of late 2025, REFI worked with more than 25 portfolio companies. This provided diversification across operators and regions.
From a financial standpoint, REFI delivered strong yield metrics in 2025. Net interest income remained the primary revenue driver. Distributable earnings comfortably covered its dividend. The company paid one of the highest yields in the cannabis REIT space. In addition, leverage remained moderate compared to mortgage REIT peers. Management highlighted disciplined underwriting and conservative loan structures. Importantly, most loans carried double-digit yields. The pipeline of potential deals also remained sizable. However, credit risk always deserves attention in this model. Even so, REFI remains appealing for yield-focused investors into December 2025.
Final Thoughts
Cannabis REITs continue to evolve as the industry matures. Each structure offers distinct advantages and risks. IIPR provides scale and diversification. NLCP offers direct dispensary exposure. REFI delivers high yields through secured lending. Therefore, positioning depends on risk tolerance and income goals. As December 2025 approaches, these three names remain essential watchlist candidates.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
