Leading Cannabis REITs with High Dividends This April
As April 2024 approaches, several top marijuana stocks are catching the eyes of savvy investors. The U.S. cannabis industry continues to expand dynamically. In recent years, legal sales have grown substantially. According to a New Frontier Data report, the industry’s national legal sales will climb to over $30 billion by 2025. Increasing legalization movements bolster this growth trajectory. Recent headlines highlight New York and New Jersey’s steps toward creating a more robust legal market. These developments significantly enhance the sector’s potential.
Furthermore, new press releases indicate strategic movements within the industry. Companies are innovating and expanding their market reach. Investors should note the importance of technical analysis in navigating this volatile market. Analyzing historical price movements helps in predicting future trends. Proper risk management is essential. It involves setting stop-loss orders and only allocating a small portion of a portfolio to high-volatility sectors like cannabis. These strategies mitigate potential losses, ensuring a more balanced investment approach. As the legislative landscape evolves, so does the opportunity for cannabis investments.
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Highest Dividend Cannabis REITs for April 2024
Innovative Industrial Properties, Inc. (NYSE: IIPR)
NewLake Capital Partners, Inc. (OTC: NLCP)
Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI)
Innovative Industrial Properties, Inc.
Among cannabis REITs, Innovative Industrial Properties, Inc. (IIP) is special. It was established in 2016 with a focus on companies offering medical marijuana. We purchase, own, and manage specialty industrial properties on behalf of IIP. Operators with prior experience and state permits are leased to these sites. As of 2023, IIP had 111 properties spread throughout 19 states. Most of them reside in California, Michigan, and Pennsylvania. These states have substantial medical cannabis markets. IIP’s presence in several domains demonstrates its approach to strategy.
Contracts for triple-net leasing are included in IIP’s business plan. Under these arrangements, the tenant bears the majority of the property’s expenses. As a result of this partnership, IIP will have a consistent and trustworthy funding source. Their financial stability depends on it. The company’s growth is keeping up with the explosive growth of the US cannabis market. IIP has gradually increased the range of services it offers since its founding. This growth is a reflection of the growing demand for cannabis-related real estate. Investors can purchase real estate associated with cannabis at a reduced regulatory risk through Innovative Industrial Properties. This is because it highlights characteristics that may be used in the medical field. The company announced that on Wednesday, May 8, 2024, following the market close, it will release its first-quarter results, which concluded on March 31, 2024.
Full Year 2023 Highlights
The release of the company’s third annual Sustainability Report demonstrated its commitment to sustainability, community involvement, and good governance. IIP’s property portfolio grew to 108 properties, totaling 8.9 million rentable square feet across 19 states, which is evidence of its deliberate growth and presence in the cannabis sector. IIP reported a 12% rise in total revenues for the fourth quarter of 2023 compared to the same time the year before and a net income of about $41.3 million for common stockholders. Additionally, a Loan Agreement was executed after the year, which improved IIP’s financial flexibility and liquidity. This comprehensive performance across financial metrics, strategic acquisitions, and commitment to sustainability positions IIP strongly as it navigates the growing cannabis sector, with a clear focus on leveraging opportunities for expansion and maximizing shareholder returns.
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NewLake Capital Partners, Inc.
NewLake Capital Partners, Inc. specializes in real estate for the cannabis business. They buy the land and then lease it back to state-licensed operators. In addition to cultivation centers, they run retail stores. This arrangement guarantees that NewLake will always receive rental income and gives operators access to funds.
When I last checked, NewLake owned a sizable real estate portfolio in several states. Pennsylvania, Illinois, and California have the highest prevalence. These regions in the US have sizable cannabis markets. Several of the largest operators in the industry benefit from their advantageous positions.
Fourth Quarter 2023 And Full Year 2023 Financial Highlights
The corporation had significant success in the fourth quarter of 2023, capping a year of consistent operational and financial development. A robust 6.4% year-over-year rise in revenue, or $13.0 million, was recorded. Increases in net income and funds from operations also indicate solid financial health. The corporation announced a dividend increase despite a minor decline in adjusted cash from operations. This shows faith in the company’s financial standing and prospects. Achieving 100% rent collection and strategically investing in property growth and renovations were among the operational successes. These actions demonstrate the company’s dedication to expansion and operational effectiveness.
The business maintained its upward trajectory during 2023, with revenue and net income rising sharply. At $47.3 million, the overall revenue increased by 5.1% over the prior year. The company’s strategic investments have established a strong basis for future growth, including land acquisitions and tenant improvements. The company’s dedication to providing shareholders with value is further evidenced by its stock repurchase program and dividend increases. Operational achievements such as the real estate sales and lease amendments demonstrate its flexibility and strategic vision in managing the intricacies of the market. On May 9th at 11:00 a.m. ET, NewLake Capital Partners will have a first-quarter 2024 earnings call.
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Chicago Atlantic Real Estate Finance, Inc. (REFI)
Chicago Atlantic Real Estate Finance, Inc., is one of the main players in the cannabis market’s finance segment. Its areas of specialization are credit solutions and real estate financing. Its services support cannabis industry business owners at all stages of their enterprise life cycle. Chicago Atlantic acts as a go-between for the capital needs and future growth potential of the cannabis sector.
The company has properties throughout a broad spectrum, many of which are sponsored in significant states. They are powerful in areas where legal marijuana markets are flourishing. These include Michigan, Illinois, and California, among other states. Their purposeful focus on these areas demonstrates their commitment to fostering the growth of the cannabis industry.
Fourth Quarter 2023 Financial Highlights
Tony Cappell, Chicago Atlantic’s co-chief executive officer, provided an update that included observations about the company’s performance and strategic decisions. Gross loan originations increased significantly for the company, and the weighted average yield to maturity—currently 19.4%—also rose. This development and their operators’ increased credit quality are evidence of their careful underwriting procedure and committed staff. Furthermore, they are paving the way to take advantage of additional opportunities by extending and expanding their credit facility through June 2026 and adding an enlarged accordion feature up to $150 million. The senior management team’s advancements are also significant; starting on March 7, 2024, Phil Silverman will become Chief Financial Officer, and Peter Sack will assume the role of Co-Chief Executive Officer.
As of December 31, 2023, the company’s portfolio performance was still good, with $378.8 million in loan obligations spread over 27 investments. With a weighted average yield to maturity of almost 19.4%, the returns were constant. In the fourth quarter, investment activities included $24.7 million in gross originations, which were supported by non-recurring fee income from early repayments and balanced by principal repayments. Chicago Atlantic made capital modifications to its secured revolving credit facility, increasing its borrowing capacity and extending its maturity date to June 2026. In January 2024, the firm announced a special cash distribution in addition to its regular quarterly cash dividend, demonstrating its strong financial position and dedication to providing returns for shareholders.
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April 2024 Wealth Builders: High-Dividend Cannabis REITs
In wrapping up our overview of top cannabis stocks for April 2024, we focus on Innovative Industrial Properties, Inc. (IIPR), NewLake Capital Partners, Inc. (NLCP), and Chicago Atlantic Real Estate Finance, Inc. (REFI). These companies have demonstrated resilience and strategic acumen in a burgeoning market. With the U.S. cannabis industry projected to exceed $30 billion in legal sales by 2025, these real estate investment trusts (REITs) are well-positioned. They provide much-needed real estate capital for the growing number of cannabis enterprises. Recent legislative advancements further bolster their prospects as more states move towards legalization, increasing demand for cannabis-friendly real estate.
Moreover, recent press releases from these entities reveal expansions and new partnerships, signaling robust growth strategies. Investors should apply technical analysis to identify entry and exit points, enhancing investment returns in this volatile sector. Risk management remains crucial; diversifying investments and setting stringent stop-loss orders can protect capital. As the legal landscape evolves, so do the opportunities for growth and profit in top cannabis REITs like IIPR, NLCP, and REFI. These stocks represent compelling considerations for those looking to tap into the continuous development of the cannabis industry.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
