Are Cannabis REITs A Buy In February? 3 On Watch Long Term

Top Marijuana Stocks For Your Long-Term Portfolio

Are you looking for the top marijuana stocks to invest in for 2023? The federal cannabis law’s implementation has been delayed, which has hurt the US cannabis industry, which generates billions of dollars annually. Investors might profit from the market trend using the sector’s recent decline. Additionally, it is anticipated that the cannabis market will double in size over the next five years, creating an opportunity for marijuana REITs to consistently expand in value.

Long-term cannabis investors receive a dividend from cannabis REITs. In general, one of the things luring long-term investors to these marijuana stocks is the relative rarity of dividends in the cannabis sector. Cannabis REITs have provided the best dividend increases over the preceding five years, averaging over 20% annually. However, at roughly 70% of their available FFO, cannabis REITs pay out more than the average for the REIT sector. If you’re looking to make long-term investments in the cannabis sector, let’s look at 3 of the best cannabis stocks for your portfolio right now.

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Top Marijuana REITs For February 2023

  1. Innovative Industrial Properties, Inc. (NYSE: IIPR)
  2. NewLake Capital Partners, Inc. (OTC: NLCP)
  3. Power REIT (NYSE: PW)

Innovative Industrial Properties, Inc.

Innovative Industrial Properties, Inc. is an American cannabis-focused real estate investment company (REIT). The corporation has access to 8.7 million square feet of rentable space right now, and 2.5 million square feet more will become available soon. With an average lease duration of 16.4 years, most of these structures are completely leased. The company currently has 111 properties dispersed throughout 19 states. In addition to the additional $227.1 million in projected rent payments, IIP has already invested $2.4 billion in property improvements as of April. IIP projects that its lease portfolio will grow significantly in 2022 due to its ongoing real estate investments, particularly in Pennsylvania and Massachusetts.

In November, the business released its financial results for the third quarter of 2022. From the same time last year, total revenue earned climbed by 32%, reaching almost $70.9 million. IIP reported AFFO of about $60.1 million, or $2.13 per diluted share, for the quarter and net income for common investors of about $37.3 million, or $1.32 per diluted share. In addition, the corporation paid stockholders of record on September 30, 2022, a quarterly dividend of $1.80 per common share, for an annualized dividend of $7.20 per share, on October 14, 2022.

When compared to the $6.80 per common share dividends on common stock issued for the fiscal year ending September 30, 2022, the dividends paid for the fiscal year ending September 30, 2021 increased by $1.34 or 25%. IIP issued a Q4 cash dividend of $1.80 per common share on December 15th. This dividend contributes to an aggregate payout of $7.10 per common share declared year 2022, an increase of $1.38 or 24% over 2021.

IIPR Stock Performance

On January 31st, IIPR stock closed at $89.78, down 11.42% in the last trading month. The stock is currently trading in a 52-week price range of $81-$211.17, down 11.42% year to date. IIPR stock has a 12-month median price target of $147.25 per share, according to Tip Ranks analysts. In this forecast, this would be a 64.01% increase over the previous trade price of $89.78.

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NewLake Capital Partners, Inc.

NewLake Capital Partners is a well-known real estate lender for cannabis businesses with state licenses. Through sale-leasebacks, third-party purchases, and build-to-suit initiatives, this triple-net lease REIT makes investments in commercial real estate, including industrial and retail buildings. Its tenants include some of the most well-known companies in the nation’s state-licensed cannabis sector, making it a trustworthy real estate partner. Sales for the first three months of 2022 were $10.2 million, up 130 percent from the same period in 2021, according to the business. Additionally, common stockholders received a $5 million net profit distribution in the first quarter of 2022.NLCP LOGO

Revenue increased by 50% year over year to $12.1 million during the third quarter of 2022. Overall, the common shareholders’ and participating securities’ third-quarter 2022 net income was $6.5 million. Together, FFO and AFFO came to $10.3 million. Curaleaf Holdings, Inc. (OTC: CURLF), Cresco Labs Inc. (CRLBF), Trulieve Cannabis Corp. (OTC: TCNNF), and Columbia Care Inc. are a few tenants of NewLake Capital (OTC: CCHWF). In July, the company will invest $50 million in three of its current sites. The company declared a fourth-quarter dividend in December for the fourth quarter of 2022 of $1.56 per common share. This is the company’s seventh consecutive quarterly dividend increase, representing a 5.4% rise from quarter to quarter and a 25.8% increase from year to year.

NLCP Stock Performance

NLCP stock closed at $17.88 on January 31st, up 11.61% in the past month of trading. Additionally,  the stock has a price range of $12.70-$26.40 and is up 11.61% year to date.

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Power REIT (PW)

Power REIT’s primary objective is to be a real estate investing trust that places a premium on long-term investments with better risk-adjusted returns. New processing facilities and greenhouses are being added at a quick rate to Power REIT’s portfolio of CEA properties. The leases for the buildings have been taken over by tenants who are authorized to grow medical marijuana on the property. Power REIT will use the money to finish making the required upgrades to the assets that are ready for development. Power REIT owns greenhouse facilities with opportunities for expansion.PW REIT

PW reported a core FFO of $0.41 per share for the second quarter of 2022. This is down from a core FFO of $0.51 for the same period in 2021. Additionally, core FFO was $0.41 per share for the quarter that ended June 30, 2022. As opposed to $0.40 per share for the quarter that ended March 31, 2022. PW now has 22 greenhouses and more than 2.2 million square feet of other controlled environment agriculture (CEA) facilities. The company has seven ground leases for solar projects totaling 112 kilometers of railroad land, in addition to owning 601 acres.

PW Stock Performance

p098765431PW stock closed on January 31st  at $4.680, up 18.58% for the last trading month. In this case,  the stock has a 52-week price range of $3.70-$68.82 and is up 18.58% year to date.

Cannabis REITs For Long-Term Investments In 2023

Cannabis REITs can be a good choice for new investors looking for long-term investments to enter the cannabis industry. Before investing in a company, you should always do your research. Companies’ financial filings and press announcements may disclose which ones offer the best investments. If you want to make long-term investments in 2023, these marijuana stocks might be the ones to watch in February.

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