Cannabis Stocks For Long-Term Investing In 2022
Have you given long-term investments in the top marijuana stocks any thought? Finding long-term investments with consistency may be challenging given the current market volatility. This volatility is amplified when associated with the best cannabis stocks to follow right now. Over the long term, cannabis REITs have been among the greatest performers on the marijuana stock market. Some may be getting ready for another run given their exceptional investor returns over the previous five years.
Cannabis REITs have been among the best-performing marijuana companies in recent years. This is mostly because marijuana REITs frequently distribute dividends to shareholders, which is still unusual for cannabis businesses. These top marijuana stocks have attracted interest from a large number of institutional investors and private equity companies.
Additionally, it is predicted that over the next five years, the cannabis market would more than double in size, supporting the steady expansion of marijuana REITs. Let’s look at two of the top cannabis stocks for your long-term portfolio right now.
[Read More] 2 Top Cannabis Stocks to Buy for October
Top Cannabis Stocks For Your Long-Term Portfolio In 2022
Innovative Industrial Properties, Inc.
A cannabis REIT focused on the US legal cannabis market is Innovative Industrial Properties, Inc. At the present time, 7.7 million square feet of rentable space are already available to the corporation, and 2.5 million square feet more are on the way. Most of these structures are fully leased, with an average lease term of 16.4 years. The company currently has 111 properties distributed throughout 19 states. IIP has spent $2.4 billion on property upgrades as of April, in addition to another $227.1 million in expected rent payments. The company anticipates that as a result of its continuous real estate purchases, notably in Pennsylvania and Massachusetts, its lease portfolio will expand significantly in 2022.
IIP reported first-quarter 2021 total revenues of $64.5 million, an increase of 50% from the same time in the previous year. The whole $34.7 million, or $1.32 per diluted share, reported net income for the first quarter of 2022 was also distributed to the holders of common stock. A quarterly dividend of $1.75 per common share was issued by the firm on April 14, 2022, an increase of 17% from Q4 2021. Depending on the number of shares, this amounts to a $7.00 annual dividend. For the third quarter of 2022, IIP declared a cash dividend of $1.80 per common share, for a total of $6.80 per share for the fiscal year ending September 30, 2022.
In Q1 and Q2, IIP acquired six purchases, and five lease revisions were obtained to allow for the renovation of more buildings. In addition, IIP announced a regular quarterly dividend of $0.5625 per share on June 15th. At a site in Pennsylvania, the company increased its real estate partnership with Green Thumb Industries. At the present time, IIP invested a total of $94.6 million in the 300,000-square-foot building.
IIPR Stock Performance
On October 18th, IIPR stock closed at $94.52 and is up 3.55% in the past month. The stock is currently trading in a 52-week price range of $87.47-$288.02, down 64.05% year to date. IIPR stock has a 12-month median price target of $162.50 per share, according to CNN Business analysts. In this forecast, this would be a 71.08% increase over the previous trade price of $91.18.
Power REIT (PW)
Power REIT’s main goal is to be a real estate investment trust that prioritizes long-term investments with greater risk-adjusted returns. In general, Power REIT’s portfolio of CEA properties is expanding swiftly to incorporate new processing facilities and greenhouses. Tenants who have been awarded permission to cultivate medical marijuana on the land have taken over the leases for the buildings. The funds will be used by Power REIT to complete the necessary improvements to the assets that are prepared for development. Greenhouse facilities owned by Power REIT have room for growth.
PW reported a core FFO of $0.41 per share for the second quarter of 2022, 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. With 22 greenhouse-based controlled environment agriculture (CEA) assets, PW now has more than 2.2 million square feet in total. The company holds 112 miles of railroad property in addition to 7 ground leases for solar farms totaling 601 acres.
PW Stock Performance
PW stock closed on October 18th at $10.00 down 16.74% for the last month of trading. Currently, the stock has a 52-week price range of $9.48-$81.99 and is down 85.48% year to date. According to analysts at CNN Business PW stock has a consensus price target of $44 per share. In this case, this would represent an upside of 327.18% from its last trading price of $10.00.
Marijuana REITs And Long-Term Investing In Cannabis
For new investors searching for long-term investments to enter the cannabis business, cannabis REITs can be a great option. You should always conduct your own research before making an investment in a firm. To determine the best investments, it is essential to scan their financial statements and press releases. These top marijuana stocks may be the ones to watch now in October if you want to make long-term investments.
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