Top Marijuana Stocks To Watch Before 2023
Are you searching for the best marijuana stocks to buy before 2023? Recent events on Capitol Hill have revived the prospect of federal cannabis reform. Additionally, this might result in new banking regulations for the cannabis industry, enabling them to conduct regular business in the US. Schumer attempted to pass the legislation under an omnibus spending bill this week by introducing a reworked version of the SAFE Banking bill. Democrats are already writing new legislation to accommodate the concerns of GOP leaders who are still opposed to cannabis banking.
In general, the US cannabis sector, which earns billions of dollars annually, has suffered from delays in the federal cannabis law’s implementation. Using the sector’s downturn, investors may be able to benefit from the current market trend. Additionally, it is expected that over the next five years, the cannabis market will double in size, opening the door for marijuana REITs to increase in value continuously. If you’re looking for long-term holdings in the business, let’s look at 3 of the top cannabis companies for your long-term portfolio right now.
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Top Cannabis REITs For 2023
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
- NewLake Capital Partners, Inc. (OTC: NLCP)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a cannabis-focused real estate investment trust (REIT) in the United States. 8.7 million square feet of rentable space are available to the corporation, and 2.5 million square feet more will be available soon. Most of these buildings are fully leased, with an average lease term of 16.4 years. Currently, the corporation owns 111 properties scattered over 19 states. IIP had invested $2.4 billion in property improvements as of April, in addition to another $227.1 million in expected rent payments. IIP anticipates that due to its continuous real estate investments, notably in Pennsylvania and Massachusetts, its lease portfolio will expand significantly in 2022.
The company reported third-quarter 2022 earnings on November 2nd. Total revenues were over $70.9 million, up 32% from the previous year’s period. For the quarter, IIP reported AFFO of nearly $60.1 million, or $2.13 per diluted share, and net income for common investors of around $37.3 million, or $1.32 per diluted share. Additionally, the corporation distributed a quarterly dividend of $1.80 per common share, for an annualized dividend of $7.20 per share, on October 14, 2022, to stockholders of record on September 30, 2022.
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%. On December 15th IIP announced a Q4 2022 cash Dividend of $1.80 per common share, contributing to an aggregate of $7.10 per Common Share Declared in 2022, Up $1.38, or 24%, Over 2021.
IIPR Stock Performance
On December 16th, IIPR stock closed at $112.20, flat for the last five days of trading. The stock is currently trading in a 52-week price range of $87.47-$265.98, down 57.32% year to date. IIPR stock has a 12-month median price target of $160.00 per share, according to CNN Business analysts. In this forecast, this would be a 42.69% increase over the last trade price of $112.20.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis ancillary company with a healthy cash flow and good management. The business, which made its debut in 2020, focused on supply and demand theories, the markets for those theories, real estate security, and other types of collateral. The areas of specialization for AFCG include first-lien loans, mortgage loans, construction loans, bridge financings, and other unconventional kinds of financing. The recent marketing attempts of AFC Gamma have been centered on the quickly growing cannabis market. The company provided a $250 million credit line and a $100 million option to Verano Holdings Corp. (OTC: VRNOF).
In the third quarter of 2022, AFC Gamma recorded a net income of $11.5 million, or $0.57 per basic weighted average share of common stock, an increase of 45% over the third quarter of 2021. Additionally, the company’s distributable earnings1 increased by 64% from the third quarter of 2021 to $11.8 million in the third quarter of 2022, or $0.59 per basic weighted average share of common stock. AFC Gamma also paid a dividend of $0.56 per common share for the third quarter of 2022 on October 14, 2022, a 30% increase over the third quarter of 2021.
By November 1, 2022, the company had funded $167.6 million in new and existing commitments, closed $203.8 million in new commitments, and refinanced $32.0 million in debt from existing creditors. On October 14, 2022, AFCG distributed a normal quarterly cash dividend of $0.56 per share of common stock to stockholders of record as of September 30, 2022.
AFCG Stock Performance
On December 16th, AFCG shares closed at $16.94, a 6.07 percent increase in the last trading month. The stock, which has a price range of $14.90 to $23.21, is down 25.57% year to date. Analysts at CNN Business predict that the 12-month average price for AFCG shares will be $22.00 In comparison to the stock’s most recent trading price of $16.94, this prediction shows a gain of 29.79 percent.
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NewLake Capital Partners, Inc.
NewLake Capital Partners is a well-known real estate lender for cannabis businesses with state licenses. This triple-net lease REIT invests in commercial real estate, including industrial and retail buildings, through sale-leasebacks, third-party purchases, and build-to-suit initiatives. Its tenants include some of the most well-known companies in the nation’s state-licensed cannabis industry, making it a trustworthy real estate partner. Sales during the first quarter of 2022 totaled $10.2 million, up 130 percent from the same period the year before, according to the business. Additionally, a $5 million net profit distribution was made to common stockholders in the first quarter of 2022. The company selected Anthony Coniglio to begin serving as CEO on June 1.
Revenue for the third quarter of 2022 reached $12.1 million, a 50% increase year over year. Common stockholders’ and participating securities’ third-quarter 2022 net income came to $6.5 million. Both FFO and AFFO came to $10.3 million in total. 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). The company will invest $50 million in three of its current locations in July.
NLCP Stock Performance
NLCP stock closed at $16.98 on December 16th, up 4.17% in the past month. Currently, the stock has a price range of $12.70-$29.75 and is down 40.79% year to date. According to analysts at Tip Ranks, NCLP stock has a 12-month average price target of $27.50 per share. This would represent an increase of 61.96% from its last trading price of $16.98.
Making Long-Term Investments In Cannabis Before 2023
For new investors searching for long-term investments to enter the cannabis business, cannabis REITs can be a terrific option. You should always conduct your research before investing in a firm. To determine which companies represent the best investments, it could only be necessary to review their financial statements and press releases quickly. Before 2023, these marijuana stocks might be the ones to watch if you want to make long-term investments.
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