Best Long-Term Investments In Cannabis? 2 REITs To Watch In April

Top Cannabis Stocks April 2023

Are you trying to find the best marijuana stocks for 2023? The US cannabis industry, which earns billions of dollars annually, has been impacted by the federal cannabis law’s delayed implementation. In general, investors may benefit from the current market trend by taking advantage of the sector’s decline. The cannabis market is expected to more than double in size over the next five years, providing marijuana REITs with a chance to increase in value consistently.

Cannabis REITs pay dividends to long-term cannabis investors. The relative scarcity of dividends in the cannabis industry is one of the factors enticing long-term investors to these cannabis equities. In addition, during the previous five years, cannabis REITs have offered the largest dividend increases, averaging over 20% annually. Yet, cannabis REITs pay out at a rate more significant than the average for the REIT industry, at about 70% of their available FFO. Let’s look at two of the top cannabis stocks for your portfolio right now if you want to invest in the industry long-term.

Best Marijuana REITs For April 2023

AFC Gamma, Inc. (NASDAQ: AFCG)
NewLake Capital Partners, Inc. (OTC: NLCP)

AFC Gamma, Inc.

AFC Gamma, Inc. is a well-known cannabis ancillary company with solid financials and experienced management. With an emphasis on supply and demand theories, markets for those theories, real estate security, and other sorts of collateral, the company was founded in 2020. First-lien loans, mortgage loans, construction loans, bridge financings, and other unusual forms of financing are some of AFCG’s specializations. Specifically, the rapidly expanding cannabis market has been the focus of AFC Gamma’s most recent marketing initiatives. Verano Holdings Corp. received a $100 million option and a $250 million credit line from the corporation.

The company delivered its fourth quarter and full-year 2022 results in March. In general, Fourth quarter GAAP net income of $2.9 million or $0.14 per basic weighted average common share and distributable earnings of $12.6 million or $0.62 per basic weighted average common share. In addition, the company produced a full-year GAAP net income of $35.9 million or $1.80 per basic weighted average common share and Distributable Earnings of $49.9 million or $2.51 per basic weighted average common share. The company declared a dividend of $0.56 per common share for the first quarter of 2023.

AFCG Stock Performance

On April 5^th, AFCG shares closed at $11.42, a 26.37 percent decline from the previous trading month. The stock, which has a price range of $11.35 to $19.00, is down 27.40% year to date. In this case, analysts at CNN Business predict that the 12-month average price for AFCG shares will be $19. In comparison to the stock’s most recent trading price of $11.42, this prediction shows a gain of 66.08 percent.

NewLake Capital Partners, Inc.

NewLake Capital Partners is a well-known lender for state-licensed cannabis businesses. This triple-net lease REIT invests in commercial real estate, including industrial and retail properties, through sale-leasebacks, third-party purchases, and build-to-suit projects. It is a reliable real estate partner because some of the most well-known businesses in the country’s state-licensed cannabis market are among its tenants.

The company reported fourth-quarter 2022 revenue of $12.2 million, up 35.7% from the previous year. Moreover, overall income for the entire 2022 fiscal year was $44.8 million, up 59.6% from the previous year. Net income attributable to common stockholders for the fourth quarter of 2022 was $6.7 million, while funds from operations, including adjusted funds from operations, were $10.5 million. Moreover, funds from operations, net income, and adjusted funds from operations for 2022 totaled $35.2 million, $22.0 million, and $38.7 million, respectively. A share repurchase program of up to $10.0 million in the company’s common stock through December 31, 2023, was approved by the company’s board of directors on November 7, 2022. On March 8, 2023, the Company declared its first quarter of 2023 dividend of $0.39 per share.

NLCP Stock Performance

NLCP stock closed at $12.07 on April 5^th, down 27.94% in the past month of trading. In this case, the stock has a price range of $11.86-$26.00 and is down 24.66% year to date.

Cannabis REITs And Long Term Pot Stocks

Cannabis REITs can be a good choice for new investors looking for long-term investments to get into the cannabis industry. When investing in a company, you should always do your own research. Also, it may just be necessary to briefly check the companies’ financial statements and press releases to identify which ones represent the greatest investments. If you want to make long-term investments in 2023, these marijuana stocks could be the ones to watch.