Top Cannabis Stocks And 2021 Market Performance
In 2021 the best marijuana stocks to buy have seen significant declines in the market. But one area of the cannabis sector has continued to perform well this year. In general, cannabis REITs have continued to show some upward momentum in 2021. This is partly because at the present time REITs are one of the only ways leading cannabis companies can expand their cultivation and processing facilities and raise capital for improvements on those properties.
As the cannabis industry continues to grow at a rapid rate currently top marijuana REITs are working with leading companies to expand their production using triple net leases and mortgages, to establish long-term relationships. While US cannabis stocks trade near their lowest price points in 2021 these marijuana REITs have become one of the preferred ways to gain exposure to the cannabis industry long term. Besides performing better than the rest of the cannabis sector these marijuana REITs also provide a dividend for shareholders.
In the cannabis sector dividends are seldom seen and investing in vertically integrated marijuana stocks can be difficult with the significant market volatility that’s plagued the cannabis sector for years. As future markets in the US like Connecticut, New Jersey, New Mexico, New York, and Virginia expand the US market cannabis REITs continue to fund production facilities for the leading companies.
Best Pot Stocks For Your Long Term Portfolio In 2021
Although the cannabis sector is down presently, leading cannabis companies have continued to deliver strong revenue growth in the first half of 2021. With a new round of earnings beginning next week, we could see a slowdown in growth for top pot stocks to watch. For investors looking for long-term exposure to the best marijuana stocks in 2021, it could be time to start a watchlist of the top cannabis stocks for long-term investing.
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Before investing in cannabis stocks, it’s important to do your own due diligence on a company before investing. Researching a company’s financials and press releases can help you find the best-performing companies to invest in. In addition, studying how a stock moves in the market and learning how to use investment tools can help you solidify the largest returns. Let’s take a look at 3 top marijuana REITs that could be the best cannabis stocks to buy long term.
Top Marijuana Stocks To Watch For Your Long Term Portfolio
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Power REIT (NYSE: PW)
- NewLake Capital Partners, Inc. (OTC: NLCP)
Innovative Industrial Properties, Inc.
One of the largest in the cannabis REIT market is Innovative Industrial Properties, Inc. a real estate investment trust with a focus on the US-licensed cannabis industry. Currently, the company has a total of approximately 7.5 million rentable square feet and 2.8 million square feet under development. Specifically, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. In detail, the company owns 76 properties across 19 states. As of October 1st, IIP has invested a total of $1.9 billion and committed another $417.5 million to reimburse tenants for property improvements. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. Immediately, after the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property.
On October 18th the company announced acquired a property in California and is executing a long-term lease with Gold Flora. Also, the company expanded its long-term real estate partnership with Goodness Growth Holdings, Inc. (GDNSF) in New York. IIP reported its second-quarter 2021 financials with performance-driven growth of 101% in total revenue year over year. To highlight, the company generated total revenue of $48.9 million. IIP paid its second-quarter 2021 dividend of $1.40 per share on July 15th a 32% increase from the year prior. To highlight, this represents an increase of 6% over the first quarter dividend. IIP has 21% debt to total gross assets with about $2.1 billion in total gross assets. As a result, the company has generated total revenues of about $91.8 million for the first six months of 2021.
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Power REIT (PW)
At the present time, Power REIT (PW) is a specialized real estate investment trust focused on sustainable real estate with attractive risk-adjusted returns. Primarily, Power REIT owns a growing portfolio of Controlled Environment Agriculture or CEA properties in the form of greenhouse and associated processing space. In general, the properties are leased to tenants that are licensed to produce medical cannabis at the facilities. The properties are targeting expansion and Power REIT has the option to fund the capital costs of property upgrades. Power REIT’s greenhouse properties are an environmentally friendly cultivation solution.
In 2021, Power REIT expanded its Colorado footprint by acquiring a 10-acre property that includes the construction of a 12,000 square foot greenhouse space. Specifically, this gives the company investment properties across Southern Colorado with over 83 acres and 383,328 square feet of CEA facilities. In September the company acquired a 556,146 square foot cannabis greenhouse cultivation and processing facility for $18.4 million. This facility will be the largest cannabis cultivation facility in Michigan and one of the largest in the US. In Power REITs latest results net income per share increase 148% and Core FFO per common share increased 102%. For Q2 the company paid a dividend of $0.4834 per share each quarter which would be a total of $1.9375.
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NewLake Capital Partners, Inc.
Making its debut in the market in August NewLake Capital Partners. The company is a leading provider of real estate capital to state-licensed cannabis operators. In detail, the company was founded in 2019, it is a triple-net lease REIT that acquires industrial and retail properties through sale-leaseback transactions, third-party purchases, and build-to-suit projects. Currently, its tenants are some of the leading operators in the U.S. state-licensed cannabis industry. Also, the company’s IPO offering of 3.91 million shares of common stock at a price of $26.00 per share. In September the company reported its second quarter and the first half of 2021 financial results for investors. For Q2 NewLake is reporting revenue of $6.7 million up from $2.1 million year over year. In addition, the company declared $0.12 per share for shareholders on record from August 11th.
In general, the company will use the net proceeds to acquire the company’s target assets. At the present time, NewLake Capital has more than $325 million in assets. Additionally, the company has more than $110 million in cash and a portfolio of 27 properties in 10 states. In general, the company is comprised of 17 dispensaries and 10 cultivation facilities. Currently NewLake Capital has tenants that include Curaleaf Holdings, Inc. (OTC: CURLF), Cresco Labs Inc. (CRLBF), Trulieve Cannabis Corp. (OTC: TCNNF), and Columbia Care Inc. (CCHWF).
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