Investing In Top Cannabis Stocks In September 2021
For many investors, the best marijuana stocks to invest in are trading at some of the lowest levels seen in 2021. Although most cannabis stocks are down now one area of the cannabis sector is holding its value better than the rest. At the present time, ancillary marijuana stocks have performed better than the rest of the sector. Ancillary companies are those companies that support the cannabis industry without touching the plant.
In the market ancillary pot stocks have become a more stable option for long-term cannabis investors. Additionally, more institutional investors and money managers have focused on this area for long-term returns in the cannabis market. Another factor that makes this area more attractive for the long-term hold is the dividend to shareholders.
With very few cannabis stocks offering a dividend the ones that do have much more long-term appeal. Cannabis REITs have performed extremely well since the pandemic and continue to see significant revenue growth in 2021. In August these top pot stocks continued to show some upside while most of the best cannabis stocks declined in the market. Now in the fourth quarter investors are hoping to see some form of federal cannabis reform before we close out the year.
How To Find The Top Pot Stocks To Buy In 2021
For investors who are looking for long-term cannabis investments, these real estate investment companies have long-term triple net leases with some of the leading cannabis MSOs right now. These agreements offer long-term revenue for the companies at hand.
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Before investing in cannabis stocks, it’s always important to do your research into the company and stock performance. Studying how a stock performs in the market and finding the companies with a strong balance sheet can help you establish the most returns on your investments. As September continues these could be the top ancillary marijuana stocks for your long-term portfolio.
Best Marijuana Stocks To Watch For Long Term Investing
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
Innovative Industrial Properties, Inc.
One of the leading REITs in the US is Innovative Industrial Properties, Inc. is a real estate investment trust with a focus on the US-licensed cannabis market. Currently, the company has a total of approximately 6.8 million rentable square feet and 2.4 million square feet under development. As it stands, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. To highlight, the company owns 74 properties across 18 states. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. After the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property. The company invested an estimated $1.3 billion across its portfolio and has committed another $385.3 million for the completion of construction and tenant improvements at IIP properties.
In August, IIP reported its second-quarter 2021 financials with performance-driven growth of 101% in total revenue year over year. In detail, 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. In fact, 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 it stands, the company has generated total revenues of about $91.8 million for the first six months of 2021.
IIPR Stock Performance
IIPR stock is trading on September 7, 2021, at $249.72 up 18.05% in the last month. The stock has a 52-week price range of $112.25-$252.63 and is up 37.65% year to date. According to analysts at CNN Business IIPR stock has a 12-month average forecast price target of $260.00 per share. In essence, this would be a 4.08% upside from its current trading price of $249.72. As the cannabis industry continues expanding IIPR could be one of the best marijuana stocks for your list in September.
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AFC Gamma, Inc.
AFC Gamma, Inc. is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects. Specifically, the company specializes in real estate security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. At the present time, AFCG provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans, and bridge financings. Accordingly, AFC Gamma’s principles are now focused on the exponential growth of the cannabis industry. On August 31st AFC Gamma announced it provided Beleaf Medical, LLC a secured credit facility of $23 million to fund its Missouri expansion.
In August AFC Gamma reported its Q2 2021 financials showing net income of $4.6 million or earnings of $0.34 per basic weighted average share of common stock. Additionally, the company saw distributable earnings of $5.8 million or $0.43 per basic average share of common stock. Notably, in Q2 the company closed $71.3 million of new commitments and funded $77.8 million of new and existing commitments. AFC has paid its dividend for Q2 2021 of $0.38 per common share. As of August 1st, the company has a portfolio consisting of loan commitments worth $195.3 with $175.3 million of outstanding principal across 14 portfolio companies.
AFCG Stock Performance
AFCG stock is trading at $21.98 on September 7th up 2.85% during the power hour. The stock has a 52-week price range of $19.75-$25.05 up 4.81% in the last month. According to analysts at Tip Ranks AFCG stock has a 12-month average price target of $26.25 per share. In this case, this would represent a gain of 19.43% from its last trading price of $21.98. As a new option for companies AFCG stock could be a top cannabis stock to watch for long-term investing in cannabis.
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