Top Ancillary Cannabis Stocks to Watch in December 2025
Ancillary cannabis companies remain a fascinating part of the industry because they help it operate without touching the plant. These companies supply real estate, financing, or essential services. Because of that, they often face fewer regulatory challenges than actual producers. The U.S. cannabis market keeps expanding. New recreational states continue opening doors. But the pace has definitely slowed in 2025. Even so, most analysts still expect continued long-term growth. That outlook keeps investors looking for stable ways to participate.
Many plant-touching companies struggled with rising costs and limited access to traditional financing. However, ancillary names generally held up better. They collect rent or loan payments rather than relying on fluctuating retail prices. That difference gives them a more predictable revenue base. It also makes them appealing to investors who want exposure to cannabis without the volatility of direct operators.
Of course, this sector still comes with risks. Tenants can face pressure when sales slow. Higher borrowing costs also weighed on expansion. Because of that, investors should stay cautious. They should also continue paying close attention to balance sheets and management discipline.
Still, December looks interesting because valuations remain reasonable, and several companies continue paying strong dividends. Innovative Industrial Properties, NewLake Capital Partners, and Chicago Atlantic Real Estate Finance each offer a slightly different angle. One invests in facilities. One focuses more heavily on dispensary properties. One provides secured loans instead of real estate ownership. That variety gives investors options depending on their goals.
These three companies also deliver something that has been hard to find in cannabis this year. They deliver income. They also deliver business models that are easier to understand. Therefore, they deserve attention as 2025 comes to an end and investors start planning for 2026.
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Ancillary Marijuana Investing: Best Stocks for December 2025
- Innovative Industrial Properties (NYSE: IIPR)
- NewLake Capital Partners (OTC: NLCP)
- Chicago Atlantic Real Estate Finance (NASDAQ: REFI)
Innovative Industrial Properties (IIPR)
Innovative Industrial Properties remains the most recognizable cannabis real estate investment trust. The company continues investing in cultivation and processing facilities across many regulated states. Its tenants lease properties under long-term triple-net agreements. That means tenants pay most costs. IIPR simply collects rent. The model keeps operating expenses low and cash flow more predictable.
The business focuses heavily on limited-license states where demand is usually more stable. These include states such as Illinois, Pennsylvania, and Florida. IIPR does not operate cannabis itself. Instead, it finances the infrastructure that operators need to produce and process the product. That makes it a classic ancillary play. Meanwhile, many tenants run multiple dispensaries nationwide. Therefore, IIPR gets indirect exposure to retail performance without relying on product margins.
Latest financials
Financial results slowed during 2024 and 2025 because the industry hit a tougher period. Some tenants struggled with cash flow. Interest costs also increased. However, IIPR stayed profitable and continued generating steady rental income. Management remained focused on protecting dividend coverage. They also kept the balance sheet fairly conservative.
Although dividend growth slowed, the current payout was supported by cash available for distribution. The company kept leverage moderate and held liquidity for future opportunities. That flexibility could matter if valuations become more attractive in 2026.
Looking ahead, any improvement in tenant performance or federal reform could help sentiment. Even without major policy change, long-term leases continue providing visibility. IIPR remains appealing for investors looking for income, real estate exposure, and a long record in cannabis-related assets.
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NewLake Capital Partners (NLCP)
NewLake Capital Partners offers a smaller and more focused approach than IIPR. The company owns both industrial assets and dispensary properties. Tenants lease buildings under triple-net structures. Therefore, rent stays steady, and operating costs stay low.
NewLake holds properties in several key medical and recreational states. Many are in growing Midwest and East Coast markets. The company does not run dispensaries. Instead, it provides real estate capital to operators who need storefronts or cultivation space. That approach gives indirect exposure to retail activity.
NewLake is not as large as IIPR, but it emphasizes discipline. The company uses conservative borrowing. It also prioritizes predictable rental income. Because of that, investors sometimes view NewLake as a slightly lower-risk option within the ancillary world.
Latest financials
Financial performance stayed stable through 2025, even as cannabis businesses dealt with tighter financing conditions. Rental income continued to flow, supported by long-term leases. Management kept debt low and balance sheet flexibility strong. That conservative approach helped the company remain steady during a complicated industry cycle.
NewLake also continued paying a solid dividend. The payout ratio stayed reasonable relative to available cash flow. Meanwhile, the company maintained enough liquidity to pursue attractive acquisitions. If real estate prices soften, NewLake could add assets at more appealing valuations.
Looking ahead, potential catalysts include new recreational states and possible rescheduling. As more operators seek sale-leaseback funding, NewLake could continue expanding. For investors, NLCP offers income, a conservative strategy, and practical exposure to real estate connected directly to cannabis retail.
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Chicago Atlantic Real Estate Finance (REFI)
Chicago Atlantic Real Estate Finance takes a different route than the REITs. It operates as a commercial mortgage REIT that lends to cannabis operators rather than owning the property. Loans are usually secured. They often require strong collateral. Therefore, REFI focuses on protecting principal while collecting interest income.
REFI lends to licensed operators in regulated states. Many borrowers operate cultivation and retail assets. REFI does not run the business or own the buildings. It simply finances them. That structure gives exposure to cannabis with less operational risk. The company concentrates on limited-license states that tend to support stronger pricing.
Latest financials
During 2025, REFI generated attractive interest income from its loan portfolio. Higher rates actually helped maintain solid yields. Management continued screening borrowers carefully because the sector remains uneven. That cautious approach reflects a strong emphasis on credit quality.
REFI also paid a healthy dividend supported by ongoing loan payments. The company kept a focus on capital preservation and income rather than aggressive expansion. Future opportunities could appear as traditional banks continue to avoid the industry.
Investors who want income and a conservative structure may find REFI appealing. It offers a different way to participate in cannabis growth. It also avoids many of the risks tied to cultivation or retail operations.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
