Best Cannabis REITS And The Growing American Market
Are you looking for the best marijuana stocks to buy as things begin to heat up in the sector? This week in November top cannabis stocks have seen significant upward momentum in the market. This is mostly due to a new Republican-led legislation that could federally legalize cannabis in the US. This along with cannabis companies delivering earnings this month seems to have stimulated the cannabis sector.
As the demand for cannabis grows in the US market and on a global basis investors are looking for ways to gain exposure to the growing industry. One area that does well position to continue to gain market share as the cannabis industry expands is leading cannabis REITs. In the US there are a few real estate investment trusts that invest specifically in US cannabis properties like cultivation and processing facilities. Some ancillary cannabis companies also provide loans for licensed cannabis companies that are in the industry.
This area of the cannabis market has proven to be a rapidly growing one and has performed better than the rest of the pot stocks in the market. One of the best performing marijuana stocks in 2021 is Innovative Industrial Properties, Inc. (NYSE:IIPR) up 51.48% year to date and delivering gains of 589.53% to long-term shareholders in a 3-year span.
Finding The Best Investments For Your Portfolio In 2021
Many investors have found this area of the market better for long-term investing in cannabis. This year it’s displayed much less volatility than the rest of the top cannabis stocks. In many cases, these marijuana stocks also provide a dividend for investors another incentive that’s attracted institutional investors and money managers to Cannabis REITs. As we head into the weekend the cannabis sector is moving higher on the possibility of establishing federal cannabis reform.
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Before making an investment it’s always important to research a company thoroughly before starting a position. Studying how a stock performs in the market and doing your due diligence can help you establish the best entry points and largest returns. With cannabis stocks heating up right now some traders are making marijuana stock watchlists for trading next week. Let’s look at 2 top cannabis stocks for your list of long-term investments.
Top Cannabis Stock To Watch Over The Weekend For Your Long Term Portfolio
Power REIT (PW)
Power REIT (PW) is a real estate investment trust focusing on sustainable real estate with attractive risk-adjusted returns. At the present time, 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. Impressively, Power REIT’s greenhouse properties are an environmentally friendly cultivation solution.
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.
PW Stock Performance
On November 8th the company announced it amended a lease to fund the second phase of improvements at a property in Michigan. PW stock is trading at $64.00 on November 12th up by 10.92% in today’s trading. Currently, the stock has reached a new high of $64.63 up 116.02% year to date. According to analysts CNN Business PW stock has a 12-month median price target of $63.00 per share. In essence, this represents a decline of 1.99% from its last trading price.
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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. Established in 2020, the company specializes in real estate security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. Primarily, AFCG provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans, and bridge financings. At the present time, AFC Gamma’s principles are now focused on the exponential growth of the cannabis industry. In October the company agreed to a credit upsize of $250 million 8.50% interest with an additional $100 million option with Verano Holdings Corp. (OTC:VRNOF).
On November 4th AFC Gamma release its third-quarter 2021 results with a net income of $7.9 million in Q3 2021 or $0.48 per average share. In addition, the company closed $119.2 million of new commitments and funded $89.3 million of new and existing commitments. In October AFC paid a dividend of $0.43 per share an increase of 13.2% from the prior quarter.
AFCG Stock Performance
AFCG stock closed at $25.02 on November 12th up 3.47% for the trading day. The stock has a price range of $19.75-$25.05 and is up 7.75% in the past month. According to analysts at Tip Ranks AFCG stock has a 12-month average price target of $27.50 per share. This forecast would represent an upside of about 10% from its last trading price of $26.02. For New investors looking for long-term options in the cannabis sector, these could be some of the best marijuana stocks to watch long term.
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