Investing in Cannabis REITs: 3 Top Picks for March 2025
The U.S. cannabis industry continues to expand rapidly, with sales expected to reach $40 billion by 2025. Legalization efforts are also gaining momentum. Recently, several states have introduced bills to legalize recreational cannabis, increasing investor interest. Cannabis real estate investment trusts (REITs) are crucial in this industry. They provide capital to cannabis operators through property acquisitions and lease agreements. This model allows companies to grow without heavy real estate expenses. As demand for cannabis properties rises, REITs offer investors a way to benefit from market expansion. However, proper risk management is essential due to market volatility.
When investing in cannabis REITs, technical analysis can help identify entry and exit points. Investors should watch key support and resistance levels to make informed decisions. Volume trends and moving averages can also confirm price direction. Additionally, monitoring industry news is essential, as policy changes impact stock performance. Diversification within the sector reduces risk and improves portfolio stability.
Cannabis REITs Benefiting from Industry Growth
The cannabis industry continues to expand in the United States. As legalization progresses, real estate investment trusts (REITs) specializing in cannabis properties are growing in demand. These REITs provide capital to cannabis operators by acquiring properties and leasing them back. This allows businesses to expand without high upfront real estate costs.
Investors looking for exposure to the cannabis market without directly owning stocks in plant-touching companies often turn to REITs. They generate revenue through long-term leases, making them less volatile than traditional cannabis stocks. In March 2025, three cannabis REITs stand out due to their strong market presence and financial performance. Innovative Industrial Properties, Inc. (IIPR), Chicago Atlantic Real Estate Finance, Inc. (REFI), and NewLake Capital Partners, Inc. (NLCP) are leading the sector. Let’s take a closer look at each company, its presence in the U.S. market, and its latest financials.
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Top 3 Cannabis REITs to Watch in March 2025
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI)
- NewLake Capital Partners, Inc. (OTC: NLCP)
Innovative Industrial Properties, Inc. (IIPR)
Innovative Industrial Properties, Inc. (IIPR) is one of the largest and most well-known cannabis REITs in the U.S. The company focuses on acquiring and leasing industrial properties to state-licensed cannabis operators. IIPR has built a strong portfolio across multiple states, making it a key player in the sector.
As of early 2025, IIPR owns over 100 properties across 19 states. These properties support medical and recreational cannabis businesses, including cultivation, processing, and retail operations. Some of the company’s largest holdings are in California, Florida, and Pennsylvania, where cannabis demand is high. IIPR’s tenants include some of the most established cannabis operators in the U.S., ensuring steady rental income and strong occupancy rates.
Latest Financials
IIPR has demonstrated consistent revenue growth due to its long-term lease agreements. In the most recent earnings report, the company reported a year-over-year revenue increase of 12%. This growth was driven by new property acquisitions and rental income adjustments.
Net income remained strong, with a profit margin exceeding 55%. The company’s dividend payout also remained attractive, making it a preferred REIT for income-seeking investors. In addition, IIPR maintained a high occupancy rate of over 97%, showing the stability of its business model.
Despite challenges in the cannabis industry, IIPR’s conservative approach to tenant selection has kept defaults low. The company continues to reinvest earnings into new acquisitions, ensuring long-term growth. Looking ahead, IIPR’s expansion strategy and strong financials make it a top cannabis REIT to watch in March 2025.
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Chicago Atlantic Real Estate Finance, Inc. (REFI)
Chicago Atlantic Real Estate Finance, Inc. (REFI) is a specialty finance company focused on lending to cannabis businesses. Unlike traditional REITs that acquire and lease properties, REFI provides real estate-backed loans to cannabis operators. This unique approach makes it a key capital provider in the industry.
As of early 2025, REFI has investments in over 20 states, with a strong presence in Illinois, Massachusetts, and Arizona. The company partners with multi-state operators (MSOs) and single-state cannabis businesses, offering flexible financing solutions. These loans help operators expand their facilities and improve production capacity.
REFI’s portfolio consists of secured loans backed by cannabis properties, which reduces investment risk. This model has allowed REFI to maintain strong returns while supporting the growth of the legal cannabis market.
Latest Financials
REFI has delivered solid financial results due to its high-interest lending model. In its most recent earnings report, the company reported a net interest income increase of 15% year-over-year. The majority of its loans remained in good standing, with a low default rate of less than 2%.
Earnings per share (EPS) have continued to grow, reflecting strong loan demand. The company has maintained a dividend yield above 8%, making it an attractive option for income-focused investors. With a loan portfolio exceeding $400 million, REFI remains well-capitalized to support future cannabis industry expansion.
Looking forward, REFI’s disciplined underwriting and diversified loan portfolio make it a strong contender among cannabis REITs in 2025. Its ability to finance cannabis operators without direct property ownership provides unique flexibility in a rapidly evolving industry.
NewLake Capital Partners, Inc. (NLCP)
NewLake Capital Partners, Inc. (NLCP) is another leading cannabis REIT specializing in sale-leaseback transactions. The company provides capital to cannabis operators by acquiring their properties and leasing them back under long-term agreements. This model helps businesses free up cash for expansion while securing high-quality real estate assets.
As of early 2025, NLCP owns over 30 properties across 12 states. Its largest markets include Illinois, Pennsylvania, and Ohio, where cannabis sales continue to rise. The company focuses on high-traffic retail locations and large cultivation facilities, ensuring stable rental income.
NLCP has strong relationships with top cannabis operators, allowing it to expand its portfolio strategically. By targeting high-demand states, the company secures long-term leases with reliable tenants, providing consistent cash flow for investors.
Latest Financials
NLCP’s financial performance remains solid, driven by its expanding property portfolio. In its latest earnings report, the company reported a 10% increase in rental revenue year-over-year. This growth was fueled by new property acquisitions and contractual rent escalations.
The company maintained a high occupancy rate of 99%, reflecting the strong demand for cannabis real estate. Its dividend yield remained competitive, attracting both growth and income investors. NLCP also reduced its debt levels, strengthening its balance sheet for future expansion.
Despite some market headwinds, NLCP continues to grow its portfolio and secure long-term tenants. With a focus on high-quality real estate and disciplined capital allocation, the company remains a top cannabis REIT to watch in 2025.
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Top Cannabis REITs Benefiting from Industry Growth
Cannabis REITs provide a unique investment opportunity in the growing cannabis market. Unlike traditional stocks, they generate stable income through long-term leases and secured loans. Innovative Industrial Properties (IIPR), Chicago Atlantic Real Estate Finance (REFI), and NewLake Capital Partners (NLCP) are among the strongest players in the sector.
IIPR stands out for its extensive real estate portfolio and steady dividend payments. REFI offers a different approach by providing secured loans to cannabis operators, ensuring high-interest returns. Meanwhile, NLCP focuses on sale-leaseback transactions, providing capital to growing cannabis businesses.
As cannabis legalization progresses, demand for commercial real estate will rise. These top three cannabis REITs offer strong financials and growth potential, making them key investments to watch in March 2025.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
