Top 3 Cannabis REITs to Watch in October 2025: Dividend Income Meets Industry Growth

Top 3 Cannabis REIT Stocks to Watch in October 2025

The U.S. cannabis industry continues to expand rapidly, with sales projected to surpass $40 billion in 2025. Analysts expect nationwide revenue could exceed $70 billion by 2030 as more states legalize both medical and recreational use. Recent headlines highlight renewed discussions in Congress about rescheduling cannabis under federal law, which could further boost industry confidence. Cannabis Real Estate Investment Trusts (REITs) like Innovative Industrial Properties, NewLake Capital Partners, and Chicago Atlantic Real Estate Finance benefit directly from this trend. These companies lease facilities to licensed operators and offer investors consistent dividend income. Many of these REITs currently provide dividend yields between 8% and 12%, making them appealing to income-focused investors seeking exposure to this growing market.

However, proper strategy is crucial when trading cannabis REITs. Prices often move sharply with legalization news, interest rate changes, or earnings updates. Therefore, using technical analysis helps identify key support and resistance zones for potential entries or exits. Charting moving averages and volume trends can confirm momentum shifts before taking new positions. Additionally, investors should apply risk management through stop-loss placement and position sizing to protect capital in a volatile market. As sentiment improves and dividend yields remain strong, disciplined investors may find timely opportunities among the top cannabis REITs this week.

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Cannabis REITs on the Rise: Top Dividend Stocks to Watch in October 2025

  1. Innovative Industrial Properties, Inc. (NYSE: IIPR)
  2. Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI)
  3. NewLake Capital Partners, Inc. (OTC: NLCP)

Innovative Industrial Properties, Inc. (IIPR)

Innovative Industrial Properties (IIPR) is the first and most established publicly traded cannabis REIT in the United States. The company focuses on acquiring and leasing specialized industrial facilities, including cultivation, processing, and distribution centers, to licensed cannabis operators. Its portfolio covers major cannabis-friendly states such as California, Pennsylvania, and Arizona. IIPR does not operate dispensaries but serves as a vital landlord to some of the nation’s largest multistate operators, providing them with long-term triple-net lease structures.

IIPR’s strategy has allowed it to become one of the largest real estate backers in the cannabis market. It also recently began diversifying into life sciences real estate, reducing dependency on cannabis alone. The company’s portfolio spans more than 100 properties across nearly 20 states, making it the most geographically diverse cannabis REIT in operation today. Its business model provides investors with exposure to both rental income and property appreciation within a fast-growing sector.

Financial Overview

As of mid-2025, IIPR reported quarterly revenues of approximately $62.9 million, representing a decline compared to the prior year. This decrease reflected tenant defaults and delays in rental payments from certain struggling operators. Nevertheless, the company remained profitable, with net income exceeding $25 million for the quarter and a dividend payout of $1.90 per share.

While revenue growth has slowed, IIPR maintains a strong balance sheet with low leverage and over $190 million in available liquidity. Its debt-to-asset ratio remains below 12%, which provides flexibility during industry downturns. The company continues to focus on disciplined acquisitions, seeking properties leased to tenants with proven operational track records. Despite temporary headwinds, IIPR’s track record of consistent dividends and long-term leases underscores its resilience. For investors seeking income with moderate risk, IIPR remains a leading cannabis REIT for 2025.

[Read More] Cannabis Industry 2025: Growth, Regulation, and Green Market Momentum

Chicago Atlantic Real Estate Finance, Inc. (REFI)

Chicago Atlantic Real Estate Finance (REFI) offers a unique entry point into the cannabis space through real estate-backed lending. Unlike traditional REITs that primarily own physical properties, REFI specializes in originating senior secured loans to state-licensed cannabis operators. Its clients include both cultivation and retail businesses in markets with limited licenses, such as Illinois, Florida, and Maryland.

This model allows REFI to earn high yields while mitigating risk through collateralized loan structures. The company does not manage dispensaries or hold direct cannabis assets, making it less exposed to the regulatory and operational challenges faced by plant-touching businesses. REFI’s portfolio includes dozens of loans backed by cannabis real estate and equipment, giving it exposure to the broader industry without owning or leasing facilities directly.

Financial Overview

Throughout 2025, REFI has maintained strong credit performance and high income stability. Its loan portfolio continues to generate attractive interest spreads, typically between 12% and 15%, providing one of the highest yields among cannabis-related REITs. Although total revenue growth has moderated compared to 2024, the company remains profitable, supported by consistent interest income and disciplined underwriting practices.

REFI’s conservative loan-to-value ratios and focus on experienced operators have contributed to its low default rates. Additionally, the company has emphasized maintaining liquidity and managing risk through selective lending. Its dividend payout has remained steady, offering investors a high annualized yield relative to the broader REIT sector. As banking reform remains uncertain, REFI’s niche in cannabis lending keeps it well-positioned to capitalize on the industry’s ongoing capital needs. Investors seeking income with slightly higher risk-adjusted returns may find REFI an appealing addition to a diversified portfolio.

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NewLake Capital Partners, Inc. (NLCP)

NewLake Capital Partners (NLCP) is another leading cannabis REIT focusing on property ownership through sale-leaseback transactions and build-to-suit projects. The company leases cultivation facilities and dispensaries to some of the largest cannabis operators in the United States. Its portfolio includes more than 30 properties across several states, with a balanced mix of retail and industrial locations.

NLCP LOGO

Unlike larger competitors, NLCP operates with a conservative strategy and modest property count, allowing for tight control and strong tenant relationships. The company’s approach emphasizes long-term leases with fixed annual rent escalations, creating predictable income streams. Its largest presence is in states with established legal frameworks, including Illinois, Massachusetts, and Pennsylvania. With its smaller scale and strong financial discipline, NLCP has earned a reputation for stability and reliability within a volatile sector.

Financial Overview

For the first half of 2025, NLCP reported revenues of $26.1 million, marking a modest year-over-year increase. Net income remained stable at $13.6 million, while Adjusted Funds From Operations (AFFO) rose slightly to $22.2 million. The company maintained one of the lowest debt-to-asset ratios in the REIT industry, at approximately 1.6%, and reported over $100 million in liquidity.

NewLake’s dividend remains strong, currently set at $0.43 per share quarterly, translating to an annualized payout of $1.72 per share. This represents a payout ratio of about 79% of AFFO, ensuring sustainability. Its steady revenue growth, conservative debt management, and disciplined capital deployment make NLCP attractive for income investors seeking lower risk within the cannabis space. While its growth trajectory may not match IIPR’s, its balance sheet strength and consistency stand out in 2025.

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U.S. Legalization Momentum Builds

As the cannabis sector navigates regulatory uncertainty and evolving demand, cannabis REITs remain among the most stable ways to gain exposure to the industry. Innovative Industrial Properties provides the scale and diversification of a large real estate portfolio. Chicago Atlantic Real Estate Finance offers an income-focused lending model with strong credit discipline. NewLake Capital Partners delivers steady growth through conservative management and reliable tenants.

Each REIT serves a distinct purpose in a diversified cannabis investment strategy. IIPR suits investors seeking a blend of growth and dividend income, REFI caters to those pursuing higher yields through lending, and NLCP appeals to conservative investors focused on long-term income stability. With proper risk management and technical analysis, these three cannabis REITs could offer solid opportunities as the U.S. cannabis industry continues to mature into 2026 and beyond.


MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
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