Best Cannabis Stocks In Q1 2022
Are you looking for ways to invest in marijuana stocks long term? In 2022 the best cannabis stocks to invest in have declined to new lows in the first quarter. This is mostly because of delays with US federal cannabis reform that many investors believed would happen in 2021. Because top cannabis stocks have declined so much to start the year it could be time to begin to research ways to invest for the long term. One factor to consider when you’re investing in pot stocks is the market volatility in the sector. This makes it difficult to establish long-term positions in marijuana stocks.
One area that has shown more stability than the rest of the top pot stocks is cannabis REITs. Real estate investment trust that focuses on cannabis has become a good option for long-term investing in the cannabis industry. In the next five years, the cannabis industry is forecast by analysts to more than double in size. In a recent report from Statista, legal cannabis sales in North America are expected to grow from $20.9 billion in 2022 to $47.3 billion by 2027.
For investors, this could be an area of significant growth not seen in many other markets or industries. Many of these top marijuana REITs have established long-term triple net leases and loans with leading cannabis companies. This long-term portfolio could offer returns for investors for many years. Another factor that makes these marijuana REITs better for the long hold is dividends for shareholders. At the present time, dividends are rarely seen in the best cannabis stocks and currently, most cannabis REITs offer one.
Top Pot Stocks In March 2022
Before investing in cannabis stocks, it’s important to do your own due diligence before starting a position. Looking into a company’s earnings and press releases can help guide you to the best performing businesses in the market. Additionally following how a stock behaves in the market can help you establish the best entry for your investment.
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As top pot stocks continue trading near newly established lows there are some future catalysts that may create some upside this year. One of those is the renewed attempt to pass federal cannabis reform through congress. Another possible catalyst would be SAFE Banking which is also being added to another major bill in the House. As this year continues to unfold for the cannabis industry let’s look at 3 top marijuana stocks to add to your watchlist for your long-term portfolio.
Best Marijuana Stocks For Long Term Investors In 2022
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Power REIT (NYSE: PW)
- AFC Gamma, Inc. (NASDAQ: AFCG)
Innovative Industrial Properties, Inc.
One of the largest marijuana REITs is Innovative Industrial Properties, Inc., a real estate investment trust focusing on the regulated cannabis business in the United States. The company now has 7.7 million square feet of rentable property, with plans to build another 2.7 million square feet soon. Many of these buildings are completely leased, with an average lease period of 16.7 years. Currently, the company has 105 properties spread throughout 19 states. As of February 10th, IIP has invested $1.5 billion and guaranteed another $391.7 million in tenant payments for property improvements. IIP is continuing to buy properties, mostly in Pennsylvania and Massachusetts, and expects a significant growth in its lease portfolio in 2021. The exchange of $2.3 million in cash and 1,684.237 shares for $110 million in exchangeable senior notes due in 2024 may have dragged down IIPR stock.
On February 23rd, IIP released its fourth-quarter and full-year 2021 results with total revenue of $204.6 million. Of this net income of $112.6 million is attributable to common shareholders. In 2021 the company declared a dividend to shareholders totaling $5.72 per share an increase of 28% from 2020. In addition, IIP invested $714 million in new acquisitions investments and existing properties and construction loans. By the end of 2021, the corporation added 27 properties to its portfolio in Colorado, Pennsylvania, and North Dakota.
IIPR Stock Performance
On March 11th, IIPR stock closed at $186.91 and is up 2.43% in the last five days of trading. The stock is currently trading in a 52-week price range of $162.81-$288.02, down 28.91% year to date. IIPR stock has a 12-month median price objective of $280.00 per share, according to CNN Business analysts. In this example, this would be a 50.04% increase over the previous trade price of $186.91.
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Power REIT (PW)
Power REIT is a real estate investment trust that focuses on long-term real estate that generates high risk-adjusted returns. For example, Power REIT has an expanding portfolio of CEA facilities, like greenhouses and processing plants. Currently, the properties are leased to tenants who grow medicinal marijuana on the grounds. The properties are slated for growth, and Power REIT has the funds on hand to undertake the necessary upgrades. Power REIT’s greenhouse facilities provide a long-term growth opportunity.
Power REIT increased its foothold in Colorado by purchasing a 10-acre property with a 12,000-square-foot greenhouse. As a result, the business now owns 83 acres of investment property in Southern Colorado, as well as 383,328 square feet of CEA buildings. The business spent $18.4 million in September to build a 556,146-square-foot cannabis greenhouse and processing facility. This will be the largest cannabis production facility in Michigan and one of the largest in the country. Power REIT held 21 CEA buildings totaling more than 1 million square feet as of November. The trust paid $0.484375 per share in dividends in the third quarter, for a total of $1.9375 per total share.
PW Stock Performance
PW stock closed on March 11th at $45.09 down 27.88% in the last month of trading. Currently, the stock has a 52-week price range of $35.09-$81.99 and is down 34.55% year to date. According to analysts at CNN Business PW stock has a consensus price target of $86 per share. In this case, this would represent an upside of 93.87% from its last trading price of $45.09.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis company with strong cash flow and operations. The business, which saw its IPO in 2020, specializes in real estate security and other collateral, as well as locations in states with strong supply/demand fundamentals and favorable legislative conditions. AFCG focuses on first-lien loans, mortgage loans, construction loans, bridge financings, and other nontraditional financing options. The rapid growth of the cannabis business has been the focus of AFC Gamma’s most recent efforts. In October, the business agreed to a $250 million credit upsize and a $100 million option with Verano Holdings Corp. (OTC: VRNOF).
AFC Gamma reported its fourth quarter and full-year 2021 results on March 10th. Specifically, the company delivered a net income of $21 million in 2021 pr $1.57 per basic weighted average share. The company also had distributable earnings of $24.7 million in 2021 or $1.85 per share. Additionally, the company closed $341.3 million of new commitments in 2021. For the fourth quarter of 2021, the business reported gross originations of $127.3 million in January. Acreage Holdings, Inc. (OTC: ACRHF) has received a $150 million credit facility from AFC Gamma to assist it to achieve its expansion goals.
On January 5th, the company announced the pricing of its public offering of 3 million common equity shares at $20.50 per share. The estimated gross proceeds are $61.5 million before deducting underwriting discounts and commissions. The company will announce its fourth quarter and 2021 earnings on March 10th before the bell.
AFCG Stock Performance
AFCG stock ended at $19.34 on March 11th, down 3.30 % from the previous month. The stock is down 7.73% in the previous six months, with a price range of $18.07 to $25.50. Tip Ranks experts estimate a 12-month average price of $24.00 per share for AFCG shares. This forecast indicates a 24.10 percent gain over the stock’s most recent trading price of $19.34.