Top Cannabis REITs to Watch This Week for Strong Dividend Income

Industry Overview - The US cannabis industry generated nearly $36 billion in legal sales in 2024, with projections to exceed $70 billion by 2030, indicating significant growth and demand for cultivation and retail facilities [1] - Recent federal rescheduling news, specifically the recommendation to move cannabis to Schedule III, is expected to reduce taxes for operators and improve profitability, potentially increasing tenant strength and enhancing REIT stability [1] Company Analysis: Innovative Industrial Properties (IIPR) - IIPR is the largest cannabis-focused REIT in the US, with a portfolio of over 100 properties across 19 states, totaling more than 9 million rentable square feet [3] - The company reported revenue of over $62 million in the latest quarter, with net income exceeding $25 million and earnings per share near $0.86, maintaining a quarterly dividend of $1.90 [5] - IIPR's strategic diversification includes a $270 million investment into a life sciences platform, with a blended yield exceeding 14% [5] Company Analysis: NewLake Capital Partners (NLCP) - NLCP owns 34 properties across 12 states, including 19 dispensary properties and 15 cultivation facilities, structured as long-term triple-net leases [6][8] - The company reported revenue of approximately $12.9 million and net income of $7.3 million in the second quarter, with a quarterly dividend of $0.43 per share [8] - NLCP's conservative approach and focus on leasing to licensed operators in limited-license states help reduce volatility and spread risk [6] Company Analysis: Chicago Atlantic Real Estate Finance (REFI) - REFI operates as a commercial mortgage REIT, originating senior secured loans totaling over $420 million across about 30 portfolio companies [9][12] - The company maintained a quarterly dividend of $0.47 per share, with distributable earnings per share at $0.51, indicating strong credit performance [12] - REFI emphasizes conservative lending standards and broad diversification, with a loan pipeline exceeding $650 million, reflecting strong demand for capital [12]