High-Yield Cannabis REITs to Watch in March 2026

Industry Overview - The cannabis sector is evolving in early 2026, characterized by volatility and pricing pressure for multi-state operators, leading investors to focus on ancillary cannabis stocks instead of direct plant-touching companies [1][3] - Ancillary companies provide essential services such as real estate, financing, or infrastructure support, which can mitigate regulatory risks and offer more stable cash-flow models compared to retail operators [2] Earnings and Market Activity - March 2026 is anticipated to be a pivotal month with earnings updates and ongoing debates about federal reform, while state-level markets remain active and expanding, supporting demand for facilities and capital [3] Investment Metrics - Ancillary cannabis stocks are often evaluated based on fundamentals like AFFO, net interest income, and dividend coverage, making cash flow stability, tenant health, and balance sheet strength critical metrics for investors [4] Key Companies - Innovative Industrial Properties, Inc. (IIPR): A cannabis-focused REIT owning 111 properties across 19 states, generating $66.7 million in revenue and $30.7 million in net income in its latest quarter, with an AFFO per share of $1.88 and a declared dividend of $1.90 per share [6][9] - NewLake Capital Partners, Inc. (NLCP): A smaller cannabis-focused REIT with 34 properties across 12 states, reporting $12.6 million in revenue and $6.7 million in net income, with an adjusted FFO of $11.0 million [10][14] - Chicago Atlantic Real Estate Finance, Inc. (REFI): Operates as a lender to cannabis operators, with a loan portfolio of approximately $400 million, generating net interest income of $13.7 million and a declared dividend of $0.47 per share [15][19] Risk Factors - Tenant credit quality is a significant variable for IIPR, while NLCP's rental income depends on operator performance, making tenant diversification crucial [8][13] - REFI's high yield of 16.5% reflects elevated industry risk but also indicates strong income potential, necessitating close monitoring of borrower performance [20]