Best Cannabis REITs for Investors Watchlist In 2024

Industry Overview - The U.S. cannabis industry is projected to grow significantly, with an expected value exceeding $30 billion by 2025, driven by increasing legalization and acceptance [2][20] - Cannabis Real Estate Investment Trusts (REITs) are gaining attention as they provide exposure to the cannabis market through real estate without direct involvement in cultivation or sales [1][20] Company Highlights: Innovative Industrial Properties, Inc. (IIP) - IIP focuses on medical cannabis facilities and has acquired 111 properties across 19 states, primarily in California, Michigan, and Pennsylvania [3][4] - The company reported a 10% increase in total revenues from $70.9 million in 2022 to approximately $77.8 million in Q3 2023, driven by new property acquisitions and increased tenant contributions [5][6] - IIP's Funds from Operations (FFO) for the first nine months of 2023 was $173.2 million, translating to $6.13 per share, with an annual dividend increase of 6% to $7.20 per common share [6][8] Financial Performance: AFC Gamma, Inc. - AFC Gamma reported a net income of $8.0 million, or $0.39 per share, for Q3 2023, with distributable earnings of $9.9 million, or $0.49 per share [11][12] - The company paid a regular cash dividend of $0.48 per common share for Q3 2023, distributing a total of $9.8 million in dividends [12] Company Highlights: Chicago Atlantic Real Estate Finance, Inc. (REFI) - REFI specializes in providing loan solutions and real estate capital to cannabis operators, with a significant portfolio in key states like Illinois, California, and Michigan [14][15] - The company forecasts a net interest income of approximately $13.7 million for Q3 2023, maintaining total expenses consistent with the previous quarter [15][16] - As of September 30, 2023, REFI's book value per common share increased to $15.17, and the company expects to maintain a dividend payout ratio of approximately 90% to 100% for the full year [17][18] Stock Performance - IIPR stock closed at $89.96 on February 7, 2024, down 5.11% over the last month and down 10.77% year to date [8] - AFCG shares closed at $11.24 on February 7, 2024, reflecting a 6.02% decrease from the previous month [13] - REFI stock closed at $15.54 on February 7, 2024, down 2.48% in the last month and down 3.96% year to date [19]