Core Insights - The U.S. cannabis industry is projected to exceed $40 billion in sales by 2025 and could surpass $70 billion by 2030 as more states legalize cannabis for medical and recreational use [1][19] - Cannabis REITs such as Innovative Industrial Properties, Chicago Atlantic Real Estate Finance, and NewLake Capital Partners are positioned to benefit from this growth, offering attractive dividend yields between 8% and 12% [1][20] Group 1: Innovative Industrial Properties (IIPR) - IIPR is the first publicly traded cannabis REIT in the U.S., focusing on acquiring and leasing specialized facilities to licensed operators [3][5] - The company reported quarterly revenues of approximately $62.9 million, a decline from the previous year due to tenant defaults, but maintained a net income exceeding $25 million [8][9] - IIPR has a strong balance sheet with a debt-to-asset ratio below 12% and over $190 million in available liquidity, emphasizing disciplined acquisitions [9] Group 2: Chicago Atlantic Real Estate Finance (REFI) - REFI specializes in originating senior secured loans to state-licensed cannabis operators, providing a unique entry point into the cannabis space [10][12] - The company maintains a loan portfolio generating attractive interest spreads between 12% and 15%, with strong credit performance and high income stability [13][14] - REFI's conservative loan-to-value ratios and focus on experienced operators contribute to low default rates, making it well-positioned to capitalize on the industry's capital needs [14] Group 3: NewLake Capital Partners (NLCP) - NLCP focuses on property ownership through sale-leaseback transactions and build-to-suit projects, leasing to major cannabis operators [16][18] - For the first half of 2025, NLCP reported revenues of $26.1 million and a stable net income of $13.6 million, with a low debt-to-asset ratio of approximately 1.6% [17][18] - The company's dividend payout is currently $0.43 per share quarterly, translating to an annualized payout of $1.72 per share, ensuring sustainability [18]