The best cannabis stocks to buy in 2022? 3 Marijuana REITs for Your Long-Term Portfolio

The Best Performing Marijuana Stocks of 2021

While most of the best marijuana stocks to buy have declined in 2021, there is one sector of the market that has held its value this year. In general, marijuana real estate investment trusts have outperformed the rest of the cannabis stocks significantly. Due to delays in federal cannabis reform, most of the cannabis sector fell to the lowest values ​​seen this year in December. Corn Cannabis REITs continued to show their strength in the market as 2021 progressed.

In some ways, delays in banking reform make large marijuana REITs one of the primary ways to raise capital to upgrade grow facilities and processing sites. Currently, many large cannabis companies have established some of their cultivation facilities using triple net leases and loans from top cannabis REITs. This continued to build long-term lease portfolios for these marijuana REITs through 2022.

Some of these top marijuana stocks also offer a dividend to shareholders. In general, dividends are hard to come by in most cannabis stocks. This makes Marijuana REITs best for long-term investors looking to gain exposure to the cannabis market. Additionally, many hedge funds and fund managers have also taken a liking to these pot stocks for long-term exposure to the growing cannabis industry. As the cannabis market continues to grow rapidly in the United States, more states are establishing legal medical and recreational markets.

Long-term investment in the cannabis market

Before investing in cannabis stocks, it’s always important to do your own research on these companies. Reviewing a company’s earnings and press releases can help you find the best performing companies to invest in. Along with a company’s finances, it’s also important to study a stock’s behavior in the market to establish the best entry point for your investment. Including these elements in your trading strategy can help you become a successful trader. Let’s take a closer look at the top 3 marijuana stocks to watch in 2022.

[Read More] Best US Cannabis Stocks to Buy Now? 2 Things to watch before January

The Best Marijuana REITs for Your 2022 Watchlist

  1. Innovative Industrial Properties, Inc. (NYSE: IIPR)
  2. Energy REITs (NYSE: P.W.)
  3. 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 focused on the regulated cannabis market in the United States. There are now 7.7 million square feet of lettable and 2.7 million square feet under development for the company. The majority of these properties are 100% leased, with a weighted average remaining lease term of 16.7 years. Currently, the company owns 103 properties in 19 states. As of Nov. 3, IIP had spent $1.5 billion and secured an additional $391.7 million to pay tenants for property improvements. IIP continues to acquire properties, including those in Pennsylvania and Massachusetts, which will significantly expand its lease portfolio in 2021. In addition, the company said it has purchased a location in California and is working with Gold Flora to secure a lease in long term. .

In November, IIP announced its third quarter 2021 results, reporting total revenue of $53.9 million for the quarter. This represents a 1% increase over the previous year. In the third quarter, the company had net income of about $29.8 million, or about $1.20 per diluted share. IIP paid a quarterly dividend of $1.50 per share in October, a 28% increase over the previous year. The company now has $127.3 million in cash and $554.4 million in short-term investments. On December 15, IIP declared a dividend of $1.50 per share for the fourth quarter of 2021. This equates to an annual dividend of $6 per common share. In December, the company added 27 properties to its portfolio in Colorado, Pennsylvania and North Dakota.

Performance of IIPR shares

On Dec. 29, IIPR stock was trading at $260.04, up 4.20% from the previous five trading days. The stock is currently trading within a 52-week price range of $160.91 to $288.02, with a year-to-date gain of 42.77%. IIPR’s stock has a 12-month median price target of $290.00 per share, according to CNN Business experts. In this example, this would represent an increase of 11.60% from the previous trade price of $260.04.

[Read More] Best Marijuana ETFs for Q1 2022

Energy REIT (PW)

Power REIT is a real estate investment trust that focuses on long-term real estate with high risk-adjusted returns. The company owns a growing portfolio of Controlled Environment Agriculture (CEA) buildings, including greenhouses and associated processing facilities. Currently, the properties are leased to tenants licensed to grow medicinal cannabis on the premises. The assets are intended to grow and Power REIT has the ability to pay for property improvements. Additionally, Power REIT’s greenhouses offer a sustainable growing alternative.PW REIT

Power REIT expanded its reach in Colorado by purchasing a 10-acre property that includes a 12,000 square foot greenhouse. As a result, the company now has investment assets totaling over 83 acres and 383,328 square feet of CEA facilities in southern Colorado. The company paid $18.4 million in September for a 556,146 square foot greenhouse cannabis cultivation and processing facility. It will be one of the largest cannabis production facilities in Michigan and the United States. Power REIT owns 21 CEA properties 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. December 23rd Power REIT announced that it has entered into a $20 million debt financing facility to drive future growth.

Performance of PW shares

PW stock trades at $65.51 on Dec. 29, up 16.82% from last month. Currently, PW stock has a 52-week price range of $26.20 to $70.90 and is up 145.98% year-to-date. According to analysts at Tip Ranks, PW stock has a 12-month average price target of $86.00 per share. In this case, that would represent a 31.46% upside from its current price of $65.51. In 2022, PW stock could be one of the top cannabis stocks to watch for your long-term investment in the cannabis industry.

[Read More] The best marijuana stocks to buy right now? 4 US Pot Stocks to Watch Before 2022

AFC Gamma, Inc.

AFC Gamma, Inc. is a well-known cannabis company with strong operations and financial flows. The company, which was established in 2020, focuses on real estate security and other collateral, as well as locations in states with strong supply and demand fundamentals and favorable legislative conditions. AFCG specializes in senior loans, mortgages, construction loans and bridge financing, as well as other creative and unique financing options. In general, the ideas of AFC Gamma are currently focused on the rapid growth of the cannabis industry. In October, the company agreed to a $250 million credit increase at 8.50% interest and a $100 million option with Verano Holdings Corp. (OTC: VRNOF).Action AFCG

In November, AFC Gamma reported net income of $7.9 million, or $0.48 per average share, for the third quarter of 2021. According to the company, it closed $119.2 million in new commitments and funded $89.3 million of new and existing bonds. In October, AFC issued a dividend of $0.43 per share, up 13.2% from the previous quarter. On December 15, the company paid a dividend of $0.50 per share for the fourth quarter. This is a 16% increase from $0.43 in the third quarter of 2021. In December, Acreage Holdings, Inc. (OTC: ACRHF) secured a $150 million credit facility to accelerate AFC Gamma’s growth initiatives.

AFCG stock performance

December 29and, AFCG stock was trading at $22.65, up 5.55% over the past five trading days. The stock has a price range of $18.91 to $25.50 and is up 10.51% over the past six months. AFCG stock has a 12-month average price forecast of $28.38 per share, according to analysts at CNN Business. This projection represents a 25.55% increase from the last share price of $22.65.

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