The cannabis-focused real estate investment trust offers a lot of benefits to investors
While a budget of $1,000 may not seem like enough to start or even build a portfolio of stocks, this amount can help fund initial investments in some stocks that trade at a significant discount. In the cannabis sector, there are quite viable options, such as Innovative Industrial Properties (IIP). Many experts are confident that this company has a fairly positive future, which is obvious since it is by far one of the strongest real estate investment trusts (REITs) today.
Many investors should understand that IIP remains by far the largest publicly traded cannabis REIT in the market today, with a portfolio of 111 properties. IIP is an ideal choice because it offers a rare marijuana investment opportunity, so much so that it is not even a 100% marijuana stock.
This REIT’s business is based on leasing land and facilities to marijuana growers. Using this smart business model, the firm profits from marijuana investing without having to suffer through the various bumps that the industry, as such, sometimes has to go through.
As a REIT, IIP does not have to deal with the Schedule I restrictions that still today restrict the product grown on its properties. According to several analyst firms, the cannabis market will grow at a compound annual growth rate (CAGR) of 27% through 2028. This performance will help keep demand for PRI facilities stable in the years to come.
In addition, it benefits from a sales leasing program. As is well known, marijuana producers constantly struggle to obtain bank loans, as marijuana remains federally prohibited. As a result, the REIT gains an additional option for expansion while helping to finance its industry.