Real estate investment trusts are gaining more strength following the recent elections
Two years after the presidential election, this November 8, millions of Americans returned to the polls for the midterm elections. The voting in this regard comes about a month after President Joe Biden urged state and local officials to pardon those convicted on state and local charges of simple marijuana possession. With two more states joining the recreational marijuana market list, it certainly comes as good news for cannabis real estate investment trusts (REIT) such as Innovative Industrial Properties and AFC Gama.
Both firms continue to thrive, ironically, because banking reform has yet to come to the cannabis industry. As a result, cannabis retailers will turn to REITs for cash whenever they need capital. The two REITs are benefiting from that imbalance in the industry, which looks to be a protracted and difficult process for cannabis producers.
While Maryland and Missouri are currently limited licensing states for medical marijuana, their expansion into the recreational market could be great opportunities for companies looking to put their footprint in the regions. AFC Gamma’s loan portfolio includes 13 loans in 17 states, including Missouri and Maryland. In other words, this company already has established operations with the two new players, and its profits could be incredible.
The same goes for Innovative Industrial Properties, a firm that already owns properties in both the Show Me State and the Old Line State. The company owns 111 properties in 19 states, including two under construction, and now that adult-use marijuana will be allowed in these states, there is no doubt that this REIT’s business will soar.