Real estate investment trusts in the cannabis space are strong options for investors
Real estate investment trusts (REITs) are corporations that pool the capital of many investors to acquire real estate in exchange for the payment of dividends. In this case, this real estate goes to the cannabis industry, cultivation facilities, production, research, development, etc. Cannabis stocks have been one of the hottest sectors in the stock market this year, and many experts believe that REITs are a smart way to profit through the marijuana industry.
Power REIT has a fairly clear objective; to be a firm that prioritizes long-term investments with superior risk-adjusted returns. This REIT contains a portfolio of buildings that is constantly expanding, looking to include more processing facilities and greenhouses for the cannabis industry.
Tenants that have been granted the green light to grow medical cannabis on the land have taken over the leases on the buildings. Power REIT uses the proceeds from these transactions to complete various necessary improvements to the assets that are ready for development.
On the other side is NewLake Capital Partners, a real estate lender popular with state-licensed marijuana companies. Through custom constriction projects, third-party purchases, and leaseback sales, this firm makes investments in industrial and retail assets.
Tenants of this triple-net lease REIT include some of the most reputable firms in the various states where the plant is already legal. During the first quarter of this year, the REIT reported sales in excess of $10 million, a 130% increase over the same period last year.