Are These REITs Worth Being On Your Marijuana Stock Watchlist?
Marijuana stocks this last year have not seen the best trading. Now many know the main reason for this year-long downtrend is from not passing federal reform. From this many investors and shareholders grew with doubt and concern. Nevertheless, this was not the only reason that added to the decline in the sector. At the start of 2021 once another federal bill was shot down people started to look at other options. So as the sector was falling some bought the dips others cashed out what they could.
Now from this time frame bitcoin and the crypto sector started to gain more interest. As well as other profitable sectors at the time. For example tech and Parma were other niches as well. Especially in the middle of a pandemic when investing in a company that could hold the answer to a vaccine was prominent. Yet as time went on much of this downtrend all relayed back to issue regarding federal reform. But during those days of better trading, much of that was based on progressive news on the matter. As well as more successful and solid earnings from other cannabis companies.
Marijuana Stocks Moving Into 2022
In the first 2 weeks of November, marijuana stocks saw a good amount of consistency. Which was mainly due to success happening outside of the market. I addition to those companies releasing solid earnings. The way the cannabis industry is operating and growing is given more reason to invest now. With the sector still down many can still find top cannabis stocks to buy before 2022. Which many are doing to get prepared for any upward swings the new year may bring with it. There is a bitter-sweet attitude among cannabis investors. Yet that won’t stop some from continuing to invest in pot stocks come 2022. Just make sure to do your homework before investing. The marijuana stocks to watch below are just a few options to consider before the new year begins
Cannabis Stocks To Watch In 2022
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership, and management of specialized properties. Which are then leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. In one of the more recent updates, the company has acquired 100% of a leased portfolio of 27 properties.
These properties are located in Colorado, North Dakota, and Pennsylvania. Each of one these locations were leased for use as regulated cannabis dispensing. In addition to processing, and/or cultivation facilities. The property portfolio consists of 24 properties located in Colorado. As well as two properties located in North Dakota and one property located in Pennsylvania.
Words From The Company
“This transaction represents an outstanding addition to our portfolio, and we are thrilled to continue to expand on our long-term real estate partnerships with Columbia Care, Curaleaf and LivWell, in addition to welcoming Kaya Cannabis and Schwazze to our tenant roster,” said Paul Smithers, President and Chief Executive Officer of IIP. “The purchase of this portfolio also provides us an opportunity to efficiently add well-located retail space to our portfolio, with strong, established operators in place.”
Power REIT is a real estate investment trust (REIT) that owns real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy, and Transportation. Back on November 16th, the company announced that its acquisitions will drive significant year-over-year growth. During the third quarter of 2021, Power REIT acquired a Controlled Environment Agriculture (“CEA”) facility in Michigan.
This facility is approximately 556,000 square feet of greenhouse and cultivation/ processing space. The capital commitment for the acquisition was approximately $21.5 million at closing. Which also includes the purchase price and property improvements. As well concurrent with the acquisition, Power REIT entered into a 20-year, triple-net lease with Marengo Cannabis LLC.
The company is a wholly-owned subsidiary of Millennium Investment and Acquisition Co. Inc. On November 4th, 2021, PW announced an amendment to the MI Lease to provide funding for additional improvements to the property on the same economic terms as the original lease. On November 4th, 2021, PW announced an amendment to the MI Lease.
More Info On Power REIT
This was done to provide funding for additional improvements to the property on the same economic terms as the original lease. The capital commitment related to the additional budget items is approximately $4.1 million. Which brought Power REIT’s total capital commitment to $25,500,000.The MI Lease is expected to generate straight-line annualized rent of approximately $5,100,000.
These figures represent an unleveraged core FFO yield on invested capital of approximately 20%. To date, this acquisition represents Power REIT’s largest transaction. The property is the largest cannabis cultivation facility in Michigan and one of the largest in the United States. The Michigan market generated $1 billion in total cannabis revenue in 2020 and is projected to reach $2.0 billion in 2021, an increase of 100% YoY.