Best Marijuana Stocks For Long-Term Investing In August 2022
Do you have plans to make long-term investments in the best marijuana stocks? At the present time, given the market volatility linked to the top cannabis stocks to monitor right now, finding long-term investments with stability may be difficult. Cannabis REITs have been among the top performers on the marijuana stock market over the long term. Given their impressive investor returns over the last five years, some could be preparing for another run.
Among the top-performing marijuana stocks in recent years have been cannabis real estate investment trusts. One factor for this is that many marijuana REITs pay dividends to shareholders, which is still uncommon for cannabis companies. As a result, a number of institutional investors and private equity firms have expressed interest in these top marijuana stocks.
Also, it is predicted that the cannabis industry would more than double in size over the next five years, supporting the steady rise of marijuana REITs. In general, if you’re an investor looking for long-term holdings in the cannabis sector, let’s take a look at three of the best cannabis stocks for your long-term portfolio right now.
Top Marijuana Stocks To Watch Long Term
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
- Power REIT (NYSE: PW)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a cannabis REIT that specializes in the US legal cannabis sector. The company already has 7.7 million square feet of rentable space, and it soon hopes to add 2.5 million more. With an average lease duration of 16.4 years, the majority of these structures are completely leased. Currently, the business has 111 properties spread over 19 states. As of April, IIP has invested $2.4 billion toward remodeling properties, in addition to an additional $227.1 million in anticipated tenant payments. IIP expects its lease portfolio to grow significantly in 2022 as it keeps buying properties, particularly in Pennsylvania and Massachusetts.
IIP announced first-quarter 2021 total revenues of $64.5 million, up 50% from the same period last year. Additionally, the common stockholders were the only beneficiaries of the reported net income for the first quarter of 2022, which came to $34.7 million, or $1.32 per diluted share. On April 14, 2022, the company declared a quarterly dividend of $1.75 per common share, an increase of 17% from Q4 2021. This translates to a $7.00 annual dividend per share. IIP purchased six properties between January 1 and May 4 of this year, while five lease adjustments were made to improve additional properties. On June 15th, IIP declared a regular quarterly dividend of $0.5625 per share. The company expanded its real estate collaboration with Green Thumb Industries at a facility in Pennsylvania. The 300,000-square-foot complex has a $94.6 million total investment from IIP.
IIPR Stock Performance
On July 29th, IIPR stock closed at $96.41 and is down 12.94% in the past month. The stock is currently trading in a 52-week price range of $88.38-$288.02, down 63.33% year to date. IIPR stock has a 12-month median price target of $175 per share, according to CNN Business analysts. In this case, this would be an 81.89% increase over the previous trade price of $96.41.
AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis ancillary company with a healthy cash flow and effective business operations. The company, which was founded in 2020, focuses on real estate security and other collateral in addition to locations with favorable legal and supply/demand fundamentals. First-lien loans, mortgage loans, construction loans, bridge financings, and other unconventional financing options are among the areas of expertise of AFCG. The cannabis industry, which is rapidly increasing, has been the focus of AFC Gamma’s most recent commercial endeavors. The business authorized a $100 million option and a $250 million credit upsize with Verano Holdings Corp. (OTC: VRNOF).
For the first quarter in May, the company recorded a net income of $10.2 million, or $0.53 per basic weighted share. Additionally, the business generated distributable earnings of $11.9 million in the first quarter of 2022. AFC also distributed a dividend in April, raising the price per common share by 10% from the previous quarter to $0.55. The company also finalized $131.5 million in additional existing obligations, which will be financed starting in Q1 2022, for a total of $154.2 million in new commitments. The cumulative loan commitment for the 12 portfolio firms of the corporation as of May 9th was $482.7 million. For the fiscal quarter that ended on June 30, 2022, the firm announced a $0.56 dividend, which was paid on July 15th. Importantly, AFC Gamma, Inc. will disclose its second quarter 2022 earnings report on August 9, 2022, prior to the commencement of trade.
AFCG Stock Performance
On July 29, AFCG shares closed at $16.40, a 5.40 percent increase over the previous month. The stock, which has a price range of $14.90 to $25.50, is down 27.94% year to date. Analysts at CNN Business predict that the 12-month average price for AFCG shares will be $23. In this case, the stock’s most recent trading price of $16.40, this prediction shows a gain of 40.24 percent.
Power REIT (PW)
A real estate investment trust specializing in long-term assets with higher risk-adjusted returns is Power REIT’s main goal. The portfolio of CEA buildings owned by Power REIT is currently expanding to include more greenhouses and processing facilities. Tenants who have been awarded permission to cultivate medical marijuana on the land have taken over the leases for the buildings. In general, the funds will be used by Power REIT to complete the necessary improvements to the assets that are preparing for development. The greenhouse facilities owned by Power REIT offer room for long-term expansion.
A 42 percent increase in net income per share was reported in Power REIT’s fourth quarter and full year 2021 results, which were disclosed in April. The company invested $48 million in nine greenhouses, establishing itself as a leader in cutting-edge greenhouse agriculture techniques. In addition, there are currently 21 CEA buildings in the company’s inventory, totaling almost 1 million square feet. In a May update, the company stated Core FFO for the first quarter of 2022 was $0.40 per share, down from $0.46 in Q1 2021. The Trust distributed a quarterly dividend of $163,000, or $0.4843 per share, on March 15, 2022.
PW Stock Performance
PW stock closed on July 29th at $15.44 down 11.16% for the past five trading days. Currently, the stock has a 52-week price range of $11.04-$81.99 and is down 77.59% year to date. According to analysts at CNN Business PW stock has a consensus price target of $44 per share. In this case, this would represent an upside of 178.83% from its last trading price of $15.44.
Long-Term Pot Stock Investments For August 2022
Cannabis REITs can be an excellent option for new investors looking for long-term investments to enter the cannabis industry. Before investing in a company, you should always do your own research. Examining a company’s financial records and press releases may help you to determine which ones are the best investments. If you want to make long-term investments, these could be the marijuana stocks to keep an eye on right now in August.