The U.S. cannabis industry continues to expand rapidly, creating strong momentum for related investments. In 2025, the market is expected to surpass $44 billion in value. Over the next five years, projections suggest it could reach more than $76 billion. This steady growth is driven by rising consumer demand and ongoing legalization across many states. Currently, nearly half of U.S. adults have tried cannabis at least once. Meanwhile, almost 80% of Americans live near a licensed dispensary. The industry also supports hundreds of thousands of jobs and contributes billions to the economy each year. Because of this, investors are watching cannabis real estate investment trusts (REITs) for potential gains.

At the same time, recent news around federal rescheduling of cannabis has added to investor optimism. If the government moves cannabis to a lower schedule, many operators could see reduced tax burdens. This change would likely attract new capital and improve profitability. States like Pennsylvania are also pushing forward with new legalization bills. These efforts could bring new business to cannabis REITs and boost long-term revenue. However, smart investors must still approach this sector carefully. Using technical analysis helps identify strong price trends and good entry points. Proper risk management, such as stop losses and position sizing, also protects capital. Altogether, staying informed and disciplined is key when trading cannabis REITs in today’s evolving market.

Cannabis REITs to Watch for Long-Term Gains in 2025

As the U.S. cannabis industry expands, real estate investment trusts (REITs) are becoming a critical financing source. These REITs provide essential capital to cannabis companies through sale-leaseback agreements and direct lending. In return, they generate consistent income and strong dividends for shareholders. Moreover, they offer exposure to the cannabis sector without the risks of direct plant-touching operations. In May 2025, three cannabis REITs stand out due to their growing portfolios and resilient financials. These include Innovative Industrial Properties (IIPR), NewLake Capital Partners (NLCP), and Chicago Atlantic Real Estate Finance (REFI).

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Top Cannabis REITs to Watch in May 2025

1. Innovative Industrial Properties, Inc. (NYSE: IIPR)
2. NewLake Capital Partners, Inc. (OTC: NLCP)
3. Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI)

Innovative Industrial Properties, Inc. (IIPR)

Innovative Industrial Properties is the first publicly traded cannabis REIT in the U.S. It focuses entirely on acquiring and leasing facilities to licensed cannabis operators. Founded in 2016, the company has grown steadily across the country. It operates in 19 states, with major footprints in California, Pennsylvania, and Illinois. These regions host large-scale cultivation and processing centers.

The company currently holds over 100 properties. These properties are mostly leased to single tenants under long-term triple-net leases. The tenants include some of the largest U.S. cannabis producers. As a result, IIPR maintains steady rental income even during market downturns. Its focus on real estate allows investors to gain indirect cannabis exposure with reduced volatility.

In Q1 2025, IIPR reported revenue of $71.7 million. This marked a slight increase from the previous quarter. Net income came in at $30.3 million, or $1.03 per share. The company declared a dividend of $1.90 per share. This represents a yield attractive to income-seeking investors. IIPR continues to maintain over $220 million in liquidity. Despite some tenant-related challenges, it has preserved healthy cash flow and balance sheet strength. Its portfolio is diversified, and management remains focused on strategic sale-leasebacks.

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NewLake Capital Partners, Inc. (NLCP)

NewLake Capital Partners is a cannabis-focused REIT that invests in cultivation and retail properties. Established in 2019, the company has built a diverse portfolio of assets. It currently owns 33 properties across the U.S. These include 15 cultivation facilities and 18 retail dispensaries. The properties are spread across 12 states, including strongholds like Pennsylvania and Ohio.

NewLake’s tenants are major multi-state operators. Companies like Curaleaf and PharmaCann lease several of their facilities. The company operates under a triple-net lease structure. This ensures tenants handle all property expenses while NewLake collects fixed rent. As of May 2025, NewLake’s portfolio is fully leased, and occupancy remains strong.

Financially, NewLake posted $13.2 million in revenue for Q1 2025. This reflected a 4.8% year-over-year increase. Net income was $6.3 million, while adjusted funds from operations totaled $10.7 million. The company declared a $0.43 quarterly dividend, rewarding long-term investors. With over $100 million in available liquidity and a low debt ratio, NewLake is well-positioned for expansion. It has a reputation for responsible capital allocation and consistent rent collections. Management remains focused on adding new properties and deepening relationships with top-tier tenants.

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Chicago Atlantic Real Estate Finance, Inc. (REFI)

Chicago Atlantic Real Estate Finance operates as a commercial mortgage REIT. Unlike IIPR and NLCP, it does not own physical properties. Instead, REFI provides secured loans to licensed cannabis operators. Its focus is on growth-stage companies with a strong operational history. The REIT specializes in senior secured loans, offering high-interest income and downside protection.

REFI’s portfolio includes 30 active loans totaling over $400 million. These loans are distributed across multiple states and sectors. Borrowers use funds for expansion, equipment, and facility improvements. The company works with experienced operators that meet strict underwriting criteria. This reduces credit risk and supports reliable income generation.

In Q1 2025, REFI reported net interest income of $13 million. Net income reached $10 million, or $0.47 per share. Operating expenses decreased, boosting overall profit margins. The company declared a quarterly dividend of $0.47 per share. This represents a high annualized yield, appealing to income investors. REFI also maintains access to a secured credit facility and holds strong liquidity. With its focus on short-duration loans and consistent underwriting, REFI remains a stable option in a volatile sector. It aims to scale its lending platform while preserving capital discipline.

Cannabis REITs Are Ideal for Long-Term Growth in 2025

Each of these cannabis REITs—Innovative Industrial Properties, NewLake Capital Partners, and Chicago Atlantic Real Estate Finance—brings a unique model to the table. IIPR focuses on real estate ownership and leasebacks. NLCP offers a diversified mix of retail and cultivation assets. REFI prioritizes high-yield lending with strong protections. All three demonstrate consistent revenue, strong dividends, and disciplined management. In a growing industry still underserved by traditional financing, these REITs continue to stand out. Investors seeking cannabis exposure with income stability should keep a close eye on these top-performing REITs in May 2025.

The post 2025’s Best Cannabis REITs for Building Wealth Over Time appeared first on Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry..

The cannabis real estate sector continues to grow as demand for property financing increases. Cannabis REITs provide capital for dispensaries and cultivation facilities, helping operators expand while securing long-term rental income. The U.S. cannabis market is projected to reach $71 billion by 2030, driven by new state legalizations and rising consumer demand. Recent news suggests that federal rescheduling of cannabis could move forward in 2024, potentially easing banking restrictions. This change would benefit cannabis REITs by improving tenant stability. Investors should focus on companies with strong balance sheets and reliable rental income to reduce risk.

Using technical analysis can help identify optimal entry points for cannabis REITs. Watching support and resistance levels, trading volume, and moving averages can improve decision-making. Proper risk management is essential, as stock prices can be volatile. Setting stop-loss levels and position sizing carefully can help protect capital. As legalization expands, REITs will play a key role in industry growth, making them attractive for long-term investors.

The cannabis real estate sector is critical to the industry’s growth. Real Estate Investment Trusts (REITs) provide capital for cannabis operators through property acquisitions and lease agreements. As the market expands, these REITs help companies scale operations while securing long-term rental income. With uncertain federal legalization, these REITs offer investors indirect exposure to the cannabis industry.

This month, three cannabis REITs stand out due to their performance and recent developments. Innovative Industrial Properties, Inc. (IIPR), NewLake Capital Partners, Inc. (NLCP), and Chicago Atlantic Real Estate Finance, Inc. (REFI) are among the top REITs to watch. They own and manage properties leased to leading cannabis operators in the U.S. Their financials, dividends, and acquisitions make them attractive investment options. Below is a closer look at these companies.

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Best Cannabis REITs to Buy Now for Stability and Passive Income

1. Innovative Industrial Properties, Inc. (NYSE: IIPR)
2. NewLake Capital Partners, Inc. (OTC: NLCP)
3. Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI)

Innovative Industrial Properties, Inc. (IIPR)

Innovative Industrial Properties (IIPR) is one of the largest cannabis-focused REITs in the U.S. The company specializes in acquiring and leasing industrial properties to state-licensed cannabis operators. It has a diverse portfolio covering multiple states, including California, Florida, and Pennsylvania. These regions have some of the most established cannabis markets.

As of early 2024, IIPR owns over 100 properties across 19 states. Its tenants include major multi-state operators (MSOs) such as Curaleaf, Trulieve, and Green Thumb Industries. The company follows a sale-leaseback model, allowing cannabis businesses to free up capital while securing long-term leases. This strategy has positioned IIPR as a key player in the sector.

In its latest earnings report, IIPR showed strong revenue growth. For the third quarter of 2023, revenue reached $79.9 million, reflecting a 12% increase year-over-year. The company also reported a net income of $40.8 million, maintaining profitability despite market challenges.

One of IIPR’s main attractions is its dividend payments. The company offers a high-yield dividend, making it appealing to income-focused investors. However, concerns about tenant defaults have impacted its stock price. Some cannabis operators have struggled with cash flow, affecting lease payments.

Despite these challenges, IIPR continues to expand its portfolio. The company remains a leader in cannabis real estate, with solid financials and a growing market presence. Investors watching this stock should consider its stability, dividend returns, and the evolving regulatory landscape.

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NewLake Capital Partners, Inc. (NLCP)

NewLake Capital Partners (NLCP) is a smaller but growing cannabis REIT. It focuses on acquiring retail and industrial properties leased to state-licensed cannabis operators. The company has built a strong presence in Illinois, Massachusetts, and Pennsylvania, which are key cannabis markets in the U.S.

NLCP owns 32 properties across 12 states, supporting both medical and recreational cannabis businesses. Its tenants include top cannabis operators like Cresco Labs, Columbia Care, and Trulieve. The company follows a triple-net lease model, meaning tenants cover property expenses, reducing NLCP’s operational risks. This structure ensures steady rental income and long-term growth potential.

Although smaller than IIPR, NLCP has positioned itself as a reliable REIT with consistent revenue growth. Its strategic property acquisitions and long-term leases offer stability in the cannabis real estate market. As legalization expands, the demand for quality real estate will likely drive NLCP’s growth.

In its most recent financial report, NLCP generated $13.4 million in revenue, marking a 9% year-over-year increase. Net income reached $6.2 million, reflecting solid profitability. The company’s funds from operations (FFO), a key REIT performance metric, also showed improvement.

NLCP pays a quarterly dividend, offering investors consistent returns. Its last report declared a dividend of $0.39 per share, making it an attractive option for income investors. The company maintains a strong balance sheet with low debt, giving it flexibility for future acquisitions.

Looking ahead, NLCP is expected to expand its property portfolio as more states legalize cannabis. The company’s growth strategy and focus on high-quality tenants position it well for long-term success. Investors interested in cannabis real estate should watch NLCP’s developments.

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Chicago Atlantic Real Estate Finance, Inc. (REFI)

Chicago Atlantic Real Estate Finance (REFI) is a unique player in the cannabis REIT sector. Unlike traditional REITs, REFI focuses on providing loans and credit facilities to cannabis operators. It helps businesses secure financing for expansion, property acquisitions, and operational needs.

REFI operates in some of the fastest-growing cannabis markets, including Michigan, Florida, and New Jersey. The company’s lending strategy allows it to work with both multi-state operators and independent cannabis businesses. By focusing on debt financing, REFI reduces exposure to property management risks while generating interest income.

The company has structured its investments to minimize default risks. Most of its loans are collateral-backed, ensuring that it can recover assets if borrowers face financial trouble. This approach has helped REFI maintain steady earnings while supporting cannabis industry growth.

In its latest earnings report, REFI posted $14.1 million in revenue, marking a 10% increase year-over-year. Net income came in at $7.2 million, reflecting strong profitability. The company’s loan portfolio continues to grow, with an emphasis on high-credit-quality borrowers.

REFI also offers a strong dividend yield, attracting income-focused investors. The company recently declared a dividend of $0.47 per share, reflecting its commitment to shareholder returns. As demand for cannabis financing increases, REFI is well-positioned to expand its lending activities.

Looking ahead, REFI plans to grow its loan portfolio and expand into new legal cannabis markets. The company’s focus on debt financing gives it a unique advantage in the sector. Investors seeking exposure to cannabis real estate with lower property management risks should consider REFI.

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High-Yield Cannabis REITs to Watch in a Growing Market

The cannabis REIT sector remains a strong investment option despite market volatility. IIPR, NLCP, and REFI each offer unique opportunities for investors. IIPR stands out for its large portfolio and high dividend yield. NLCP is a smaller but growing REIT with a stable rental income. REFI provides financing solutions, reducing traditional REIT risks while maintaining strong earnings.

As cannabis legalization progresses, demand for real estate and financing will continue to grow. These REITs are critical in supporting cannabis businesses while offering investors potential long-term returns. Investors should monitor their financial performance and regulatory developments before making investment decisions.

The post 3 Must-Watch Cannabis REITs for Real Estate Investment in 2025 appeared first on Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry..

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