Best Cannabis REIT Stocks
Updated March 2026Cannabis real estate investment trusts (REITs) that own and lease properties to marijuana operators, ranked by market cap.
Cannabis REITs offer a unique way to invest in the marijuana industry through real estate rather than plant-touching operations. These companies own cultivation facilities, processing plants, and retail dispensary properties that are leased back to cannabis operators under long-term triple-net lease agreements. Because they function as landlords rather than operators, cannabis REITs can list on major exchanges, access traditional capital markets, and distribute income to shareholders through dividends.
The cannabis REIT model gained traction because it solved a critical financing problem for the industry. Many MSOs and cultivators could not access traditional mortgages or real estate loans due to federal prohibition, so they turned to sale-leaseback transactions with cannabis-focused REITs. The REIT purchases the property and leases it back to the operator, providing the operator with immediate capital while the REIT earns rental income with annual escalators and long-term contractual commitments.
However, cannabis REITs face their own set of challenges. Tenant credit risk is a major concern — if a cannabis operator goes bankrupt, finding a replacement tenant for a specialized cultivation facility is not easy. The high interest rate environment has also pressured REIT valuations across all sectors, and cannabis REITs have not been immune. The table below ranks cannabis REITs by market capitalization.
Best Cannabis REIT Stocks — Full Rankings
4 stocks · Ranked by market cap
| # | Ticker | Name | Price | Change | Market Cap | Revenue | Margin | P/S | Market Cap |
|---|---|---|---|---|---|---|---|---|---|
| 1 | IIPR | Innovative Industrial Properties | $52.66 | -2.34% | $1.48B | $276.0M | — | 5.37x | $1.48B |
| 2 | NLCP | NewLake Capital Partners | $15.43 | -1.09% | $370.3M | $0 | — | — | $370.3M |
| 3 | REFI | Chicago Atlantic Real Estate Finance | $12.09 | +0.33% | $254.9M | $55.4M | — | 4.60x | $254.9M |
| 4 | AFCG | AFC Gamma (Advanced Flower Capital) | $2.63 | +0.38% | $61.9M | $24.6M | — | 2.52x | $61.9M |
Top 3 Spotlight
Innovative Industrial Properties
Innovative Industrial Properties ranks #1 in the best cannabis reit stocks category with a share price of $52.66 and a market capitalization of $1.48B. The company operates in the REIT sector and is listed on the NYSE. With trailing twelve-month revenue of $276.0M and a gross margin of N/A, IIPR represents the top-ranked stock in this category based on market cap.
NewLake Capital Partners
NewLake Capital Partners ranks #2 in the best cannabis reit stocks category with a share price of $15.43 and a market capitalization of $370.3M. The company operates in the REIT sector and is listed on the OTC. With trailing twelve-month revenue of $0 and a gross margin of N/A, NLCP represents the second-ranked stock in this category based on market cap.
Chicago Atlantic Real Estate Finance
Chicago Atlantic Real Estate Finance ranks #3 in the best cannabis reit stocks category with a share price of $12.09 and a market capitalization of $254.9M. The company operates in the REIT sector and is listed on the NASDAQ. With trailing twelve-month revenue of $55.4M and a gross margin of N/A, REFI represents the third-ranked stock in this category based on market cap.
Methodology
Stocks are filtered to include only companies classified as REITs (Real Estate Investment Trusts) focused on cannabis properties and ranked in descending order by market capitalization. Data is sourced from company filings, exchange feeds, and financial data providers. Rankings update automatically as new data becomes available. All financial figures are based on trailing twelve-month (TTM) data unless otherwise noted. The current ranking includes 4 qualifying stocks out of 100 total cannabis companies tracked by Cannabismarketcap.
Key Observations
The top-ranked stock in the best cannabis reit stocks category is IIPR (Innovative Industrial Properties) with a market cap of $1.48B. The stock trades at $52.66 per share with a market capitalization of $1.48B. In second place is NLCP ($370.3M), followed by REFI ($254.9M) in third.
Across all 4 qualifying stocks, the average share price is $20.70 and the average market capitalization is $542.2M. The combined trailing twelve-month revenue of all companies in this category is $356.0M. The average price-to-sales ratio is 4.16x.
The most represented sector in this category is REIT with 4 out of 4 companies (100%). Among the ranked stocks, 2 are trading higher today while 2 are trading lower. Investors should use these observations as a starting point for further research rather than as the basis for trading decisions.
Investment Considerations
When evaluating stocks in the best cannabis reit stocks category, consider looking beyond the primary ranking metric to build a holistic view of each company. A stock that ranks well by market cap may have weaknesses in other areas — such as high debt, poor margins, or slowing growth — that the ranking alone does not capture. Cross-reference this list with other Cannabismarketcap category pages and the screener tool to identify stocks that score well across multiple dimensions.
Position sizing is particularly important in cannabis. The sector is inherently volatile, and even the strongest companies can experience 30-50% drawdowns during sector-wide sell-offs triggered by legislative disappointments or broader market risk-off events. Most financial advisors suggest limiting total cannabis exposure to 5-15% of your portfolio, and individual positions to 1-3% depending on your risk tolerance and conviction level.
Dollar-cost averaging (DCA) is a widely recommended approach for building cannabis stock positions over time. Rather than investing your entire allocation at a single price point, spreading purchases across weeks or months can reduce the impact of short-term volatility and lower your average cost basis if prices decline after your initial purchase. This strategy is particularly relevant for the stocks in this category given the sector's history of sharp and sometimes prolonged drawdowns.
Risk Factors
Risk Warning
Cannabis REITs face concentrated tenant risk — a small number of cannabis operators typically account for the majority of rental income, and if any major tenant defaults, the impact on revenue and cash flow is significant. The properties held by cannabis REITs are often purpose-built for cultivation or processing, making them difficult to repurpose or re-lease to non-cannabis tenants if the original operator fails. Rising interest rates increase the cost of capital for REITs, compressing the spread between borrowing costs and rental yields. Additionally, if federal legalization enables cannabis operators to access traditional real estate financing, demand for REIT-provided capital could decline, reducing the premium rental rates that cannabis REITs currently command.
Compare These Stocks
Head-to-head comparisons between top-ranked stocks in this category.
Frequently Asked Questions
What is a cannabis REIT?
A cannabis REIT is a real estate investment trust that specializes in acquiring, developing, and leasing properties to cannabis operators. These properties include indoor and greenhouse cultivation facilities, processing and extraction laboratories, and retail dispensary locations. Like traditional REITs, cannabis REITs are required to distribute at least 90% of taxable income as dividends to maintain their tax-advantaged REIT status. Major cannabis REITs include Innovative Industrial Properties (IIPR), which is the largest and most well-known, as well as smaller players focused on specific property types or geographies.
Do cannabis REITs pay dividends?
Yes, cannabis REITs generally pay regular dividends because they are structured as REITs and must distribute at least 90% of taxable income to shareholders. This makes them attractive to income-focused investors seeking cannabis sector exposure with a yield component. However, dividend sustainability depends on tenant credit quality and the REIT's ability to collect rent. If a major tenant defaults or renegotiates lease terms, the dividend could be reduced. Always check the payout ratio, tenant diversification, and lease term maturity schedule before relying on a cannabis REIT dividend.
How do cannabis REITs benefit from industry growth?
Cannabis REITs benefit from industry growth in several ways. As new states legalize cannabis, demand for licensed cultivation and retail properties increases, expanding the REIT's addressable market. Existing tenants may seek to expand operations, requiring additional properties or facility improvements that the REIT can finance. Long-term leases with annual rental escalators (typically 2-4% per year) provide built-in revenue growth. Additionally, as the industry matures and tenant credit quality improves, cannabis REITs may be able to reduce their cost of capital, expanding profit margins.
What happens to a cannabis REIT if its tenant goes bankrupt?
Tenant bankruptcy is the primary risk for cannabis REITs. If a tenant defaults on lease payments, the REIT stops receiving rental income from that property and must find a replacement tenant or sell the property. Cannabis cultivation facilities are specialized and expensive to repurpose, so finding a new cannabis tenant may take time — especially if the market that the property serves is already competitive. In a worst-case scenario, the REIT may need to take a write-down on the property value. Well-managed cannabis REITs mitigate this risk through tenant diversification, conservative underwriting, and maintaining properties in high-demand markets.
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Disclaimer: The information on this page is for informational and educational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Cannabis stocks are highly speculative and carry significant risk of loss, including the potential loss of your entire investment. Past performance is not indicative of future results. The rankings and data presented are based on publicly available financial information and may contain errors or omissions. Always do your own research and consult with a qualified financial advisor before making investment decisions. Cannabismarketcap is not a registered investment advisor, broker-dealer, or financial planner.