New Lake Capital Partners (NLCP), a cannabis real estate investment trust (REIT), boasts a compelling 9.1% dividend yield, significantly exceeding that of 10-year government bonds. Its conservative debt management and portfolio growth strategy position it as an attractive alternative to competitors like Innovative Industrial Properties (IIPR), despite trading near par value. Analyst Pablo Zuanic highlights NLCP’s potential for undervaluation and stable, long-term returns.
Innovative Industrial Properties (IIPR), a leading cannabis-focused REIT, released its Q3 2024 earnings report, highlighting strong profitability despite facing challenges from tenant-related rent delays. The company saw a slight decline in revenue due to these delays but remains financially robust with a diversified portfolio and a strong balance sheet.
NewLake Capital Partners (NLCP) is a relatively young real estate investment trust (REIT) specializing in the cannabis industry. The company boasts a high-margin business model, a generous dividend yield, and significant growth opportunities. NLCP’s portfolio of triple-net leased properties is 100% occupied, and the company has access to a large and expanding market as more states legalize cannabis. The company’s strong profitability and efficiency, combined with a well-covered dividend, make it an attractive investment. While competition in the cannabis REIT space is growing, NLCP’s strong fundamentals and strategic expansion plans position it for success in the long run.
