There’s zero doubt that the cannabis space is hot right now, with investors flocking to firms like Canopy Growth Corp. (OTC:CGC), Aurora Cannabis (OTC:ACB), Cronos Group (OTC:CRON), and more. However, there are many ways to invest in this space, not just by buying into the firms producing the product. One way that’s still in its early stages, but which I suspect will gain momentum as time goes on, is to invest not in the cannabis companies themselves, but to instead buy into REITs (real estate investment trusts) that cater to this market. As of today, there’s only one firm trading on the New York Stock Exchange that matches that description: Innovative Industrial Properties (IIPR). While shares in the business do look costly, so long as management is able to deploy capital in order to grow, the upside for growth-oriented investors is meaningful.
A lone player
A cannabis-oriented REIT may sound novel, and given the early stage that cannabis adoption is seeing, it so far is. However, the rationale behind it is solid. As companies in this space seek to grow, one potential burden for them could become a lack of capital and the downsides to owning their