Top 5 Cannabis Stocks To Buy Now

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1. Innovative Industrial Properties Inc (NYSE:IIPR)

The top stock in our list of hedge funds’ favorite weed stocks is Innovative Industrial Properties Inc (NYSE:IIPR), as 20 investors from our database reported holding shares in their latest 13F filings, unchanged over the quarter. At the same time, the aggregate value of funds’ holdings surged to $235.84 million from $185.49 million a quarter earlier.

Innovative Industrial Properties is a stock that has many reasons to be one of the best in the cannabis sector. Since the beginning of the year, it has more than doubled in value and it’s the only one that’s paying a dividend, because Innovative Industrial Properties is a Real Estate Investment Trust. It’s not just a REIT, but it’s currently the only REIT that works with the legal cannabis industry. The company works by acquiring properties through sale-leaseback program, where companies that own growing, processing, and distribution facilities get to sell them to Innovative Industrial Properties Inc (NYSE:IIPR) and then enter into a long-term triple-net lease with the REIT. In this way, companies get more liquidity and even some additional capital for upgrades and improvements.

Recently Innovative Industrial Properties has extended its collaboration with California-based cannabis producer Kings Garden by acquiring an additional property for $25.4 million. Overall, IIP has acquired and leased back six properties to Kings Garden. As of the November 4, IIP owned 63 properties located across 16 states and totaling around 5.0 million rentable square feet. During the third quarter, Innovative Industrial Properties Inc (NYSE:IIPR)  generated revenues worth $34.3 million, up by nearly 200% on the year. It also recorded net income available to common stockholders of around $0.86 per share, up by 205% on the year.

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See also 25 biggest marijuana companies in the world and 11 best weed documentaries on Netflix, Amazon, and Youtube.

Disclosure: No positions. 5 Best Cannabis Stocks To Buy Now is originally published at Insider Monkey.

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