CRLBF - Cannabis REITs: High On Growth

• Cannabis REITs are riding a seemingly never-ending 'high' since bursting onto the scene in the late 2010s, thriving in the murky and often contradictory regulatory framework of legalized marijuana.
• The ongoing federal prohibition - and the resulting limit on access to traditional banking - has forced cultivators and retailers to turn to alternative sources for capital, including cannabis REITs.
• While still early in the evolution of the industry, we see emerging parallels with the casino industry where REITs have carved out a profitable and attractive niche with a sustainable competitive advantage.
• Critically, as additional states adopt tax and regulatory frameworks, marijuana cultivation licenses are increasingly "attached" to the real estate asset - and limited in quantity - an ideal structure for these REITs.
• Valuations remain sky-high and risks are plentiful, but for growth-oriented investors willing to speculate on the emerging industry, cannabis REITs offer unique exposure and have delivered relentless performance.

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