- High Flyers: Cannabis REITs have been far-and-away the best-performing property sector for the second year in a row in 2020, soaring more than 150% despite the ongoing pandemic.
- Marijuana has continued along the seemingly unceasing path towards legalization. After the 2020 election, medical usage is now legal in 35 states while recreational usage is legal in 15 states.
- 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.
- Federal legalization appears likely at some point during the Biden Administration. It's unclear whether the positive demand-effects of legalization will outweigh the negative supply-effects for cannabis REITs.
- For growth-oriented investors seeking exposure to cannabis, cannabis REITs offer an attractive and differentiated option to play the space through real estate ownership.
For further details see:
Cannabis REITs: High On Growth