Weeding through cannabis stocks to find a good pick is getting easier. The greener field is now getting divided by flower and shake, as investors look at profitability and balance sheet stability.
Here are my top cannabis stock picks for 2021, based both on sprouting opportunities and results reported in the most recent quarter.
A Bigger Pot: Innovative Industrial Properties
As the leader in the cannabis real estate space, the company should continue to add to its portfolio of properties. I also expect it will keep delivering steadily increasing dividends, making this a solid choice for conservative cannabis investors.
And its numbers look good so far. The company reported total revenues of approximately $34.3 million for the third quarter. This was a 197% increase from the prior year’s third quarter. It also easily beat analysts’ estimates. IIP also recorded net income available to common stockholders of approximately $18.9 million for the quarter, or 86 cents per diluted share. The adjusted funds from operations (AFFO), meanwhile, were approximately $27.9 million, or $1.28 per diluted share. For perspective, net income available to common stockholders and AFFO increased by 205% and 192% from the prior year’s third quarter, respectively.
The company also has some $161.1 million in cash and cash equivalents and approximately $451.2 million in short-term investments, totaling approximately $612.3 million. The debt picture looks good, too. By quarter’s end, it had no debt, other than approximately $143.7 million of unsecured debt, consisting solely of 3.75% exchangeable senior notes maturing in 2024.
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