Cannabis REIT
Real Estate Investment Trust specializing in sale-leaseback financing for state-licensed cannabis operators — the dominant non-equity capital channel.
Definition
A Cannabis REIT is a Real Estate Investment Trust that specializes in acquiring cultivation, processing, and retail real estate from cannabis operators and leasing it back under long-term triple-net leases. Because traditional banks cannot lend to plant-touching operators, REIT-backed sale-leaseback financing has become the dominant non-dilutive capital source for the U.S. cannabis industry. Innovative Industrial Properties (IIPR) is the largest and most-tracked vehicle, with a portfolio of $2B+ in cannabis real estate across 19+ states.
Also known as: Cannabis Real Estate Investment Trust, IIPR
Why It Matters for Investors
Cannabis REIT health is a leading indicator for MSO solvency: when REITs report rising rent collection issues or tenant defaults, it signals operator stress before it appears in MSO public disclosures. The REIT model also caps how aggressively operators can de-lever — selling owned real estate to a REIT is one-way, replacing a balance-sheet asset with a long-dated lease obligation.
Examples in Practice
- Innovative Industrial Properties (IIPR) is the largest cannabis-dedicated REIT.
- AFC Gamma (AFCG) and Chicago Atlantic (REFI) provide mortgage-style debt financing as REIT alternatives.
Track the 88 cannabis equities behind every term in this glossary
Get the daily CIN brief — pre-open, midday, and close. Always free.
Get the Brief