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According to a report by BDS Analytics, the global cannabis market was estimated at $30.6 billion in 2021 and is expected to grow to $62.1 billion by 2026.
Verano Holdings all are worth buying in April.
It will soon have 10 dispensaries in Illinois, 44 in Florida, 13 in Pennsylvania, eight in Minnesota, six in Arizona, five in Nevada and Ohio, four in New York and three in New Jersey, all limited-license states that mean less competition for Verano.
The company’s shares are down more than 30% this year, but that has more to do with the overall business trends for cannabis than Verano’s own financials.
The company had adjusted operating income of $96.9 million in the quarter, tops among cannabis companies, and it reported adjusted earnings before interest, taxes, depreciation and amortization of $111 million, or 54% of revenue, up 98.4% year over year and an improvement of 35.8% sequentially.
It has retail locations in 15 states and a strong track record of profitability with six consecutive quarters of positive net income .
For 2021, the company reported annual revenue of $893.6 million, up 61% over 2020 and net income of $75.4 million, up 396% from 2021, with earnings per share of $0.34 compared to EPS of $0.07 in 2020.
Despite those numbers, the company’s shares are down 23% so far this year.
IIP, based in San Diego, buys up properties from cash-strapped cannabis growing companies and leases them back with triple-net leases that put all property expenses on the tenants, including capital repairs and replacements.
Last year, the company reported revenue of $204.6 million, up 75% over 2020, while net income also rose 75%, to $112.6 million.
Because federal prohibitions against cannabis have made it difficult for the companies to use traditional means of funding, such as bank loans, the sale-leaseback process give growers working capital.
The company has raised its dividend each year since it began paying one in 2017 and that growth has accelerated with a dividend increase in six of the past seven quarters.
In the meantime, they can be had at significant bargains while you wait for their shares to rise, and in Innovative Industrial Properties’ case, you’ll get a nice dividend while you wait.