Property Income Or Interest Income? Cannabis REITs And Lenders Offer Double-Digit Yields

By Nicolás Rodríguez, Managing Editor

While most cannabis investors remain focused on struggling operators, some analysts are pointing toward another corner of the industry: cannabis-focused lenders and real estate investment trusts offering double-digit yields well above U.S. Treasury bonds.

In recent notes, Pablo Zuanic, senior stock analyst at Zuanic & Associates, highlighted both Chicago Atlantic Real Estate Finance and NewLake Capital Partners as examples of cannabis finance companies trading at significant discounts while continuing to generate income for shareholders.

But the two companies operate very differently.

Cannabis Lending vs Cannabis Real Estate

Chicago Atlantic Real Estate Finance, which trades under the ticker REFI, operates primarily as a lender. The company originates senior secured loans to cannabis operators and earns revenue through interest payments.

According to Zuanic’s note, REFI currently offers a dividend yield of roughly 16.1% while trading at an estimated 19% discount to book value. The report also noted non-accrual loans represented approximately 4.8% of the portfolio.

Meanwhile, NewLake Capital Partners follows a different strategy centered around cannabis real estate ownership and long-term lease agreements with operators.

Zuanic wrote that NLCP currently yields approximately 11.9% and trades at roughly a 23% discount to book value. The report also emphasized that all leased properties remain current on rent obligations despite broader pressure across the cannabis sector.

Why Some Investors Are Watching Cannabis Yield Plays

The contrast highlights two separate approaches to cannabis finance:

• Property income through rent collection
• Interest income through secured lending

Both strategies exist largely because cannabis operators still face limited access to traditional banking and institutional capital markets.

Zuanic’s reports suggest some investors may be overlooking these companies as the industry waits for potential federal reform, including Schedule III rescheduling and improved banking access. The notes also pointed to dividend coverage, liquidity, and discounted valuations as areas of interest for yield-focused investors.

For now, the broader question remains whether cannabis landlords and lenders could continue outperforming many plant-touching operators during a period when profitability pressures persist across the industry.