US Cannabis: The guest highlights a $100B U.S. cannabis market with only ~one-third legal, ongoing state-level expansion, and strong public support for legalization driving long-term growth.
Cannabis REITs: He pitches a triple-net lease cannabis REIT model with 12.7% average cap rates, long 13-year lease durations, and dividend growth underpinned by strong free cash flow.
Ticker Highlight: NewLake Capital Partners (NLCP) is presented as undervalued with a ~13% covered dividend yield, net cash balance sheet, and constraints from OTC listing and custody that create an opportunity.
Limited-license states: Strategy focuses on states with constrained license counts (e.g., PA, IL, OH) to support better margins, stronger tenant cash flows, and intrinsic license value that mitigates default risk.
Rescheduling catalyst: Expected DEA move to Schedule 3 could remove 280E, improve tenant cash flows, pave the way for SAFE Banking, exchange uplisting, and broader institutional participation.
Key companies: Portfolio tenants Curaleaf, Cresco Labs, and Trulieve are cited as leading operators showing profitability and cash generation, supporting rent durability.
Risks and opportunities: Federal illegality and regulatory uncertainty persist, but investors may collect high yield while awaiting catalysts; low leverage provides flexibility to add prudent debt for quality growth.
