Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Cannabis-focused Inception REIT will soon become a publicly traded real estate investment trust.

Subversive Real Estate’s merger with Inception REIT is part of a $183 million transaction to turn the special purpose investment vehicle into a real estate investment trust, allowing it tax benefits and the ability to receive more capital, Bloomberg News reported.

The transaction is expected to close at the end of this month, making Inception the second publicly traded cannabis REIT, following the success of Innovative Industrial Properties.

Read more

South Florida

Jackpot: Cannabis REIT has $120M in capital to lend to operators

New York

Retail sales are bleak, unless you’re selling pot

Chicago

Pot-related development is primed to take off in Illinois. So where are the investors?

A REIT structure will help cannabis companies in need of cash, as well as investors who want to invest in the growing cannabis industry without having to manage property.

“We unlock capital for operators,” Subversive CEO Richard Acosta told Bloomberg.

Innovative Industrial Properties, which was founded in 2016, has fared better than other commercial real estate sectors since the onset of the pandemic, since dispensaries have been able to operate during lockdowns, whereas other facilities — like restaurants or movie theaters — have not.

But how the REIT structure can distribute risk remains to be seen. If marijuana becomes legal at the federal level, companies may not need to operate facilities in each state, as they are required to do now, and cultivation plots and processing facilities in some states may become unnecessary. [Bloomberg] — Akiko Matsuda