2 Top Dividend REITs That Wall Street Is Sleeping On
Sometimes investors have to look past the headlines to think about deeper trends that aren't easily apparent to Wall Street. This is often called second order thinking, and it requires understanding the companies you are researching. And when you take that deeper dive, Innovative Industrial Properties (NYSE: IIPR) and Ventas (NYSE: VTR) both look attractive today despite some headline-grabbing negatives.
The cannabis space has been growing at a rapid clip, as the drug is increasingly legalized across the United States. Although it's still not legal at the federal level, that is actually a plus for real estate investment trust (REIT) Innovative Industrial Properties. That's because this landlord specializes in net lease sale/leaseback transactions.
To quickly summarize, the company buys properties from cannabis growers and then leases them back, with the seller, now the tenant, responsible for most of the operating costs. It's basically a way for the former owner to raise capital while still retaining access to a key property.
Source Fool.com
