Using a Cannabis Real Estate Investment Trust to Capitalize a Marijuana Business

Guttery, Randall S.; Poe, Stephen L.

doi:10.1080/10835547.2018.12090018

Cited by 7 publications

(7 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Two articles analyze the cannabis industry taking a financial angle Guttery and Poe (2018). investigate the advantages and drawbacks of an exposure in the Marijuana industry through the channel of REITs Parker et al (2019).…”

mentioning

confidence: 99%

Breaking bad: An investment in cannabis

Weisskopf

2020

Finance Research Letters

View full text Add to dashboard Cite

mentioning

confidence: 99%

Breaking bad: An investment in cannabis

Weisskopf

2020

Finance Research Letters

View full text Add to dashboard Cite

“…New Vista Financing claims to have provided $2bn in loans to cannabis industry businesses to date (New Vista Financing, 2021). Guttery and Poe (2018) highlighted the role of Real Estate Investment Trusts as possible sources of capital for marijuana businesses. Indeed, examples of businesses with this structure include Inception REIT and NewLake Capital Partners (Inception REIT, 2021; NewLake Capital Partners, 2021).…”

Section: Resultsmentioning

confidence: 99%

On the money: characterizing banking and lending in the California cannabis industry

Plakias¹,

Jodlowski²,

Giamo

et al. 2021

AFR

View full text Add to dashboard Cite

Purpose Despite 2016 legalization of recreational cannabis cultivation and sale in California with the passage of Proposition 64, many cannabis businesses operate without licenses. Furthermore, federal regulations disincentivize financial institutions from banking and lending to licensed cannabis businesses. The authors explore the impact of legal cannabis business activity on California financial institutions, the barriers to banking faced by cannabis businesses, and the nontraditional sources of financing used by the industry.Design/methodology/approach The authors use a mixed methods approach. The authors utilize call data for banks and credit unions headquartered in California and state cannabis licensing data to estimate the impact of the extensive and intensive margins of licensed cannabis activity on key banking indicators using difference-and-difference and fixed effects regressions. The qualitative data come from interviews with industry stakeholders in northern California's “Emerald Triangle” and add important context.Findings The quantitative results show economically and statistically significant impacts of licensed cannabis activity on banking indicators, suggesting both direct and spillover effects from cannabis activity to the financial sector. However, cannabis businesses report substantial barriers to accessing basic financial services and credit, leading to nontraditional financing arrangements.Practical implications The results suggest opportunities for cannabis businesses and financial institutions if regulations are eased and important avenues for further study.Originality/value The authors contribute to the nascent literature on cannabis economics and the literature on banking regulation and nontraditional finance.

show abstract

“…Loans cannabis businesses can secure from private equity firms or small investor groups tend to be short-term and high-interest (Guttery & Poe, 2018). Warehouses and other facilities often charge lease premiums due to the industry's risks; in Denver, leases for recreational cannabis operators averaged $19.33/sq.…”

Section: Costs May Limit Economic Gainsmentioning

confidence: 99%

“…Some localities have used their traditional land use authority to ban cannabis operations Carnevale et al, 2017;Caulkin & Kilborn, 2019;Polson & Petersen-Rockney, 2019), while others use that authority to mitigate the industry's potential adverse impacts by requiring setbacks between cannabis facilities and residential neighborhoods, schools, parks, churches, and recreation facilities, as is common with facilities selling liquor (Caulkins & Kilborn, 2019;Chappell, 2019;Freisthler & Gruenewald, 2014;Guttery & Poe, 2018;Nemeth & Ross, 2014;Zhang et al, 2017). Some use zoning to limit cannabis operations to commercial or industrial areas, impose density limits that cap the number of facilities per jurisdiction or per capita, or cap total local dispensary licenses (Freisthler & Gruenewald, 2014;Nemeth & Ross, 2014;Silver, 2020).…”

Section: Recommendations For Policymakersmentioning

confidence: 99%

What do we know about opportunities and challenges for localities from Cannabis legalization?

Kavousi

Giamo

Arnold

et al. 2021

Review of Policy Research

View full text Add to dashboard Cite

This review article assays the scholarly and popular press literature on the opportunities and challenges the growing legalized cannabis industry offers U.S. local governments and communities. Localities are an important focus because in many states with legalized cannabis, local jurisdictions have authority to prevent or condition its cultivation, sale, and use. Opportunities potentially flowing to localities from legalization include increased tax revenues and land values, business expansion, and increased employment; public health and safety benefits; and the potential for legalization to advance social and racial inclusion. Challenges include the possibility that economic benefits will be more limited than anticipated; complex regulatory environments facing local governments and cannabis businesses, possible increases in pollution, blight, and public health and safety concerns; and less advancement of social and racial equity than hoped by advocates. We offer recommendations for scholars investigating cannabis governance concerns and practitioners directly grappling with them.

show abstract

Using a Cannabis Real Estate Investment Trust to Capitalize a Marijuana Business

Cited by 7 publications

References 0 publications

Breaking bad: An investment in cannabis

Breaking bad: An investment in cannabis

On the money: characterizing banking and lending in the California cannabis industry

What do we know about opportunities and challenges for localities from Cannabis legalization?

Contact Info

Product

Resources

About