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Toxic Avenger

03/06/16 7:58 AM

#413 RE: deanna-hopkins #412

Most of my portfolio is in REITs because they pay great dividends and are selling at a high discount to what I believe is an understated book value.

However, there is absolutely no reason they would be any better for the cannabis industry than any other investment. If a cannabis company puts any money into investments, it removes cash from the books. REITs must pay out 90% of their taxable income each year in dividends. Since REITs pay out such high cash dividends, they would be a worse investment for someone looking to keep cash "off the books".

Bottom line, if cannabis is going to invest in REITs, it's for no other reason than they think they are a good investment. As do I.