By: Nelson Smith - Thursday, March 30, 2017 Dream Industrial REIT: A Value Stock with Potential Marijuana Upside It seems like investors everywhere are clamoring to get into marijuana stocks, thinking they can ride the boom to untold riches. There’s just one problem. Marijuana stocks are some of the most overvalued in the market today. It’s an investment that has the potential to end very badly. The solution is to invest in stocks that represent decent value today yet have some potential exposure to the legal weed market. Fertilizer is one possibility. So are fast food restaurants. But neither is direct enough. One interesting way to play the trend is through industrial REITs. These companies have the kind of real estate marijuana growers want. They own warehouses that tend to be close to major highways, which aids in both getting the product out to customers and staff accessibility. Dream Industrial REIT (TSX:DIR.UN) already has a decent business without the potential marijuana upside. It owns 17 million square feet of industrial real estate, spread out over 217 different buildings and more than 1,300 tenants. Approximately 30% of total space is in Ontario. Occupancy stands at just over 93%. The company recently released its 2016 results. Revenue fell slightly from $177 million to $174.7 million. Funds from operations went from $0.95 per share to $0.90. This is easily enough to cover the $0.70 annual distribution. Shares currently yield 8.5%. Dream Industrial shares currently trade hands for $8.21 each, which gives them a price-to-funds from operations ratio of just 9.1. They also only trade a little above book value. This alone makes them a much better choice than the average marijuana stock.