Why Innovative Industrial Properties (IIPR) is Still One of Our Favorite Pot Stocks

Just 4 months ago, we published an article on www.StockNews.com titled, “Is Now a Great Time to Buy Innovative Industrial Properties Inc.,” in which we shared our opinion that the drop in Innovative Industrial Properties (IIPR) was a buying opportunity.

At the time, shares of Innovative Industrial Properties were trading at about $72.  Today, shares of the company are trading at…

about $105.

The reason Innovative Industrial Properties’ stock dropped in the fall of 2019 was due to the overall bearish tone in the cannabis markets, along with a big equity raise which had investors concerned about dilution.

Yet, since then Innovative Industrial Properties has made numerous acquisitions and actually raised twice the amount of capital that they did back in 2019.

At the beginning of 2019, the company owned just 11 properties, in 11 U.S. states where medical cannabis is legal. By the end of the fourth quarter of 2019, the company owned 44 properties in 14 U.S. states. As of February 14th, 2020, they own 47 properties located in 15 states. All of the properties are 100% leased under a long-term, triple-net lease agreement.

Innovative Industrial Properties has proven to investors that they know how to put their capital to work.  It is expected that the company will continue to raise money to fund expansion, and as long as the acquisitions make sense, the company should continue to grow revenues.

And the fact that the company pays a hefty dividend makes this company appealing to a much wider investor base.  Especially while most other cannabis companies are fighting just to achieve profitability.

From the last quarter’s results, Innovative Industrial Properties’s net rental revenue shot up 201% year over year to…

Continue reading at STOCKNEWS.com

 

 

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