Cannabis REIT Innovative Industrial Properties Is Finally A Buy

Summary:

  • IIPR’s stock dropped 23% due to a large tenant, PharmaCann, failing to pay $4.2 million in rent, representing 17% of IIPR’s rental revenue.
  • Despite some tenant issues, IIPR has grown substantially since its IPO, maintaining a strong balance sheet and increasing revenue, free cash flow, earnings, and dividends.
  • IIPR is now reasonably priced, trading at 1.1X tangible book value with a dividend yield above 10%, making it an attractive buy.
  • Potential risks include tenant bankruptcies, but rescheduling could reduce these challenges, making IIPR a strong investment opportunity.

Marijuana Profits Exploding High Quality

Darren415

I have followed Innovative Industrial Properties (NYSE:IIPR) closely since it went public, but I have never written about it at Seeking Alpha. There have been a lot of bullish articles on IIPR, but I have not been interested. With the big


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


420 Investor launched in 2013, just ahead of Colorado legalizing for adult-use. We have moved the service to Seeking Alpha. Historically, we have provided great coverage of the sector with model portfolios, videos and written material to help investors learn about cannabis stocks, and we are excited to be doing it here!

Leave a Reply

Your email address will not be published. Required fields are marked *