Innovative Industrial Properties’ profitable business model attracts investor interest
Innovative Industrial Properties, Inc., a Maryland corporation that buys and manages properties leased to experienced, state-licensed operators for their medical-use cannabis facilities, has generated increased interest from investors lately due to its profitable and diversified nature. In essence, it provides real estate capital to many cannabis operators, for a profit, so those operators can stretch their money on operations.
IIPR is one of only a few cannabis companies generating a profit already.
Currently, IIPR owns ten properties—in Arizona, Colorado, Maryland, Massachusetts, Michigan, Minnesota, New York and Pennsylvania—totaling 952,000 rentable sf, including 114,000 sf under development. These are 100% leased with an average remaining term of 14.7 years.
IIPR has invested $121.5 million in the portfolio and has committed an additional $15.9 million to reimburse tenants for construction and improvements, for a total of $137.4 million.
IIPR’s average yield on invested capital is 15.4% for these properties, calculated as the sum of its current rents and management fees (revenue), divided by its total investment.
IIPR is actively buying properties. In July, it acquired a 55,000 sf cannabis cultivation and processing facility in a sale-leaseback transaction with Holistic Industries in Massachusetts for $12.75 million.
In August 2018, it acquired a property in Michigan and entered into a long-term lease with Green Peak Industries for a 56,000 sf industrial facility when completed, with it’s total investment to be $13 million.
After the quarter, in October, IIPR bought a 58,000 sf cannabis cultivation facility in Colorado and entered into a long-term lease with The Green Solution, LLC for $11.25 million.
For detailed analyses of top cannabis companies that help you decide if a stock is worth investing in, check out Cannin’s investment research products: The Cannin Chronicle, a free weekly analysis delivered to you by email, or the Cannin Report, a paid in-depth quarterly report with detailed analyses of leading companies you won’t find elsewhere.
Cannin. Your focused cannabis investment resource
Source
IIPR press release
Yahoo Finance website
Innovative Industrial Properties’ profitable business model attracts investor interest
