Innovative Industrial: Staying Neutral As Positives Roughly Balance Risks

(8min)

Summary

  • Innovative Industrial Properties is a leading cannabis REIT in the U.S., leasing to state-licensed cannabis operators.
  • IIPR offers advantages like a high dividend yield of 6.5%, cheaper valuation, and high average rents compared to traditional net lease REITs.
  • Legislative risks, including the SAFER Banking Act and blocked rescheduling of cannabis, may impact IIPR's business and stock performance.
  • This idea was discussed in more depth with members of my private investing community, High Yield Landlord. Learn More »
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tampatra

Dear readers,

Innovative Industrial Properties (NYSE:IIPR) is one of the largest cannabis REITs in the U.S. and owns cultivation properties, as well as dispensaries across the country with a focus on leasing to strong state-licensed cannabis operators.

What makes cannabis

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This article was written by

4.76K Followers

David Ksir has extensive private equity experience in finance and European real estate. He manages a small 8-figure family office focused on generating reliable dividend income through value investing.

David also contributes to the High Yield Landlord which is led by Jussi Askola and has a team of 5 other top Seeking Alpha REIT and income analysts. They help investors become passive landlords with their 8% yielding real estate portfolio. Service features include: three portfolios (core, retirement, international), community through chat room, buy/sell alerts, and educational content.

Disclosure: I am associated with another SA contributor Deep Value Explorer.

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.

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