Cannabis REIT Innovative Industrial Properties Is Finally A Buy

(13min)

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.
  • I do much more than just articles at 420 Investor: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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

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!

This article was written by

Alan Brochstein, CFA profile picture
72.04K Followers

Alan Brochstein, CFA, is one of the first investment professionals to focus exclusively on the cannabis industry. Alan got his start as a financial professional in the securities industry in 1986, managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent consulting to registered investment advisors. He is also the managing partner of New Cannabis Ventures, a leading provider of relevant financial information in the cannabis industry since 2015.

Alan has run the investing group 420 Investor, for investors interested in the publicly-traded cannabis stocks that he moved to Seeking Alpha in 2023, since 2013. As the leader of the investing group 420 Investor, Alan closely covers 23 stocks and shares investment news as it comes out, previews of their earnings reports and analysis of them afterwards. Other features of the group include: 2 model portfolios, 10 videos per week with chart analysis, 3 summary pieces weekly, a monthly newsletter, and chat for questions Learn More. He also offers a sub-service of 420 Investor, The Big Picture, which will help you stay on top of the cannabis sector!

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.

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