This marijuana property REIT just reported a stellar quarter. It has a current dividend yield of 3.07%, paid quarterly.
Innovative Industrial Properties, Inc. (IIPR)
From Safe Money Report
Innovative Industrial Properties (Rated “B”) is a unique real estate investment trust, or REIT, that owns and leases back industrial and greenhouse buildings to legal and state-licensed growers of medical-grade cannabis.
As of October, it owned 63 properties in 16 states, with roughly 5 million square feet of rentable space already available or under development. The average lease was for more than 16 years, and roughly 99% of its space was rented.
In the second quarter, adjusted funds from operations (AFFO, a REIT industry benchmark similar to earnings for traditional corporations) jumped to $21 million, or $1.19 per share. That was a 263% surge from year-ago levels. Revenue soared 183% to $24.3 million. A couple tenants had an issue with rent payments for a short period of time this spring, thanks to the COVID-19 pandemic. But those issues don’t appear to be lingering into the fall. IIPR has also continued to announce new property acquisitions and fundraisings—transactions that lay the groundwork for future sales and earnings growth.
What about income? Well, IIPR recently declared a third quarter dividend of $1.17 per share. That was up 10% from the second quarter and a hefty 50% from year-ago levels.
Meanwhile, Innovative Industrial has earned a “Buy” Weiss Rating for most of the last eight months. And, in the wake of this month’s voting results, it started breaking out of a consolidation pattern dating back to August. Bottom line? Innovative Industrial looks like a solid Dynamic Income Portfolio play. I recommend you buy a 2.5% IIPR position at the market
Mike Larson, Safe Money Report, 1-877-934-7778, www.weissratings.com, November 2020