Innovative Industrial PropertiesNYSE: IIPR

In the most recent trading session, Innovative Industrial Properties (IIPR) closed at $133.75, indicating a +0.21% shift from the previous trading day.

SAN DIEGO--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (NYSE: IIPR) announced today it will report results for its third quarter ended September 30, 2024 after the market closes on Wednesday, November 6, 2024. Alan Gold, Executive Chairman, Paul Smithers, President and Chief Executive Officer, David Smith, Chief Financial Officer, Catherine Hastings, Chief Operating Officer, and Ben Regin, Chief Investment Officer, will host an investor conference call at 10:00 a.m. Pacific Time on.

Since our first coverage, Innovative Industrial Properties has delivered an 88% total return, including dividends, significantly outperforming the broader market. As of Q2, 2024, IIPR's portfolio had a 95.6% occupancy rate, ensuring stable cash flows. The portfolio's weighted average remaining lease term is 14.4 years, minimizing lease rollover risk.

Real estate investment trusts (REIT) were one of the industries hit hardest by the Federal Reserve's unprecedented interest rate hikes.

Innovative Industrial Properties, Inc. offers a unique investment opportunity in the cannabis real estate sector. It offers a safe dividend and solid financial situation while holding the top position. The company's strong financial performance proves noteworthy, with solid profitability ratios and excellent metrics. The Cannabis market is positioned for very fast growth in the coming years, as it welcomes millions of consumers and becomes every more accepted.

Despite a challenging operating environment, IIPR continues to post steady rental revenue and AFFO growth, supported by a lean debt profile and effective management of tenant defaults. IIPR has a solid history of dividend growth with a conservative payout ratio, offering investors an appealing income opportunity even as the yield has come down from its highs. As interest rates ease, IIPR's lean debt structure and sector-wide improved sentiment position the stock for potential price appreciation.

Lower interest rates could be the catalyst this real estate stock needs. This cannabis-related stock may finally be in a recovery mode.

In the latest trading session, Innovative Industrial Properties (IIPR) closed at $134.91, marking a -0.57% move from the previous day.

Innovative Industrial Properties is a REIT focused on leasing properties to the cannabis industry, with preferred shares offering an 8.5% dividend yield. The company improved operating cash flow to $136 million and free cash flow to $122 million, ensuring dividend sustainability. With over $200 million in liquidity, the capital improvement allowance is manageable, but call risk on preferred shares and potential common share issuance pose risks.