What Innovative Industrial Properties’ (IIPR) New Dividends Could Mean for this Stock

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December 10, 2019 4:55pm NYSE:MJ

NYSE:MJ | News, Ratings, and Charts

Today Innovative Industrial Properties, Inc. (IIPR) declared a Q4 2019 dividend of $1.00 per share of common stock, equating to an approximate 28% increase above the company’s Q3 2019 dividend of $0.78 per share, and about a 186% increase above its Q4 2018 dividend of $0.35 per share.

IIPR is the first and only REIT on the New York Stock Exchange to specialize in the legal U.S. cannabis industry. This dividend is the sixth dividend increase since the company’s IPO back in December 2016, and breaks down to an annualized dividend of $4.00 per common share. 

As for the company’s 9.00% Series A Cumulative Redeemable Preferred Stock, IIPR has also declared a regular quarterly dividend of $0.5625 per share, which will be payable on January 15, 2020 to stockholders of record at the close of business on December 31, 2019. 

Innovative Industrial Properties, Inc. seems to be outperforming its peers in the Finance sector this year. Looking at the most recent data, the company has returned 70.54% so far, versus the Finance sector’s average of 18.13% on a year-to-date basis. 

It also appears that IIPR is outperforming its peers in the REIT and Equity Trust category, which comparatively has only gained an average of 25.71% so far this year.

Innovative Industrial Properties, Inc. has a market capitalization of $926m. The company has increased its earnings per share (EPS) by an average of 174% per year, throughout the last three years (using a line of best fit). It also grew revenue 159% during the last year.

Throughout the past 3 years, IIPR has delivered a total shareholder return of 369%.

IIPR is a self-advised Maryland corporation focused on the acquisition, ownership and management of regulated medical-use marijuana facilities. The company partners with industrial properties that are leased to qualified, state-licensed operators.

The company partners with cannabis operators by supplying them with capital via the acquisition and lease-back of their real estate assets, as well as offering other creative real estate-based capital solutions.

Innovative Industrial Properties, Inc. owns 29 properties across Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, Ohio and Pennsylvania.  These properties total roughly 2.1 million rentable square feet, which are 100% leased with a weighted-average remaining lease term of about 15.8 years.

IIPR is also one of few cannabis stocks that issues dividend payments to its shareholders. As a REIT, the company is required to distribute 90% of taxable income to shareholders in the form of dividend payments.

According to the company website, “Our national portfolio is comprised of specialized industrial and greenhouse buildings, 100% leased to state-licensed medical-use cannabis growers. These facilities are mission-critical for our operators and well located in states with robust medical-use regulatory environments.”

 


Innovative Industrial Properties Inc. (IIPR) rose $0.20 (+0.27%) in after-hours trading Tuesday. Year-to-date, IIPR has gained 131.56%, versus a 17.96% rise in the benchmark S&P 500 index during the same period.


About the Author: Eric Bowler

eric-bowlerEric Bowler is an accomplished journalist providing in-depth insights for more than two decades. Over the past several years his focus has been on the marijuana industry, with a special interest in cannabis growth stocks. His daily coverage of the industry keeps him on top of the key trends with the goal of helping investors make well-informed decisions.


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