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Here is a pot stock that is pretty interesting and Motley Fools blah on it. It has had phenomenal dividend growth and to me their business model makes sense. DYOD because most of my stock pics don't do very well.
Innovative Industrial Properties offers growth and a dividend
Analysts weren't thrilled with Innovative Industrial Properties' fourth-quarter report because it came in below expectations, even though the company nearly doubled every positive metric over the prior year.
So much is expected of IIP that it is finding itself a hard act to follow. That's a good thing, because it gives investors a chance to buy in on a booming company at a reasonable price. The stock is up 123% over the past 12 months, but it's down more than 18% over the past month.
IIP is a Real Estate Investment Trust (REIT) that specializes in leasing space to cannabis companies. The company generally buys a medical marijuana company's property and then leases it back, giving the tenant much-needed capital that is hard to come by because of federal laws that complicate banking operations regarding cannabis companies.
IIP's leases are long-term (10 or 20 years) absolute-net agreements, meaning the tenant bears all the costs for the facilities' maintenance. In the fourth quarter the company said it collected 100% of its contracted rent, and it has not had to offer rent deferrals since this past July.
In 2020 the company reported $116.9 million in revenue, net income of $64.4 million, and adjusted funds from operations (AFFO) of $97.8 million, year-over-year improvements of 162%, 191% and 180%, respectively.
On top of that, IIP has a great dividend growth record. It raised its quarterly dividend 6% in December to $1.24 a share, giving it a yield of 2.8% at its current price. The company has raised its dividend nine times since its IPO in 2016.
IIPR DATA BY YCHARTS
Innovative Industrial Properties offers growth and a dividend
Analysts weren't thrilled with Innovative Industrial Properties' fourth-quarter report because it came in below expectations, even though the company nearly doubled every positive metric over the prior year.
So much is expected of IIP that it is finding itself a hard act to follow. That's a good thing, because it gives investors a chance to buy in on a booming company at a reasonable price. The stock is up 123% over the past 12 months, but it's down more than 18% over the past month.
IIP is a Real Estate Investment Trust (REIT) that specializes in leasing space to cannabis companies. The company generally buys a medical marijuana company's property and then leases it back, giving the tenant much-needed capital that is hard to come by because of federal laws that complicate banking operations regarding cannabis companies.
IIP's leases are long-term (10 or 20 years) absolute-net agreements, meaning the tenant bears all the costs for the facilities' maintenance. In the fourth quarter the company said it collected 100% of its contracted rent, and it has not had to offer rent deferrals since this past July.
In 2020 the company reported $116.9 million in revenue, net income of $64.4 million, and adjusted funds from operations (AFFO) of $97.8 million, year-over-year improvements of 162%, 191% and 180%, respectively.
On top of that, IIP has a great dividend growth record. It raised its quarterly dividend 6% in December to $1.24 a share, giving it a yield of 2.8% at its current price. The company has raised its dividend nine times since its IPO in 2016.

IIPR DATA BY YCHARTS