Innovative Industrial Properties Inc. (NYSE: IIPR) pulled in revenue of almost $71 million in the third quarter of 2022, with a net income of $37.3 million, but its stock price continues to suffer along with much of the cannabis industry.
According to a news release, the company’s success to date has been based on its continued acquisitions and expansion in marijuana real estate, primarily on the manufacturing and cultivation side, which comprises 90% of its 111 properties in 19 states.
For the quarter ended Sept. 30, IIPR acquired a new Massachusetts cannabis property that it’s renting to multistate operator Curaleaf as a sale-leaseback deal worth $21.5 million, and it also sold a property in Pennsylvania to Maitri Holdings after the quarter ended for $23.5 million.
Those deals top off nine property acquisitions for 2022 so far, along with nine lease deals, the company reported. IPR has a total of $2.6 billion in gross assets, with 12% debt by comparison, and no debt maturing until 2024.
Revenue was up 32% from the same period in 2021, IIPR reported, though it did run into some issues with rent collection by a pair of tenants in California.
Kings Garden Inc. and “affiliates of Medical Investor Holdings, LLC” didn’t pay their rents to IIPR to the tune of $5.7 million, IIPR reported. The company said it kept security deposits from both tenants, which totaled $2.6 million, partially offseting the loss.
However, IIPR’s stock price is still down for the year, trading at $106.32 at the NYSE closing bell Wednesday. A year ago, it was trading at $260.07 a share.
Total revenue for the nine months ended Sept. 30 were $205.9 million, up 41% from the same period a year ago. Net revenue attributable to shareholders fell 36% year-over-year to $111.9 million.
Despite the headline-grabbing news of nonpayment by Kings Garden that led to a short-seller report, rent collection for IIPR’s properties was at 97% for the period.