Innovative Industrial Properties Q3 earnings

Acquisitions, expansion drove the REIT's revenue growth.

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.

Year-to-Date Financials

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.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.


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