IIPR Archives - Green Market Report

Debra BorchardtDebra BorchardtMay 7, 2020
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5min3030

Cannabis REIT Innovative Industrial Properties, Inc.  (NYSE:IIPR) reported its results for the first quarter ending March 31, 2020, with total revenues of approximately $21.1 million. This was a 210% increase from the prior year’s first quarter. Innovative Industrial also delivered a net income of approximately $11.5 million or $0.72 per diluted share.

The adjusted funds from operations (AFFO) were approximately $17.8 million, or $1.12 per diluted share. Net income available to common stockholders and AFFO increased by 249% and 236% from the prior year’s first quarter, respectively. The company paid a quarterly dividend of $1.00 per share on April 15, 2020, which increased approximately 122% increase over the first quarter of 2019’s dividend.

“One of the pillars of our business strategy has consistently been a conservative, flexible balance sheet, and we believe we are exceptionally well-positioned to not only weather this unprecedented health crisis and economic disruption but to continue to make real estate investments on a long-term basis with best-in-class tenant operators,” said Alan Gold, Executive Chairman of IIP. “We remain steadfast in our support of this industry and its bright long-term future and are working every day through this crisis with our tenant partners toward continuing to build a tremendous future forward of growth and strength for many years to come. When we overcome this crisis through the collective ingenuity of our top medical professionals and researchers, the regulated cannabis industry will continue to thrive and be one of the top drivers of growth and good jobs across the country.”

COVID Rent Deferrals

While cannabis was deemed an essential service in many states, social distancing was still required. This makes working in a grow facility a challenging prospect. IIP said it has had conversations with each of its tenants in March and April over the situation. As a result, the company said that it is providing temporary rent deferrals for three of its 21 tenants. The decision was to apply a portion of the security deposit IIP holds under each lease to pay April rent in full, defer rent for May and June in full, and provide for the pro-rata repayment of the security deposit and deferred rent over an 18 month time period starting July 1.

That means a total of $743,000 of security deposits that IIP holds in cash were applied to the payment of rent for April, and a total of approximately $1.5 million in rent was deferred for May and June. The total of this amount, $2.3 million, represents approximately 3% of IIP’s total revenues as reported for the three months ended March 31, 2020, annualized.

Current Portfolio

As of May 6, 2020, IIP said it owned 55 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, North Dakota, Ohio, Pennsylvania, and Virginia, totaling approximately 4.1 million rentable square feet (including approximately 1.3 million rentable square feet under development/redevelopment), which were 99.1% leased (based on square footage) with a weighted-average remaining lease term of approximately 15.9 years. As of May 6, 2020, the company has invested approximately $719.7 million in the aggregate and had committed an additional approximately $143.2 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties.

Financial Picture

In January, IIP completed an underwritten public offering of 3,412,969 shares of common stock, including the exercise in full of the underwriters’ option to purchase an additional 445,170 shares, resulting in net proceeds of approximately $239.6 million. The company reported that it has roughly $108.3 million in cash and cash equivalents and approximately $272.9 million in short-term investments, totaling approximately $381.2 million.


Kaitlin DomangueKaitlin DomangueFebruary 27, 2020
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3min9851

Innovative Industrial Properties, Inc. (NYSE: IIPR) reported its earnings from the fourth quarter yesterday, exceeding analysts’ expectations. The quarter ended on December 31st, 2019. 

The cannabis real estate company reported total revenue of approximately $17.7 million in Q4, an astonishing 269% increase from the prior year’s quarter. This is an amazing jump from the companies total revenue of just $4.8 million in Q4 of 2018. 

According to IIRP’s report, since October of 2019, the company has acquired 20 properties and executed five lease amendments across various states in the U.S., totaling an aggregate investment of approximately $308.8 million. New tenant relationships include key cannabis players like Cresco Labs and Green Thumb Industries, and the company expanded existing relationships with companies like Trulieve and PharmaCann.

Since the addition of company properties, IIP has grown its portfolio from 11 properties to an impressive 51 properties since January 1st, 2019. The total properties have grown from approximately 1.0 million square feet in nine states, to roughly 3.2 million rentable square feet across 15 states. IIP’s total investment in its property portfolio has increased by 307%, with the aggregate amount going from $167.4 million to $680.7 million. The company acquired multiple properties in Illinois, Pennsylvania, Michigan, and Ohio, with the rest being in California, Colorado, Massachusetts, Arizona, and North Dakota. 

The total net income available to the company’s common share stockholders accumulated a total of $9.6 million for the total, with each diluted share representing $0.78. Adjusted funds from operations totaled $14.3 million, or $1.18 per diluted share. The adjusted funds from operations represented a 293% increase and an increase of 211% from the previous quarter’s earnings, respectively.  

Following the end of the quarter, the company completed an underwritten public offering of 3,412,969 shares of common stock, including the exercise in full of the underwriters’ option to purchase an additional 445,170 shares, resulting in gross proceeds of approximately $250.0 million. IIP also established an “at-the-market” equity offering program, issuing shares of common stock from September until February. According to the company, the net proceeds from that issuance totaled approximately. $184.8 million.

The company paid a quarterly dividend of $1.00 per common share, on January 15th to stockholders, positioning the company at an increase of 186% from the prior year’s quarter. 

Innovative Industrial Properties, Inc. will conduct a conference call and webcast at 10:00 a.m. Pacific Time on Thursday, February 27, 2020, to discuss IIP’s financial results and operations for the fourth quarter. 


Kaitlin DomangueKaitlin DomangueJanuary 25, 2020
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2min8900

Innovative Industrial Properties, Inc. (NYSE:IIPR) has placed approximately 2,000,000 shares of common stock for public offering, representing roughly 22% of the shares outstanding.

The company’s plan for the revenue of the sale is to invest in specialized real estate assets. The assets are intended for cultivation and processing facilities for corporate use and in alignment with the company’s investment strategy.

The company placed the public offering of 2.967M common shares at $73.25/share. Gross proceeds will equate to $217.4M. Underwriters are expected to be offered a 30-day option to purchase up to an additional 300,000 shares of its common stock.

According to MarketWatch, since the announcement of the public offering, the REIT’s stock has dropped 4.5% in premarket trading, pricing 7.8% Thursday’s close of $79.45.

Key players in the offering include BTIG, LLC as sole-book running manager, BTIG, LLC is acting as sole book-running manager for the offering; Compass Point Research & Trading, LLC and Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. as co-lead managers, and Roth Capital Partners as a co-manager.

Innovative Industrial Properties, Inc. is an internally managed real estate investment trust. It is focused on the acquisition, ownership and management of specialized industrial properties leased to licensed medical-use cannabis facilities.


Debra BorchardtDebra BorchardtNovember 8, 2018
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3min13482

Cannabis REIT Innovative Industrial Properties (NYSE: IIPR) reported that its revenue increased by 150% to $3.9 million for the third quarter ending September 2018 versus $1.6 million for the same time period last year. The company also delivered a net income of $1.5 million or $0.21 per diluted share. The adjusted funds from operations, a measure typical of REITs was $2.6 million or $0.38 per share.

According to the company statement, the increases were due to the company’s acquisition of new properties and the annual escalation of base rent for two of the leases. The statement said that “Base rent under the lease with the PharmaCann subsidiary for one of the Massachusetts properties is abated until November 30, 2018, and base rent under the lease with GPI at the Michigan property was deferred until November 2, 2018.”

IIPR is also one of the few cannabis companies that pay a dividend and this quarter was no different. It is paying out its sixth consecutive dividend of $0.35 per share. This is a 40% jump over the second quarter dividend.

After The Quarter

After the quarter ended,  the company acquired an approximately 58,000 square foot industrial property in Colorado for $11.25 million (excluding transaction costs) and entered into a long-term, triple-net lease with TGS for continued operation as a cannabis cultivation facility.

In addition to acquiring the Colorado property, IIPR completed an underwritten public offering of 2,990,000 shares of common stock, including the exercise in full of the underwriters’ option to purchase an additional 390,000 shares, resulting in net proceeds of approximately $113.9 million.

Portfolio Update

As of November 7, 2018, IIPR owned 10 properties located in Arizona, Colorado, Maryland, Massachusetts, Michigan, Minnesota, New York and Pennsylvania, totaling approximately 952,000 rentable square feet (including approximately 114,000 rentable square feet under development), which were 100% leased with a weighted-average remaining lease term of approximately 14.7 years.

IIPR has invested approximately $121.5 million and has committed an additional approximately $15.9 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at the properties. The average current yield on invested capital is approximately 15.4% for these ten properties.


Debra BorchardtDebra BorchardtMay 9, 2018
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4min13970

Innovative Industrial Properties, Inc. (IIPR) stock fell 4% in aftermarket trading when the cannabis real estate company missed expectations for its first-quarter earnings. The company reported net income of $607,000 or $0.09 per share, while the average analyst estimate for the quarter according to Yahoo Finance was for $0.18, a miss of nine cents.

Rental revenue for the quarter was $2.7 million, an increase of 114% over last year for the same time period, but the average estimate was for revenue of $3.06 million. For the first quarter 2018, funds from operations and FFO per diluted share were approximately $1.1 million and $0.18, respectively; and AFFO and AFFO per diluted share were approximately $1.4 million and $0.23, respectively.

IIPR is one of the rare cannabis companies that pay a dividend and this quarter it paid its fourth consecutive quarterly dividend of $0.25 per common share on April 16 to stockholders of record as of March 29, 2018. According to a company statement, IIPR also completed an underwritten public offering of 3,220,000 shares of common stock, including the exercise in full of the underwriters’ option to purchase an additional 420,000 shares, resulting in net proceeds of approximately $79.3 million. That money will be used to invest in additional properties.

Portfolio Update

The cannabis company REIT owns six properties located in Arizona, Maryland, Minnesota, New York and Pennsylvania, totaling approximately 706,000 rentable square feet, which were 100% leased with a weighted-average remaining lease term of approximately 14.4 years. In a statement, IIPR said that it had invested approximately $75.4 million in the aggregate and had committed an additional approximately $6.5 million to reimburse certain tenants for tenant improvements at its properties. The company’s average current yield on invested capital is approximately 15.7% for these six properties.

Since the quarter ended it has acquired an 89,000 square foot property in Pennsylvania for approximately $5.8 million that Vireo will use to operate a medical-use cannabis cultivation and processing facility. In addition to that, IIPR has entered into an agreement to purchase one property for a total investment of $3 million and signed three non-binding letters of intent for three properties representing a total expected additional investment by the company of approximately $38 million.

Stock Performance

 The stock fell 4% to $32.50 after the earnings announcement and the company did not plan on hosting a conference call. This isn’t too far from the 52-week high of $36.88  and way above the year’s low of $15.72. Two analysts follow the stock with an average price target of $33.75.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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