IIPR Archives - Green Market Report

Debra BorchardtDebra BorchardtNovember 8, 2018
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3min11382

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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4min11460

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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