Innovative Industrial Properties
Today, Innovative Industrial Properties (IIPR), a real estate capital provider for the cannabis industry, was trading on a solid positive note. On Thursday, the stock posted a day high of $59.90, up about 5.2% from its previous day’s closing. Let’s find out what could be driving these gains.
Key recent updates
Innovative Industrial Properties released its latest investor presentation on January 22. According to the presentation, it had $25.6 billion as its annual base rent and property management fees as of December 21, 2018. This figure reflected a solid 29.3% rise from $19.8 billion as its annual base rent and property management fees as of August 10, 2018.
During this period of slightly over four months, IIPR’s capital invested rose by 32.9% to $167.4 million, while the company’s yield on invested capital remained nearly flat at 15.3% as compared to 15.7% earlier. This release could be one of the factors that boosted investors’ confidence recently and drove its stock up.
Interestingly, Innovative Industrial Properties is the only publicly listed real estate investment trust targeting the cannabis industry. In the first three quarters of 2018, the company’s revenue more than doubled and increased by nearly 142% YoY to $10.0 million.
As of January 23, Innovative Industrial Properties stock has already surged by 25.4% month-to-date after registering solid 40.5% gains in 2018. In January so far, Aurora Cannabis (ACB), Tilray (TLRY), and Cronos (CRON) have gone up by 21.8%, 1.7%, and 37.0%, respectively.