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Innovative Industrial Properties Up 3% on Solid Q4 2018 Results

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Innovative Industrial Properties announces Q4 2018 earnings

Yesterday, Innovative Industrial Properties (IIPR) announced its Q4 2018 earnings. IIPR reported rental revenue of $4.7 million—an increase of ~111% over Q4 2017. In Q4 2017, IIPR reported rental revenue of $2.23 million. IIPR reported earnings per share of $0.28 per share, representing an increase of 242.9% on a year-over-year basis. In Q4 2017, IIPR reported earnings per share of $0.07.

Earnings per share would have been much higher if outstanding shares hadn’t increased significantly. At the end of Q4 2018, ~9.5 million shares were outstanding, compared to 3.5 million in Q4, 2017. IIPR’s EPS growth was mainly driven by higher revenue and a significant increase in interest and other income.

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As of March 13, IIP owned 13 properties—which are 100% leased to state-licensed medical use cannabis operators. IIPR now has approximately 1,128,000 rentable square feet with a weighted average remaining lease term of approximately 14.3 years. On March 23, IIPR acquired property for $700,000. It has also entered into a long-term lease and development agreement with PharmaCann subsidiary.

The other thing to note here is that IIPR declared its eighth consecutive quarterly dividend. It announced a dividend of $0.45 per share, expected to be paid on April 15, 2019.

Stock price reaction

On the day of the earnings announcement, IIPR stock price gained 3.1%. Meanwhile, peers Green Thumb Industries (GTBIF), Green Growth Brands (GGBXF), and iAnthus Capital Holdings (ITHUF) were up 2.7%, 0.8%, and 2.1%, respectively, while the S&P 500 (SPY) was up 0.7%.

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