Investors who decided to buy shares of marijuana REIT Innovative Industrial Properties IIPR five years ago, must now be very pleased with their returns.
IIIP is the first and only publicly traded cannabis-focused real estate investment trust. The company manages a portfolio of real estate properties that it leases to cannabis companies in the U.S. Among its lessees are Trulieve TCNNF, 4Front Ventures FFNTF, Parallel, Ascend Wellness AAWH, Cresco Labs CRLBF, Green Thumb Industries GTBIF, TILT Holdings TLLTF, Columbia Care CCHWF, PharmaCann, Vireo Health, and many more.
Over the last five years, Innovative Industrial Properties stock has outperformed some of the most popular stocks in the world, such as Apple AAPL, Netflix NFLX, Berkshire Hathaway Inc. BRK, Alphabet GOOGL and Amazon AMZN.
As of June 30, 2022, IIP owned 111 properties across 20 states (Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington) representing a total of approximately 8.6 million rentable square feet. The company has committed around $2.4 billion across its portfolio.
IIP Recent Updates
In May, IIP acquired Massachusetts property and entered into a long-term lease with TILT Holdings.
In June the company's board of directors declared a second-quarter 2022 dividend of $1.75 per share of common stock. The dividend is equivalent to an annualized dividend of $7.00 per common share. On the heels of second-quarter dividends, the company closed on the acquisition of a property in Texas and entered into a long-term lease with a subsidiary of Texas Original Holdings, LLC.
Despite regular dividends and numerous acquisitions, some investors are worried about the valuations that IIP is giving these properties, which has led to a shareholder lawsuit, wrote Green Market Report. The class action complaint alleges that the company’s goal is to be a marijuana company lender rather than a REIT and that the real values of its properties are much lower than Innovative Industrial Properties claims.
Meanwhile, IIP's stock continues to grow.
Here's how the returns break down from June 2017 to the present:
Netflix is up from $149.41 a share to $178.36 for a return of 19.38%;
Berkshire Hathaway is up from $254,700.00 a share to $411,050.00 for a return of 61.39%;
Amazon is up from $48.40 a share to $108.92 for a return of 125.04%;
Alphabet is up from $929.68 a share to $2,234.03 for a return of 140.30%;
Apple is up from $36.01 a share to $139.23 for a return of 286.64%;
And finally, IIP is up from $16.75 per share to $110.65 for a return of 560.60%.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.