Sunday, February 12, 2017 1:23:26 PM
"Sales/Leasebacks are common even among private firms. IIPR's tenant -- so far its only tenant -- is Pharmacann which built this huge medical-use MJ cultivation/processing facility in NY.
Yes, the tenant will pay rent for many years but they should be able to make a fat immediate profit on the sale of the facility. In any event Pharmacann will turn a fixed asset into cash perhaps to put to more profitable use. Due to the the MJ use, Pharmacann would have a hard time borrowing on that facility in a conventional way, say a bank loan.
If I were to buy IIPR shares (most unlikely) I'd worry whether the lease payment was inflated. The seller might do that in order to make a bigger profit on the sale, and the landlord might do that to induce the transaction.
An IIRP shareholder should wonder what that structure will be worth after the lease expires or the tenant goes belly up. What the heck is the market rate for Pharmacann's unique 128,000 sf structure? I'll guarantee that an appraiser won't find any local "comparables." No doubt it requires much heavier electric service than a conventional greenhouse. It has security features not required for growing normal crops. Legal and engineering fees must have been astronomical.
I doubt anyone knows what this structure would be worth in forced sale. Not many MJ investors will be asking that perfectly good question. Yale, Stanford and BRK would ask. A bank would ask. But not slobbering MJ stock players. And we know how that often works out."
Recent IIPR News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:11:43 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 11:00:40 AM
- Innovative Industrial Properties Reports First Quarter 2024 Results • Business Wire • 05/08/2024 08:39:00 PM
- Innovative Industrial Properties to Report 2024 First Quarter Results • Business Wire • 04/22/2024 08:39:00 PM
- Innovative Industrial Properties Declares First Quarter 2024 Dividends • Business Wire • 03/15/2024 11:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 09:09:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/27/2024 10:27:19 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/27/2024 12:00:01 PM
- Innovative Industrial Properties Reports Fourth Quarter and Full-Year 2023 Results • Business Wire • 02/26/2024 09:49:00 PM
- Innovative Industrial Properties to Report 2023 Fourth Quarter and Year-End Results • Business Wire • 02/08/2024 12:00:00 PM
- Innovative Industrial Properties Announces Tax Treatment of 2023 Distributions • Business Wire • 01/26/2024 10:29:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/18/2024 03:22:46 PM
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- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:41:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:39:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:25:08 PM
- Innovative Industrial Properties Declares Fourth Quarter 2023 Dividends • Business Wire • 12/15/2023 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/15/2023 10:41:54 PM
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- Innovative Industrial Properties Reports Third Quarter 2023 Results • Business Wire • 11/01/2023 08:10:00 PM
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