Innovative Industrial Properties
- 12 Splendid Small-Cap Growth Stocks to Buy
by Will Ashworth
July 15, 2020 https://www.kiplinger.com/investing/stocks/small-cap-stocks/601067/10-splendid-small-cap-growth-stocks-to-buy Innovative Industrial Properties
Market value: $2.0 billion
YTD total return: 23.6%
3-year annualized revenue growth: 418.2% (3-year annualized)
It seems like only yesterday that Innovative Industrial Properties (IIPR, $91.50) bought its first property. However, in reality, the real estate investment trust (REIT) that specializes in owning medical-use cannabis facilities
snapped up its first site in December 2016
The company raised $61.1 million in its initial public offering on Dec. 5, 2016. Two weeks later, the REIT acquired a 127,000-square-foot industrial property in New York state. It purchased the property from PharmaCann LLC, a grower and dispenser of medical cannabis in eight U.S. states. IIPR paid $30 million in a sale-leaseback transaction
, which has become the company's calling card ever since.
Today, Innovative Industrial Properties owns 56 properties in 15 states
representing 4.1 million rentable square feet of industrial space. The properties are 99.2% leased
with a weighted average lease length of 15.9 years
To date, Innovative Industrial has $883 million in total committed or invested capital generating $84.5 million in annualized revenue
. That might not seem like a lot. However, the annualized figure is based on the Q1 2020 revenue of $21.1 million, a figure that's 210% higher than the REIT's revenue in Q1 2019.
It's a big deal.
You won't find many REITs among small-cap growth stocks. But as the cannabis industry continues to mature, Innovative Industrial's seat at the cannabis table is all but assured.