Cannabis and Hemp Sector Ideas

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Innovative Industrial Properties - >>> Ignore AMC: Here Are 3 Better Stocks

Long-term investors should look elsewhere for sustainable portfolio growth.


Motley Fool

by Rachel Warren

Jul 14, 2021


>>> Innovative Industrial Properties


https://www.fool.com/investing/2021/07/14/ignore-amc-here-are-3-better-stocks/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


When it comes to investing in marijuana stocks, not all investments are created equal. Few pot stocks offer the combination of growth, long-term value, portfolio returns, and profitability that Innovative Industrial Properties (NYSE:IIPR) does.

Innovative Industrial Properties is a real estate investment trust (REIT) that only leases its properties to licensed medical marijuana growers. Its properties span the continental U.S., from Arizona to Colorado to Florida to Massachusetts, and the company regularly adds to its portfolio.

The company pays an impressive dividend, which it consistently increases. Its yield is 2.7% at the time of this writing, and on June 15, management announced a 6% boost to the company's quarterly payout.

In 2020, Innovative Industrial Properties reported that its total revenue grew 162% and its net income increased even more, up 191% from the previous year.

During the first quarter of 2021, the company's revenue and net income grew by respective rates of 103% and 122% year over year, and its adjusted funds from operations (AFFO) spiked by a total of 116%. The company also made several new property acquisitions in the early part of 2021, all while maintaining zero debt (not counting $143.8 million in exchangeable senior notes) and growing its position in cash, cash equivalents, and short-term investments to $661.4 million.

Shares of Innovative Industrial Properties continue to trend upward. The stock has gained a robust 17% since the beginning of the year and is trading about 133% higher than just 12 months ago.

Innovative Industrial Properties has plenty of growth left to explore as it expands its national footprint within the United States' multi-billion-dollar medical-use cannabis industry. It's safe to stay that the company is far from exhausting its upside potential, and now looks like a great time for investors to jump on this compelling pot stock.

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