Cannabis REIT Inc. is a company that has been experiencing strong growth in the cannabis industry. It is also one of the first publicly traded companies to be involved in this sector.
The best marijuanas stocks 2021 reddit is a company that has been on the market for a while. Cannabis REIT is looking to be one of the best companies in the cannabis industry in 2021.
Cannabis stocks in the United States have had a difficult year in 2021.
The Advisor Shares US Cannabis ETF (MSOS) is down 20% year to date and down 45% from its 52-week high.
While most cannabis companies in the United States have struggled this year, one industry leader has produced a market-beating 33 percent return.
This early industry pioneer only did the following:
- reported a year-over-year revenue increase of 100%
- A quarterly dividend of $1.32 per share was paid, up 32% from the previous year.
- witnessed the stock reach a fresh all-time high
Innovative Industrial Properties (NYSE: IIPR) is one of the biggest cannabis businesses, having a market capitalization of $6 billion.
This industry leader, based in San Diego, specializes in leasing cannabis growing facilities to some of the country’s biggest cannabis producers, such as Cresco Labs (CRLBF), Curaleaf Holdings (CURLF), and Green Thumb Industries (GTBIF). IIPR presently has 53 properties in 18 states that it owns and rents.
Two Important Factors That Set This Company Apart
There are two main characteristics that set this business apart from its competitors.
#1 – IIPR is one of the few stocks that trade on the New York Stock Exchange (NYSE).
Because cannabis remains illegal at the federal level in the United States, most cannabis businesses are compelled to trade on the Canadian Stock Exchange (CSE). Many U.S. investors will find it difficult or impossible to purchase these shares as a result of this.
IIPR, on the other hand, is permitted to trade on the New York Stock Exchange (NYSE) despite the fact that it does not sell cannabis as a commercial real estate business.
This is a crucial difference and advantage for IIPR. One of the main reasons for the stock’s popularity is because it trades on the New York Stock Exchange, which allows millions of investors and strong fund managers to purchase shares.
#2 – IIPR is a Real Estate Investment Trust (REIT) (REIT)
IIPR has a one-of-a-kind corporate structure. This business is set up as a REIT (Real Estate Investment Trust) (REIT). REITs are obliged to pay a dividend of 90% of their net income. As a result, IIPR has become a highly reliable dividend investment, and one of the few dividend stocks in the cannabis industry.
The quarterly dividend of IIPR has been increased by 7% to $1.50 per share. IIPR now has a dividend yield of 2.45 percent, which is close to a 100% premium to the S&P 500’s 1.3 percent dividend yield.
IIPR’s stock has risen in value as a result of its NYSE listing and generous dividend. However, as IIPR capitalizes on the high-growing cannabis sector in the United States, shares are benefitting from strong revenue growth. The financial figures for the second quarter, which ended in mid-August, revealed massive increase over the previous year. The following are some of the highlights from the news release.
Financial Results for the Second Quarter
- In the second quarter, the company generated total sales of $48.9 million, up 101 percent over the previous year’s second quarter.
- For the quarter, the company earned approximately $29.0 million in net income attributable to common stockholders, or $1.17 per diluted share, and adjusted funds from operations (AFFO) of approximately $43.0 million, or $1.64 per diluted share (Note: AFFO per diluted share for the period includes the dilutive impact of the assumed full exchange of IIP’s $143.75 million in exchangeable senior notes (the Excha)).
- On July 15, 2021, the company paid a quarterly dividend of $1.40 per share to common shareholders of record on June 30, 2021, reflecting a 32 percent increase over the dividend paid in the second quarter of 2020.
- A national rating agency assigned an investment-grade rating to the company, and it closed on a $300.0 million private offering of 5.50 percent unsecured senior notes due in May 2026. (the Unsecured Senior Notes).
IIPR’s income should continue to rise in the future. The business is continuing to spend millions in expanding its cannabis growing portfolio.
Here are a handful of the agreements IIPR announced in the previous quarter.
Activity in the Investment Market
- From April 1, 2021 until now, completed five purchases for properties in Illinois, Massachusetts, Michigan, and Pennsylvania; and signed three lease modifications for properties in Florida and Pennsylvania to offer extra tenant improvements.
- Sozo Companies, Inc. and Temescal Wellness of Massachusetts, LLC were added as new tenants, while 4Front Ventures Corp., Green Peak Industries LLC (Skymint), Harvest Health & Recreation Inc., Jushi Holdings Inc., and Parallel expanded their existing connections.
IIPR stock has increased by 84% in the last year and by 33% in 2021.
The stock of IIPR has been gaining a lot of ground. The stock has increased by 84 percent in the past year and by 33 percent in 2021.
Innovative Industrial Properties 12-Month Chart (NYSE: IIPR)
Despite the large improvements, I believe there is still room for further growth.
The relative strength indicator (RSI) at the bottom of the chart indicates that IIPR is not yet overbought. In the next weeks, I anticipate IIPR to break out and reach a new 52-week high.
Author Bio & Cannabis Stock Trading
Michael Vodicka is a stock analyst with over 20 years of trading and investment expertise. His work has been published in some of the industry’s most prestigious journals. Since 2013, he has been investing and guiding investors in the cannabis industry.
Members of Cannabis Stock Trades benefit from Mr. Vodicka’s knowledge and advice.
Join Cannabis Stock Trades for unique research, trade alerts, and a model portfolio from Mr. Vodicka.
The top marijuanas penny stocks 2021 robinhood is a cannabis REIT that has seen its stock price increase 33% in the last year. It is also eyeing new highs in the next few years.
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