IIPR dividend yield – INNOVATIVE INDUSTRIAL PROPERTIES Offers Juicy Dividends but Limited Growth Prospects

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Innovative Industrial Properties ($NYSE:IIPR) (IIP) is a publicly traded real estate investment trust (REIT) that specializes in acquiring medical-use cannabis facilities. IIP is the first and only cannabis-focused REIT listed on the New York Stock Exchange and is focused on acquiring and leasing state-of-the-art cannabis and hemp properties. IIP offers juicy dividends to its investors, but its growth prospects appear limited in the near future. This is well above the average yield for REITs and makes IIP an attractive option for investors looking for attractive dividend payments. The company’s strategy is focused on the acquisition and leasing of properties to cannabis and hemp operators and other affiliated businesses.

For investors, this means that IIP is restricted to the cannabis sector; this is a much smaller market than other REITs specialize in, such as retail or office properties. This sector also faces significant regulatory risk which could affect its growth prospects in the future. The stock could potentially see some upside if it can expand its portfolio and capitalize on the growing cannabis industry, but these are uncertain times and investors should be aware of the risks before investing.

Dividends – IIPR dividend yield

As of 2021-2023, the dividend yields are 8.05%, 5.63%, and 2.67%, respectively, giving an average dividend yiled of 5.45%. This makes it an attractive option for those looking for dividend stocks. Despite its juicy dividends, its growth prospects remain limited, as the company only engages in industrial real estate property purchases and sale-leaseback transactions.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for IIPR. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for IIPR. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for IIPR. More…

Key Ratios Snapshot

Some of the financial key ratios for IIPR are shown below. More…

Share Price

INNOVATIVE INDUSTRIAL PROPERTIES (IIP) stock opened at $80.4 and closed at $80.0 on Wednesday, representing an increase of 0.8% from the previous closing price of 79.3. Despite the relatively small gain, IIP still offers juicy dividends to investors and therefore has been a popular choice among those seeking a steady income.

However, the growth prospects of IIP stock remain limited due to its business model. It specializes in purchasing and leasing industrial properties to medical-use cannabis operators but does not generate income from cannabis itself. This means that IIP’s profits are dependent on the real estate market, and it is unlikely to benefit from the growth of the cannabis industry in the near future. As a result, investors need to be mindful of the fact that while IIP offers attractive dividends, its growth prospects are limited. Live Quote…

Analysis – IIPR Stock Fair Value

GoodWhale is here to provide an analysis of INNOVATIVE INDUSTRIAL PROPERTIES’s financials. After careful analysis, GoodWhale has determined that the fair value of INNOVATIVE INDUSTRIAL PROPERTIES share is around $130.0, calculated by our proprietary Valuation Line. This means that INNOVATIVE INDUSTRIAL PROPERTIES stock is currently trading at $80.0, a 38.5% discount to it’s fair value. Therefore, investors may want to consider taking a closer look at this stock from an investment perspective. More…

Peers

The company’s competitors include Realty Income Corp, Prologis Inc, and Crown Castle International Corp.

– Realty Income Corp ($NYSE:O)

Realty Income Corporation is a real estate investment trust that focuses on the ownership of net-leased commercial properties in the United States. As of December 31, 2020, the Company owned 6,573 properties across 49 states and Puerto Rico. The Company’s leased properties are primarily leased to retail (70.3%), industrial (12.8%), healthcare (9.4%), and other commercial tenants (7.5%).

– Prologis Inc ($NYSE:PLD)

Prologis Inc is a leading global provider of logistics real estate with a focus on the industrial sector. As of 2022, the company has a market cap of 100.2 billion. Prologis owns and operates approximately 585 million square feet of industrial space in 19 countries. The company’s properties are located in key markets around the world, including North America, Europe, Asia and Latin America. Prologis’ focus on the industrial sector provides its customers with access to a wide range of logistics solutions, including warehouses, distribution centers, last-mile facilities and transshipment hubs.

– Crown Castle International Corp ($NYSE:CCI)

Crown Castle International Corp is a holding company that provides wireless infrastructure services in the United States. Its primary business is owning, operating, and leasing wireless communications towers and small cell nodes. As of 2021, the company had approximately 40,000 wireless communications towers and approximately 60,000 small cell nodes across the United States. The company was founded in 1994 and is headquartered in Canonsburg, Pennsylvania.

Summary

The company is focused on the acquisition and ownership of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities. Despite its strong dividend yield, however, the growth outlook for the company is not as promising. The medical cannabis industry is still relatively small and uncertain, and INN’s future growth prospects are largely dependent on the success of its tenants. Moreover, the company does not have any plans for further expansion outside the U.S. Consequently, investors should focus on the current dividend yield while evaluating whether to invest in this stock, rather than expecting strong capital gains in the future.