Innovative Industrial Properties (NYSE:IIPR) continues to impress investors and analysts with its growth strategies and significant returns. The shares of this cannabis real estate company hover around an all-time high of $38 at present, up almost 100% in the last twelve months.
The company is also among the few cannabis companies that are offering cash returns to investors along with share price appreciation. Innovative Industrial Properties provides a quarterly dividend of $0.25 a share, yielding around 2.56%.
Can Innovative Industrial Properties Sustain Returns?
Innovative Industrial Properties reported solid year-over-year growth in the latest quarter, thanks to its investment in growth opportunities and the increasing demand from cannabis companies. The company’s sales grew more than 114% in the first quarter since this time last year.
The company’s earnings were standing close to $0.09 per share while adjusted funds from operations were around $1.4 million. Its adjusted funds are offering a complete cover to dividend payments of only $1 million.
Innovative Industrial Properties expects to sustain the momentum in the following quarters.
Growth Strategies of the Company
The business model Innovative Industrial Properties follows is focused on the acquisition, ownership, and management of specialized industrial properties. These industrial properties are then leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.
Innovative Industrial Properties owned seven properties at the end of the first quarter. These properties are located in Maryland, Arizona, Minnesota, Pennsylvania, and New York.
The company is planning to expand its portfolio amid increasing demand from cannabis companies. The company recently executed an agreement to buy one more property for $3 million.
Moreover, Innovative Industrial Properties has executed three non-binding letters of intent for the purchase of three additional properties for $38 million. The management has also identified $100 million of properties for acquisition in the following quarter.
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