Innovative Industrial Properties - IIPR

Updated: Jun 23, 2020

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Innovative Industrial Properties, Inc. is a REIT focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. I've been following the company for a while and originally wanted to get into the name around $40 in 2018. I was kicking myself when it was trading above $100 in 2019 thinking I missed out but had a feeling it was a bit overvalued (along with a bunch of cannabis names in general). The stock has come in quite a bit due to the coronavirus but I'm thinking this is as good a chance as any to start a position around $70. If I owned it from $40 I'd be adding more here but because this is a first buy for me it's going to be a lite bite.

The concern here is rent collection from the cannabis companies due to the coronavirus shutdowns. Every indication IIPR has given us so far seems to indicate things are going to be okay but we really won't know for sure until it plays out the next few months. This is another reason I'm starting with a lite position before diving into the pool.

You have to love this space and I think the REIT carries much less risk than the cannabis companies themselves which is why I rather be invested in IIPR. Another name in this space I'm looking at is Power REIT (PW). They have recently entered the cannabis space and I love their business already. If I can build a position in that under $12 I'd be a happy buyer.