Innovative Industrial Properties
Inc (NYSE: IIPR), the only NYSE-listed
real estate company that focuses on the regulated U.S. cannabis
industry, is "uniquely positioned" for future growth in the sector,
according to BTIG.
maintained a Buy rating on Innovative Industrial Properties
with a price target lifted from $101 to $148.
Innovative Industrial signed a new lease
agreement with cannabis company Green Peak that included $18
million of growth capital, Catherwood said in a Thursday note. (See
his track record here.)
The REIT invested $13 million in an initial
56,000-square-foot facility in 2018, and that agreement included a
provision for Innovative Industrial to fund additional
facilities if certain EBITDA milestones are reached, the analyst
This implies the outlook for Green Peak is better
than when the initial deal was inked, he said.
In essence, Innovative Industrial's agreement
with Green Peak boils down to the following, Catherwood
"When you expand over the next seven years, we
have the right to be your landlord, if we so choose."
If a similar arrangement was made in another
sector, such as high-growth life sciences, investors would
view the deal as "incredibly lucrative," the analyst
Shares of Innovative Industrial Properties hit a
new 52-week high of $137.78 Thursday morning and were up 7.62% at
$134.71 at the close Thursday.
Cannabis Stock Gainers And Losers From June
Cannabis REIT Innovative Industrial
Properties Raises Dividend By 33%
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