$2.6B In Assets, 11% Debt Ratio And Dividend Boost: IIPR Cannabis Real Estate Stock Reports Q2 Results

Innovative Industrial Properties, Inc. IIPR, a real estate company focused on the regulated U.S. cannabis industry, reported its financial results for the second quarter ended June 30, 2024.

David Smith, chief financial officer, commented in a press release Monday afternoon, "IIP paid a quarterly dividend of $1.90 per common share on July 15, 2024 (...) representing a 4.4% increase over IIP’s first quarter 2024 dividend of $1.82 per share of common stock (...) equivalent to an annualized dividend of $7.60 per common share and an AFFO payout ratio of 83%."

Net Loss And Revenue

The company reported total revenues of $79.8 million, marking a 4% increase from $76.5 million in the same period in 2023.

The rise in revenue was driven primarily by a $3.9 million disposition-contingent lease termination fee and a $3.6 million increase in contractual rent and property management fees.

Gross Profits And Gross Margin

For the three months ended June 30, 2024, Innovative Industrial Properties reported a net income attributable to common stockholders of $41.7 million, or $1.44 per diluted share, consistent with the prior year's results.

Adjusted EBITDA

The company recorded adjusted funds from operations (AFFO) of $65.5 million, equating to $2.29 per share, an increase from $2.26 per share in the same period last year. Normalized funds from operations (Normalized FFO) stood at $58.8 million, or $2.06 per share, slightly down from $2.07 per share in the previous year.

Dividend And Financing Activity

The second quarter dividend was increased by 4.4% to $1.90 per common share, translating to an annualized dividend of $7.60 per share. The dividend payout ratio was 83% of AFFO. Additionally, the company upsized its revolving credit facility to $50 million, which still needs to be drawn.

Portfolio Updates

In addition, IIPR reported portfolio advancements, including acquiring a 16-acre property in Florida and new leases in California and Michigan. The company also executed lease amendments to fund improvements totaling $6.1 million at properties in Ohio and Illinois.

Balance Sheet Highlights

As of June 30, 2024, the company's total liquidity was $210.9 million, with $2.6 billion in total gross assets and an 11% debt-to-total-gross-assets ratio.

The company reported debt service coverage ratio was 17.0x, with no debt maturities until May 2026.

Read Next: SNDL Q2 Revenue Drops 1.6% YoY Due To Liquor Segment, Cannabis Operations Still Strong, Gross Margin Hits All-Time Record

Price Action: IIPR's stocks are trading at $118.00, up by $4.84 or 4.28% after market close, Monday evening. 

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