BTIG: Innovative Industrial Properties 'Uniquely Positioned' For Cannabis Growth

Start generating passive income through real estate.

Own a piece of your favorite cities through diversified real estate investments in the country's top markets

*Terms and conditions apply. Visit Nada's website for more details.

Innovative Industrial Properties Inc 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.

The Analyst

Thomas Catherwood maintained a Buy rating on Innovative Industrial Properties with a price target lifted from $101 to $148.

The Thesis

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 said.

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 said. 

"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 said. 

Price Action

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. 

Related Links:

Cannabis Stock Gainers And Losers From June 19

Cannabis REIT Innovative Industrial Properties Raises Dividend By 33%

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorCannabisREITPrice TargetReiterationMarketsAnalyst RatingsReal EstatebtigGreen PeakmarijuanapotThomas Catherwoodweed
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.