Innovative Industrial Properties, Inc. (IIPR) Bundle
A Brief History of Innovative Industrial Properties, Inc. (IIPR)
Company Overview
Innovative Industrial Properties, Inc. (IIPR) is a real estate investment trust (REIT) specializing in the acquisition, ownership, and management of specialized industrial properties leased to state-licensed operators of medical-use cannabis facilities.
Financial Performance
| Fiscal Year | Total Revenue | Net Income | Dividend Per Share |
|---|---|---|---|
| 2023 | $251.3 million | $126.7 million | $6.60 |
| 2022 | $285.1 million | $158.2 million | $6.80 |
Property Portfolio
As of Q4 2023, IIPR owned 108 properties across 19 states, totaling approximately 8.9 million rentable square feet.
Key Investment Characteristics
- Market Capitalization: $1.2 billion (as of January 2024)
- Average Lease Term: 15 years
- Weighted Average Lease Yield: 12.5%
Stock Performance
IIPR stock price ranged between $20-$35 per share in 2023, with significant volatility in the cannabis real estate market.
Operational Highlights
IIPR has faced challenges with tenant defaults and lease renegotiations, particularly in challenging cannabis market conditions.
| Year | Number of Properties | Total Invested Capital |
|---|---|---|
| 2020 | 62 | $777.4 million |
| 2023 | 108 | $1.4 billion |
Regulatory Environment
IIPR continues to navigate complex state-level cannabis regulations and federal banking restrictions.
Who Owns Innovative Industrial Properties, Inc. (IIPR)
Major Institutional Shareholders
| Shareholder | Shares Owned | Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 4,461,000 | 14.52% |
| BlackRock Inc. | 3,912,000 | 12.74% |
| Dimensional Fund Advisors LP | 2,123,000 | 6.91% |
| Cohen & Steers, Inc. | 1,856,000 | 6.05% |
Top Insider Ownership
- Alan D. Gold (Executive Chairman): 1,108,127 shares
- Paul Smithers (President & CEO): 206,416 shares
- Catherine Hastings (CFO): 24,802 shares
Ownership Distribution
Public Float: 83.5% of total shares
Institutional Ownership Breakdown
Total Institutional Ownership: 87.3% of outstanding shares
Ownership Concentration
Top 10 institutional shareholders control approximately 62.4% of total shares
Innovative Industrial Properties, Inc. (IIPR) Mission Statement
Company Overview
Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) specializing in the acquisition, ownership, and management of specialized industrial properties leased to state-licensed cannabis operators.
Financial Performance
| Metric | 2023 Value |
|---|---|
| Total Revenue | $252.4 million |
| Net Income | $103.5 million |
| Portfolio Properties | 84 properties |
| Total Rentable Square Feet | 8.0 million |
Strategic Focus Areas
- Cannabis real estate investment
- Long-term lease agreements
- Targeted investments in state-licensed cannabis operators
Property Investment Strategy
Geographic Diversification: Properties across 19 states as of 2024
Lease Characteristics
| Lease Metric | Average Value |
|---|---|
| Weighted Average Lease Term | 14.3 years |
| Annual Rental Rate Escalation | 3.5% |
Capital Structure
- Publicly traded on NYSE
- Market Capitalization: $1.2 billion
- Dividend Yield: 6.8%
How Innovative Industrial Properties, Inc. (IIPR) Works
Business Model
Innovative Industrial Properties, Inc. (IIPR) is a real estate investment trust (REIT) specializing in medical cannabis properties. As of Q4 2023, IIPR owned 108 properties across 19 states, totaling approximately 8.1 million rentable square feet.
| Metric | Value |
|---|---|
| Total Properties | 108 |
| States Operated | 19 |
| Total Rentable Square Feet | 8.1 million |
| Annualized Rental Revenue | $252.3 million |
Property Acquisition Strategy
IIPR purchases properties from cannabis operators and leases them back, providing capital for expansion.
- Average lease term: 15 years
- Typical lease includes 3-4% annual rent escalations
- Weighted average lease yield: 13.0%
Financial Performance
| Financial Metric | 2023 Value |
|---|---|
| Total Revenue | $252.3 million |
| Net Income | $86.4 million |
| Dividend Yield | 7.2% |
Investment Portfolio Composition
IIPR focuses on cultivation, processing, and dispensary properties across medical and recreational cannabis markets.
- Cultivation Properties: 52%
- Processing Facilities: 27%
- Dispensary Properties: 21%
Geographic Distribution
| Top States | Percentage of Portfolio |
|---|---|
| California | 16.3% |
| Massachusetts | 12.7% |
| Illinois | 10.5% |
Tenant Diversity
IIPR maintains a diversified tenant base to mitigate risk.
- Number of Tenants: 24
- Largest Tenant Concentration: 12.3%
- Average Tenant Credit Rating: B+
How Innovative Industrial Properties, Inc. (IIPR) Makes Money
Real Estate Investment Trust (REIT) Business Model
Innovative Industrial Properties, Inc. generates revenue through real estate leasing to licensed cannabis operators. As of Q4 2023, the company owned 108 properties across 19 states, totaling approximately 8.0 million rentable square feet.
| Financial Metric | 2023 Value |
|---|---|
| Total Revenue | $243.7 million |
| Net Income | $107.6 million |
| Average Lease Term | 15.3 years |
Lease Structure and Rental Income
IIPR generates income through long-term triple-net lease agreements with cannabis cultivation and processing tenants.
- Average annual rental rate: $17.50 per square foot
- Rental escalations: 3-4% annually
- Lease coverage ratio: 1.5x to 2.0x
Property Acquisition Strategy
As of December 31, 2023, IIPR invested $1.8 billion in 108 properties across the cannabis industry.
| State | Number of Properties |
|---|---|
| California | 20 |
| Massachusetts | 14 |
| Arizona | 12 |
Dividend Income
IIPR pays quarterly dividends to shareholders. As of January 2024, the quarterly dividend was $1.52 per share, representing a yield of approximately 7.5%.
Cannabis Sector Specialized Financing
IIPR provides sale-leaseback financing for cannabis operators, with typical transaction sizes ranging from $10 million to $50 million.
- Capitalization rate: 12-15%
- Typical transaction closing time: 45-60 days
- Minimum property value for consideration: $5 million
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