Hello dear community,

In the following, I would like to present my assessment of the share to those who are interested in Innovative Industrial Properties. I would like to emphasize that this is only my opinion and does not represent any kind of investment recommendation.

1. field of activity

First of all: What does Innovative Industrial Properties actually do? Innovative Industrial Properties (IIP) leases or provides land for commercial cannabis cultivation.

2. opportunities and risks

a. Risks

What opportunities and risks exist? First, I would like to discuss the risks.

- There is the risk of the legalization of cannabis. This could lead to countless (private) people cultivating cannabis and the need for commercial cultivation decreasing, which would also decrease the demand for IIP's properties.

- Further, it should be noted that at IIP, approximately 50% of rent comes from five tenants. In this respect, one is exposed to a certain risk here.

- However, the political risk should not be underestimated either. What if there is a rethink and cannabis cultivation is simply banned completely?

- Even if the fundamental and technical data are not in the foreground here, the high valuation of IIP should be noted.

b. Opportunities

In the following, these risks are countered by the opportunities offered by the share.

- The cannabis market in the USA is expected to double by 2026, i.e. enormous growth, from which IIP would certainly also benefit.

- Attractive for dividend hunters: current dividend yield of approx. 5%, which has been increased for 4 years (from $0.55 per share to $7.00 per share today).

- One is not directly invested in cannabis products or has to commit to a player in this sector. Rather, one benefits from the general growth of this market.

3. conclusion and evaluation of opportunities & risks

Finally, I would like to evaluate the presented opportunities & risks and draw a conclusion.

If one considers a far-reaching legalization of cannabis cultivation to be probable, which I myself rather do not consider to be obvious, it is nevertheless questionable whether this would greatly affect IIP's business model. After all, there will still be commercial operators. Medical facilities will not be sourcing their "resources" from private individuals even then. The high valuation can be justified by the high growth. I consider a ban on cannabis or similar restrictions to be out of the question due to the increasingly liberal development in recent years. However, the dependence on some tenants represents a risk that should not be underestimated. This should be taken into account.

Finally, it should be noted that no one can say how the political wind will blow in the future with regard to this sector. This is, of course, strongly dependent on the respective government.

In my opinion, however, the IIP share offers the opportunity to participate in an exciting growth market with a manageable risk. In addition, an attractive dividend yield is paid.

For the purpose of transparency, I would like to point out that I am invested myself.

What is your opinion?