2 stc
Innovative IndlUS45781V1017IIPRIIPR
Me again! Last week, there was also a subsequent purchase by limit order.
➡️ 10 shares of Innovative Industrial Properties (IIPR) at 98.99 USD per share have become it. These are added to 20 existing shares, so I currently hold a total of 30 shares.
➡️ After $IIPR (-0.53%) went under the wheels due to a stumbling tenant (Kings Garden), the share price was quite interesting.
➡️ I waited for the earnings and the earnings call to get some feedback from the management. The default of Kings Garden will probably continue to weigh on the company until the end of the year, but I still think the market reaction is exaggerated.
➡️ Another issue is "SAFE Banking." Previously, when banks provided financial services to cannabis companies, they were punished by regulators. This is now set to change and many are worried that this will have a negative impact on REITs like IIPR.
➡️ In my opinion, SAFE Banking would predominantly impact the profitability of operators and ultimately make rents safer for IIPR. So wait and see!
Update on my last assessment of IIP. First of all, I would like to point out that this is only my opinion and does not represent any investment recommendation.
As of now, today's price slide is about 20%. Why did it come to this? As described in my initial post, the tenant structure at IIP is a risk that should not be underestimated. Yesterday it was reported that a tenant cannot pay the rent (incl. other fees) iHv of 2.2 million for the month of July. Based on IIP's 2021 revenue (approx. 170 million), this amounts to 13.2 million for the rest of the year, i.e. a share of just under 8%, which IIP could lose this year(!) (assuming payment defaults for the rest of the year are taken into account).
Since I assume that even if this income is lost, new tenants will be found by the turn of the year, I find the share price reaction, measured against this, excessive. However, it should also be noted here that if one tenant runs into payment difficulties, it is of course also possible that other tenants will run into payment difficulties. The market currently seems to be pricing this into the share price. For me personally, the opportunities at IIP still outweigh the fact that the tenant structure is risky, is in this respect nothing new, I refer to my initial post.
Further, I apologize for the somewhat superficial information, but since many are certainly wondering what is going on with the stock, I have briefly compiled this post, while I try to supplement this continuously.
Not an investment recommendation.
What happened here??
Financials
Market Cap
$3.84B5Y beta
1.37EPS (TTM)
$5.69Free Float
27.91MP/E ratio (TTM)
23.85Revenue (TTM)
$312.23MEBITDA (TTM)
$246.44MFree Cashflow (TTM)
-$29.99MPricing
Analyst Ratings
The price target is $125.80 and the stock is covered by 7 analysts.
Buy
2
Hold
5
Sell
0
Information
Innovative Industrial Properties, Inc. is an internally managed real estate investment trust (REIT). The Company is focused on the acquisition, ownership and management of specialized industrial properties leased to state-licensed operators for their regulated cannabis facilities. The Company is engaged in the business of providing real estate for the regulated cannabis industry. The Company acquires its properties through sale-leaseback transactions and third-party purchases. The Company owns approximately 108 properties comprising 9.0 million square feet (including 722,000 rentable square feet under development/redevelopment) in 19 states, including Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia, and Washington. Its subsidiaries include IIP Operating Partnership, LP, Innovative Industrial Properties, LP, IIPR, Inc. and IIP-GP 2 LLC.