Cannabis REIT IIPR Declares Initial Dividend of $0.15 per Share


Innovative Industrial Properties (NYSE: IIPR), which also announced the closing of a cultivation and processing facility in Maryland, has declared its initial dividend. The company will pay $0.15 per share on July 14th to holders of record as of June 30th. The annualized dividend of $0.60 per share represents a yield of approximately 3.5% per share.

IIPR went public in November at $20 per share, raising $61.1mm in net proceeds and becoming the first publicly-traded REIT focused on the cannabis industry. The company has now deployed approximately 75% of the cash raised, with about 50% going into a deal to buy and lease back PharmaCann’s New York facility and about 25% into Holistic Industries’ Maryland facility, a deal that included an $8mm payment to the seller and reimbursements to the seller upon completion of milestones and improvements of another $7mm.

With approximately 3.5mm shares outstanding, the dividend represents a quarterly outflow of $529K. In Q1, the company reported a net loss of $591K but cash provided by operating activities of $624K, a figure that adds back depreciation and amortization of stock-based compensation awards as well as other operational items. Funds from Operations (FFO) in Q1, which adjusts net income by adding back real estate depreciation, was -$430K. The company also reported an adjusted funds from operations (AFFO) of $340K or $.10 per share in Q1. AFFO adds back stock-based compensation to the FFO.

Since becoming a public company, IIPR has traded below the IPO price of $20 per share, with most of the activity between $17 and $19. As of Q1, the company reported a book value per share of $17.19, just below the closing price on May 26th of $17.24..

IIPR Chart 052617

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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