Innovative Industrial Properties (NYSE: IIPR) has filed an S-11 preliminary prospectus to issue a Series A Cumulative Preferred Stock. The Real Estate Investment Trust (REIT), which sold shares at $20 in an IPO last November, didn’t disclose too much information. Ladenburg Thalmann will be the Book Running Manager, with National Securities Corporation serving as Co-Manager. The security is expected to be listed on the NYSE with the symbol “IIPRPrA.”
This news is positive for the company, which has seen its shares trade very close to its net asset value of approximately $17.13 per share (as of 6/30), as if it is successful in raising the capital it will be able to do so without diluting equity ownership. Alternatively, IIPR could sell shares, possibly below the book value, which would not have been favorable to existing shareholders. IIPR has deployed the majority of its capital and has implemented a dividend, but the company needs to raise capital to further develop its portfolio, which currently consists of two projects, including the PharmaCann New York asset and the Holistic Industries Maryland asset.