IIPR - How Big Are Innovative Industrial's Customer Problems Today?
2023-09-01 08:08:00 ET
The net lease business model used by Innovative Industrial Properties (NYSE: IIPR) is hardly unique. What sets it apart from other net lease real estate investment trusts (REITs) is its focus on the marijuana industry. That was a selling point for the stock at one point, but it is now a reason for investors to be worried. But how worried is the real question.
There are a lot of net lease REITs out there, and they all use the same basic approach. A company with a property sells it to a REIT and then instantly leases it back. The lease includes the requirement that the tenant pay for most property-level expenses. Why would a company do this?
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How Big Are Innovative Industrial's Customer Problems Today?