IIPR - Innovative Industrial Is Trouncing Prologis on This Key Industry Metric
2023-07-12 09:27:46 ET
Innovative Industrial Properties (NYSE: IIPR) is unique among industrial real estate investment trusts (REITs) because it focuses on marijuana-related assets. There are a lot of differences when you compare it to a more traditional industrial REIT like Prologis (NYSE: PLD) .
One key metric that is radically different is the average remaining lease term. Here's how different it is, and why it matters.
The warehouses Prologis owns and leases out are vital infrastructures that companies need to facilitate their business. While those same facts are true of the marijuana grow houses that Innovative Industrial owns and leases out, the sale/leaseback deals it inks are really about providing capital to companies that have limited access to it. That's largely because banks, fearful of the fact that marijuana is illegal at the federal level, aren't eager to provide cash to pot companies. This materially changes the dynamic when it comes to leases.
For further details see:
Innovative Industrial Is Trouncing Prologis on This Key Industry Metric