IIPR - Innovative Industrial Properties: 7.2% Dividend With Visible Near-Term Catalyst
2024-04-02 12:43:58 ET
Summary
- Innovative Industrial Properties remains one of the most undervalued REITs.
- Innovative Industrial Properties has outperformed cannabis operators due to its landlord status and strong cash flow generation.
- The possibility of cannabis rescheduling on the Federal level could improve tenant credit quality and lead to a higher stock valuation.
- The Innovative Industrial Properties 7.2% dividend yield is too high given the minimal leverage compared to peers - reiterate buy.
Innovative Industrial Properties, Inc. ( IIPR ) remains one of the most undervalued names in the real estate investment trust, or REIT, sector. The cannabis REIT has faced some tenant difficulties amidst a cannabis bear market, but the current stock price continues to more than price in these risks. The company maintains an incredibly low leverage ratio as compared to traditional net lease peers, and management is taking proactive steps to address the tenant issues....
Innovative Industrial Properties: 7.2% Dividend With Visible Near-Term Catalyst