Lucrative business model
Innovative Industrial Properties (IIPR) is a real estate investment trust ("REIT") which is focused on acquiring and leasing specialized properties leased to state-legal cannabis companies.
IIPR's business model is very lucrative due to current legal conditions. The company is able to earn a very strong spread between its capitalization rate and its cost of capital, resulting in rapidly rising per-share earnings and funds from operation.
IIPR primarily purchases cannabis cultivation facilities from state-legal cannabis companies and leases those businesses back to the cannabis company. In many cases, the value of