News about IIPR

The author calls the Innovative Industrial Properties Series A Cumulative Redeemable Preferred Stock (IIPR-PA) the best cannabis stock for dividend investors. IIPR is a REIT that owns 108 properties in 19 states and leases them to licensed U.S. cannabis operators under long-term triple-net leases. The common stock's 14.5% forward yield is seen as unsustainable given a payout ratio of about 172% and insufficient free cash flow, while the preferred yields about 9.3% and its cumulative feature requires missed preferred dividends to be paid before common dividends resume. Key risks include tenants failing to pay rent and heavy reliance on a small group of its 37 tenants for half of rental revenue. The author sees it as suited to aggressive income investors rather than conservative ones.