Cannabis REIT IIP Reports Q3 Revenue Growth 57% YoY, 28% Higher Dividends

Author: Nina Zdinjak | November 04, 2021 10:01am

Cannabis-focused REIT Innovative Industrial Properties, Inc. (NYSE:IIPR) released its third-quarter earnings on Wednesday with total revenue of around $53.9 million, up by 57% year-over-year from $34.3 million. The increase was driven primarily by the acquisition and leasing of new properties, in addition to contractual rental escalations and amendments at certain properties.

Third Quarter Financial Highlights

Rental revenues reached $1.4 million, compared to $2.8 million in the same quarter of 2020;
Net income attributable to common stockholders amounted to $29.8 million, or $1.20 per diluted share, compared to net income of $18.88 million, or $0.87 per diluted share in the same period a year ago;
Diluted funds from operations and per diluted share were $42.5 million and $1.62 million, respectively;
At the end of the reporting period, on September 30, IIP held around $127.3 million in cash and equivalents and approximately $554.4 million in short-term investments, totaling approximately $681.7 million.

Subsequent Activities And Business Updates

On October 15, IIP paid a quarterly dividend of $1.50 per share to shareholders of record as of September 20, representing an approximately 28% increase over the third quarter 2020’s dividend;
From July 1 through November, the company made five acquisitions for properties located in California, Illinois, Maryland, Missouri and New York, and executed four lease amendments to provide additional improvement allowances at properties located in Illinois, Maryland, Massachusetts and Michigan;
Through these transactions, the company established new tenant relationships with Calyx Peak, Inc. and Gold Flora, LLC, while expanding existing relationships with 4Front Ventures (OTCQX:FFNTF), Ascend Wellness Holdings (OTCQX:AAWH), Goodness Growth Holdings
(OTCQX:GDNSF), Green Peak Industries LLC (Skymint), Harvest Health & Recreation Inc. (OTC:HRVSF) (a subsidiary of Trulieve Cannabis (OTCQX: TCNNF), Holistic Industries, Inc. (Holistic) and Temescal Wellness of Massachusetts, LLC.