If you’re looking for a high-yielding investment that’s riding the wave of the booming cannabis industry, look no further than Innovative Industrial Properties (NYSE: IIPR). This real estate investment trust (REIT) is blazing a trail in the world of cannabis real estate, and it’s time for savvy investors like you to take notice.
As our friend Marc Lichtenfeld over at Wealthy Retirement points out, “Innovative Industrial Properties lives up to its name.” With a portfolio of 108 properties leased to 30 cannabis operators across 19 states, IIPR is positioning itself as the go-to real estate partner for the industry.
But what really caught my eye is the company’s impressive dividend yield. At 7%, it’s one of the highest-yielding REITs out there. The question is, can they keep it up? Lichtenfeld digs into the numbers and comes to a promising conclusion:
“Innovative Industrial Properties’ FFO has been rising for the past few years. It totaled $232 million in 2023 (up from $211 million the prior year), and I expect it to increase to around $250 million in 2024.”
Marc Lichtenfeld
With funds from operations (FFO) on the rise and a payout ratio that’s approaching, but not exceeding, the 100% mark, it seems that IIPR’s dividend is safe for now. As Lichtenfeld notes, “management has shown its commitment to rewarding shareholders,” with 16 dividend increases since 2017.
But don’t just take our word for it. Lichtenfeld gives Innovative Industrial Properties a coveted “A” rating for dividend safety:
So, what’s the play here? If you’re looking to add some high-yielding, cannabis-focused real estate to your portfolio, Innovative Industrial Properties is worth a closer look. But as always, do your own due diligence and keep an eye on that payout ratio.
In the meantime, let us know what you think. Is IIPR on your radar? What other high-yielding REITs are you watching? Leave a comment below, and let’s keep this conversation going.
Stay vigilant, my friends.
Market Monitor
