IIPR stock is moving up in an early session on Thursday after Innovative Industrial Properties Inc (NYSE:IIPR) made an amendment in its lease and development agreement for its Holliston, MA, property that is linked to PharmaCann.
Real estate investment trust Innovative Industrial Properties is involved in leasing out its properties for cannabis cultivation, and today it made a significant announcement with regards to one of the leases.
The company announced that it had made an amendment to the lease that it had entered into with a PharmaCann LLC subsidiary. The property is located in Holliston, Massachusetts, and in addition to the amendments, IIP is also going to make $8 million more available to the subsidiary in question.
After the amendment, the total investment made by IIP into the property now stands at $26.5 million. The property had been acquired by IIP quite a long time ago, but it was only in 2018 that it entered into a long-term lease agreement with PharmaCann. The fresh investment is aimed at significantly increasing the production capabilities of the property. The CEO of IIP, Paul Smithers, said as much: “PharmaCann is one of the leading multi-state operators, and we are very happy to continue to support them as their go-to real estate partner for their mission-critical facilities.”
At the time of writing, IIPR stock is up 2.50% at $93.49.
About Innovative Industrial Properties
IIP has grown at a highly impressive pace over the recent past, and at this point in time, the company owns as many as 30 properties spread over a total of 12 states. The company went public in 2017, and since then it has enjoyed exceptional growth. IIPR invests the cash it earns from existing properties into new ones, and it has managed to expand impressively using that model. Considering the fact that the cannabis industry in the United States is expanding at a good rate, there could be a lot of growth in store for Innovative Industrial Properties.
However, the most important features of the company are that it is profitable, does not have a lot of debt, and its dividend yield currently stands at 2.7%.
IIPR stock has skyrocketed over 110% since the beginning of 2019.
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