IIPR stock is leading the cannabis sector after Innovative Industrial Properties Inc (NYSE:IIPR) reported better than expected third-quarter results.
The cannabis industry might have had a rough time in 2019 so far, but that is not the case with Innovative Industrial Properties. The company owns properties, which it then leases out to cannabis cultivators, and so far it has proven to be a highly successful model. The company delivered its financial results for the latest quarter, and a strong show triggered a significant rise in the stock price.
In Q3 2019, the company managed to generate $11.2 million in net rental revenue, and adjusted earnings per share for the period stood at $0.55. The net rental revenues soared by as much as 201% year-on-year, while adjusted earnings per share grew 162%.
Another important thing that needs to be pointed out with regards to IIP’s financial result is the fact that the company managed to blow analyst estimates out of the water. Analysts had projected earnings per share of $0.47 per share and net revenues of $10.7 million for the quarter.
IIPR stock has generated as much as 70% for its investors this year so far, and after the financial results, the stock surged by 9.70% to $79.64 in early trading Thursday.
The most important reason behind the rapid growth that has been enjoyed by IIP over the course of 2019 is primarily due to the pace at which it has acquired properties and then leased them out. Routine rent increases on leased properties also contributed handsomely to Innovative Industrial's bottom line in the quarter.
Another major reason behind the excellent performance of IIPR stock this year could be the handsome dividends it pays to its shareholders. Back in October, the company had announced that that it was going to pay dividends of $0.78 per share for the quarter. That reflects a year-on-year rise of as much as 123%.
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