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Innovative Industrial Properties’ Recent Developments

Earnings trends

In the first nine months of 2018, Innovative Industrial Properties (IIPR) reported net income of $4.3 million compared to a net loss of $679,000 in the same period the prior year. In the third quarter, IIPR reported net income of $1.5 million compared to $334,000 in the third quarter of 2017.

IIPR income

Wall Street analysts estimate that in the fourth quarter of 2018, Innovative Industrial Properties will report net income of $2.3 million. Analysts estimate that the company’s net income in fiscal 2018 will be around $5.6 million. Analysts also predict that IIPR’s net income in fiscal 2019 will be around $19.07 million.

Innovative Industrial Properties’ net diluted EPS over the first nine months of 2018 amounted to $0.50 compared to diluted net EPS of -$0.21 in the same period the prior year. Analysts estimate that the company will report EPS of $0.26 and $0.76 in the fourth quarter and full-year 2018, respectively. Also, analysts predict that the company’s EPS in fiscal 2019 will be around $1.97. The Invesco Zacks Micro Cap ETF (PZI) invests ~0.27% of its total portfolio holdings in Innovative Industrial Properties.

Recent developments

In December 2018, Innovative Industrial Properties acquired a property with about 75,000 square feet of industrial space in Barry, Illinois. The company purchased the property for $19.0 million excluding transaction costs.

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After the purchase of the property, Innovative Industrial Properties entered a long-term triple-net lease agreement with a subsidiary of Ascend Wellness Holdings. The wholly owned subsidiary of Ascend Wellness Holdings will utilize the property for the cultivation of cannabis for medical use and will also have a processing facility.

Ascend Wellness Holdings already raised around $40.0 million in capital from different investors and aims to initiate operations in Illinois, Massachusetts, and Michigan.

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