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Innovative Industrial (IIPR) Cheers Investors With Dividend Hike
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Innovative Industrial Properties (IIPR - Free Report) announced a nearly 6.5% hike in its first-quarter dividend to $1.32 per share from $1.24 paid in the prior quarter. This also represents a 32% increase year on year.
Solid dividend payouts are the biggest enticement for REIT shareholders, and Innovative Industrial, which is focused on cannabis-centered real estate portfolio, is also committed to the same. In fact, the latest hike reflects the tenth dividend increase since this cannabis-focused real estate company completed its initial public offering in December 2016.
Based on the hiked rate, the annualized dividend comes to $5.28 per share. The new dividend will be paid on Apr 15, 2021, to shareholders of record on Mar 31, 2021. At this new rate, the annualized yield comes at 2.7%, based on the stock’s closing price of $194.43 on Mar 15.
Notably, the legalization of marijuana for medical use across several states in the United States, as well as the permission of adult consumption in some, has created opportunities for the cannabis industry. Therefore, with more states in the nation giving cannabis the green light, Innovative Industrial Properties has incentives to partner with experienced medical-use cannabis operators and serve as a vital source of capital by acquiring and leasing back their real-estate assets. Its strategy is to acquire the existing, redeveloped and under-development industrial buildings, including attached enclosed greenhouse facilities.
Recently, the company announced the completion of its acquisition of a Texas property for $3.4 million. Located in San Marcos, the property expands the company’s footprint to 68 properties with more than 5.9 million square feet across several states. It also entered into a long-term lease with Surterra San Marcos LLC, a subsidiary of Surterra Texas, which itself is a subsidiary of Parallel.
Notably, Surterra San Marcos, on completing the construction of three buildings — one retail and two industrial — comprising a total of roughly 63,000 square feet on the property, plans to operate the property as a licensed cannabis cultivation, processing and retail facility. Considering the full reimbursement for the construction, Innovative Industrial Properties’ total investment in it will be $27.4 million (excluding transaction costs).
However, the company’s fourth-quarter 2020 adjusted funds from operations (“FFO”) per share missed expectations with lower-than-expected growth in revenues. The company reported adjusted FFO per share of $1.29, which trailed the Zacks Consensus Estimate of $1.51.
Currently, Innovative Industrial Properties carries a Zacks Rank #5 (Strong Sell). Over the past three months, shares of the company have outperformed the industry. The stock has gained 6.7% compared with the industry’s increase of 4.9%.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 2.2% to $5.97 in the past week. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% at $2.10 in a month’s time.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Innovative Industrial (IIPR) Cheers Investors With Dividend Hike
Innovative Industrial Properties (IIPR - Free Report) announced a nearly 6.5% hike in its first-quarter dividend to $1.32 per share from $1.24 paid in the prior quarter. This also represents a 32% increase year on year.
Solid dividend payouts are the biggest enticement for REIT shareholders, and Innovative Industrial, which is focused on cannabis-centered real estate portfolio, is also committed to the same. In fact, the latest hike reflects the tenth dividend increase since this cannabis-focused real estate company completed its initial public offering in December 2016.
Based on the hiked rate, the annualized dividend comes to $5.28 per share. The new dividend will be paid on Apr 15, 2021, to shareholders of record on Mar 31, 2021. At this new rate, the annualized yield comes at 2.7%, based on the stock’s closing price of $194.43 on Mar 15.
Notably, the legalization of marijuana for medical use across several states in the United States, as well as the permission of adult consumption in some, has created opportunities for the cannabis industry. Therefore, with more states in the nation giving cannabis the green light, Innovative Industrial Properties has incentives to partner with experienced medical-use cannabis operators and serve as a vital source of capital by acquiring and leasing back their real-estate assets. Its strategy is to acquire the existing, redeveloped and under-development industrial buildings, including attached enclosed greenhouse facilities.
Recently, the company announced the completion of its acquisition of a Texas property for $3.4 million. Located in San Marcos, the property expands the company’s footprint to 68 properties with more than 5.9 million square feet across several states. It also entered into a long-term lease with Surterra San Marcos LLC, a subsidiary of Surterra Texas, which itself is a subsidiary of Parallel.
Notably, Surterra San Marcos, on completing the construction of three buildings — one retail and two industrial — comprising a total of roughly 63,000 square feet on the property, plans to operate the property as a licensed cannabis cultivation, processing and retail facility. Considering the full reimbursement for the construction, Innovative Industrial Properties’ total investment in it will be $27.4 million (excluding transaction costs).
However, the company’s fourth-quarter 2020 adjusted funds from operations (“FFO”) per share missed expectations with lower-than-expected growth in revenues. The company reported adjusted FFO per share of $1.29, which trailed the Zacks Consensus Estimate of $1.51.
Currently, Innovative Industrial Properties carries a Zacks Rank #5 (Strong Sell). Over the past three months, shares of the company have outperformed the industry. The stock has gained 6.7% compared with the industry’s increase of 4.9%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) FFO per share estimates for the current year have moved up 3.9% to $1.61 in the past week. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 2.2% to $5.97 in the past week. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% at $2.10 in a month’s time.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>