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Innovative Industrial Raises Funding for Pennsylvania Asset
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Innovative Industrial Properties (IIPR - Free Report) recently announced entering into an amendment of lease with a subsidiary of Green Leaf Medical, LLC, offering an additional funding of $30 million. This financing will support the expansion of Green Leaf’s cannabis cultivation and processing facilities at 135 Horton Drive in Saxton, PA.
The strategic move also adjusted the base rent under the lease to incorporate the impact of additional available funding as well as extension of the lease agreement term. Considering full payment of the supplementary funding, cannabis-focused real estate company Innovative Industrial Properties’ total investment in the property, which it originally acquired in a sale-leaseback transaction with Green Leaf last May, will be worth $43 million.
The partnership with Green Leaf, a multi-state cannabis operator known for its brand gLeaf, will help Innovative Industrial Properties efficiently capitalize on the solid market fundamentals. In fact, the company also owns and leases to Green Leaf an 82,000-square-foot medical-use cannabis cultivation, processing and dispensing facility in Richmond, VA, which the company had acquired in early 2020.
Notably, the legalization of marijuana’s medical use across several states as well as permission of adult consumption in some states created opportunities for the cannabis industry. Therefore, with more states in the United States 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.
Particularly, Pennsylvania is providing an avenue of significant opportunities for the cannabis industry. The Pennsylvania medical cannabis market witnessed rapid growth after recording first sales in 2018 and per the May 15 Pennsylvania Department of Health report, more than 300,000 patient certifications are already issued by approved practitioners since the program began. Also, the state expanded the program over time, lending a nod to anxiety disorders and Tourette syndrome to be included in the list of medical conditions covered under the program for acquiring eligibility of treatment with medical cannabis.
This apart, more than 60% of Pennsylvanians favor the legalization of adult-use cannabis in the state, according to an April 2020 Harper Polling study. Solid support also poured in from political quarters with a number of bills backing the legalization of adult-use cannabis pending in Pennsylvania’s legislature.
As such, the partnership with Green Leaf, which has one of the 25 medical cannabis cultivation/processor licenses issued by the state of Pennsylvania, seems a strategic fit for Innovative Industrial Properties. Besides, Green Leaf operates medical cannabis cultivation, extraction and retail operations in Maryland, Ohio and Virginia with vertical applications pending in New Jersey and West Virginia.
The Zacks Consensus Estimate for Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) 2020 funds from operations (FFO) per share has been unchanged at 83 cents over the past month. The company currently flaunts a Zacks Rank of 1.
City Office REIT, Inc.’s (CIO - Free Report) FFO per share estimate for the ongoing year has been steady at $1.11 over the past 30 days. The company currently sports a Zacks Rank #1.
Gladstone Land Corporation’s (LAND - Free Report) FFO per share estimate for the current year has been stable at 68 cents over the past month. It currently carries a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Innovative Industrial Raises Funding for Pennsylvania Asset
Innovative Industrial Properties (IIPR - Free Report) recently announced entering into an amendment of lease with a subsidiary of Green Leaf Medical, LLC, offering an additional funding of $30 million. This financing will support the expansion of Green Leaf’s cannabis cultivation and processing facilities at 135 Horton Drive in Saxton, PA.
The strategic move also adjusted the base rent under the lease to incorporate the impact of additional available funding as well as extension of the lease agreement term. Considering full payment of the supplementary funding, cannabis-focused real estate company Innovative Industrial Properties’ total investment in the property, which it originally acquired in a sale-leaseback transaction with Green Leaf last May, will be worth $43 million.
The partnership with Green Leaf, a multi-state cannabis operator known for its brand gLeaf, will help Innovative Industrial Properties efficiently capitalize on the solid market fundamentals. In fact, the company also owns and leases to Green Leaf an 82,000-square-foot medical-use cannabis cultivation, processing and dispensing facility in Richmond, VA, which the company had acquired in early 2020.
Notably, the legalization of marijuana’s medical use across several states as well as permission of adult consumption in some states created opportunities for the cannabis industry. Therefore, with more states in the United States 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.
Particularly, Pennsylvania is providing an avenue of significant opportunities for the cannabis industry. The Pennsylvania medical cannabis market witnessed rapid growth after recording first sales in 2018 and per the May 15 Pennsylvania Department of Health report, more than 300,000 patient certifications are already issued by approved practitioners since the program began. Also, the state expanded the program over time, lending a nod to anxiety disorders and Tourette syndrome to be included in the list of medical conditions covered under the program for acquiring eligibility of treatment with medical cannabis.
This apart, more than 60% of Pennsylvanians favor the legalization of adult-use cannabis in the state, according to an April 2020 Harper Polling study. Solid support also poured in from political quarters with a number of bills backing the legalization of adult-use cannabis pending in Pennsylvania’s legislature.
As such, the partnership with Green Leaf, which has one of the 25 medical cannabis cultivation/processor licenses issued by the state of Pennsylvania, seems a strategic fit for Innovative Industrial Properties. Besides, Green Leaf operates medical cannabis cultivation, extraction and retail operations in Maryland, Ohio and Virginia with vertical applications pending in New Jersey and West Virginia.
Innovative Industrial Properties currently carries a Zacks Rank #3 (Hold). Year to date, shares of the company have outperformed the industry. The stock has rallied 26.4% against the industry’s decline of 8.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
The Zacks Consensus Estimate for Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) 2020 funds from operations (FFO) per share has been unchanged at 83 cents over the past month. The company currently flaunts a Zacks Rank of 1.
City Office REIT, Inc.’s (CIO - Free Report) FFO per share estimate for the ongoing year has been steady at $1.11 over the past 30 days. The company currently sports a Zacks Rank #1.
Gladstone Land Corporation’s (LAND - Free Report) FFO per share estimate for the current year has been stable at 68 cents over the past month. It currently carries a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>