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Innovative Industrial Real Estate (IIPR) Shares Outperformed Revenues and Revenues

Innovative industrial real estate (((NYSE: IIPR)., Real Estate Investment Trusts (REITs) Focused on Medical Applications Cannabis The industry reported good results in the second quarter of 2021 after the market closed on Wednesday, August 4.

In the after-hours trading session on Wednesday, stock prices rose 1.9%. They returned 108% in the year leading up to Wednesday’s regular trading session. S & P 50035.7% return for the same period.

Innovative industrial real estate key number

metric

2nd quarter of 2021

Second quarter of 2020

Change

Revenue

$ 48.9 million $ 24.3 million 101%

Operating income

$ 32.9 million $ 14.2 million 132%

net income

$ 29 million $ 13 million 124%

Earnings per share (EPS)

$ 1.17 $ 0.73 60%

Adjusted Funds from Investment (AFFO) *

$ 43.0 million $ 21 million 104%

AFFO per share

$ 1.64 $ 1.19 38%

Data source: Innovative industrial real estate. * Adjusted funding from operations is a carefully monitored indicator for REITs as it is the main driving force for dividend changes.

The increase in revenue was “mainly due to the acquisition and leasing of new properties, in addition to the escalation of contractual rents on certain properties,” the company said in a statement.Wall Street was expecting $ 1.11 EPS with $ 45.9 million in revenue, as I’ve covered Revenue preview, Therefore, IIP (the company is sometimes called) comfortably surpassed both estimates.

As in the previous quarter, the data per share (EPS and AFFO per share) shows that “IIP’s exchangeable senior note of $ 143.75 million is sparse if it is completely exchanged for common stock. “Impact of conversion” is included.

The company ended the period with cash and cash equivalents of $ 156.3 million and short-term investments of $ 649.4 million, for a total of approximately $ 805.7 million. The debt burden is 21% of total assets, totaling about $ 2.1 billion, and there are no unsecured debt.

For context, First quarterRevenues were up 103% year-on-year to $ 42.9 million, EPS was up 46% to $ 1.05, and AFFO per share was up 31% to $ 1.47.

Image Source: Getty Images.

What Happened in Innovative Industrial Real Estate in the Quarter (and After the Quarter Ended until August 4th)

  • On July 15, 2021, we paid a quarterly dividend of $ 1.40 per share to registered shareholders as of June 30, 2021. This is an increase of about 32% over the same period last year. As of Wednesday’s closing price, the stock is yielding around 2.6%.
  • During the quarter, the company acquired four real estate properties. Two in Michigan and one in Pennsylvania and Massachusetts. This is compared to the three acquisitions in the first quarter. One of them was only land.
  • After the end of the quarter (August), we acquired another property in Illinois.
  • During the quarter (June), as reported in my earnings preview: “[T]”We have signed a construction loan with a developer to build a regulated cannabis cultivation and processing facility in California,” his company said in a press release. The loan is expected to be up to $ 18.5 million for a building of approximately 102,000 square feet. Once completed, the company has the option to buy real estate. ”

The following is a current snapshot of the Innovative Industrial Properties portfolio, excerpted from the revenue release.

As of August 4, 2021, IIPs are located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Jersey, North Dakota, Ohio, Pennsylvania, Texas and Virginia. I owned 73 properties.And Washington [18 states]Equivalent to a total of approximately 6.8 million square feet (including approximately 2.4 million square feet of leasable area under development / redevelopment) and was 100% rented with a weighted average remaining lease period of approximately 16.7 years.

Future outlook

As always, innovative industrial real estate has had a solid quarter.

Investors talk more about the results of the second quarter and perhaps how the third quarter is shaped during a cannabis company analyst conference call scheduled for Thursday, August 5th at 1:00 pm EDT. Need to get information about.

This article represents the opinion of a writer who may disagree with the “official” recommended position of The Motley Fool Premium Advisory Services. We are miscellaneous! Asking investment treatises (even our own) helps us all think critically about investment and make decisions that help us become smarter, happier, and richer. Useful.



Innovative Industrial Real Estate (IIPR) Shares Outperformed Revenues and Revenues

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