IIPR Makes a Surprise Move
Innovative Industrial Properties (NYSE: IIPR) is a cannabis-focused real estate investment trust (REIT) that has been falling sharply in value. Down an incredible 61% this year, it has underperformed the S&P 500 and its 18% decline over the same period. What was once seen as a stable buy in the cannabis industry doesn't look the same way anymore -- investors have recently learned about problems the company is having with a key tenant, Kings Garden, which has defaulted.
The business is facing some challenges to address those concerns, and there could be a material impact to its bottom line. That's why the company's recent actions caught me by surprise.
Last week, Innovative Industrial Properties (IIP) declared a quarterly dividend of $1.80, which represents a 2.8% increase from the $1.75 dividend that it was previously paying. IIP has been paying a dividend since 2017, and only once has it paid the same dividend for three straight quarters; the REIT has normally hiked its payouts multiple times a year.
Source Fool.com
