Why Innovative Industrial Properties Rose 19% in December
Shares of marijuana industry focused landlord Innovative Industrial Properties (NYSE: IIPR) rose 19% in December according to data from S&P Global Market Intelligence. That's a pretty heady gain for a one-month span, but it wasn't actually all that surprising for this real estate investment trust (REIT), which was up an incredible 141% in 2020.
The backstory here is that the marijuana industry continues to expand as more and more states move toward legalizing the drug. Innovative is, at its core, a landlord, owning grow houses and other marijuana related properties. But that's only half the picture, since what it often provides its tenants is access to capital. Using sale/leaseback transactions, Innovative allows companies to get property off their balance sheets, freeing up cash that can be used to pay down debt or to invest in growth initiatives.
Image source: Getty Images.
Source Fool.com
