If I Could Only Buy 1 Stock, This Would Be It
Innovative Industrial Properties (NYSE: IIPR) has become an unusual but lucrative stock. The San Diego-based real estate investment trust (REIT) directly benefits from the growth of the marijuana business despite its status as a real estate company. As a result, the company profits from massive revenue increases as well as business and legal tailwinds that make it a stock worth owning.
Innovative Industrial leases agricultural property and greenhouses set up to meet the needs of cannabis producers, and collects rental revenue from them. As a REIT, it pays stockholders a dividend on its profits.
Moreover, it has positioned itself to benefit from an improving legal environment. Since New Jersey just legalized marijuana for recreational use, Innovative Industrial now holds more potential for expansion in that state. Additionally, hemp became fully legal with the 2018 Farm Bill. Hemp's similarities to marijuana mean that Innovative Industrial could operate properties in all 50 states if it chose.
Source Fool.com
