This cannabis REIT continues to rise, producing better dividends for investors

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Innovative Industrial Properties continues to swing higher for investors

Investing in real estate investment trusts (REITs) is one of the most common formulas for saving in the US. It is more than common to buy property to hold for the long term, as a store of value away from the volatility of the markets or the loss of purchasing power of holding cash. This is totally applicable to the cannabis industry, especially for those investors who want a safe bet without having to deal with many of the day-to-day changes in the green leaf market.

REITs were on the wrong side of investors’ outlooks for much of 2020 because of their far lower returns than global equities. Despite the apparent uncertainty, cash flows from many types of real estate have been seen to remain strong. Long-term leases have been key. This is something that Innovative Industrial Properties (IIP) offers without any problems.

The firm recently released its Q4 2022 earnings report and its results could not have been better. The release revealed $70.5 million in revenue, a 20% increase over the previous year. The green numbers have made way for IIP to now be able to purchase a cannabis farm in Pennsylvania from TILT Holdings and lease it back to the company in a “long-term” deal worth $15 million this year.

IIP is a company that owns income-producing real estate focused on cannabis businesses. These firms have to meet a number of requirements, such as triple-net leasing. A REIT such as this one allows anyone to invest in portfolios of real estate assets in the same way they invest in other sectors, through the purchase of shares of individual companies or through a mutual fund or exchange-traded fund (ETF). In this way, REIT shareholders earn a share of the income produced, without having to go out and buy, manage, or finance properties.

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