IIPR stock has formed a flying Chuck Norris bullish jump kick on January 28, 2020.

We even had a huge options sweep today that’s about 10% higher from the spot price with a March 20, 2020 expiration:

On January 27, 2020, Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced that it closed on the acquisition of a property in Ohio, which comprises approximately 50,000 square feet of industrial space in the aggregate.

The purchase price for the property was approximately $10.6 million in total (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement for the property with a wholly owned subsidiary of Cresco Labs Inc. (Cresco), which intends to continue to operate the property as a regulated cannabis cultivation and processing facility. Cresco is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to approximately $1.9 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be approximately $12.5 million.

This sale-leaseback transaction mark IIP’s third acquisition and lease with Cresco, with prior IIP acquisitions and leases for two of Cresco’s licensed cannabis cultivation and processing facilities in Illinois.

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

“We are excited to expand our real estate partnership with Cresco and its strong management team,” said Paul Smithers, President and Chief Executive Officer of Innovative Industrial Properties, Inc. “Cresco continues to execute well on its business plan and has created a truly nationwide reach in its operations, benefiting patients and consumers across the United States, while creating jobs and contributing meaningfully to the local communities where they operate. We are thrilled to partner with them again in Ohio, a state that we believe represents a tremendous market opportunity, where Cresco can bring its high quality, trusted products to patients in need.”

Founded in 2013, Cresco is one of the largest vertically-integrated cannabis companies in the United States, with licensed operations in eleven states. With its pending acquisitions, Cresco has 18 licensed cannabis production facilities, 31 retail cannabis licenses and 21 operational cannabis dispensaries. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers.

“Teaming again with IIP as our long-term real estate partner enables us to further bolster our balance sheet, and redeploy that additional liquidity into higher yielding opportunities,” said Joe Caltabiano, President and Co-Founder of Cresco. “We are thrilled with the footprint we have established, and look forward to deepening even further our presence in those states, with IIP as one of our trusted capital providers.”

Ohio’s licensed medical cannabis program is in its early stages, with first sales occurring at the beginning of this year. In less than one year of sales, however, there were nearly 80,000 patients and over 8,000 caregivers registered under the program as of the end of December.

As of January 27, 2020, IIP owned 48 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling approximately 3.1 million rentable square feet (including approximately 850,000 rentable square feet under development/redevelopment), which were 98.9% leased (based on square footage) with a weighted-average remaining lease term of approximately 15.6 years. As of January 27, 2020, IIP had invested approximately $529.3 million in the aggregate (excluding transaction costs) and had committed an additional approximately $128.3 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. IIP’s average current yield on invested capital is approximately 13.3% for these 48 properties, calculated as (a) the sum of the current base rents, supplemental rent (with respect to the lease with a tenant at one of IIP’s New York properties) and property management fees (after the expiration of applicable base rent abatement or deferral periods), divided by (b) IIP’s aggregate investment in these properties (excluding transaction costs and including aggregate potential development/redevelopment funding and tenant reimbursements of approximately $128.3 million). These statistics do not include up to approximately $16.4 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Illinois properties, approximately $35.7 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Massachusetts properties, or the additional $4.0 million which may be requested by a tenant at one of IIP’s Pennsylvania properties, as the tenants at those properties may not elect to have IIP disburse those funds to them and pay IIP the corresponding base rent on those funds. These statistics also treat IIP’s Los Angeles, California property as not leased, due to the tenant’s default in its obligation to pay rent at that location in January 2020.

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.

On January 15, 2020, Innovative Industrial Properties announced that it closed on the acquisition of a property in Richmond, Virginia, which is expected to comprise approximately 82,000 square feet of industrial space upon completion of development.

The purchase price for the Virginia property was approximately $11.8 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement with a subsidiary of Green Leaf Medical, LLC (Green Leaf Medical), which intends to operate the property as a licensed medical-use cannabis cultivation, processing and dispensing facility upon completion of development. IIP has also agreed to provide reimbursement of up to approximately $8.0 million in connection with the completion of development of the property. Assuming full reimbursement, IIP’s total investment in the property will be approximately $19.8 million.

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

This transaction marks IIP’s second property acquisition and lease with Green Leaf Medical, with IIP’s prior sale-leaseback transaction for Green Leaf Medical’s 266,000 square foot licensed medical cannabis cultivation and processing facility in Pennsylvania, of which 103,000 square feet is operational and an additional 163,000 square feet of industrial space is available for future redevelopment and expansion.

“We are excited to team again with multi-state operator Green Leaf Medical as our tenant partner in Virginia,” said Paul Smithers, President and Chief Executive Officer of IIP. “Green Leaf Medical continues to execute well on its business, dramatically expanding patient access in the Northeast. We look forward to working closely with them as they complete development of this state-of-the-art facility to meet the patient demand of the greater Richmond area.”

Green Leaf Medical, which produces a variety of cannabis products under the gLeaf brand, conducts licensed medical-use cannabis operations in multiple states, holding cultivation, extraction and retail licenses in Maryland, Pennsylvania, Ohio and Virginia. Green Leaf Medical holds one of five vertically integrated licenses to cultivate, process and dispense medical cannabis in Virginia. The Virginia medical cannabis market is in its very early stages, with first sales by dispensaries expected later this year. In a state-wide survey conducted in September 2019 by University of Mary Washington, 61% of Virginians also supported legalization of adult-use cannabis.

“Partnering again with IIP allows us to free up our capital and redeploy across our multi-state operating platform, including our anticipated launch of operations in Virginia this year,” said Philip Goldberg, Chief Executive Officer of Green Leaf Medical. “Our Richmond location will serve patients directly through our onsite retail dispensary and will act as a hub for our statewide home delivery service.”

finviz dynamic chart for  iipr

View source(s) version on businesswire.com: https://www.businesswire.com/news/home/20200127005724/en/
https://www.businesswire.com/news/home/20200115005866/en/

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