Cannabis REIT Innovative Industrial's Q3 revenue edges past expectations

Overview

• Innovative Industrial Q3 revenue beats analyst expectations despite a 15% yr/yr decline

• Company announces $270 mln investment in IQHQ, diversifying beyond cannabis industry

• Closed new $100 mln secured revolving credit facility, enhancing financial flexibility

Result Drivers

• TENANT DEFAULTS - Revenue decline driven by tenant defaults, including PharmaCann, Gold Flora, TILT, and 4Front

• IQHQ INVESTMENT - $270 mln investment in IQHQ marks diversification beyond cannabis industry

• CREDIT FACILITY - New $100 mln secured revolving credit facility enhances financial flexibility

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Innovative Industrial Properties Inc is $47.50, about 4.2% below its November 3 closing price of $49.49

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw6b1qM9a

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