Innovative Industrial Properties Inc. (IIP) is a real estate investment trust (REIT) that specializes in the acquisition, ownership, and management of properties used for the cultivation and processing of medical-use cannabis. The company was founded in 2016 and is headquartered in San Diego, California.
As a REIT, IIP operates by acquiring properties from medical cannabis operators and leasing them back to those operators under long-term, triple-net lease agreements. This allows operators to unlock the value of their real estate assets while maintaining control over their operations. IIP focuses on properties located in states where medical cannabis is legal, providing operators with essential facilities to support their cultivation and processing activities.
The company's primary objective is to generate attractive, long-term returns for its shareholders through the acquisition of high-quality properties with reliable tenants. IIP typically targets properties that are already leased to experienced operators with strong credit profiles. The leases include contractual rent escalations, providing potential for increasing rental income over time.
Innovative Industrial Properties went public on the New York Stock Exchange in 2016 under the ticker symbol "IIPR." The IPO allowed the company to raise capital and expand its portfolio of cannabis-related properties across the United States. Since going public, IIP has demonstrated steady growth and has become one of the leading REITs in the cannabis industry.
The demand for cannabis-related real estate is driven by the growing legalization of medical-use cannabis in various states. IIP takes advantage of this trend by providing operators with a flexible and efficient way to access capital while securing their real estate needs. The company's expertise in the cannabis industry and its focus on strategic property acquisitions have positioned it as a trusted partner for operators seeking real estate solutions.
IIP's success can be attributed to its unique business model, which allows investors to participate in the expanding cannabis industry while minimizing some of the risks associated with direct cannabis operations. By focusing on the real estate aspect of the industry, IIP provides investors with a stable income stream and potential capital appreciation through the long-term lease agreements with reliable tenants.