A unique business in the realm of marijuana stocks, Innovative Industrial Properties (NYSE:IIPR) has priced its upcoming share issue, and expanded it at the same time.
One day after announcing that it would float 2 million shares in a public offering of its common stock, on Friday the company said that the planned offer had grown to 2,967,799 shares. These are being sold at a price of $73.25 per share, in an issue that should close on or about Jan. 28.
In both Friday's announcement and the preceding one, Innovative said that the funds raised will be used "to invest in specialized industrial real estate assets that support the regulated cannabis cultivation and processing industry that are consistent with [the company's] investment strategy, and for general corporate purposes."
Innovative is a specialized real estate investment trust (REIT) that exclusively deals in properties used for the cultivation, processing, and sale of cannabis. It is the only cannabis-focused REIT on the stock market. As of Wednesday, according to the original prospectus on the current share sale, Innovative owned 47 properties spread across 15 U.S. states. All told, these boasted 3.1 million square feet of rentable space.
As a REIT, Innovative is obligated to pay out the bulk of its net profits in the form of dividends to shareholders. This is another factor that sets it apart from its fellow marijuana industry stocks, as precious few of them pay dividends. Innovative's payout is relatively generous for a REIT, with a yield of slightly under 5%.
Innovative Industrial Properties' stock closed Friday up 1.6%.