Please ensure Javascript is enabled for purposes of website accessibility

Innovative Industrial Properties Boosts Size of New Stock Issue by 48%

By Eric Volkman - Jan 24, 2020 at 5:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company increased its secondary stock flotation from 2 million shares to nearly 3 million, and set the share price for the offering.

A unique business in the realm of marijuana stocks, Innovative Industrial Properties (IIPR 1.88%) 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.

Marijuana in a corporate grow space.

Image source: Getty Images

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%.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Innovative Industrial Properties Stock Quote
Innovative Industrial Properties
$111.94 (1.88%) $2.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.