On an excellent day for marijuana stocks generally, Innovative Industrial Properties (IIPR -1.56%) was a star performer on Thursday. In addition to the optimism buffeting such companies in recent days, the cannabis real estate investment trust also reported very good results for the third quarter of fiscal 2020.
For the quarter, Innovative's total revenue nearly tripled on a year-over-year basis, landing at just over $34.3 million. The company's adjusted funds from operations (AFFO, considered to be the best profitability yardstick for REITs) rose to almost $27.9 million, or $1.28 per diluted share, from the year-ago result of $9.5 million.
On average, analysts were estimating only $26.6 million in revenue and per-share AFFO of $1.16.
It's currently the only REIT on the stock market that specializes in properties used by the marijuana industry. While its growth figures haven't been as impressive as at certain points in its past, it continues to add to its portfolio and consequently grow its revenue. In Q3, it acquired five properties comprising almost 450,000 rentable square feet.
As a REIT, Innovative is required to pay out at least 90% of its taxable income in the form of shareholder distributions. Last month it dispensed a quarterly dividend of $1.17 -- the highest in its (admittedly brief) history, and 10% higher than its predecessor.
No wonder Innovative was such a hot stock on Thursday. It closed nearly 17% higher on the day, trouncing the S&P 500's gain.