What happened

Shares of Innovative Industrial Properties (IIPR -0.82%) soared 31.7% last month, according to data provided by S&P Global Market Intelligence, after the real estate investment trust (REIT) delivered strong third-quarter results and boosted its dividend again. 

So what

Last quarter, Innovative Industrial Properties' revenue skyrocketed by 197% year over year to $34.3 million. The REIT also acquired several new marijuana growth facilities, which it immediately leased to state-licensed cannabis producers.

Rolls of dollar bills rising in a stair-step manner.

Image source: Getty Images.

Better still, the company is strengthening its cash generation abilities as it expands its real estate empire. Its adjusted funds from operations (AFFO) -- an important cash flow metric for REITs -- surged 192% to $27.9 million, or $1.28 per share.

Now what

Innovative Industrial Properties offers investors a way to cash in on the legal cannabis boom. As a REIT, it passes most of its profits on to its shareholders via a quickly growing dividend. The company boosted its cash payout by 50% year over year in September -- and has increased it by a total of 680% since the third quarter of 2017. Unsurprisingly, given this level of dividend growth, its stock price has soared by more than 690% since its IPO in late 2016. 

With the legal cannabis industry in the U.S. still in an early expansion phase, investors can expect many more dividend increases from Innovative Industrial Properties in the coming years.