Innovative Industrial Properties Declares Third Quarter 2024 Dividends

Rhea-AI Summary

Innovative Industrial Properties (NYSE: IIPR), the first and only real estate company on the NYSE focused on the regulated U.S. cannabis industry, has declared its third quarter 2024 dividend. The company announced a cash dividend of $1.90 per common share, equating to an annualized dividend of $7.60. This marks IIPR's 30th consecutive quarterly dividend since its inception in 2016. Additionally, IIPR declared a regular quarterly dividend of $0.5625 per share for its 9.00% Series A Cumulative Redeemable Preferred Stock. Both dividends are payable on October 15, 2024, to stockholders of record as of September 30, 2024. IIPR has declared over $830 million in common stock dividends since its inception.

Positive

• Declared Q3 2024 dividend of $1.90 per common share
• Annualized dividend of $7.60 per common share
• 30th consecutive quarterly dividend since 2016
• Over $830 million in common stock dividends declared since inception

Negative

• None.

Insights

Financial Analyst

The declaration of a $1.90 quarterly dividend for Q3 2024 by Innovative Industrial Properties (IIP) is a significant move, translating to an annualized dividend of $7.60 per common share. This consistent payout, marking their 30th consecutive quarterly dividend, demonstrates strong financial health and commitment to shareholder returns. With over $830 million in total dividends declared since inception, IIP showcases a robust cash flow generation capacity. The 9.00% yield on their Series A Preferred Stock further emphasizes their focus on delivering value to diverse investor classes. However, investors should note that high dividend yields in the cannabis-related real estate sector might also indicate higher risk levels. It's important to assess IIP's tenant quality, lease structures and the overall stability of the U.S. cannabis industry when evaluating this REIT's long-term prospects.

Real Estate Investment Trust (REIT) Specialist

IIP's consistent dividend policy underscores its success in the niche cannabis-focused real estate market. As the first and only NYSE-listed cannabis REIT, IIP has capitalized on the growing legal cannabis industry, providing critical real estate solutions. The maintained high dividend payout suggests strong underlying property performance and tenant stability. However, the cannabis industry's regulatory landscape remains dynamic, posing both opportunities and risks. Investors should monitor federal legalization efforts, which could impact IIP's unique market position. The company's ability to sustain this dividend level long-term will depend on continued industry growth, tenant financial health and IIP's capacity to acquire and develop new properties in an increasingly competitive market.

Cannabis Industry Analyst

IIP's dividend announcement reflects the ongoing maturation and stability of the U.S. cannabis market. As a specialized REIT, IIP's performance serves as a barometer for the broader cannabis industry's health. The sustained high dividend suggests that despite challenges like oversupply in some markets and ongoing federal illegality, the cannabis sector continues to generate significant cash flows. However, investors should be aware of potential headwinds, including possible federal legalization that could increase competition for IIP and the risk of tenant defaults in an industry still facing banking and tax challenges. The company's ability to maintain this dividend level will be closely tied to state-level market expansions, regulatory changes and the overall evolution of the U.S. cannabis landscape.

Q3 2024 Cash Dividend of $1.90 Per Common Share Equates to Annualized Dividend of $7.60 per Common Share

SAN DIEGO--(BUSINESS WIRE)-- Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that its board of directors has declared a third quarter 2024 dividend of $1.90 per share of common stock, representing an annualized dividend of $7.60 per common share.

“We are proud to declare our 30^th consecutive quarterly dividend since our inception in 2016,” said Paul Smithers, President and Chief Executive Officer of IIP. “Since our inception, we have continued to share our growing cash flows with our stockholders by declaring over $830 million of common stock dividends.”

Additionally, IIP announced today that its board of directors has declared a regular quarterly dividend of $0.5625 per share of IIP’s 9.00% Series A Cumulative Redeemable Preferred Stock.

The dividends are payable on October 15, 2024 to stockholders of record at the close of business on September 30, 2024.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.

This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward-looking statements. When used in this press release, words such as IIP “expects,” “intends,” “plans,” “estimates,” “anticipates,” “believes” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240913343699/en/

David Smith

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

Source: Innovative Industrial Properties, Inc. (IIP)

FAQ

What is IIPR's Q3 2024 dividend per common share?

IIPR declared a Q3 2024 dividend of $1.90 per common share.

When will IIPR pay its Q3 2024 dividend?

IIPR will pay its Q3 2024 dividend on October 15, 2024, to stockholders of record as of September 30, 2024.

What is IIPR's annualized dividend based on the Q3 2024 declaration?

Based on the Q3 2024 declaration, IIPR's annualized dividend is $7.60 per common share.

How many consecutive quarterly dividends has IIPR declared?

IIPR has declared 30 consecutive quarterly dividends since its inception in 2016.

What is the dividend for IIPR's Series A Preferred Stock?

IIPR declared a regular quarterly dividend of $0.5625 per share for its 9.00% Series A Cumulative Redeemable Preferred Stock.