Send me real-time posts from this site at my email

Innovative Industrial Properties Enters Sale-Leaseback Deal for New Michigan Property

Expanding its footprint in one of the states that has legalized recreational marijuana, Innovative Industrial Properties (NYSE: IIPR) on Monday announced a new acquisition in Michigan. The company, a real estate investment trust (REIT) that specializes in buildings and land used by the cannabis industry, said it has closed a deal for a property in the town of Windsor, near the city of Lansing. The price is $15.6 million, exclusive of transaction costs.

This construes a sale-leaseback deal for Innovative under a triple-net lease agreement. The counterparty is marijuana producer Skymint Brands, which will use the roughly 175,000 square foot facility for its growing, processing, and distributing needs. It will also presumably make some improvements to the property, as Innovative has agreed to provide up to $14.4 million for its redevelopment.

Image source: Getty Images.

Innovative and Skymint are used to working together; in its press release trumpeting the acquisition, the former company said that it is the landlord on seven other Skymint properties. The two have collaborated in this fashion since 2018. Innovative quoted its CEO Paul Smithers as saying:

We have been Skymint's long-term real estate partner since 2018, and are excited to partner with them again on the redevelopment of this new property that is expected to dramatically expand Skymint's cannabis production capacity to meet the tremendous demand across the state, and support Skymint's continued dispensary expansion plans.

With this latest deal, the REIT now owns 69 properties located in 18 states, 11 of which have legalized the sale and consumption of recreational marijuana.

Despite the company's news, its stock was down in late afternoon trading Monday. Innovative had fallen by over 2.2%, a steeper decline than the 0.7% of the S&P 500 index.

10 stocks we like better than Innovative Industrial Properties
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Innovative Industrial Properties wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of February 24, 2021

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue