As we reported earlier today, Innovative Industrial Properties, Inc. has been approved to IPO on the NYSE. Shares of Innovative Industrial Properties will trade under the symbol "IIPR". This is a big deal for the marijuana industry as it would be the first cannabis industry REIT.
This establishes legitimacy for marijuana real estate companies and paves the way for potential REIT conversions or uplisting for companies like Grow Condos, and more.
About Innovative Industrial Properties
According to their S-11 filing, "Innovative Industrial Properties, Inc. is a newly-formed, self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities."
Innovative Industrial Properties plans to sell 8,750,000 shares of Class A common stock at an expected IPO price of $20 per share. This would raise $175,000,000 for Innovative Industrial Properties.
Innovative Industrial Properties' Plan
According to their prospectus, IIPR has been organized and intends to operate the business to qualify as a REIT and be taxed as such. While they have the intent to purchase one facility for leaseback, they have mentioned the risk that they may be unable to invest or deploy the funds raised in this IPO. We tend to believe that will not be a problem.
9 states are voting today on some measure to marijuana legalization. In addition, the states that already have passed varrying reform measures have rapidly growing programs with rising patient counts. There should be plenty of buildings and real estate for the REIT to invest in.
After all, Innovative Industrial Properties was started by Alan Gold who started the BioMed Realty Trust which was a life science real estate REIT that was acquired by Blackstone. If anyone can lead this REIT to victory, it would be him.