Innovative industrial properties (WKN: A2DGXH) now has a stock market history of about 5 years. Or at least such a dividend story. The US portal NASDAQ specifies the first distribution on June 28, 2017. Without a doubt an interesting period that has passed since then.
Innovative Industrial Properties is currently struggling on a number of fronts. Short selling, rising interest rates and even the first vacancy recently led to the stock price plummeting. Yes, there has even been a recent divestment that allows for over 7% dividends.
But let’s look back. What the American cannabis REIT pays today, and what it paid for back then, is very different. Here are a few details.
Innovative industrial properties: Let’s go back 5 years!
If we now look at the past of the American REIT, we almost rub our eyes in disbelief. Five years ago, and with an ex-dividend date of June 28, 2017, Innovative Industrial Properties paid only $ 0.15 per share. That’s good enough. But the share price was also significantly lower at the time.
If we look at the dividend now, it is significantly higher. In the most recent quarter and the year before, the payout per share was $ 1.75. This means that 11.66 times the distribution was paid out at that time. Really incredible what has changed since then.
Of course, this does not mean that the current risks suddenly disappear. Rising interest rates are a problem for REIT Innovative Industrial Properties, as is imminent vacancy due to a possible economic crisis. Or the status of legalizing cannabis with allegations of a short seller. But it still shows that growth has been very, very strong in recent years and has led to a marked increase in yields.
what weighs more
Honestly, I do not advise you on anything related to Innovative Industrial Properties. Risks and opportunities are equally high. But it always makes sense for foolish investors to look at both things. To my taste, the market is more focused on the risk side. A yield of over 7% and a price-to-FFO ratio of only 12 is a testament to this. Does it seem fundamentally justified for growth? One can doubt.
But in the end, it’s up to you to decide for yourself. The only crucial thing is that you compare the risk with the opportunity and the current valuation and consider whether you want to buy this stock in a business oriented way. Or if you see more attractive options. Maybe also more secure.
Our best stock for 2022
There’s a company whose name gets a lot of buzz from analysts at The Motley Fool these days. It’s for us THE BEST INVESTMENT FOR 2022.
You could also benefit from it. To do this, you must first know all about this unique business. So now we have one free special report prepared, which introduces this company in detail.
Vincent owns shares in Innovative Industrial Properties. The Motley Fool owns and recommends shares in Innovative Industrial Properties.