If You'd Invested $5,000 in Innovative Industrial Properties Stock in 2018, Here's How Much You'd Have Today

If you had invested $5,000 in Innovative Industrial Properties (IIPR) stock in 2018, you'd be sitting on a significant return today. Here's how the numbers would have played out:

1. Initial Investment: $5,000
2. Stock Price in 2018: Around $10 (approximately, as the exact price in 2018 is not provided)
3. Number of Shares Purchased: $5,000 / $10 = 500 shares
4. Stock Price in 2025: $71.68 (as of January 31, 2025)
5. Value of Investment in 2025: 500 shares * $71.68 = $35,840

So, your initial $5,000 investment would have grown to approximately $35,840 by 2025, assuming you held onto the shares without selling. This growth is primarily due to the increase in IIPR's stock price over the years.



Several factors contributed to IIPR's stock price appreciation:

1. Consistent Profitability: Unlike many other marijuana stocks, IIPR has consistently been profitable. In the third quarter of 2023, its adjusted funds from operations (AFFO) were $64.3 million, a slight decrease from the same period in 2022 but still a testament to the company's financial stability (Source: Article).
2. Dividend Payouts: IIPR has paid a quarterly distribution of $1.90 per share for four straight quarters, which is a bit atypical. Although there haven't been any dividend raises recently, the combination of its still-generous payout and its weakened stock price has driven its dividend yield to over 11% (Source: Article).
3. Growth in Rental Revenue: IIPR's tenant roster includes prominent weed players like Green Thumb Industries, Curaleaf Holdings, and Trulieve Cannabis. Collectively, these businesses paid over $76 million in rental revenue in the third quarter of 2023, with other revenue making up around $474,000 of the REIT's top line (Source: Article).
4. Market Expansion and Legalization: The cannabis industry has been expanding, with more states legalizing marijuana. This growth has increased demand for specialized industrial properties leased to cannabis operators, benefiting IIPR as a real estate investment trust (REIT) focused on this niche (Source: Article).
5. Resilience in the Face of Challenges: Despite challenges like PharmaCann's default on rent payments in December 2024, IIPR was able to resolve the issue and continue its operations. This resilience has helped maintain investor confidence in the company (Source: Article).

In conclusion, if you had invested $5,000 in IIPR in 2018, you'd have seen significant growth in your investment by 2025, thanks to the company's consistent profitability, dividend payouts, and the expanding cannabis market.