From Ian Cooper
With a yield of 7.9%, IIPR is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. The regulated cannabis industry has experienced tremendous momentum in the United States, with 37 states and Washington, D.C. having legalized cannabis for medical-use, and 18 states having legalized cannabis for adult-use.
We also have to consider the pullback in IIPR may be overdone. Especially when most of IIPR’s other tenants appear to be in solid shape overall. Earnings also appear solid. For example, generated total revenues of approximately $70.5 million in the quarter, representing a 44% increase from the prior year’s quarter.
Better, while federal legalization hasn’t happened just yet, President Biden’s latest action could be a strong indicator that we’re not far from it. In fact, Biden just acted to change U.S. policy on the drug, pardoning all prior federal offenses of simple cannabis possession.
Biden also asked federal officials to start a review process of how marijuana is “scheduled”, or classified, under federal law. Presently it falls under the same classification as heroin and LSD and in a higher classification than fentanyl and methamphetamine, as noted by Reuters.
“Today represents action from the Administration that we have been waiting for – an acknowledgement that cannabis prohibition has failed and that too many lives have been significantly impacted as a result,” David Culver, vice president of govt. relations Canopy, said, as quoted by CNBC.
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