Could This Passive Income Stock Be In Big Trouble?
Innovative Industrial Properties (NYSE: IIPR) is a pot real estate investment trust (REIT), a category that basically didn't exist before this company's initial public offering (IPO) in late 2016. From day one, the goal was to grow along with the fast-expanding marijuana sector. But nothing goes up or down in a straight line on Wall Street, and Innovative Industrial is facing the first real test of its business model. Here's what's going on and what could happen from here.
When the California gold rush took place in the mid-1800s, some people went all in, hoping to strike it rich finding gold. Others sold the tools these gold prospectors would need as they mined their dreams. Selling the picks and shovels was a much more reliable business plan. That is really the logic behind what Innovative Industrial Properties is doing in the marijuana space, with the REIT owning the facilities used to grow cannabis.
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Source Fool.com
