Is Innovative Industrial Properties a Buy?

The notoriously struggling marijuana industry doesn't provide much fertile ground for growth. Despite this, weed real estate investment trust (REIT) Innovative Industrial Properties (NYSE: IIPR) has been rather successful as a landlord to pot growers, processors, and retailers.

Note the past tense -- has been. Earlier this year, Innovative was hit with its first-ever tenant default, and given the privations of the weed business, this likely won't be its last. Until now, the REIT had been one of the very few compelling marijuana-sector buys for many investors and analysts. Let's look at the current state of the company to see whether that still holds true.

Innovative announced the default, specifically by a tenant called Kings Garden that leases six of its California properties, in mid-July. Understandably, that rattled investors, and the company's stock price has yet to fully recover from the blow.

Source Fool.com