Should You Buy Innovative Industrial Properties in April?
Innovative Industrial Properties (NYSE: IIPR) is not a pure-play cannabis company. It is an REIT (real estate investment trust) that acquires properties from medical cannabis companies and leases them back. Investors are sometimes skeptical of putting their money in U.S. cannabis stocks, as the drug remains illegal at the federal level. Here, Innovative offers them a safer choice as it only offers real estate capital for the medical cannabis industry but has no direct involvement with cannabis. Hence, it is safe from the legal scrutiny the marijuana industry faces while still enjoying the benefits of its evolution.
Since its IPO in December 2016, Innovative Industrial Properties' shares have surged a whopping 970%. The industry benchmark, the Horizons Marijuana Life Sciences ETF, is up just 28% over the same period. Even though the cannabis industry has seen some rough times since then, Innovative has safely sailed through -- again, the fact that the company is not directly linked to cannabis has its perks. Innovative Industrial Properties performed outstandingly last year, and its wise growth strategies have it geared up for an even stronger 2021. Let's see whether the stock is worth investing in this month.
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Source Fool.com
