Why Innovative Industrial Properties Stock Fell as Much as 17.5% This Week
Shares of real estate investment trust (REIT) Innovative Industrial Properties (NYSE: IIPR) were lower by as much as 17.5% at one point this week, according to data from S&P Global Market Intelligence. At the start of trading on Friday, the stock had made up a little ground but was still sitting with a 13.5% loss since Monday. There are really two issues in play this week.
Innovative Industrial Properties basically owns hydroponic grow houses that it leases to marijuana producers. It is a picks-and-shovels play on the ongoing legalization of the drug, benefiting from what has basically been a land grab among pot producers eager to gain market share in a new and still-growing industry. That said, marijuana stocks in general have been doing relatively poorly for about a year or so. However, Innovative Industrial Properties, with its differentiated business model, managed to buck that trend and hit an all-time high in mid-November. Since that point, though, it seems that investors have been ready for a breather and the stock has been heading lower. That trend basically continued as 2022 got underway.
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Source Fool.com
