GREY:CRXPF - Post by User
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AnalogueManon Jun 19, 2019 1:21pm
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Some have been comparing CROP to Innovative Industries IIPR
Some have been comparing CROP to Innovative Industries IIPR They are ranked below in order of profit margin. Here’s why they’re making money while most other cannabis stocks aren’t.
1. Innovative Industrial Partners (NYSE: IIPR)
Innovative Industrial Partners (IIP) ranks at the top of our list with a profit margin of more than 51%. The company operates as a real estate investment trust (REIT) and focuses on leasing properties to the medical cannabis industry.
The secret to IIP’s terrific profit margin is that it leases out 100% of the 19 properties that it owns. The weighted-average remaining lease term for its properties is over 15 years.
These long-term leases give the company ample cash to reinvest into additional properties to lease out. This “rinse and repeat” formula enabled IIP to increase its net rental revenue by 146% and its earnings by 444% year over year in the first quarter of 2019.