Post by
drbob512 on Jun 28, 2020 9:30pm
What could impact IIPR is
that reportedly the current Stimulus Pkg from the House has included a provision for banks to be allowed Federally to deal with U.S. mj stocks such as loans/ financing w/out risk of Fed. laws/ fines/ punishment. While i dont think McConnell will allow it in the Senate, this provision will eventually pass. Most analysts believe it would ruin IIPR's business model & their profits & rev. growth cuz cos. would no longer have to pay a cap rate (yield) of 13% to IIPR anymore on their leases, so IIPR would lose a lot of business & revenue growth. My view is not as dire cuz banks are famously conservative, slow & are not knowledgeable about the mj industry. So while the yields would come down to perhaps 8-10% for IIPR, they have the know how re regulations, etc to help MSOs for construction & licensing. And they will have all 50 states to do business with, not the 33 they have now. I suspect Chairman Gold will find a way to have IIPR continue to prosper. Perhaps this part of the House Stim. Pkg is why IIPR has dropped from 101 to 89 in past 2 wks..
Comment by
drbob512 on Jun 29, 2020 3:45am
Is IIPR considered a re-opening stock as opposed to a "stay at home" stock? If so, then that may have been a reason for the recent weakness. Or not, who knows?