5 Best Marijuana Stocks To Buy Now

3. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Number of Hedge Fund Holders: 15

Innovative Industrial Properties, Inc. (NYSE:IIPR) primarily focuses on acquiring, owning, and managing specialized properties. These properties are then leased to experienced operators who hold state licenses for their regulated medical-use cannabis facilities. The company’s main business involves providing real estate solutions for the cannabis industry. Innovative Industrial Properties, Inc. (NYSE:IIPR) is one of the top marijuana stocks to invest in.

On May 8, Innovative Industrial Properties, Inc. (NYSE:IIPR) reported a Q1 FFO of $2.25 and a revenue of $76.1 million, topping Wall Street estimates by $0.34 and $5.45 million, respectively. The company reported a net income attributable to common stockholders of around $40.8 million for the quarter, which translates to $1.43 per diluted share.

Compass Point analyst Merrill Ross assigned a Buy rating on Innovative Industrial Properties, Inc. (NYSE:IIPR) on May 17, albeit with a reduced price target of $100, down from $125. The analyst expressed a generally positive stance on net lease and mortgage real estate investment trusts that offer financing to state-licensed cannabis operators operating in highly regulated and relatively young markets. However, Ross believes that the era of rapid growth for these REITs is in the past. 

According to Insider Monkey’s first quarter database, 15 hedge funds were long Innovative Industrial Properties, Inc. (NYSE:IIPR), compared to 14 funds in the prior quarter. Stuart J. Zimmer’s Zimmer Partners is the largest stakeholder of the company, worth $142.6 million. 

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