IIPR hits 52-week high
In yesterday’s trading day, IIPR marked a new 52-week high and closed at $129.96. YTD, the only U.S. publicly traded cannabis REIT is up 76.5%.
As of October 1st, 2020, IIPR owned 63 properties, totaling approximately 5.0 million rentable square feet (including approximately 1.9 million rentable square feet under development/redevelopment), which were 99.3% leased (based on square footage) with a weighted-average remaining lease term of approximately 16.2 years. As of October 1, 2020, IIPR had invested approximately $884.5 million in the aggregate (excluding transaction costs) and had committed an additional approximately $292.0 million to reimburse certain tenants and sellers to complete construction and tenant improvements IIPR’s properties.
IIPR is a Hedgeye Cannabis Best Idea Long. Last month, we presented our long thesis on IIPR. It stands in a unique position at the intersection of the cannabis industry and the REIT space in a rapidly changing legislative landscape, earning outsized returns in the current environment with few competitors. We cover the stock's misunderstood risks and share our current views on the investment themes within the U.S. cannabis industry.
CLICK HERE for the replay (includes video and materials link).
Vermont legalizes recreational marijuana
Gov. Phil Scott (R) announced that he would allow legislation legalizing recreational marijuana sales to pass without his signature. While a victory for the U.S. cannabis industry, Vermont's recreational sales are not anticipated to begin until October 2022. Vermont is just the second state to legalize recreational usage through the legislature and not the ballot box.
Steven Hawkins, executive director of the Marijuana Policy Project, commented, “The significance of Vermont’s decision to legalize and regulate cannabis sales, especially in a state with a Republican governor and through the legislative process, cannot be overstated. This is a historic move that adds to the momentum of our movement and underlines its breadth and depth. Importantly, it comes as other state legislatures are poised to seriously consider legalization in the very near future.”
Vermont, with a population of roughly 625,000, is the 11th state to legalize recreational use.
Aphria Inc. announces completion of first EU-GMP shipment to Germany (APHA)
Aphria announced that it had completed its first certified European Union Good Manufacturing Practices ("EU GMP") shipment of dried flower from its Aphria One EU-GMP facility to its wholly-owned German subsidiary, CC Pharma GmbH ("CC Pharma"), a leading distributor of pharmaceutical products to more than 13,000 pharmacies in Germany.
In a press release, CEO Irwin Simons stated, “We are leveraging our strong medical platform and multi-faceted German strategy, which combines domestic cultivation, import licenses, and large distribution infrastructure, to increase access to high-quality medical cannabis for patients worldwide. We remain excited about future milestones, including the completion of our cultivation facility in Neumünster, Germany, which we expect will be completed in Q2 FY2021."
APHA is a BEST IDEA SHORT, and we don't see this announcement as any reason to change our view.