IIPR STRONG QUARTER AND A GREAT RUN
We are moving IIPR to the Hedgeye Cannabis LONG BIAS list.
IIPR has had a great run up 140% last year and another 20% YTD. We will take a step back and reevaluate the stock as it gets a chance to settle in at a slower growth rate. Last night, IIPR reported Q4 FFO $1.26 vs. FactSet $1.42. 4Q20 Revenues were $37.1M vs FactSet $38.4M and AFFO of $1.29 vs FactSet $1.49. In the Press release, IIPR said it had collected 100% of contractual rent due for Q4 2020 and 100% of contractual rent due for January and February 2021 across IIP's total portfolio other than the tenant at IIP's Los Angeles, California property that was in receivership until IIPR signed a new lease with Holistic for the entire property in January 2021; and Medical Investor Holdings, LLC (Vertical), the tenant at certain properties in southern California, which made partial payments of contractual rent due during these time periods. The properties that Vertical occupies represented less than one percent of IIP's total gross assets at year-end. IIPR has not provided deferrals of any rent obligations to any tenant since 1-Jul-20.
The company is hosting an Earnings call at 1 PM EST today.
North Dakota takes a step towards legalization.
The North Dakota House of Representatives approved a bill to legalize marijuana. The bill calls for legalized sales to begin on July 1, 2022. Adults would be able to purchase and possess up to one ounce for personal use. Cannabis activists want to put a more far-reaching bill on the ballot next year and the Republican controlled House preferred to write the legislation themselves. The bill now heads to the state Senate. It is not clear where the Republican governor stands on the issue.
Republican Senate support for legalization in Pa.
There appears to be a big shift in PA. For years, Democrats in Pennsylvania’s legislature have introduced bills to legalize marijuana for adult recreational use, but without any Republican support, those bills were DOA. Yesterday, the landscape shifted with State Sen. Dan Laughlin, a Republican from Erie, proposed new legalization legislation — but with a conservative stamp. Laughlin’s measure would set up a cannabis industry that encourages small businesses and includes language to render moot a federal rule that supposedly bars marijuana users from buying guns. It marked the first time that any state Republican legislator has endorsed a plan to end the prohibition on cannabis.
