Investing Experts Innovative Industrial Properties: Leverage (for a REIT) is everything
17 snips
Jan 8, 2026 Julian Lin, founder of the Best of Breed Growth Stocks investing group, dives into his bullish stance on Innovative Industrial Properties (IIPR). He discusses the potential impact of cannabis rescheduling on taxes and how it could boost multi-state operators. Lin highlights IIPR’s strong dividend safety and its advantages over rivals. He warns investors about the risks of leverage while praising IIPR’s low debt and conservative management. By focusing on fundamentals, he emphasizes the importance of valuation in navigating market hype.
AI Snips
Chapters
Transcript
Episode notes
Rescheduling Removes 280E And Boosts Tenants
- Rescheduling from Schedule I to III would remove 280E and materially improve MSO profitability.
- That step should improve tenant credit quality and benefit cannabis landlords like IIPR.
Landlord Stability Should Command A Premium
- IIPR trades cheaper than many of its MSO tenants despite having more stable rent-based cash flows.
- Landlord cash flows are less exposed to price compression, so the valuation gap is surprising.
Model Dividend Scenarios, Don't Panic
- Expect dividend variability but model scenarios rather than panic.
- Consider possible rent recoveries and low leverage when assessing dividend sustainability.