Cannabis REIT Innovative Industrial slides after boosted $350 mln exchangeable

Innovative Industrial Properties

10/06/2026 14:13

** Innovative Industrial Properties' IIPR.N shares down 4.6% before the bell to $57.56 after above-target capital raise
** The REIT, which acquires and leases properties to state-licensed cannabis facilities operators, announces pricing private offering of $350 mln 6% exchangeable notes due 2029
** Offering size increased from $250 mln; initial exchange price of $69.39 represents 15% premium to stock's last sale on Tues
** IIPR intends to use net offering proceeds for working capital and general purposes, including debt repayment and funding investments consistent with its investment strategy
** Also intends to use up to $70 mln of proceeds to repurchase its shares to facilitate hedging by investors in the exchangeable notes
** Park City, Utah-headquartered IIPR has about $1.7 bln market cap
** Through Tues, IIPR shares up 27.5% YTD
** Of 6 analysts covering the stock, 1 rates "buy", 4 "hold", 1 "sell"; median PT $56, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))