IIPR.PR.B: A Fairly Priced Preferred Stock IPO From Innovative Industrial Properties

What happened: Innovative Industrial Properties issued a 9.25% Series B Cumulative Preferred Stock (IIPR.PR.B), which is now trading slightly below par. Key numbers: 9.25% Series B preferred coupon. Q3'26 AFFO per share covers the common dividend. Why it matters: The analyst calls IIPR-B fairly priced and sees better value in waiting for price weakness or seeking higher-quality, undervalued investment-grade preferreds elsewhere. Heavy cannabis sector exposure and past tenant defaults warrant caution.

Innovative Industrial Properties issued a 9.25% Series B Cumulative Preferred Stock (IIPR.PR.B), which is now trading slightly below par.

The analyst calls IIPR-B fairly priced and sees better value in waiting for price weakness or seeking higher-quality, undervalued investment-grade preferreds elsewhere. Heavy cannabis sector exposure and past tenant defaults warrant caution.