11 Best Pot Stocks to Buy According to Hedge Funds

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5. Innovative Industrial Properties, Inc. (NYSE:IIPR)

On February 25, Piper Sandler raised the firm’s price target on Innovative Industrial Properties, Inc. (NYSE:IIPR) to $45 from $44 and maintained an Underweight rating. The firm stated that the company’s Q4 2025 earnings call highlighted the complex investment dynamic currently facing Innovative Industrial Properties, noting that both the cannabis and life science sectors appear to be at potential inflection points, though the trajectory and durability of any recovery remain uncertain. At the same time, the company continues to navigate legacy tenant credit challenges within its cannabis portfolio. Piper observed that while risks remain, early signs of stabilization are emerging. In particular, life science leasing activity is showing renewed momentum in Boston, and the company is engaged in active backfill discussions related to properties previously leased to PharmaCann, 4Front, and Gold Flora, suggesting improving demand fundamentals across portions of its portfolio.

On February 23, 2026, Innovative Industrial Properties, Inc. (NYSE:IIPR) reported full-year 2025 revenues of $266.0 million, net income attributable to common stockholders of $114.4 million, and adjusted funds from operations (AFFO) of $205.4 million. The company declared total dividends of $7.60 per share for the year, extending its record of annual dividend growth. Throughout 2025, the company executed several strategic initiatives aimed at diversification and balance sheet reinforcement, including a committed investment of up to $270.0 million in life science platform IQHQ. Since October 2025, Innovative Industrial Properties has raised $146 million through debt and preferred equity offerings, enhancing liquidity and capital flexibility. The company also executed or signed leases covering approximately 337,000 square feet across multiple properties in late 2025 and early 2026, addressed tenant defaults with partial recoveries, and secured a new $100.0 million secured revolving credit facility.

Innovative Industrial Properties, Inc. (NYSE:IIPR), founded in 2016, is widely regarded as the pioneering real estate investment trust (REIT) dedicated to the regulated U.S. cannabis industry, providing capital through sale-leaseback transactions and long-term property ownership.

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