Innovative Industrial Properties Declares Strategic and Diversifying $270 Million Investment In Life Science Real Estate Platform

Innovative Industrial Properties, Inc. (NYSE:IIPR) is among the 12 Best Marijuana Stocks to Buy According to Analysts. Innovative Industrial Properties, Inc. (NYSE:IIPR) has announced a $270 million investment in IQHQ, Inc., a life sciences real estate platform with approximately $5 billion in assets. A $100 million three-year-term revolving credit facility and up to $170 million in preferred stock acquisitions are part of the deal. The funding will be provided in several tranches between Q3 2025 and Q2 2027. It is projected that the investment will yield an annual weighted average interest rate of more than 14% and offer upside through warrants. Cannabis-related rental income will drop to 88% of the firm’s overall rental income after closing, expanding its holdings, and lowering tenant concentration.

Executive Chairman Alan Gold described this as Innovative Industrial Properties, Inc. (NYSE:IIPR)’s “first expansion outside of cannabis,” using decades of life science real estate experience, including his leadership at BioMed Realty Trust, which was sold to Blackstone for $8 billion in 2016. The agreement puts Innovative Industrial Properties, Inc. (NYSE:IIPR) in a solid position to capitalize on the life science sector’s strength in the face of declining new real estate deliveries and healthy fundraising patterns in 2025. It is among the Best Marijuana Stocks.

While we acknowledge the potential of IIPR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.

Disclosure. None.