Shares of Revolutionary Industrial Properties (NYSE:IIPR) declined 17.7% in October, according to information from S&P International Market place Intelligence. The stock’s return was also unfavorable 17.7%, due to the fact no dividends had been paid through the month.
The San Diego-primarily based business is a true estate investment trust (REIT) specializing in properties made use of for developing and processing cannabis in U.S. states exactly where healthcare marijuana is legal.
For context, the S&P 500 index returned 2.two% final month.
We can attribute Innovative Industrial stock’s subpar displaying in October to continued weakness in the all round cannabis sector rather than to business-certain happenings. Final month, for instance, shares of major Canadian cannabis growers Canopy Development, Aurora Cannabis, and Cronos declined 13%, 18.two%, and 9.three%, respectively.
Whilst Revolutionary Industrial’s stock has been dragged down more than the final handful of months by sector weakness, the speedy-developing business continues to post fantastic quarterly numbers. In the second quarter, its income soared 155% year more than year to $eight.28 million, earnings per share (EPS) jumped 76% to $.30, and adjusted funds from operations (FFO) per share — a crucial profitability metric for REITs — surged 90% to $.59.
Immediately after its current huge pullback, Revolutionary Industrial Properties stock is trading at 23.7 occasions its forward earnings, so it really is hunting rather exciting. This is a compelling valuation for a business with its development dynamics.
Investors ought to be finding material news quickly, as the business is slated to report its third-quarter outcomes on Wednesday, Nov. six, just after the industry closes.
Wall Street is hunting for EPS of $.47 on income of $10.7 million, representing development of 124% and 174%, respectively, year more than year. Sturdy earnings development generally translates to robust FFO development.