Lone U.S. Cannabis REIT Trounces Peers in Legal Gray Area
- Innovative Industrial is top performing U.S. REIT in last year
- Weed landlord faces unique risks to go with outsized returns
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From the outside, the row of nondescript buildings in Hamptonburgh in upstate New York looks like any other U.S. warehouse complex. Inside, row after row of budding cannabis plants grow under bright lights and hundreds of security cameras.
The allure -- and potential -- of the marijuana industry has transformed the landlord, Innovative Industrial Properties Inc. into the best-performing U.S. real estate trust in the past 12 months. Shares rose as much as 5.3 percent Thursday in New York.