Innovative Industrial Properties manages $290M bond maturity with preferred equity and cheap debt issuance.

Innovative Industrial Properties (IIPR) addressed a $290 million bond maturity by issuing preferred equity and later securing low-cost senior unsecured debt. The preferred shares (IIPR.PR.A) saw a sharp price drop due to these capital structure moves, not because of any fundamental business issues, and have since recovered. The company maintains a strong balance sheet with a low debt-to-assets ratio of 0.14 and a high debt service coverage ratio of 10.4x. With no further pressure from new preferred share issuance, the 9%+ yield on IIPR.PR.A shares is considered attractive in the current market environment.