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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-09 00:00:00",
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      "text": "For our valuation we assumed that the average rental decrease of our good and bad case scenario, which is a 43.5% decrease. We then adjusted the company's cost of equity capital up from 5% to about 8%, still giving IIPR a premium valuation that it probably does not deserve. We conclude a price target of $22.29.",
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      "text": "We have demonstrated in this report why we are deeply skeptical of IIPR and its management. In the end, we think the business model is fundamentally flawed and starting to fall apart. IIPR is heavily dependent on capital raises, and we expect the company to approach the capital markets aggressively in 2020. The company currently still has about 10M shares available for sale through its ATM offering. The dividend will have to be reduced or financed from capital raises. We also expect Executive Chairman Alan Gold to continue pursuing other ventures more extensively. Is he realizing the tide is about to turn for IIPR in a tightening capital market? Even though flawed sell side reports from investment banks continue to push IIPR's stock we think the company will soon run out of investors willing to buy the stock at heavily inflated prices. And the clock is ticking for IIPR.",
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