Koa Wealth Liquidates All 68K IIPR Shares Valued at $3.8 Million
Key Points
Sold 68,221 shares of Innovative Industrial Properties for an estimated $3.77 million, based on the quarterly average price in Q3 2025
Post-trade stake is zero shares, or $0 in value
The position previously accounted for 3.0% of fund AUM
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Koa Wealth Management, LLC fully exited its position in Innovative Industrial Properties (NYSE:IIPR), selling all 68,221 shares for an estimated $3.77 million in Q3 2025.
What happened
According to a filing with the U.S. Securities and Exchange Commission dated October 28, 2025, Koa Wealth Management, LLC liquidated its entire holding in Innovative Industrial Properties (NYSE:IIPR), selling 68,221 shares for an estimated $3.77 million based on the quarterly average price in Q3 2025. The fund held zero shares of the company as of September 30, 2025.
What else to know
The complete sale removes Innovative Industrial Properties from the fund’s portfolio; the position previously represented 3.0% of AUM in the prior quarter.
Post-sale, the fund’s largest holdings are:
- BRK-B: $19.58 million (14.5% of AUM)
- AAPL: $15.30 million (11.3% of AUM)
- GOOGL: $8.14 million (6.0% of AUM)
- HALO: $6.35 million (4.7% of AUM)
- SGOV: $6.17 million (4.6% of AUM)
As of October 29, 2025, shares of Innovative Industrial Properties were priced at $49.63, down 25.5% YTD, underperforming the S&P 500 by 42.6 percentage points during the same period. The company’s annualized dividend yield stands at 14.46%.
Company Overview
| Metric | Value |
|---|---|
| Price (as of October 29, 2025) | $49.63 |
| Dividend Yield | 14.46% |
| YTD Performance | -25.5% |
Company Snapshot
- Owns and leases specialized industrial real estate properties tailored for regulated medical-use cannabis cultivation and processing.
- Operates as a real estate investment trust (REIT) and leases properties to licensed cannabis operators.
- Targets experienced, state-licensed cannabis businesses as primary tenants within the U.S. medical-use cannabis sector.
- Innovative Industrial Properties, Inc. is a REIT focused on acquiring and managing properties leased to operators in the regulated medical-use cannabis industry.
Foolish take
Koa Wealth Management just sold off its entire $3.8 million stake in Innovative Industrial Properties, completely exiting the cannabis-focused REIT after a really tough year for the stock. With shares down over 25% in 2025, the company has been struggling with higher interest rates, falling property values, and tighter financing conditions across the whole cannabis sector. The fund's decision to move on probably reflects a cautious approach to industries that are sensitive to both regulatory uncertainty and how much it costs to get funding.
Innovative Industrial Properties still plays a unique role in the medical cannabis market, owning and leasing specialized cultivation and processing facilities to licensed operators. Its high 14% dividend yield highlights both its appeal for income and the market's skepticism about its future growth. Even though volatility has affected sentiment, the company maintains steady cash flow through long-term leases. Koa's exit suggests a shift towards more stable or diversified holdings, even if long-term investors might still see some deep-value potential in the REIT's portfolio.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Liquidated: Sold off an entire investment position, reducing the holding to zero.
Quarterly Average Price: The average price of a security over a specific quarter, used for estimating transaction values.
Alpha: A measure of an investment's performance relative to a benchmark index, showing excess return.
Dividend Yield: Annual dividends paid by a company expressed as a percentage of its share price.
Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
Stake: The amount of ownership or investment a fund holds in a particular company.
Portfolio: The collection of investments held by an individual or institution.
TTM: The 12-month period ending with the most recent quarterly report.
Medical-use Cannabis Sector: The industry focused on the cultivation and distribution of cannabis for medical purposes under regulatory oversight.
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Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and iShares Trust - iShares 0-3 Month Treasury Bond ETF. The Motley Fool recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.
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