What is the Inflation Reduction Act (IRA) and how does it benefit Hannon Armstrong?

IRA overview: the Inflation Reduction Act of 2022 authorized approximately $369 billion in climate-related spending and tax incentives over 10 years; it expanded existing clean energy tax credits including the Investment Tax Credit (30% credit on solar and wind projects) and Production Tax Credit (per-kWh credit for wind, geothermal); new provisions include Direct Pay/Transferability — allowing tax-exempt entities (nonprofits, governments, universities) to receive refundable IRA credits directly. How HASI benefits: every solar installation and wind project HASI finances benefits from IRA incentives; the ITC reduces project cost, improving HASI's equity investment returns; direct pay provisions expand HASI's addressable market to government and nonprofit entities that couldn't previously monetize tax credits; the IRA creates roughly $1+ trillion of incentivized clean energy investment opportunity through 2032 — a massive pool of projects that need the structured financing HASI provides.

What is a sale-leaseback and how does IIPR use it in cannabis?

Sale-leaseback definition: a transaction where a property owner sells a property to an investor and simultaneously signs a long-term lease to rent back the same property; the property owner raises capital while retaining use of the property as a tenant; the investor acquires a property with a tenant immediately in place under a long-term lease. IIPR's application: a cannabis MSO sells its cultivation facility to IIPR and simultaneously signs a 20-year triple-net lease at above-market rates; the MSO receives capital to expand; IIPR owns a cannabis facility with predictable long-term NOI. Why the lease rate is above market: conventional industrial net leases yield 5-6% cap rates; IIPR's cannabis leases often yield 7-9%+ because cannabis tenants have no alternative financing sources; the premium compensates IIPR for cannabis-specific risks (tenant regulatory risks, industry financial volatility, federal illegality).

What is federal cannabis rescheduling and how would it affect IIPR?

Current scheduling: cannabis is Schedule I under the federal Controlled Substances Act — the most restrictive classification, reserved for substances with no accepted medical use; this classification makes banking and normal business operations extremely difficult. Rescheduling process: the DEA and HHS can reclassify substances through an administrative process; in August 2023, HHS recommended rescheduling cannabis from Schedule I to Schedule III; if rescheduled, cannabis would be recognized for medical use. Impact on cannabis operators: the most immediate impact would be repeal of Section 280E of the Internal Revenue Code — 280E currently prevents cannabis businesses from deducting normal business expenses from federal taxes; effective cannabis tax rates can be 70%+ due to 280E; if rescheduled, operators could deduct expenses normally, cutting effective tax rates and dramatically increasing after-tax cash flow; rent coverage ratios would improve substantially for IIPR tenants. Impact on IIPR's financing monopoly: rescheduling would not automatically allow full bank participation; IIPR's financing monopoly would be reduced but not eliminated immediately.

brimindinvest.com / compare / iipr-vs-ghstLIVE

IIPR

Innovative Industrial Properties, Inc. · Real Estate - Cannabis Facilities (Net Lease REIT)

$59.60

+9.46% this month

VERSUS

⟷

COMPARE

HASI

Hannon Armstrong Sustainable Infrastructure Capital, Inc. · Real Estate - Climate/Infrastructure Finance

$39.06

-1.64% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

IIPR

1

HASI

3

HASI LEADS 3/5

Comparison scoreboard

HASI LEADS 3/5

AI Score

IIPR ✓31.9

HASI 30.9

1Y Return

IIPR +19.14%

HASI ✓+58.69%

Fwd P/E

IIPR 12.44

HASI ✓11.73

Target Up.

IIPR +3.61%

HASI ✓+26.47%

Op. Margin

IIPR N/A

HASI N/A

Metrics last refreshed: 6/20/2026

Quick take

IIPR vs HASI Stock Comparison: AI Score, Valuation, Performance and Upside

IIPR (Innovative Industrial Properties) and HASI (Hannon Armstrong) are specialty REITs with distinct missions — IIPR provides sale-leaseback capital to cannabis operators in an industry locked out of traditional banking, creating a financing monopoly with above-market lease rates but tenant credit risk, while HASI is a climate-positive infrastructure finance company investing in solar, wind, and energy efficiency projects with IRA policy tailwinds.

IIPR vs HASI is cannabis-exclusive sale-leaseback REIT with financing monopoly and federal legalization optionality (IIPR's dominant cannabis facility ownership, triple-net leases with rent escalation, and tenant financial stress creating high-reward/high-risk profile) versus climate infrastructure finance REIT with IRA policy tailwinds and institutional government customer base (Hannon Armstrong's clean energy project debt/equity investing, secular renewable economics growth, and 7-10% EPS growth target).

Live analysis · updated 6/20/2026

HASI holds the edge across 3 of 5 key metrics in this comparison. HASI leads on both 1-year return (+58.69%) and forward P/E (11.73x vs 12.44x for IIPR), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for HASI (+26.47%) than for IIPR (+3.61%).

Normalized 1Y performance

IIPR

HASI

Recent returns

IIPR

HASI

Analyst price targets & sentiment

IIPR · 4 analysts

STRONG BUYHOLDSTRONG SELL

Hold (2.8/5.0)

Price target range

analyst low$45.00
analyst high$90.00
analyst mean$61.75
current price$59.60

+3.6% upside to analyst mean

HASI · 15 analysts

STRONG BUYHOLDSTRONG SELL

Strong Buy (1.5/5.0)

Price target range

analyst low$41.00
analyst high$57.00
analyst mean$49.40
current price$39.06

+26.5% upside to analyst mean

Who should consider this stock?

IIPR may suit investors who:

→Want exposure to the cannabis industry through a property income vehicle with the stability of long-term triple-net leases
→Believe federal cannabis normalization (rescheduling or legalization) will improve tenant credit quality and potentially unlock significant value
→Accept the risk of tenant financial stress in exchange for above-market lease rates driven by IIPR's unique financing monopoly

HASI may suit investors who:

→Want clean energy infrastructure exposure through a structured finance company with institutional and government customer credit quality and consistent EPS growth
→Believe the IRA's decade-long clean energy tax credit commitment creates a durable, policy-supported investment pipeline for HASI's project financing
→Value HASI's commitment to climate-positive investing as both a mission alignment and a secular tailwind from renewable energy's improving economics

Performance & AI score

Metric	IIPR	HASI
AI score	31.9	30.9
AI rank	#2135	#2209
Latest close	$59.60	$39.06
1M return	+9.46%	-1.64%
6M return	+10.17%	+22.15%
1Y return	+19.14%	+58.69%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	IIPR	HASI
1Y ago	$13.89K (+38.9%) started 2025-06-18	$16.75K (+67.5%) started 2025-06-18
5Y ago	$8.35K (-16.5%) started 2021-06-18	$12.19K (+21.9%) started 2021-06-18
10Y ago	$115.16K (+1051.6%) started 2016-12-01	$62.1K (+521.0%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	IIPR	HASI
Market cap	$1.73B	$4.99B
Trailing P/E	15.20	97.65
Forward P/E	12.44	11.73
Price/Sales	6.57	56.78
EV/Revenue	7.98	117.37
Analyst target	$61.75	$49.40
Target upside	+3.61%	+26.47%

Growth, profitability & risk

Metric	IIPR	HASI
Revenue growth	-3.80%	-28.30%
Earnings growth	0.00%	N/A
EPS growth	0.00%	N/A
FCF margin	+59.39%	N/A
Operating margin	N/A	N/A
Profit margin	45.58%	63.67%
ROIC proxy	6.29%	2.25%
Return on equity	6.29%	2.25%
Dividend yield	12.75%	4.44%
Beta	1.45	1.42
Debt/equity	19.32	212.74
Current ratio	0.35	3.82
Quick ratio	0.25	3.75

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

IIPR max drawdown21.29%

HASI max drawdown16.02%

IIPR max wkly drop14.74%

HASI max wkly drop9.47%

5Y risk snapshot

IIPR max drawdown78.42%

HASI max drawdown75.24%

IIPR max wkly drop31.00%

HASI max wkly drop30.59%

10Y risk snapshot

IIPR max drawdown78.42%

HASI max drawdown76.94%

IIPR max wkly drop39.57%

HASI max wkly drop46.87%

Performance metrics by period

Period	Metric	IIPR	HASI
1Y	Growth	+19.14%	+58.69%
	CAGR	+19.16%	+58.74%
	Sharpe ratio	0.52	1.44
	Max drawdown	21.29%	16.02%
	Max daily drop	10.69%	4.38%
	Max wkly drop	14.74%	9.47%
5Y	Growth	-50.59%	-8.54%
	CAGR	-13.15%	-1.77%
	Sharpe ratio	-0.24	0.10
	Max drawdown	78.42%	75.24%
	Max daily drop	22.74%	19.05%
	Max wkly drop	31.00%	30.59%
10Y	Growth	+445.72%	+215.99%
	CAGR	+19.46%	+12.20%
	Sharpe ratio	0.52	0.38
	Max drawdown	78.42%	76.94%
	Max daily drop	22.74%	20.68%
	Max wkly drop	39.57%	46.87%

Business comparison

Category	IIPR	HASI
Company	Innovative Industrial Properties, Inc.	Hannon Armstrong Sustainable Infrastructure Capital, Inc.
Sector	Real Estate - Cannabis Facilities (Net Lease REIT)	Real Estate - Climate/Infrastructure Finance
Industry	N/A	N/A
Core business	Innovative Industrial Properties (IIPR) is the only major publicly traded REIT focused on the cannabis industry, specializing in acquiring, owning, and managing specialized industrial and greenhouse facilities leased to licensed medical and adult-use cannabis operators under long-term triple-net leases. IIPR uses a sale-leaseback model: it purchases cannabis cultivation or processing facilities from multi-state operators (MSOs) who need capital to expand, then immediately leases the property back to the same operator under a 15-20 year triple-net lease with rent escalation provisions. The cannabis industry cannot access traditional bank financing (federal illegality bars federally chartered banks from serving cannabis businesses), making IIPR's sale-leaseback capital critical for MSOs seeking to grow their cultivation and processing capacity. IIPR's portfolio includes 108+ properties in 19 states with approximately 9 million square feet of space leased to cannabis tenants.	Hannon Armstrong Sustainable Infrastructure Capital (HASI) is a specialty finance company structured as a REIT that invests exclusively in climate-positive projects — renewable energy (solar, wind, onshore and offshore), energy efficiency (commercial building upgrades, LED lighting, HVAC), and other sustainable infrastructure. HASI provides debt, equity, and other structured financing to clean energy projects, with a focus on behind-the-meter efficiency projects and land-based renewable energy installations serving government, commercial, and educational facilities. HASI has committed to be 'climate positive' — investing only in projects that reduce carbon emissions.
Investor focus	Investors track IIPR's tenant rent coverage ratios, any rent deferrals or non-payment events, federal cannabis rescheduling/legalization risk and opportunity, portfolio occupancy, and dividend sustainability.	Investors track HASI's managed assets growth, distributable earnings per share growth (7-10% annual target), carbon impact of the portfolio, dividend growth, and the evolution of clean energy policy support (IRA tax credits, utility-scale solar economics).

IIPR strengths

→Monopoly position in cannabis sale-leaseback market provides pricing power — IIPR is virtually the only publicly traded cannabis-focused REIT; cannabis MSOs have extremely limited financing options; IIPR can negotiate above-market lease rates because there are no competing landlords
→Triple-net leases with built-in rent escalation provide predictable income — IIPR's leases are triple-net (tenants pay property taxes, insurance, and maintenance); annual rent escalation provisions (typically 3-4%) provide inflation protection
→Federal cannabis legalization or rescheduling could significantly increase tenant creditworthiness — if cannabis is rescheduled from Schedule I to Schedule III, cannabis operators would be able to deduct business expenses under Section 280E, dramatically improving their cash flow and rent coverage ratios

HASI strengths

→Inflation Reduction Act (IRA) creates a decade-long tailwind for clean energy investment — the 2022 IRA extended and expanded clean energy tax credits through 2032+; direct pay provisions allow government and nonprofit entities to receive refundable IRA credits directly, expanding HASI's addressable market
→Government and institutional customers provide high-quality credit exposure — HASI often finances projects for government agencies, universities, hospitals, and large corporations; these customers have strong credit profiles
→Climate infrastructure investment is a secular growth trend — energy transition to renewables is driven by economics (solar and wind are now the cheapest sources of new electricity generation) as well as policy

Risks to watch — IIPR

→Tenant financial stress creates rent default risk — several IIPR tenants have experienced financial difficulties; rent deferral, default, or lease modification create earnings disruption
→Cannabis industry competition and margin pressure threaten tenant rent coverage — as more states legalize cannabis, competition intensifies; retail cannabis price compression threatens MSO profitability and rent coverage
→Federal legalization could be double-edged — if cannabis is federally legalized, MSOs gain bank access; IIPR's pricing power would be eliminated; lease renewals at maturity would be at lower market rates

Risks to watch — HASI

→Interest rate sensitivity — HASI borrows money to fund loans and investments; rising interest rates increase HASI's cost of capital while existing assets were underwritten at lower rates
→Policy risk from political uncertainty — IRA tax credits could be modified or repealed; any significant rollback of clean energy tax credits would reduce project economics and HASI's investment opportunity
→Distributed efficiency market has more execution complexity than utility-scale renewables — thousands of small building upgrade projects require more complex origination and servicing than large utility-scale solar farms

Frequently asked questions

Federal illegality: cannabis remains a Schedule I controlled substance under the federal Controlled Substances Act (CSA); regardless of state legalization, cannabis is federally illegal. Banking system: most banks and credit unions are federally chartered or federally insured (FDIC or NCUA); as federally regulated institutions, they are prohibited from providing financial services to cannabis businesses; serving a cannabis client exposes banks to federal money laundering charges; most banks decline to serve cannabis clients to avoid federal regulatory sanctions. Practical impact: cannabis MSOs cannot open business bank accounts at major banks, cannot take out commercial loans, and often cannot process credit card payments — they are largely cash-based businesses. IIPR's role: because cannabis companies cannot access commercial real estate debt financing, IIPR purchases cannabis facilities and leases them back, providing capital operators would otherwise borrow through commercial mortgages; IIPR charges above-market lease rates because there are no competing lenders; the premium represents the 'cannabis financing premium' that MSOs pay for capital in a legally constrained environment.

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