What happened Shares of Innovative Industrial Properties (NYSE: IIPR) jumped 16.7% on Thursday after the real estate investment trust (REIT) delivered strong third-quarter results. So what IIP has steadily expanded its portfolio of medical-use cannabis facilities over the past year. In the third quarter, its revenue soared 197% to $34.3 million, while its net income and adjusted funds from operations (AFFO) -- an important cash flow metric for REITs -- climbed 205% and 192%, respectively, to $18.9 million and $27.9 million. Innovative Industrial Properties delivered sizable gains to its investors on Thursday. Image source: Getty Images. IIP's growth metrics were more modest on a per-share basis, as they were impacted by the stock offerings it conducted to raise the capital it needed to purchase properties. Yet they were impressive nonetheless. IIP's earnings and AFFO per share rose 56% and 49%, respectively, to $0.86 and $1.28. The REIT invested $180 million to acquire five properties (in Florida, Michigan, and New Jersey) and upgrade several others during the quarter. Now what IIP has a massive growth opportunity before it -- one that's about to get even bigger. Marijuana legalization measures passed in five states during the recent U.S. elections. Each new state that legalizes cannabis expands the number of markets that IIP can purchase properties within. And with more than $600 million in cash and investments on its balance sheet, IIP has the capital it needs to continue to expand its cannabis-focused real estate empire in the year ahead. 10 stocks we like better than Innovative Industrial PropertiesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Innovative Industrial Properties wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.Source