Core Viewpoint - Real estate investment trusts (REITs) are popular among income-seeking investors due to their requirement to distribute most earnings as dividends, but they face challenges that can threaten dividend payouts [1] Group 1: Innovative Industrial Properties (IIP) - IIP focuses on the medical cannabis industry by purchasing real estate from marijuana growers and leasing it back to them [2] - The cannabis industry has faced difficulties, impacting IIP's operations, including declining revenue and earnings, and a significant tenant, PharmaCann, defaulting on rent obligations, which accounted for about 17% of IIP's rental revenue [4] - A deal was reached with PharmaCann for repayment of owed rent and a new lease agreement, while IIP continues to own 109 properties across 19 states, with medical cannabis legal in 38 states [5] - IIP has maintained its dividend despite recent challenges, appealing to investors looking for resilient dividend options [6] Group 2: Medical Properties Trust (MPT) - MPT operates medical facilities and has faced issues with two tenants declaring bankruptcy, leading to financial difficulties and reduced payouts [7] - MPT has begun addressing these challenges by securing new tenants for facilities previously occupied by Steward Health Care, with average lease terms of about 18 years [8] - MPT has 396 medical properties across the U.S. and Europe, and despite recent challenges, it is expected to benefit from long-term trends in the healthcare sector, such as an aging population [9] Group 3: Investment Comparison - IIP generates higher funds from operations and has a significantly higher annual dividend per share and trailing-12-month dividend yield compared to MPT [11] - MPT operates in the medical industry, which has strong long-term prospects, while the future of the cannabis sector remains uncertain [12] - The uncertainty surrounding the cannabis industry raises questions about IIP's future performance, while MPT is expected to gradually return to stable financial results and increase dividends [13] - The choice between IIP and MPT depends on investor preferences, with bullish investors on cannabis favoring IIP and risk-averse investors opting for MPT [14]