** Shares of Innovative Industrial Properties IIPR.N, which acquires and leases properties to state-licensed cannabis facilities operators, down 2.6% to $58.75 post-market as it looks to raise capital

** REIT kicks off private offering of $250 mln exchangeable notes due 2029

** It plans to use net offering proceeds for working capital and general purposes, including debt repayment and funding investments consistent with its investment strategy

** Also intends to use up to $50 mln of proceeds to repurchase its shares to facilitate hedging for exchangeable notes investors

** IIPR shares finished up 1.9% at $60.34 on Tues, up 27.5% YTD

** Park City, Utah-based firm has about $1.7 bln market cap

** Of 6 analysts covering the stock, 1 rates "buy", 4 "hold", 1 "sell"; median PT $56, per LSEG data