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Innovative Industrial Properties (IIPR)
NYSE:IIPR
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Innovative Industrial Properties
(NYSE:IIPR)
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Rating:69Neutral
Price Target:
$55.00
▲(0.66% Upside)
Innovative Industrial Properties scores a 69, driven by strong profitability and a solid balance sheet. The stock's valuation is attractive with a low P/E ratio and high dividend yield. However, challenges in revenue growth, cash flow, and tenant issues pose risks. The technical indicators suggest bullish momentum, but investors should be cautious of potential overbought conditions.
Innovative Industrial Properties (IIPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.43B
Dividend Yield13.07%
Average Volume (3M)310.85K
Price to Earnings (P/E)12.0
Beta (1Y)0.80
Revenue Growth-11.22%
EPS Growth-24.64%
CountryUS
Employees21
SectorN/A
Sector StrengthN/A
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.97
Shares Outstanding28,022,976
10 Day Avg. Volume332,188
30 Day Avg. Volume310,845
Financial Highlights & Ratios
PEG Ratio-2.82
Price to Book (P/B)0.97
Price to Sales (P/S)6.10
P/FCF Ratio7.28
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue6.73
Enterprise Value/Gross Profit7.55
Enterprise Value/Ebitda8.57
Forecast
1Y Price Target
$61.33Price Target Upside12.24% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Innovative Industrial Properties Business Overview & Revenue Model
Company DescriptionInnovative Industrial Properties (IIPR) is a real estate investment trust (REIT) that specializes in the acquisition, ownership, and management of specialized industrial properties, primarily focused on the regulated cannabis industry in the United States. The company provides sale-leaseback transactions to licensed cannabis operators, enabling them to access capital while IIPR benefits from long-term leases and stable cash flows from its properties.
How the Company Makes MoneyIIPR generates revenue primarily through long-term leases with cannabis operators, which are structured as sale-leaseback agreements. In these arrangements, IIPR purchases properties from cannabis companies and leases them back, allowing these operators to free up capital for operational purposes. The company typically earns rental income, which is a significant portion of its revenue. Additionally, IIPR may benefit from property appreciation and potential growth in the cannabis sector. The company's strategy also involves expanding its portfolio through new acquisitions and partnerships with cannabis operators, further enhancing its revenue streams.
Innovative Industrial Properties Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strategic investments and financial strength, particularly with the investment in IQHQ and new credit facilities. However, the company continues to face challenges with tenant defaults and legal proceedings, as well as uncertainties in both the cannabis and life science markets.Q3-2025 Updates
Positive Updates
Investment in IQHQ
Completed initial $105 million investment into IQHQ, a life science real estate platform, expected to provide significant earnings accretion and diversify the portfolio beyond cannabis.
New Secured Revolving Credit Facility
Closed a new $100 million secured revolving credit facility to support the investment into IQHQ, reflecting confidence in the company's platform and balance sheet.
Significant Legal Victory
U.S. Court of Appeals for the Third Circuit affirmed the dismissal of a federal securities class action against IIP, allowing the company to focus on strategy execution.
Revenue Increase
Total revenues for the third quarter were $64.7 million, a 3% increase compared to the prior quarter.
Strong Balance Sheet
Maintained a low leverage capital structure with a low debt to gross assets ratio of 13% and a robust debt service coverage ratio exceeding 11x.
Negative Updates
Receivership and Litigation Issues
Ongoing receivership proceedings for 4Front Ventures and Gold Flora, with significant efforts to regain control of properties from PharmaCann in multiple states.
Tenant Health and Defaults
Approximately 20% of ABR is not rent-paying, including recent defaults accounting for less than 1% of revenue.
Federal Cannabis Reform Uncertainty
Despite political momentum, there is uncertainty around the timing and impact of federal cannabis reform and rescheduling.
Life Science Sector Challenges
Despite optimism, the life science sector, particularly IQHQ, still faces potential challenges requiring strategic capital allocation.
Company Guidance
During the Q3 2025 earnings call for Innovative Industrial Properties, Inc., the company provided significant guidance on its strategic investments and financial performance. The company completed a $105 million initial investment into IQHQ, involving a $100 million revolving credit facility and $5 million in preferred stock, with an additional $165 million commitment expected by Q2 2027. This investment is anticipated to enhance diversification and deliver accretive returns. The company also secured a new $100 million secured revolving credit facility, reflecting strong lender confidence. The cannabis portfolio faced challenges, with receivership proceedings ongoing for 4Front Ventures and Gold Flora, and legal disputes with PharmaCann, although positive legal outcomes were noted. In terms of financial performance, the company reported Q3 revenues of $64.7 million, a 3% increase from the prior quarter, with adjusted funds from operations at $48.3 million or $1.71 per share. The balance sheet was described as robust, with $2.7 billion in gross assets and a debt service coverage ratio exceeding 11x. Additionally, the company issued preferred stock and plans to refinance bonds maturing next year, maintaining a focus on strategic growth and conservative financial management.Innovative Industrial Properties Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
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Innovative Industrial Properties Technical Analysis
Negative
54.64
Price Trends
51.37
Negative
52.22
Negative
52.29
Negative
Market Momentum
0.34
Positive
46.24
Neutral
11.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIPR, the sentiment is Negative. The current price of 54.64 is above the 20-day moving average (MA) of 52.46, above the 50-day MA of 51.37, and above the 200-day MA of 52.29, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIPR.
Innovative Industrial Properties Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
75 Outperform | $6.95B | 28.77 | 7.17% | 4.02% | 9.62% | 31.08% | |
74 Outperform | $7.96B | 32.60 | 8.97% | 2.98% | 9.66% | -23.17% | |
73 Outperform | $3.00B | 26.77 | 5.62% | 5.33% | 6.98% | 465.32% | |
69 Neutral | $1.43B | 12.03 | 6.49% | 13.07% | -11.22% | -24.64% | |
67 Neutral | $985.51M | 10.95 | 20.14% | 4.39% | -4.99% | 10123.98% | |
50 Neutral | $367.29M | -4.10 | -16.39% | 2.20% | 1.08% | 14.30% |
* Sector Average
IIPR
Innovative Industrial Properties
50.88
-8.35
-14.10%
STAG
Stag Industrial
37.24
4.86
15.01%
FR
First Industrial Realty
58.28
9.85
20.34%
LXP
LXP Industrial Trust
50.71
12.37
32.26%
PLYM
Plymouth Industrial Reit
21.88
4.99
29.54%
ILPT
Industrial Logistics Properties
5.51
2.02
57.88%
Innovative Industrial Properties Corporate Events
Private Placements and FinancingLegal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Innovative Industrial Properties Invests $270M in IQHQ
Neutral
Nov 4, 2025
On November 3, 2025, Innovative Industrial Properties announced its third-quarter results, highlighting a $270 million investment in IQHQ, a life science real estate platform, marking its first venture outside the cannabis industry. This strategic move aims to diversify and enhance shareholder value. The company also secured a new $100 million credit facility, strengthening its financial flexibility. Despite a 15% revenue decline due to tenant defaults, IIP maintains a strong balance sheet with a 13% debt to total gross assets ratio and continues to pursue legal actions against defaulting tenants to recover losses.
Private Placements and FinancingBusiness Operations and Strategy
Innovative Industrial Properties Secures $100M Credit Facility
Positive
Oct 9, 2025
On October 3, 2025, Innovative Industrial Properties, Inc. announced the closing of a new $100 million secured revolving credit facility with East West Bank, aimed at supporting strategic growth in the life science industry. The facility, which includes a $35 million accordion feature, enhances the company’s financial flexibility and positions it to capitalize on the long-term strength of the life science sector, reflecting a significant commitment of capital from its banking partner.
Private Placements and FinancingBusiness Operations and Strategy
Innovative Industrial Properties Invests in Life Sciences
Positive
Oct 2, 2025
Innovative Industrial Properties, Inc. announced the completion of its initial investment into IQHQ, Inc., a life science real estate platform, on September 30, 2025. The investment, totaling $105 million, includes a $100 million revolving credit facility and $5 million in preferred stock. This marks the company’s first investment outside the cannabis industry, providing diversification to its portfolio. Additionally, the company secured a commitment for a $100 million revolving credit facility, expected to close in the fourth quarter of 2025, enhancing its financial flexibility.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.