Innovative Industrial Properties (IIPR) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: 15.69%
• Average Volume (3M): 310.85K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.92
• Revenue Growth: -11.22%
• EPS Growth: -24.64%
• Country: US
• Employees: 21
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.97
• Shares Outstanding: 28,022,976
• 10 Day Avg. Volume: 332,188
• 30 Day Avg. Volume: 310,845
• PEG Ratio: -2.82
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 7.28
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 6.73
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: 8.80
• 1Y Price Target: $61.33
• Price Target Upside: 12.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $54.00 ▼(-1.17% Downside)

Innovative Industrial Properties' overall score reflects strong valuation metrics and strategic investments, offset by technical weakness and challenges in revenue growth and tenant stability. The company's diversification efforts and financial strength provide a buffer against sector-specific risks, but bearish technical indicators and ongoing legal and tenant issues weigh on the score.

Positive Factors

Strategic Diversification

The investment in IQHQ diversifies IIPR's portfolio beyond cannabis, reducing sector-specific risks and enhancing growth potential.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, enabling strategic investments and resilience against market fluctuations.

Revenue Growth

Quarterly revenue growth indicates positive business momentum and the potential for sustained financial performance improvement.

Negative Factors

Tenant Health and Defaults

High tenant default rates can impact cash flow stability and increase financial risk, challenging revenue predictability.

Revenue Decline

A decline in revenue over the trailing twelve months suggests potential challenges in maintaining growth and market competitiveness.

Federal Cannabis Reform Uncertainty

Regulatory uncertainty in the cannabis sector can affect market dynamics and strategic planning, posing risks to business operations.

Innovative Industrial Properties Business Overview & Revenue Model

Company Description

Innovative 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 Money

IIPR 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 Financial Statement Overview

Summary

Innovative Industrial Properties demonstrates strong profitability and a solid balance sheet with low leverage. However, declining revenue growth and free cash flow pose potential risks. The company should focus on reversing the revenue decline and improving cash flow generation to sustain its financial health.

Income Statement

Innovative Industrial Properties shows strong profitability with a high gross profit margin of 89.2% TTM and a net profit margin of 45.4% TTM. However, the revenue growth rate has declined by 4.1% TTM, indicating potential challenges in revenue expansion. The EBIT and EBITDA margins remain robust at 38.9% and 76.4% TTM, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.18 TTM, suggesting conservative leverage. Return on equity is moderate at 6.6% TTM, indicating reasonable profitability relative to shareholder equity. The equity ratio is strong, demonstrating a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is healthy, but free cash flow has decreased by 8.6% TTM, which could impact future investments. The operating cash flow to net income ratio is not available, but free cash flow to net income is stable at 1.0, indicating that the company is generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	276.04M	308.52M	309.51M	276.36M	204.55M	116.90M
Gross Profit	246.24M	280.05M	284.61M	265.84M	200.11M	111.94M
EBITDA	211.24M	248.72M	248.88M	232.64M	172.15M	100.24M
Net Income	126.43M	161.66M	165.59M	154.39M	113.99M	65.73M
Balance Sheet
Total Assets	2.34B	2.38B	2.39B	2.41B	2.08B	1.77B
Cash, Cash Equivalents and Short-Term Investments	36.67M	146.25M	140.25M	87.12M	81.10M	126.01M
Total Debt	340.23M	297.87M	300.88M	301.50M	326.09M	137.75M
Total Liabilities	474.57M	441.99M	438.12M	452.94M	472.90M	243.11M
Stockholders Equity	1.86B	1.94B	1.95B	1.96B	1.61B	1.52B
Cash Flow
Free Cash Flow	206.09M	258.45M	255.54M	-139.75M	188.75M	-419.01M
Operating Cash Flow	206.09M	258.45M	255.54M	234.13M	188.75M	110.81M
Investing Cash Flow	-136.14M	-56.00M	-6.79M	-396.20M	-384.09M	-1.03B
Financing Cash Flow	-180.40M	-197.90M	-195.63M	164.22M	155.76M	924.99M

Innovative Industrial Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 51.17, above the 50-day MA of 53.06, and above the 200-day MA of 54.28, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 34.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXP	78 Outperform	$2.72B	24.28	5.62%	5.54%	6.98%	465.32%
STAG	75 Outperform	$7.18B	29.70	7.17%	3.87%	9.62%	31.08%
PLYM	72 Outperform	$1.00B	11.17	20.14%	4.30%	-4.99%	10123.98%
FR	68 Neutral	$7.61B	31.17	8.97%	3.05%	9.66%	-23.17%
IIPR	66 Neutral	$1.36B	11.45	6.49%	15.69%	-11.22%	-24.64%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ILPT	50 Neutral	$376.62M	-3.98	-16.39%	2.12%	1.08%	14.30%

Innovative Industrial Properties Corporate Events

Innovative Industrial Properties Expands into Life Sciences

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) specializing in the acquisition, ownership, and management of industrial and life science properties, with a focus on the cannabis sector.

Innovative Industrial Properties’ Earnings Call Highlights Strategic Moves

Innovative Industrial Properties’ Earnings Call: Strategic Investments Amidst Market Challenges

Innovative Industrial Properties Invests $270M in IQHQ

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.

The most recent analyst rating on (IIPR) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Innovative Industrial Properties stock, see the IIPR Stock Forecast page.

Innovative Industrial Properties Secures $100M Credit Facility

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.

The most recent analyst rating on (IIPR) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Innovative Industrial Properties stock, see the IIPR Stock Forecast page.

Innovative Industrial Properties Invests in Life Sciences

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.

The most recent analyst rating on (IIPR) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Innovative Industrial Properties stock, see the IIPR Stock Forecast page.

Innovative Industrial Properties Invests $270M in IQHQ

On August 6, 2025, Innovative Industrial Properties announced a strategic investment of up to $270 million in IQHQ, a life science real estate platform. This investment, comprising a revolving credit facility and preferred stock purchase, is expected to enhance earnings for IIP shareholders and diversify its portfolio beyond cannabis. The transaction positions IIP to capitalize on the life science industry’s growth, with potential benefits from warrants and real estate acquisitions from IQHQ.

The most recent analyst rating on (IIPR) stock is a Sell with a $70.00 price target. To see the full list of analyst forecasts on Innovative Industrial Properties stock, see the IIPR Stock Forecast page.

Innovative Industrial Properties Reports Q2 2025 Earnings

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) that specializes in the acquisition, ownership, and management of industrial properties leased to operators in the regulated cannabis industry across the United States.

Innovative Industrial Properties’ Earnings Call: Growth Amid Challenges

Innovative Industrial Properties Balances Growth and Challenges in Latest Earnings Call

Innovative Industrial Properties Reports Q2 2025 Financial Results

On August 6, 2025, Innovative Industrial Properties reported its second quarter 2025 results, highlighting a decrease in total revenues to $62.9 million, primarily due to tenant defaults and property sales. The company repurchased $20 million of common stock and maintained strong liquidity exceeding $190 million. Despite challenges, IIP continues to focus on improving long-term financial performance by replacing underperforming tenants with more stable operators and actively managing its property portfolio.

The most recent analyst rating on (IIPR) stock is a Sell with a $70.00 price target. To see the full list of analyst forecasts on Innovative Industrial Properties stock, see the IIPR Stock Forecast page.