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Innovative Industrial Properties
(NYSE:IIPR)
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Rating:71Outperform
Price Target:
$58.00
â–²(1.68% Upside)
Action:Upgraded
Date:10/01/26
The score is primarily supported by strong underlying financial quality (high margins and a conservative, low-leverage balance sheet) and favorable valuation metrics (moderate P/E and very high dividend yield). These are tempered by weak technical momentum (below key moving averages and negative MACD) and mixed corporate developments, including tenant default risk despite diversification and financing initiatives.
Positive Factors
Conservative balance sheet
A conservative balance sheet gives IIPR meaningful financial flexibility as it manages tenant transitions and pursues investment opportunities. Low leverage and reported zero TTM debt can reduce refinancing pressure, preserve borrowing capacity, and help the REIT withstand volatility in the regulated cannabis property market.
Negative Factors
Uneven revenue momentum
The recent revenue contraction shows that IIPR’s growth is not yet consistently durable, despite the TTM recovery. Uneven leasing, acquisitions, or tenant conditions can make the earnings base harder to forecast and may limit the company’s ability to compound cash flow at its earlier pace over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A conservative balance sheet gives IIPR meaningful financial flexibility as it manages tenant transitions and pursues investment opportunities. Low leverage and reported zero TTM debt can reduce refinancing pressure, preserve borrowing capacity, and help the REIT withstand volatility in the regulated cannabis property market.
Read all positive factors
Innovative Industrial Properties Key Performance Indicators (KPIs)
Any
Rentable Space
Measures the total square footage available for leasing, indicating potential revenue growth and capacity to expand tenant relationships.
Measures the total square footage available for leasing, indicating potential revenue growth and capacity to expand tenant relationships.
Data provided by:
The Fly
The FlyInnovative Industrial Properties (IIPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.39B
Dividend Yield15.04%
Average Volume (3M)388.58K
Price to Earnings (P/E)11.2
Beta (1Y)0.60
Revenue Growth-8.42%
EPS Growth-3.98%
CountryUS
Employees24
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)4.51
Shares Outstanding27,571,348
10 Day Avg. Volume598,113
30 Day Avg. Volume388,584
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)0.72
Price to Sales (P/S)4.99
P/FCF Ratio7.59
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue9.06
Enterprise Value/Gross Profit14.40
Enterprise Value/Ebitda10.02
Forecast
1Y Price Target
$67.00Price Target Upside17.46% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.25
Revenue Forecast (FY)$254.08M
Innovative Industrial Properties Business Overview & Revenue Model
Company Description
Innovative Industrial Properties, Inc. is an independently managed, Maryland-based corporation primarily focused on acquiring, owning, and overseeing unique real estate assets. These properties are subsequently leased to experienced, state-license...
How the Company Makes Money
IIPR makes money primarily by generating rental revenue from long-term, triple-net leases on the properties it owns. Its core model typically involves purchasing a cannabis operator’s facility (often via sale-leaseback) and leasing it back to that...
Innovative Industrial Properties Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call depicts a company in stabilization and active execution mode: revenue and AFFO were stable with modest revenue growth (+3.5%), substantial leasing activity and portfolio re‑tenants underway, meaningful capital raising ($128M) and strong liquidity/credit metrics. Offsetting these positives are near-term refinancing needs, higher financing costs (term loan at 9% and prospective financings ~8%+), legacy tenant defaults requiring retenanting and conditional LOIs subject to licensing and diligence. Regulatory progress (medical rescheduling) is material and positive for operator economics, but important banking/interstate-commerce issues remain unresolved. Overall the company is making clear operational progress while managing elevated financing and transitional asset risks.Positive Updates
Revenue Growth
Total revenues of $69.0 million in Q1 2026, a 3.5% increase compared to Q4 2025, driven primarily by payments from PharmaCann and settlement receipts.
Negative Updates
Near-Term Unsecured Bond Maturity and Refinancing Risk
An unsecured bond maturity in the month required active capital raising; while $128M has been raised and nearly $130M of additional financings are in process (including a $56.5M financing at 8.75%), these transactions remain subject to contingencies and are not guaranteed to close on current terms.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenues of $69.0 million in Q1 2026, a 3.5% increase compared to Q4 2025, driven primarily by payments from PharmaCann and settlement receipts.
Read all positive updates
Company Guidance
On the call management reiterated disciplined capital and portfolio guidance: year-to-date they have raised $128 million (comprised of $72M preferred equity, $36M common equity and $20M secured debt) and are pursuing nearly $130M more in secured/unsecured financings (including a $56.5M facility at 8.75% expected to fund today and a recently closed $20M 3‑year secured term loan at 9%), targeting a blended cost just over 8% to address an unsecured bond maturity this month and fund growth; Q1 results were total revenues of $69M (up 3.5% QoQ) and AFFO of $53.4M or $1.88 per share (flat QoQ), with $3.2M from PharmaCann and a $1.5M Gold Flora settlement contributing, liquidity of ~$177M ($89M cash, $87.5M revolver availability), debt service coverage >11x and net debt/adjusted EBITDA of 1.1x; leasing and portfolio actions included ~331k SF of new leases in the quarter (389k SF YTD across 5 properties), all 3 Gold Flora assets (330k SF) now leased, tentative agreements on ~488k SF of 4Front assets, executed PharmaCann leases of 66k SF (Dwight, IL) and 58k SF (OH) plus a 234k SF NY LOI and other negotiations, and life‑science exposure with $175M funded of a $270M IQHQ commitment (remaining $95M expected over time) in investments averaging north of 14% yield vs ~6% cost of capital.Innovative Industrial Properties Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 263.65M | 265.95M | 308.52M | 309.51M | 276.36M | 204.55M |
| Gross Profit | 165.90M | 235.78M | 280.05M | 284.61M | 265.84M | 200.11M |
| EBITDA | 238.40M | 208.70M | 248.72M | 248.88M | 232.64M | 172.15M |
| Net Income | 137.81M | 114.44M | 161.66M | 165.59M | 154.39M | 113.99M |
Balance Sheet | ||||||
| Total Assets | 2.58B | 2.37B | 2.38B | 2.39B | 2.41B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 204.73M | 47.60M | 146.25M | 140.25M | 87.12M | 81.10M |
| Total Debt | 609.03M | 393.70M | 297.87M | 300.88M | 301.50M | 326.09M |
| Total Liabilities | 730.04M | 522.85M | 441.99M | 438.12M | 452.94M | 472.90M |
| Stockholders Equity | 1.85B | 1.85B | 1.94B | 1.95B | 1.96B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 196.45M | 174.76M | 258.45M | 255.54M | -139.75M | 188.75M |
| Operating Cash Flow | 196.45M | 198.19M | 258.45M | 255.54M | 234.13M | 188.75M |
| Investing Cash Flow | -229.79M | -174.30M | -56.00M | -6.79M | -396.20M | -384.09M |
| Financing Cash Flow | 141.31M | -122.54M | -197.90M | -195.63M | 164.22M | 155.76M |
Innovative Industrial Properties Technical Analysis
Negative
57.04
Price Trends
55.01
Negative
55.89
Negative
51.31
Negative
Market Momentum
-0.96
Positive
27.94
Positive
3.88
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 57.04 is above the 20-day moving average (MA) of 53.70, above the 50-day MA of 55.01, and above the 200-day MA of 51.31, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 27.94 is Positive, neither overbought nor oversold. The STOCH value of 3.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIPR.
Innovative Industrial Properties Risk Analysis
Innovative Industrial Properties disclosed 84 risk factors in its most recent earnings report. Innovative Industrial Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Innovative Industrial Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.39B | 11.20 | 7.39% | 15.04% | -8.42% | -3.98% | |
71 Outperform | $6.95B | 27.73 | 6.94% | 4.26% | 9.63% | 3.17% | |
69 Neutral | $8.15B | 21.62 | 13.42% | 3.27% | 8.44% | 34.29% | |
69 Neutral | $3.59B | 60.95 | 3.23% | 4.55% | -4.21% | -28.11% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $8.49B | 25.70 | 12.45% | 5.65% | 3.86% | -10.98% | |
54 Neutral | $472.56M | -9.88 | -9.81% | 3.53% | 2.69% | 48.87% |
* Real Estate Sector Average
IIPR
Innovative Industrial Properties
50.52
2.91
6.11%
CUBE
Cubesmart
37.52
-0.21
-0.55%
STAG
Stag Industrial
36.05
1.11
3.19%
FR
First Industrial Realty
59.46
9.54
19.12%
LXP
LXP Industrial Trust
60.95
16.27
36.40%
ILPT
Industrial Logistics Properties
7.08
1.74
32.56%
Innovative Industrial Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Innovative Industrial Expands Mezzanine Loan for Alewife Park
Positive
Oct 1, 2026
On September 28, 2026, Innovative Industrial Properties, through its subsidiary IIP Life Science Investments II, amended its mezzanine loan agreement with affiliates of IQHQ to expand the maximum principal to $400 million, including a new $245 mil...
Business Operations and StrategyRegulatory Filings and Compliance
Innovative Industrial Expands Authorized Share Capital Structure
Positive
Sep 25, 2026
Innovative Industrial Properties, Inc. has amended its corporate charter to expand its authorized capital structure, increasing the total number of shares it may issue from 100,000,000 to 175,000,000, effective September 25, 2026. The authorizatio...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Innovative Industrial Properties Updates Equity Distribution Partnership
Neutral
Sep 1, 2026
Innovative Industrial Properties, Inc. and its operating partnership have been using multiple equity distribution agreements with several investment banks to offer up to $500 million of common and 9.00% Series A preferred stock, including the abil...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Innovative Industrial Posts Solid Q2 Results, Strengthens Balance Sheet
Positive
Aug 3, 2026
Innovative Industrial Properties reported solid second-quarter 2026 results, with total revenues of $63.3 million, net income attributable to common stockholders of $40.7 million, or $1.36 per diluted share, and AFFO of $53.0 million, or $1.83 per...
Business Operations and StrategyFinancial Disclosures
Innovative Industrial Properties Faces Tenant Default in Florida
Negative
Jul 21, 2026
On July 20, 2026, SH Parent, Inc. affiliates, collectively known as Parallel, defaulted beyond cure periods on July rent under two Florida property leases with Innovative Industrial Properties, missing base rent, tax and insurance reimbursements, ...
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.