(IIPR) Innovative Industrial - Overview
Sector: Real Estate | Industry: REIT - Industrial | Exchange: NYSE (USA) | Market Cap: 1.642m USD | Total Return: 16.6% in 12m
Avg Turnover: 15.0M
EPS Trend: -91.4%
Qual. Beats: -1
Rev. Trend: -72.0%
Qual. Beats: 1
Warnings
Altman Z'' -1.53 < 1.0 - financial distress zone
Choppy
Tailwinds
No distinct edge detected
Innovative Industrial Properties, Inc. (IIPR) is a self-advised Maryland real estate investment trust (REIT) established in 2016. The company specializes in the acquisition and management of industrial properties and life science real estate, primarily targeting the regulated U.S. cannabis industry.
The business model utilizes sale-leaseback transactions, allowing licensed operators to release capital tied up in real estate while providing the REIT with long-term, triple-net lease agreements. This sector is characterized by high barriers to entry due to complex state-level regulations and limited access to traditional banking services for cannabis-related businesses.
For a detailed breakdown of the companys valuation metrics and historical performance, consider reviewing the data on ValueRay. Analyzing the specific lease terms and tenant diversification will further clarify the risk-return profile of this industrial REIT.
- Federal cannabis legalization progress impacts tenant credit risk and financing competition
- Triple-net lease structure maintains high operating margins through inflationary cost cycles
- Tenant concentration in multi-state operators drives predictable rental revenue growth
- Elevated interest rates increase cost of capital for property acquisition pipeline
- State-level licensing expansion dictates demand for specialized cultivation and processing facilities
| Net Income: 120.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -1.29 > 1.0 |
| NWC/Revenue: -105.3% < 20% (prev 6.80%; Δ -112.1% < -1%) |
| CFO/TA 0.08 > 3% & CFO 200.0m > Net Income 120.0m |
| Net Debt (277.9m) to EBITDA (216.4m): 1.28 < 3 |
| Current Ratio: 0.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (28.5m) vs 12m ago -0.42% < -2% |
| Gross Margin: 60.26% > 18% (prev 0.90%; Δ 5.94k% > 0.5%) |
| Asset Turnover: 11.09% > 50% (prev 12.96%; Δ -1.86% > 0%) |
| Interest Coverage Ratio: 6.42 > 6 (EBITDA TTM 216.4m / Interest Expense TTM 22.1m) |
| A: -0.12 (Total Current Assets 89.1m - Total Current Liabilities 366.2m) / Total Assets 2.39b |
| B: -0.14 (Retained Earnings -337.3m / Total Assets 2.39b) |
| C: 0.06 (EBIT TTM 142.1m / Avg Total Assets 2.37b) |
| D: -0.68 (Book Value of Equity -337.3m / Total Liabilities 499.4m) |
| Altman-Z'' = -1.53 = D |
| DSRI: 0.85 (Receivables 16.8m/22.8m, Revenue 263.2m/304.8m) |
| GMI: 1.50 (GM 60.26% / 90.44%) |
| AQI: 1.03 (AQ_t 0.96 / AQ_t-1 0.94) |
| SGI: 0.86 (Revenue 263.2m / 304.8m) |
| TATA: -0.03 (NI 120.0m - CFO 200.0m) / TA 2.39b) |
| Beneish M = -2.81 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 57.06 with a total of 219,700 shares traded.
Over the past week, the price has changed by +5.71%,
over one month by +2.33%,
over three months by +12.27% and
over the past year by +16.62%.
Innovative Industrial has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold IIPR.
- StrongBuy: 1
- Buy: 1
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 62.4 | 9.4% |
P/E Trailing = 14.5561
P/E Forward = 13.2979
P/S = 6.2374
P/B = 0.9191
Revenue TTM = 263.2m USD
EBIT TTM = 142.1m USD
EBITDA TTM = 216.4m USD
Long Term Debt = 291.0m USD (from longTermDebt, last quarter)
Short Term Debt = 366.2m USD (from shortTermDebt, last quarter)
Debt = 367.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 998k
Net Debt = 277.9m USD (calculated: Debt 367.0m - CCE 89.1m)
Enterprise Value = 1.92b USD (1.64b + Debt 367.0m - CCE 89.1m)
Interest Coverage Ratio = 6.42 (Ebit TTM 142.1m / Interest Expense TTM 22.1m)
EV/FCF = 9.74x (Enterprise Value 1.92b / FCF TTM 197.0m)
FCF Yield = 10.26% (FCF TTM 197.0m / Enterprise Value 1.92b)
FCF Margin = 74.85% (FCF TTM 197.0m / Revenue TTM 263.2m)
Net Margin = 45.58% (Net Income TTM 120.0m / Revenue TTM 263.2m)
Gross Margin = 60.26% ((Revenue TTM 263.2m - Cost of Revenue TTM 104.6m) / Revenue TTM)
Gross Margin QoQ = 35.15% (prev 32.41%)
Tobins Q-Ratio = 0.80 (Enterprise Value 1.92b / Total Assets 2.39b)
Interest Expense / Debt = 6.03% (Interest Expense 22.1m / Debt 367.0m)
Taxrate = 21.0% (US default 21%)
NOPAT = 112.3m (EBIT 142.1m * (1 - 21.00%))
Current Ratio = 0.24 (Total Current Assets 89.1m / Total Current Liabilities 366.2m)
Debt / Equity = 0.19 (Debt 367.0m / totalStockholderEquity, last quarter 1.89b)
Debt / EBITDA = 1.28 (Net Debt 277.9m / EBITDA 216.4m)
Debt / FCF = 1.41 (Net Debt 277.9m / FCF TTM 197.0m)
Total Stockholder Equity = 1.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.06% (Net Income 120.0m / Total Assets 2.39b)
RoE = 5.43% (Net Income TTM 120.0m / Total Stockholder Equity 2.21b)
RoCE = 5.68% (EBIT 142.1m / Capital Employed (Equity 2.21b + L.T.Debt 291.0m))
RoIC = 4.71% (NOPAT 112.3m / Invested Capital 2.38b)
WACC = 6.96% (E(1.64b)/V(2.01b) * Re(7.45%) + D(367.0m)/V(2.01b) * Rd(6.03%) * (1-Tc(0.21)))
Discount Rate = 7.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -6.67 | Cagr: 0.29%
[DCF] Terminal Value 73.62% ; FCFF base≈207.8m ; Y1≈187.5m ; Y5≈160.5m
[DCF] Fair Price = 79.23 (EV 2.56b - Net Debt 277.9m = Equity 2.28b / Shares 28.8m; r=8.35% [WACC [floored]]; 5y FCF grow -12.02% → 2.50% )
EPS Correlation: -91.39 | EPS CAGR: -14.27% | SUE: -0.85 | # QB: -1
Revenue Correlation: -71.97 | Revenue CAGR: -4.85% | SUE: 1.72 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.02 | Chg30d=-3.30% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.09 | Chg30d=+1.70% | Revisions=N/A | Analysts=2
EPS current Year (2026-12-31): EPS=4.28 | Chg30d=-0.47% | Revisions=-20% | GrowthEPS=+8.9% | GrowthRev=+3.2%
EPS next Year (2027-12-31): EPS=4.79 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+11.9% | GrowthRev=+0.6%
[Analyst] Revisions Ratio: -20%