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IIPR-PA

Innovative Industrial Properties, Inc.

IIPR-PA

Innovative Industrial Properties, Inc. • NYSE
$24.98 ▲ 0.40% (+0.10)
Market Cap $1.55 B
52w High $26.67
52w Low $22.00
Dividend Yield 2.25%
P/E 5.17
Volume 4.30K
Outstanding Shares 60.19M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $64.685M ▲ $27.32M ▲ $29.305M ▲ 45.304% ▲ $1.01 ▲ $52.469M ▲
Q2-2025 $62.891M ▼ $27.126M ▼ $26.024M ▼ 41.38% ▼ $0.87 ▼ $48.968M ▼
Q1-2025 $71.722M ▼ $30.379M ▲ $31.077M ▼ 43.33% ▼ $1.05 ▼ $53.968M ▼
Q4-2024 $76.744M ▲ $27.131M ▼ $40.025M ▼ 52.154% ▼ $1.38 $61.38M ▼
Q3-2024 $76.526M $27.274M $40.215M 52.551% $1.38 $62.586M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $36.671M ▼ $2.338B ▲ $474.573M ▲ $1.863B ▼
Q2-2025 $99.666M ▼ $2.305B ▼ $424.649M ▼ $1.88B ▼
Q1-2025 $128.01M ▼ $2.353B ▼ $430.423M ▼ $1.922B ▼
Q4-2024 $146.245M ▼ $2.378B ▼ $441.987M ▼ $1.936B ▼
Q3-2024 $147.128M $2.395B $448.794M $1.947B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $29.305M ▲ $45.591M ▼ $-109.664M ▼ $1.078M ▲ $-62.995M ▼ $45.591M ▼
Q2-2025 $26.024M ▼ $48.449M ▼ $-5.756M ▲ $-71.037M ▼ $-28.344M ▼ $48.449M ▼
Q1-2025 $31.077M ▼ $54.242M ▼ $-17.156M ▼ $-55.321M ▲ $-18.235M ▼ $54.242M ▲
Q4-2024 $39.455M ▼ $58.067M ▼ $-3.565M ▼ $-55.385M ▼ $-883K ▼ $40.625M ▼
Q3-2024 $40.215M $64.869M $6.402M $-44.978M $26.293M $64.869M

Five-Year Company Overview

Income Statement

Income Statement The income statement shows a company that has grown quickly and then leveled into a more mature, steady phase. Revenue and profit have climbed materially over the past few years and have stayed fairly stable more recently, which is notable given the volatility of the cannabis sector. Profit margins remain high for a REIT, reflecting long-term leases and triple-net structures that keep property costs mostly on tenants. Earnings per share have risen over time, but more recently appear to be flattening, suggesting growth has slowed from the earlier rapid expansion phase. Overall, the business looks consistently profitable with solid underlying economics, but not in the same hyper-growth mode it was in a few years ago.

Balance Sheet

Balance Sheet The balance sheet looks conservative and solid for a specialized REIT. Total assets have grown, but more gradually in the last few years, signaling a shift from aggressive property acquisition to a more measured pace. Equity makes up the bulk of the capital structure, with debt at a moderate level and relatively stable over time. Cash on hand is not huge but appears adequate given the predictable rental streams and the REIT model. The limited use of leverage, especially for a real estate business, gives the company some resilience if the cannabis market weakens or financing conditions tighten.

Cash Flow

Cash Flow Cash flow from operations has tracked the profit story: rising over time and now fairly steady, which points to good cash conversion from rental income. In earlier years, the company poured significant cash into new properties and improvements, which pushed free cash flow negative. More recently, capital spending has pulled back and free cash flow has turned clearly positive. That shift suggests the portfolio is more built-out and the company is now in a harvest phase, with incoming cash comfortably covering its ongoing needs and leaving room for distributions and selective new investments.

Competitive Edge

Competitive Edge The company occupies a distinctive niche as a specialist landlord to the regulated cannabis industry, supported by triple-net, long-term leases. Its first-mover status, scale advantage, and deep regulatory know-how create meaningful barriers to entry for new competitors and for generalist REITs. Tenants benefit from sale-leaseback structures when traditional banks are hesitant to lend to cannabis operators, which gives the company bargaining power and strong demand for its capital. On the other hand, its focus means exposure to tenant credit risk, regulatory changes, and the health of the cannabis industry remain key vulnerabilities, only partly offset by its recent steps into life sciences real estate.

Innovation and R&D

Innovation and R&D Innovation here is mostly about business model and specialized property expertise rather than traditional R&D. The company pioneered tailored sale-leaseback financing for cannabis operators, helping them unlock capital while funding highly customized, technology-heavy facilities. It supports advanced building systems for climate control, lighting, automation, and security—financed through its real estate investments rather than owned technology. Management has also started to innovate on portfolio mix, using its sector experience to diversify into life science properties via a large preferred and credit investment. That move is designed to reduce dependence on cannabis while leaning on similar skill sets in regulated, mission-critical real estate.

Summary

Overall, Innovative Industrial Properties shows the profile of a niche REIT that moved quickly to build a profitable, high-margin portfolio and is now transitioning into a steadier, cash-generative phase. Its strengths lie in predictable rental income, conservative leverage, and a differentiated position serving tenants with limited financing alternatives. The main risks relate to tenant health, regulatory uncertainty in cannabis, and concentration in a still-maturing industry. The early steps into life sciences real estate add an element of diversification but also introduce execution risk. For observers, the key questions going forward are how well the company manages tenant quality, adapts to any regulatory shifts, and balances growth ambitions with the protection of its strong balance sheet and cash flow profile.