Innovative Industrial Properties

IIPR · NYSE · Real Estate · Financials, fiscal 2017 to 2025

IIPR · Last close · November 6, 2026

$54.83

Value Innovative Industrial Properties yourself

Innovative Industrial Properties' revenue fell 13.8% to $266 million in fiscal 2025. Its operating margin was 46.7%, down from 54.6% a year earlier. It paid out $236 million in dividends and buybacks. The diluted share count fell 0.5%.

Innovative Industrial Properties, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 24, 2026 · 0001677576-26-000001 Updated November 5, 2026

Revenue

$266M

13.8%

Operating margin

46.7%

7.9 pts

Net income

$118M

26.9%

Free cash flow

—

Return on equity

6.2%

2.1 pts

Market cap

$1.5B

Nov 6 close

P/E

12.4x

On $4.43 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Innovative Industrial Properties does

IIP is a real estate investment trust (REIT) that owns specialized industrial and commercial buildings in the United States. Most of its properties are leased to state-licensed operators for their regulated cannabis facilities. It also has financial investments in the life science industry and plans to buy properties in that sector.

It earns money mainly from rent. It buys properties through sale-leaseback deals, where it buys a building from the operator that uses it and leases it back, and through purchases from third parties. Leases are generally triple-net, meaning the tenant pays for repairs, maintenance, property taxes and insurance.

At the end of 2025 it owned 111 properties covering 8.9 million rentable square feet in 19 states, and had invested $2.5 billion across them. It is managed internally and had 23 full-time employees.

Its biggest risks, as it describes them

Cannabis remains illegal under federal law, which could limit its and its tenants' ability to operate.
Tenants that default on rent, and the difficulty of re-leasing cannabis properties.
Tenants may be unable to keep the state and local licenses they need to operate.
Its tenants may owe higher taxes because of a federal tax rule that applies to cannabis businesses.
Risks in life science properties, a sector it is moving into.

From Innovative Industrial Properties's annual report on Form 10-K, filed February 24, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2018 to 2025, earnings per share grew 26.7% a year and net income 49.7% a year, as new shares raised the share count by 289% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	406	288	162	151	48
Debt incl. finance leases	—	—	—	—	394
Net debt (negative means net cash)	—	—	—	—	346
Net debt to EBITDA	—	—	—	—	1.8x
Debt to equity	—	—	—	—	0.2x
Interest coverage	7.5x	9.3x	10.0x	9.5x	6.2x
Current ratio	—	—	—	—	—
Quick ratio	—	—	—	—	—

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Innovative Industrial Properties' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Innovative Industrial Properties' projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 3 insiders bought $277,072 of Innovative Industrial Properties shares on the open market, and 1 insider sold $34,436.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 15, 2026	Scott ShoemakerDirector	Sold	611	$56.36	$34,436	Form 4
Aug 31, 2026	Bruce Alan IvesDirector	Bought	528	$56.70	$29,938	Form 4
Nov 24, 2025	Alan D GoldExecutive Chairman, Director	Bought	2,600	$49.09	$127,634	Form 4
Nov 20, 2025	Alan D GoldExecutive Chairman, Director	Bought	1,000	$45.70	$45,700	Form 4
Nov 20, 2025	David Jon SmithCFO and Treasurer	Bought	600	$45.90	$27,540	Form 4
Nov 19, 2025	Alan D GoldExecutive Chairman, Director	Bought	1,000	$46.26	$46,260	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	—	—	—
Altman Z''	—	—	—
Accruals ratio	−3.7%	−4.1%	−3.4%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	—	—	—
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	—	—	—
Revenue rose relative to assets	Fail	Pass	Fail
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Innovative Industrial Properties side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Innovative Industrial Properties	FY25	−13.8%	46.7%	—	—	1.8x	—
Broadstone Net Lease	FY25	5.2%	—	59.4%	3.6%	7.1x	—	Compare
Terreno Realty	FY25	24.5%	—	43.8%	—	—	—	Compare
EastGroup Properties	FY25	12.7%	—	56.1%	—	—	—	Compare
First Industrial Realty Trust	FY25	8.6%	—	—	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

9 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	6	15	45	117	205	276	310	308	266
Revenue growth	—	130.3%	202.1%	161.7%	75.0%	35.1%	12.0%	−0.3%	−13.8%
Gross profit	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—
Operating income	−0	5	25	70	135	170	175	168	124
Net income	−0	7	24	66	114	154	166	162	118
Diluted EPS (US$)	−0.13	0.75	2.03	3.27	4.55	5.52	5.77	5.52	3.93
Diluted shares (millions)	3	7	11	20	26	28	28	28	28
Cash flow
Cash from operations	5	16	45	111	189	234	256	258	198
Capital expenditure	6	—	—	—	—	—	—	—	—
Free cash flow	−1	—	—	—	—	—	—	—	—
Dividends paid	1	7	23	76	131	184	203	212	216
Share buybacks	0	0	0	0	0	0	0	0	20
Acquisitions	0	0	0	0	0	0	0	0	0
Stock-based compensation	2	2	2	3	9	18	20	17	10
Balance sheet at fiscal year end
Cash and short-term investments	12	134	202	745	406	288	162	151	48
Debt incl. finance leases	—	—	135	—	—	—	—	—	394
Total assets	80	282	746	1,768	2,085	2,415	2,391	2,378	2,371
Total liabilities	6	17	198	243	473	453	438	442	523
Shareholders' equity	74	264	548	1,525	1,612	1,962	1,953	1,936	1,848
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—
Operating margin	−3.5%	36.1%	55.8%	59.7%	66.2%	61.4%	56.4%	54.6%	46.7%
Net margin	−1.1%	47.2%	52.6%	56.2%	55.7%	55.9%	53.5%	52.4%	44.5%
Free cash flow margin	−14.0%	—	—	—	—	—	—	—	—
Rule of 40 (growth + FCF margin)	—	—	—	—	—	—	—	—	—
Return on capital	—	—	—	—	—	—	—	—	—
Return on equity	—	4.1%	5.8%	6.3%	7.3%	8.6%	8.5%	8.3%	6.2%
Return on assets	—	3.9%	4.6%	5.2%	5.9%	6.9%	6.9%	6.8%	5.0%
Net debt to EBITDA	—	—	−2.0x	—	—	—	—	—	1.8x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Innovative Industrial Properties' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Innovative Industrial Properties.