Innovative Industrial Properties Inc. Common Stock (IIPR)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable cash flows and a sensible price. This is a REIT, so reported EPS and P/E are distorted by depreciation; FFO and AFFO are the right measures, and they are not in the data. I therefore lean on book value, dividend, leverage, and revenue trend. IIPR owns 108 properties, 8.4 million square feet in 19 states, run by only 24 employees. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $63.3M, net income $43.9M, and diluted EPS $1.36. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $62.9M, net income $26.0M, and diluted EPS $0.86. That recent profit jump is encouraging, but the annual trend is softer: FY2025 revenue, the year ended 2025-12-31, was $266.0M, down from $308.5M in FY2024, the year ended 2024-12-31, and $309.5M in FY2023, the year ended 2023-12-31. At the $51.55 close on 2026-10-13, FairStock calculations show P/B 0.83, dividend yield 13.66%, D/E 0.33, FCF yield 13.8%, EV/EBITDA 7.71, ROE 7.39%, ROCE 3.28%, Piotroski 6/9, and Altman Z 1.12. The Lynch category is ASSET PLAY because it trades at 0.83 times book. A 13.7% yield with $196.4M of TTM free cash flow looks appealing, but Altman Z and ROCE warn that asset quality and returns may be weaker than the discount suggests. If the dividend is covered and revenue stabilizes, the asset discount can close; if not, it may be a value trap.

In plain English: The company owns specialized industrial buildings tied to the life-science industry and makes money by leasing them. It produces strong cash flow and pays a very high dividend, but annual revenue has fallen from earlier years, and some important real-estate profit measures are not in the data. At $51.55, the shares trade below the accounting value of the assets and at a low price compared with profits, so it looks cheap on those measures, though the falling revenue and high payout are risks.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer