Loading...
Back to narrative

IIPR: Share Repurchases Will Support A More Durable Earnings Outlook

Increasing Cannabis Legalization Will Drive Robust Gains Despite Risks

IIPR logo
IIPR
AnalystHighTarget
Not Invested
Published 01 Jun 2025

Update shared on 15 Dec 2025

n/a
n/a
AnalystHighTarget's Fair Value
n/a
Loading
1Y
-44.6%
7D
13.2%

Analysts have modestly raised their price target on Innovative Industrial Properties to $90.00, citing expectations for slightly stronger profit margins and a lower future valuation multiple. Together, these factors support a more resilient long term earnings profile despite a still muted revenue growth outlook.

What's in the News

  • Completed repurchase of 371,538 shares, representing 1.31% of outstanding shares, under the buyback program announced on March 17, 2025 (company disclosure)
  • Total capital deployed for the completed buyback reached $20.1 million. This signals ongoing capital return to shareholders despite muted share repurchases in the latest tranche (company disclosure)
  • During the most recent tranche, from July 1, 2025 to September 30, 2025, the company repurchased 0 additional shares for $0 million. This indicates a pause in buyback activity for the period (company disclosure)

Valuation Changes

  • Fair Value: Unchanged at $90.00 per share, reflecting a stable intrinsic value estimate.
  • Discount Rate: Risen modestly from 7.98% to approximately 8.65%, implying a slightly higher required return and risk premium.
  • Revenue Growth: Improved from an expected decline of about 3.38% to a milder projected decline of roughly 0.94%, signaling a less negative growth outlook.
  • Net Profit Margin: Increased slightly from approximately 40.89% to about 42.12%, supporting a stronger long term earnings profile.
  • Future P/E: Declined modestly from about 28.8x to roughly 27.6x, indicating a slightly lower valuation multiple applied to forward earnings.

Have other thoughts on Innovative Industrial Properties?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.