DB:1IK

Stock Analysis Report

Innovative Industrial Properties

Executive Summary

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.


Snowflake Analysis

Solid track record with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Innovative Industrial Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1IK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.1%

1IK

3.3%

DE REITs

0.2%

DE Market


1 Year Return

66.3%

1IK

44.2%

DE REITs

14.4%

DE Market

Return vs Industry: 1IK exceeded the German REITs industry which returned 44.2% over the past year.

Return vs Market: 1IK exceeded the German Market which returned 14.4% over the past year.


Shareholder returns

1IKIndustryMarket
7 Day13.1%3.3%0.2%
30 Day28.5%8.6%0.9%
90 Day33.6%15.5%4.6%
1 Year71.9%66.3%48.8%44.2%17.9%14.4%
3 Year521.9%467.5%42.3%22.0%15.7%5.6%
5 Yearn/a46.2%14.7%23.4%6.5%

Price Volatility Vs. Market

How volatile is Innovative Industrial Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Innovative Industrial Properties undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1IK (€94.74) is trading below our estimate of fair value (€621.18)

Significantly Below Fair Value: 1IK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1IK is poor value based on its PE Ratio (72x) compared to the REITs industry average (9.8x).

PE vs Market: 1IK is poor value based on its PE Ratio (72x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1IK is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1IK is overvalued based on its PB Ratio (2.8x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is Innovative Industrial Properties forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

88.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1IK's forecast earnings growth (88.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1IK's earnings (88.5% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1IK's revenue (75.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1IK's revenue (75.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1IK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Innovative Industrial Properties performed over the past 5 years?

64.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1IK has high quality earnings.

Growing Profit Margin: 1IK's current net profit margins (45.9%) are higher than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: 1IK's earnings have grown significantly by 64.4% per year over the past 5 years.

Accelerating Growth: 1IK's earnings growth over the past year (324.5%) exceeds its 5-year average (64.4% per year).

Earnings vs Industry: 1IK earnings growth over the past year (324.5%) exceeded the REITs industry 91.2%.


Return on Equity

High ROE: 1IK's Return on Equity (3.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Innovative Industrial Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1IK has a high level of physical assets or inventory.

Debt Coverage by Assets: 1IK's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: 1IK's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1IK has a sufficient allowance for bad loans.

Low Risk Liabilities: 1IK reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1IK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1IK has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1IK has an appropriate level of bad loans.


Next Steps

Dividend

What is Innovative Industrial Properties's current dividend yield, its reliability and sustainability?

3.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1IK's dividend (3.78%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: 1IK's dividend (3.78%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1IK has been paying a dividend for less than 10 years.

Growing Dividend: 1IK's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.6%), 1IK's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1IK's dividends in 3 years are forecast to be thoroughly covered by earnings (3.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Paul Smithers (62yo)

3.7yrs

Tenure

US$1,078,293

Compensation

Mr. Paul E. Smithers is a Co-Founder of Innovative Industrial Properties, Inc. and also has been its Chief Executive Officer and President since June 2016 and Director since November 30, 2016. Mr. Smithers ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.08M) is about average for companies of similar size in the German market ($USD1.51M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alan Gold
Executive Chairman3.7yrsUS$2.61m2.21% $35.7m
Paul Smithers
President3.7yrsUS$1.08m0.24% $3.9m
Catherine Hastings
CFO, Chief Accounting Officer & Treasurer2.7yrsUS$628.27k0.093% $1.5m
Brian Wolfe
VP, General Counsel & Company Secretary3.4yrsUS$628.27k0.11% $1.8m
Andy Bui
Controller2.2yrsno datano data
Ben Regin
Director of Investments & Finance0yrsno datano data

3.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 1IK's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Gold
Executive Chairman3.7yrsUS$2.61m2.21% $35.7m
Paul Smithers
President3.7yrsUS$1.08m0.24% $3.9m
Mary Curran
Director0.2yrsno data0.0062% $99.9k
Gary Kreitzer
Vice Chairman of the Board0yrsUS$102.51k0.20% $3.2m
David Stecher
Independent Director3.3yrsUS$70.02k0.034% $542.1k
Scott Shoemaker
Independent Director3.3yrsUS$67.52k0.033% $527.0k

3.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 1IK's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1IK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 75.8%.


Top Shareholders

Company Information

Innovative Industrial Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Innovative Industrial Properties, Inc.
  • Ticker: 1IK
  • Exchange: DB
  • Founded: 2016
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: US$1.743b
  • Listing Market Cap: US$1.614b
  • Shares outstanding: 17.04m
  • Website: https://www.innovativeindustrialproperties.com

Number of Employees


Location

  • Innovative Industrial Properties, Inc.
  • 11440 West Bernardo Court
  • Suite 220
  • San Diego
  • California
  • 92127
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIPRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2016
1IKDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2016
0JBDLSE (London Stock Exchange)YesCommon StockGBUSDDec 2016
IIPR.PRANYSE (New York Stock Exchange)9% CUM PFD SER AUSUSDOct 2017

Biography

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:16
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.