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IIPR

Innovative Industrial PropertiesNYSE:IIPR Stock Report

Last Price

US$199.37

Market Cap

US$4.8b

7D

-7.5%

1Y

1.9%

Updated

19 Jan, 2022

Data

Company Financials +
IIPR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance5/6
Financial Health4/6
Dividends3/6

IIPR Stock Overview

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 Competitors

NewLake Capital Partners

OTCPK:NLCP

US$573.4m

General Cannabis

OTCPK:CANN

US$32.8m

MJ Holdings

OTCPK:MJNE

US$19.0m

AmeriCann

OTCPK:ACAN

US$16.6m

Price History & Performance

Summary of all time highs, changes and price drops for Innovative Industrial Properties
Historical stock prices
Current Share PriceUS$199.37
52 Week HighUS$288.02
52 Week LowUS$160.91
Beta1.47
1 Month Change-16.14%
3 Month Change-22.33%
1 Year Change1.92%
3 Year Change250.20%
5 Year Change949.87%
Change since IPO941.10%

Recent News & Updates

Jan 13

Innovative Industrial Properties Is A Dipper, And It Just Dipped

IIPR provides real estate capital to the medical-use cannabis (AKA marijuana) industry. IIPR's sale-leaseback program is composed of triple-net leases. IIPR has a history of steep drawdowns that are followed by quarters of growth upon accumulation, and such a drawdown appears to have just been completed.

Dec 15

Innovative Industrial Properties: Hypergrowth Is Finished, But Market-Beating Returns Will Continue

Innovative Industrial Properties has experienced rapid growth since their IPO in 2016. Their tenant base is well diversified among cannabis operators and across the country. The SAFE Banking Act is a potential headwind looming on the regulatory horizon. Higher base rents and rent escalators compared to other REITs make Innovative Industrial Properties a buy despite future regulatory changes.

Shareholder Returns

IIPRUS REITsUS Market
7D-7.5%-3.2%-4.6%
1Y1.9%25.7%7.7%

Return vs Industry: IIPR underperformed the US REITs industry which returned 29.9% over the past year.

Return vs Market: IIPR underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is IIPR's price volatile compared to industry and market?
IIPR volatility
IIPR Average Weekly Movement5.4%
REITs Industry Average Movement4.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: IIPR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IIPR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201619Paul Smithershttps://www.innovativeindustrialproperties.com

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.

Innovative Industrial Properties Fundamentals Summary

How do Innovative Industrial Properties's earnings and revenue compare to its market cap?
IIPR fundamental statistics
Market CapUS$4.77b
Earnings (TTM)US$104.79m
Revenue (TTM)US$182.70m

45.5x

P/E Ratio

26.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IIPR income statement (TTM)
RevenueUS$182.70m
Cost of RevenueUS$3.64m
Gross ProfitUS$179.07m
ExpensesUS$74.27m
EarningsUS$104.79m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.38
Gross Margin98.01%
Net Profit Margin57.36%
Debt/Equity Ratio28.6%

How did IIPR perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

85%

Payout Ratio

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: IIPR ($199.37) is trading below our estimate of fair value ($679)

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


Price To Earnings Ratio

PE vs Industry: IIPR is good value based on its PE Ratio (45.5x) compared to the US REITs industry average (46.3x).

PE vs Market: IIPR is poor value based on its PE Ratio (45.5x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: IIPR is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: IIPR is overvalued based on its PB Ratio (3.2x) compared to the US REITs industry average (2x).


Future Growth

How is Innovative Industrial Properties forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIPR's forecast earnings growth (38.3% per year) is above the savings rate (2%).

Earnings vs Market: IIPR's earnings (38.3% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: IIPR's revenue (28.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: IIPR's revenue (28.4% 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 IIPR's Return on Equity is forecast to be high in 3 years time


Past Performance

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

78.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IIPR has high quality earnings.

Growing Profit Margin: IIPR's current net profit margins (57.4%) are higher than last year (53.8%).


Past Earnings Growth Analysis

Earnings Trend: IIPR has become profitable over the past 5 years, growing earnings by 78.1% per year.

Accelerating Growth: IIPR's earnings growth over the past year (99.8%) exceeds its 5-year average (78.1% per year).

Earnings vs Industry: IIPR earnings growth over the past year (99.8%) exceeded the REITs industry 29.5%.


Return on Equity

High ROE: IIPR's Return on Equity (7.1%) is considered low.


Financial Health

How is Innovative Industrial Properties's financial position?


Financial Position Analysis

Short Term Liabilities: IIPR's short term assets ($139.4M) exceed its short term liabilities ($44.8M).

Long Term Liabilities: IIPR's short term assets ($139.4M) do not cover its long term liabilities ($546.1M).


Debt to Equity History and Analysis

Debt Level: IIPR's net debt to equity ratio (20.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if IIPR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: IIPR's debt is well covered by operating cash flow (40.6%).

Interest Coverage: IIPR's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IIPR's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: IIPR's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

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

Growing Dividend: IIPR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.2%), IIPR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IIPR's dividends in 3 years are forecast to be covered by earnings (82.1% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Paul Smithers (64 yo)

5.58yrs

Tenure

US$1,858,697

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 ($USD1.86M) is below average for companies of similar size in the US market ($USD5.14M).

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


Leadership Team

Experienced Management: IIPR's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: IIPR's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Innovative Industrial Properties, Inc.
  • Ticker: IIPR
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: US$4.771b
  • Shares outstanding: 23.93m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:50
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.