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Innovative Industrial Properties

NYSE:IIPR
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IIPR
NYSE
$845M
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. The last earnings update was 5 days ago. More info.


Add to Portfolio Compare Print
  • Innovative Industrial Properties has significant price volatility in the past 3 months.
IIPR Share Price and Events
7 Day Returns
14.1%
NYSE:IIPR
1.3%
US REITs
2.4%
US Market
1 Year Returns
223.9%
NYSE:IIPR
12.4%
US REITs
1.9%
US Market
IIPR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Innovative Industrial Properties (IIPR) 14.1% 32.7% 72% 223.9% - -
US REITs 1.3% 0.6% 9.6% 12.4% 10.5% 28.9%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • IIPR outperformed the REITs industry which returned 12.4% over the past year.
  • IIPR outperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
IIPR
Industry
5yr Volatility vs Market

IIPR Value

 Is Innovative Industrial Properties undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Innovative Industrial Properties to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Innovative Industrial Properties.

NYSE:IIPR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:IIPR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.545 (1 + (1- 21%) (0%))
0.695
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:IIPR using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Innovative Industrial Properties is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Innovative Industrial Properties is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:IIPR DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 26.75 Analyst x2 24.88
2020 39.25 Analyst x2 33.97
2021 55.57 Est @ 41.58% 44.73
2022 72.20 Est @ 29.93% 54.07
2023 87.92 Est @ 21.77% 61.25
2024 102.03 Est @ 16.06% 66.12
2025 114.34 Est @ 12.06% 68.93
2026 124.93 Est @ 9.26% 70.06
2027 134.05 Est @ 7.3% 69.93
2028 142.00 Est @ 5.93% 68.91
Present value of next 10 years cash flows $562.84
NYSE:IIPR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $142.00 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$3,059.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,059.39 ÷ (1 + 7.5%)10
$1,484.67
NYSE:IIPR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $562.84 + $1,484.67
$2,047.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,047.51 / 9.81
$208.8
NYSE:IIPR Discount to Share Price
Calculation Result
Value per share (USD) From above. $208.80
Current discount Discount to share price of $86.21
= -1 x ($86.21 - $208.80) / $208.80
58.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Innovative Industrial Properties is available for.
Intrinsic value
>50%
Share price is $86.21 vs Future cash flow value of $208.8
Current Discount Checks
For Innovative Industrial Properties to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Innovative Industrial Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Innovative Industrial Properties's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Innovative Industrial Properties's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Innovative Industrial Properties's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:IIPR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.76
NYSE:IIPR Share Price ** NYSE (2019-03-18) in USD $86.21
United States of America REITs Industry PE Ratio Median Figure of 154 Publicly-Listed REITs Companies 30.43x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Innovative Industrial Properties.

NYSE:IIPR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:IIPR Share Price ÷ EPS (both in USD)

= 86.21 ÷ 0.76

112.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Innovative Industrial Properties is overvalued based on earnings compared to the US REITs industry average.
  • Innovative Industrial Properties is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Innovative Industrial Properties's expected growth come at a high price?
Raw Data
NYSE:IIPR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 112.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
66.5%per year
United States of America REITs Industry PEG Ratio Median Figure of 139 Publicly-Listed REITs Companies -0.21x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:IIPR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 112.82x ÷ 66.5%

1.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Innovative Industrial Properties is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Innovative Industrial Properties's assets?
Raw Data
NYSE:IIPR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $25.60
NYSE:IIPR Share Price * NYSE (2019-03-18) in USD $86.21
United States of America REITs Industry PB Ratio Median Figure of 192 Publicly-Listed REITs Companies 1.8x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:IIPR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:IIPR Share Price ÷ Book Value per Share (both in USD)

= 86.21 ÷ 25.60

3.37x

* Primary Listing of Innovative Industrial Properties.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Innovative Industrial Properties is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess Innovative Industrial Properties's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Innovative Industrial Properties has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IIPR Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
66.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Innovative Industrial Properties expected to grow at an attractive rate?
  • Innovative Industrial Properties's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Innovative Industrial Properties's earnings growth is expected to exceed the United States of America market average.
  • Innovative Industrial Properties's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:IIPR Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:IIPR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 66.5%
NYSE:IIPR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 59.3%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 0.6%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:IIPR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:IIPR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 55 30 1
2019-12-31 26 19 2
NYSE:IIPR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 15 16 5
2018-09-30 12 13 3
2018-06-30 10 7 2
2018-03-31 8 6 1
2017-12-31 6 5 0
2017-09-30 5 4 -8
2016-12-31 0 3 -8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Innovative Industrial Properties's earnings are expected to grow significantly at over 20% yearly.
  • Innovative Industrial Properties's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:IIPR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Innovative Industrial Properties Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:IIPR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.26 2.26 2.26 1.00
2019-12-31 1.84 1.84 1.84 1.00
NYSE:IIPR Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.76
2018-09-30 0.61
2018-06-30 0.48
2018-03-31 0.18
2017-12-31 -0.13
2017-09-30 -2.59
2016-12-31 -7.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Innovative Industrial Properties will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Innovative Industrial Properties's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Innovative Industrial Properties has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IIPR Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Innovative Industrial Properties's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Innovative Industrial Properties's year on year earnings growth rate was positive over the past 5 years.
  • Innovative Industrial Properties has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Innovative Industrial Properties has become profitable in the last year making it difficult to compare the US REITs industry average.
Earnings and Revenue History
Innovative Industrial Properties's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Innovative Industrial Properties Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:IIPR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 14.79 5.46 6.38
2018-09-30 12.29 3.44 5.69
2018-06-30 9.92 2.31 5.23
2018-03-31 7.89 0.71 5.22
2017-12-31 6.42 -0.45 5.50
2017-09-30 4.60 -8.04 5.53
2016-12-31 0.46 -7.53 1.53
2015-12-31 5.63 4.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Innovative Industrial Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Innovative Industrial Properties used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • Unable to establish if Innovative Industrial Properties improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Innovative Industrial Properties's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Innovative Industrial Properties has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IIPR Health

 How is Innovative Industrial Properties's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Innovative Industrial Properties's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Innovative Industrial Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Innovative Industrial Properties's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Innovative Industrial Properties's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Innovative Industrial Properties has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Innovative Industrial Properties Company Filings, last reported 2 months ago.

NYSE:IIPR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 264.29 0.00 13.05
2018-09-30 151.09 0.00 53.02
2018-06-30 151.59 0.00 21.19
2018-03-31 151.71 0.00 42.08
2017-12-31 73.55 0.00 11.76
2017-09-30 59.96 0.00 22.20
2016-12-31 60.44 0.00 33.00
2015-12-31
  • Innovative Industrial Properties has no debt.
  • Innovative Industrial Properties has not taken on any debt in the past 5 years.
  • Innovative Industrial Properties has no debt, it does not need to be covered by operating cash flow.
  • Innovative Industrial Properties has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Innovative Industrial Properties's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Innovative Industrial Properties has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IIPR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.09%
Current annual income from Innovative Industrial Properties dividends. Estimated to be 2.75% next year.
If you bought $2,000 of Innovative Industrial Properties shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Innovative Industrial Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Innovative Industrial Properties's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Upcoming dividend payment

Purchase Innovative Industrial Properties on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:IIPR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 186 Stocks 4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:IIPR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 2.69 3.00
2019-12-31 2.06 3.00
NYSE:IIPR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-14 1.800 2.279
2019-03-13 1.800 2.313
2018-12-14 1.400 2.395
2018-09-14 1.400 3.092
2018-06-15 1.000 2.756
2018-03-15 1.000 3.087
2017-12-15 1.000 3.660
2017-09-15 0.600 3.137
2017-05-30 0.600 3.497

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Innovative Industrial Properties has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Innovative Industrial Properties only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Innovative Industrial Properties's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (14x coverage).
X
Income/ dividend checks
We assess Innovative Industrial Properties's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Innovative Industrial Properties afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Innovative Industrial Properties has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IIPR Management

 What is the CEO of Innovative Industrial Properties's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Smithers
COMPENSATION $883,100
AGE 61
TENURE AS CEO 2.8 years
CEO Bio

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 serves as Executive Director of Iso Nano International, LLC. He was a Co-Founder and served as the Chief Legal Officer of Iso Nano International, LLC from August 2013 to July 2015. Prior to his time at Iso Nano, Mr. Smithers served as the Managing Partner of Smithers & Player, Attorneys at Law from September 1989 to July 2013. Mr. Smithers is a Member of the California Bar. Mr. Smithers has management expertise and over 30 years of legal and regulatory experience.

CEO Compensation
  • Paul's compensation has increased in line with Innovative Industrial Properties recently becoming profitable.
  • Paul's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Innovative Industrial Properties management team in years:

2.1
Average Tenure
52.5
Average Age
  • The tenure for the Innovative Industrial Properties management team is about average.
Management Team

Alan Gold

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
58

Paul Smithers

TITLE
President
COMPENSATION
$883K
AGE
61
TENURE
2.8 yrs

Catherine Hastings

TITLE
CFO, Chief Accounting Officer & Treasurer
COMPENSATION
$440K
AGE
47
TENURE
1.8 yrs

Brian Wolfe

TITLE
VP, General Counsel & Company Secretary
COMPENSATION
$488K
AGE
42
TENURE
2.5 yrs

Andy Bui

TITLE
Controller
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Innovative Industrial Properties board of directors in years:

2.3
Average Tenure
58
Average Age
  • The average tenure for the Innovative Industrial Properties board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alan Gold

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
58
TENURE
2.8 yrs

Paul Smithers

TITLE
President
COMPENSATION
$883K
AGE
61
TENURE
2.3 yrs

Gary Kreitzer

TITLE
Vice Chairman of the Board
COMPENSATION
$72K
AGE
63

Scott Shoemaker

TITLE
Director
COMPENSATION
$53K
AGE
52
TENURE
2.3 yrs

David Stecher

TITLE
Director
COMPENSATION
$54K
AGE
57
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Oct 18 Buy Alan Gold Individual 04. Oct 18 04. Oct 18 67,500 $40.00 $2,700,000
05. Oct 18 Buy Gary Kreitzer Individual 04. Oct 18 04. Oct 18 2,500 $40.00 $100,000
21. Sep 18 Sell HG Vora Capital Company 19. Sep 18 20. Sep 18 -475,000 $45.41 $-21,035,454
15. Jun 18 Buy Alan Gold Individual 15. Jun 18 15. Jun 18 200 $36.29 $7,258
13. Jun 18 Buy Alan Gold Individual 13. Jun 18 13. Jun 18 100 $37.18 $3,718
08. Jun 18 Buy Alan Gold Individual 06. Jun 18 06. Jun 18 100 $36.36 $3,636
08. Jun 18 Sell Brian Wolfe Individual 06. Jun 18 06. Jun 18 -6,013 $37.34 $-224,552
X
Management checks
We assess Innovative Industrial Properties's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Innovative Industrial Properties has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IIPR News

Simply Wall St News

Announcing: Innovative Industrial Properties Stock Increased An Energizing 188% In The Last Year

For example, the Innovative Industrial Properties, Inc. … Given that Innovative Industrial Properties only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. … In the last year Innovative Industrial Properties saw its revenue grow by 167%.

Simply Wall St -

With A 3.3% Return On Equity, Is Innovative Industrial Properties, Inc. (NYSE:IIPR) A Quality Stock?

Our data shows Innovative Industrial Properties has a return on equity of 3.3% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.033 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Innovative Industrial Properties, Inc. (NYSE:IIPR) Have A Particularly Volatile Share Price?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

Can We See Significant Institutional Ownership On The Innovative Industrial Properties Inc (NYSE:IIPR) Share Register?

If you want to know who really controls Innovative Industrial Properties Inc (NYSE:IIPR), then you'll have to look at the makeup of its share registry. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of US$457m, Innovative Industrial Properties is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

A Look At Innovative Industrial Properties Inc's (NYSE:IIPR) Exceptional Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Innovative Industrial Properties Inc (NYSE:IIPR) due to its excellent fundamentals in more than one area.

Simply Wall St -

Who Are The Top Investors In Innovative Industrial Properties Inc (NYSE:IIPR)?

In this article, I will take a quick look at Innovative Industrial Properties Inc’s (NYSE:IIPR) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … NYSE:IIPR Ownership Summary August 1st 18

Simply Wall St -

Why Innovative Industrial Properties Inc (NYSE:IIPR) Is An Attractive Stock On Right Now

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Innovative Industrial Properties Inc (NYSE:IIPR) due to its excellent fundamentals in more than one area. … a excellent

Simply Wall St -

IIPR Company Info

Description

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial 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.

Details
Name: Innovative Industrial Properties, Inc.
IIPR
Exchange: NYSE
Founded: 2016
$845,391,984
9,806,194
Website: http://www.innovativeindustrialproperties.com
Address: Innovative Industrial Properties, Inc.
11440 West Bernardo Court,
Suite 220,
San Diego,
California, 92127,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE IIPR Common Stock New York Stock Exchange US USD 01. Dec 2016
DB 1IK Common Stock Deutsche Boerse AG DE EUR 01. Dec 2016
LSE 0JBD Common Stock London Stock Exchange GB USD 01. Dec 2016
NYSE IIPR.PRA 9% CUM PFD SER A New York Stock Exchange US USD 24. Oct 2017
Number of employees
Current staff
Staff numbers
6
Innovative Industrial Properties employees.
Industry
Industrial REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 00:44
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.