NYSE:IIPR

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.

Rewards

Trading at 86.1% below its fair value

Earnings are forecast to grow 74.41% per year

Earnings grew by 324.5% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Unstable dividend track record

Highly volatile share price over past 3 months



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: IIPR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

IIPR

-2.9%

US REITs

1.3%

US Market


1 Year Return

41.3%

IIPR

11.0%

US REITs

19.4%

US Market

Return vs Industry: IIPR exceeded the US REITs industry which returned 11% over the past year.

Return vs Market: IIPR exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

IIPRIndustryMarket
7 Day0.8%-2.9%1.3%
30 Day-10.2%-1.3%2.6%
90 Day-19.4%-1.7%5.0%
1 Year45.1%41.3%15.7%11.0%22.0%19.4%
3 Year382.5%347.2%33.2%16.5%46.8%37.3%
5 Yearn/a49.1%18.2%66.3%48.0%

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

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 ($73.65) is trading below our estimate of fair value ($528.59)

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


Price To Earnings Ratio

PE vs Industry: IIPR is poor value based on its PE Ratio (50.1x) compared to the REITs industry average (37x).

PE vs Market: IIPR is poor value based on its PE Ratio (50.1x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: IIPR is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: IIPR is good value based on its PB Ratio (1.9x) compared to the US REITs industry average (1.9x).


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?

74.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIPR's forecast earnings growth (74.4% per year) is above the savings rate (1.7%).

Earnings vs Market: IIPR's earnings (74.4% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: IIPR's revenue (61.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: IIPR's revenue (61.3% 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


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: IIPR has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: IIPR earnings growth over the past year (324.5%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: IIPR'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: IIPR has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.43%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: IIPR's dividend (5.43%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: IIPR's dividend (5.43%) is in the top 25% of dividend payers in the US market (3.68%)


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 3 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: IIPR's dividends in 3 years are forecast to be thoroughly covered by earnings (4.4% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Paul Smithers (62yo)

3.5yrs

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 ($USD1.08M) is below average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: IIPR's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

59yo

Average Age

Experienced Board: IIPR's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$118,73212 Dec 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,625
Max PriceUS$73.07
BuyUS$69,80611 Dec 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares950
Max PriceUS$73.48
BuyUS$187,54210 Dec 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,500
Max PriceUS$75.02
BuyUS$27,18505 Dec 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares380
Max PriceUS$71.54
BuyUS$27,47126 Nov 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares350
Max PriceUS$78.49
BuyUS$25,27005 Sep 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares300
Max PriceUS$84.23
BuyUS$26,59203 Sep 19
Alan Gold
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares300
Max PriceUS$88.64
BuyUS$16,99113 Aug 19
David Stecher
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares160
Max PriceUS$106.31
SellUS$181,00021 May 19
Paul Smithers
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$90.50
SellUS$283,14121 May 19
Brian Wolfe
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Company Secretary
Shares3,181
Max PriceUS$89.01

Ownership Breakdown

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


Management Team

  • Alan Gold (59yo)

    Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: US$2.61m
  • Paul Smithers (62yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$1.08m
  • Brian Wolfe (43yo)

    VP, General Counsel & Company Secretary

    • Tenure: 3.3yrs
    • Compensation: US$628.27k
  • Catherine Hastings (48yo)

    CFO, Chief Accounting Officer & Treasurer

    • Tenure: 2.5yrs
    • Compensation: US$628.27k
  • Andy Bui

    Controller

    • Tenure: 2yrs
  • Ben Regin

    Director of Investments & Finance

    • Tenure: 0yrs

Board Members

  • Gary Kreitzer (64yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$102.51k
  • Alan Gold (59yo)

    Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: US$2.61m
  • David Stecher (58yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$70.02k
  • Paul Smithers (62yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$1.08m
  • Scott Shoemaker (53yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$67.52k

Company Information

Innovative Industrial Properties, Inc.'s company bio, 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
  • Market Cap: US$873.031m
  • Shares outstanding: 11.85m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 00:21
End of Day Share Price2019/12/12 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.