At a glance
Innovative Industrial Properties Inc is worth $1.46B, about 14 times its fiscal 2025 earnings. Revenue fell 13.8% to $266.0M in fiscal 2025, with 44.5% kept as profit; over 5 years it has grown 17.9% a year. It pays a 14.38% dividend yield, raised every year for at least 8 years, and returned $965.9M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +16.0% over the past year with dividends reinvested and −20.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 56.5% in the 2020 crash (S&P 500: 33.7%) and 63.6% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Innovative Industrial Properties (IIPR) is a real estate investment trust, or REIT: a company that owns property, collects rent and must pay out most of its taxable income as dividends. It owns specialized industrial and commercial buildings in the United States, leased mainly to experienced, state-licensed operators of regulated cannabis facilities. Its deals include third-party purchases and sale-leasebacks, in which IIPR acquires a cannabis company's building and leases it back to that company.
Cannabis leases are usually triple-net, meaning the tenant pays for taxes, insurance, maintenance and even structural repairs. As of December 31, 2025, IIPR owned 111 properties with 8.9 million rentable square feet in 19 states, in which it had invested $2.5 billion. Its 109 operating properties were 96.7% leased, with an average of 12.8 years left on their leases. Revenue was $266.0 million in fiscal 2025, down 13.8% from the prior year.
Heavy taxes, weak enforcement against the illicit market, falling prices and limited access to capital have hurt cannabis operators, and some tenants have struggled to pay rent. IIPR has broadened its strategy to include life science real estate. In 2025 it acquired $50.0 million of preferred stock in IQHQ, a life science real estate company, and lent it $100.0 million. As of December 31, 2025, it had 23 full-time employees.
Price history
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IIPR +16.0% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $63.3M, up 0.7% from a year earlier, and net income was $43.9M (+68.5%).
- For fiscal 2025, revenue was $266.0M (-13.8% year over year; +17.9% a year from FY2020 to FY2025) with a 44.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +17.9% good |
|---|---|
| Operating margin | 46.7% good |
| Return on equity (FY2025) | 6.4% weak |
| Return on assets (FY2025) | 5% watch |
| Net cash (cash minus debt) | $-189.0M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $116.9M | $65.7M | — |
| FY2021 | $204.6M | $114.0M | — |
| FY2022 | $276.4M | $154.4M | — |
| FY2023 | $309.5M | $165.6M | — |
| FY2024 | $308.5M | $161.7M | — |
| FY2025 | $266.0M | $118.2M | — |
Valuation snapshot
| Market value | $1.46B |
|---|---|
| P/E ratio | 13.5 |
| Dividend yield | 14.38% |
Rank among 1514 US companies
Market value at each year end
Innovative Industrial Properties’s market value went from $226.2M at the end of 2017 to $1.46B on Oct 28, 2026, about 6.4 times as much; since the end of 2025 it is up 10%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.46B | +9.8% |
| 2025 | $1.33B | -29.7% |
| 2024 | $1.89B | -33.2% |
| 2023 | $2.83B | -0.3% |
| 2022 | $2.84B | -54.9% |
| 2021 | $6.29B | +54.9% |
| 2020 | $4.06B | +351.5% |
| 2019 | $899.3M | +102.7% |
| 2018 | $443.7M | +96.1% |
| 2017 | $226.2M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| IIPR price data to Oct 28, 2026 | +23.7% | +16.0% | +2.0% | -20.1% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +23.7% |
| 2025 | -18.0% |
| 2024 | -28.6% |
| 2023 | +8.8% |
| 2022 | -59.0% |
| 2021 | +47.5% |
| 2020 | +151.3% |
| 2019 | +72.6% |
| 2018 | +45.0% |
| 2017 | +82.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 42.8% over that stretch · deepest drop along the way 56.5%, back to its old high 4.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 60.9% over that stretch · deepest drop along the way 63.6%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (22 read): 6 open-market purchases ($1.3M) and 1 sales ($34K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 8, 2026 | Alan D Gold EXECUTIVE CHAIRMAN, Director | buy | $1.0M |
| Nov 24, 2025 | Alan D Gold EXECUTIVE CHAIRMAN, Director | buy | $128K |
| Nov 19, 2025 | Alan D Gold EXECUTIVE CHAIRMAN, Director | buy | $46K |
| Nov 20, 2025 | Alan D Gold EXECUTIVE CHAIRMAN, Director | buy | $46K |
| Sep 15, 2026 | Scott Shoemaker Director | sell | $34K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 17.7% | Sep 30, 2026 |
| Vanguard Portfolio Management | 10.38% | Aug 31, 2026 |
| Vanguard Capital Management | 5.25% | Mar 31, 2026 |
ETFs with the most weight in IIPR
| KBWY Invesco KBW Premium Yield Equity REIT ETF | 3.96% |
| NRSH Aztlan North America Nearshoring Stock Selection ETF | 3.86% |
| NETL NETLease Corporate Real Estate ETF | 3.02% |
| CNBS Amplify Seymour Cannabis ETF | 2.85% |
| XSHD Invesco S&P SmallCap High Dividend Low Volatility ETF | 2.52% |
| RDOG ALPS REIT Dividend Dogs ETF | 1.81% |
| BLDG Cambria Global Real Estate ETF | 0.89% |
| REAI Intelligent Real Estate ETF | 0.73% |
What could go wrong
- Cannabis tenants are under financial strain. The company says heavy taxes, weak enforcement against the illicit market, falling prices and scarce financing have hurt cannabis operators, and some tenants have struggled to pay rent on IIPR's properties.
- Growing bet on a single life science company. IIPR acquired $50.0 million of IQHQ preferred stock, lent it $100.0 million and, as of December 31, 2025, had $120.0 million more to fund through mid-2027. Some returns come as extra securities, not cash.
- Leadership ties to IQHQ. Executive Chairman Alan Gold co-founded IQHQ and chaired it until December 2024. CEO Paul Smithers was appointed to its board, and some IIPR directors own IQHQ equity, which can create conflicts of interest.
- Dividend runs far ahead of earnings. IIPR paid $7.62 per share in dividends in fiscal 2025 but earned $3.93, a payout of 182.9%. Depreciation, a noncash cost, lowers REIT earnings, but further rent shortfalls could pressure the dividend.
- Revenue and profits fell in fiscal 2025. Revenue fell 13.8% to $266.0 million in fiscal 2025, and net income fell 26.9% to $118.2 million. Revenue in the quarter ended June 30, 2026, was roughly flat, up 0.7% from a year earlier.
- Deep, lasting share price declines. The shares fell 63.6% in the 2022 bear market and had not regained that peak as of October 28, 2026. The price was down 67% over the five years to that date.
Recent events
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Major agreement signed; Change to shareholder rights; Bylaws or fiscal year changed
- Major agreement signed; Investor presentation or announcement
- Bylaws or fiscal year changed
- Other company announcement
- Quarterly results released; Investor presentation or announcement
- Other company announcement
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares; Other company announcement
- Investor presentation or announcement; Other company announcement
For income and retirement investors
IIPR's dividend per share has risen in every fiscal year from 2017 through 2025, at least eight straight increases. It grew from $3.86 in 2020 to $7.62 in 2025, about 14.6% a year, though the rise from $7.43 in 2024 was small. Dividends equaled 182.9% of 2025 earnings; a free cash flow payout figure is not available. Depreciation, a noncash cost, depresses REIT earnings, but that gap is wide. The yield was 14.38% as of October 28, 2026, a level that often signals doubts about the payout. IIPR bought back $20.1 million of stock in 2025, after none in 2023 and 2024, yet the share count rose 15.2% from August 2021 to August 2026.
In the 2020 COVID crash the shares fell 56.5% and recovered in about 4.4 months. In the 2022 bear market they fell 63.6% and had not regained that peak as of October 28, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Innovative Industrial Properties make money?
Mainly from rent. IIPR is a real estate investment trust that owns specialized industrial buildings leased mostly to state-licensed cannabis operators on triple-net leases, where tenants pay taxes, insurance and upkeep. As of December 31, 2025, it owned 111 properties in 19 states. Its operating portfolio was 96.7% leased, with an average of 12.8 years left on leases. It also earns interest and dividends from its IQHQ life science investments. Revenue was $266.0 million in fiscal 2025.
Does IIPR raise its dividend every year?
Yes, through fiscal 2025. Annual dividends per share rose in every fiscal year from 2017 through 2025, at least eight straight increases. They reached $7.62 in 2025, up from $3.86 in 2020. Growth has slowed, though: the 2024 total was $7.43. Dividends were 182.9% of 2025 earnings, and revenue fell 13.8% that year, so the record is no guarantee of future increases.
Why is IIPR's dividend yield so high?
Mostly because the share price has dropped while the dividend kept rising. The yield was 14.38% as of October 28, 2026, and the share price was down 67% over the five years to that date. The company has said some cannabis tenants struggled to pay rent, and 2025 dividends were 182.9% of earnings. A yield this high often signals that investors see a meaningful risk of a cut.
What is IIPR's investment in IQHQ?
It is IIPR's move beyond cannabis into life science real estate. In 2025 IIPR acquired $50.0 million of IQHQ preferred stock paying 15.0% a year: 10.0% in cash and 5.0% paid in kind, meaning added to the investment instead of paid in cash. It also lent $100.0 million at a fixed 13.5%. As of December 31, 2025, it had committed $120.0 million more. Executive Chairman Alan Gold co-founded IQHQ.
Which ETFs hold IIPR stock?
About 75 ETFs hold IIPR, usually as a small position. Funds with some of the largest weightings include Invesco KBW Premium Yield Equity REIT ETF (KBWY), NETLease Corporate Real Estate ETF (NETL), Amplify Seymour Cannabis ETF (CNBS) and Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD). Each holds under 4% of its assets in the stock. A fund spreads risk across many companies but gives much less exposure to IIPR's own results.