Latest Ratios: P/E Ratio 10.9x · EV/EBITDA 9.2x · ROE 6.0%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.6B | $1.3B | $1.9B | $2.8B | $2.8B | $6.9B | $3.6B | $811M | $331M | $109M | $18M |
| Enterprise Value | $1.9B | $1.7B | $2.1B | $3.0B | $3.0B | $7.1B | $3.6B | $864M | $318M | $97M | $-15490123 |
| P/E Ratio → | 10.92 | 12.05 | 12.07 | 17.47 | 18.36 | 57.78 | 56.00 | 47.12 | 47.28 | — | — |
| P/S Ratio | 6.02 | 5.05 | 6.16 | 9.20 | 10.15 | 33.75 | 30.64 | 18.15 | 22.36 | 16.99 | 54.56 |
| P/B Ratio | 0.84 | 0.73 | 0.98 | 1.46 | 1.43 | 4.28 | 2.35 | 1.48 | 1.25 | 1.48 | 0.29 |
| P/FCF | 8.04 | 7.69 | 7.36 | 11.15 | — | 36.58 | — | — | — | — | — |
| P/OCF | 8.02 | 6.78 | 7.36 | 11.15 | 11.97 | 36.58 | 32.32 | 18.04 | 21.07 | 21.75 | 10.34 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.35 | 6.65 | 9.72 | 10.92 | 34.95 | 30.74 | 19.35 | 21.48 | 15.16 | -48.26 |
| EV / EBITDA | 9.18 | 8.53 | 8.58 | 12.45 | 13.07 | 40.36 | 36.76 | 25.77 | 39.87 | 140.60 | — |
| EV / EBIT | 15.60 | 12.55 | 11.54 | 16.56 | 17.61 | 54.84 | 49.76 | 29.80 | 45.48 | — | — |
| EV / FCF | — | 9.67 | 7.94 | 11.78 | — | 37.88 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 88.7% | 88.7% | 90.8% | 92.0% | 96.2% | 97.8% | 95.8% | 97.1% | 97.0% | 98.2% | 72.9% |
| Operating Margin | 46.7% | 46.7% | 54.6% | 56.4% | 61.4% | 66.2% | 59.7% | 55.8% | 36.1% | -3.5% | -1368.2% |
| Net Profit Margin | 43.0% | 43.0% | 52.4% | 53.5% | 55.9% | 55.7% | 56.2% | 52.6% | 47.2% | -1.1% | -1368.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.0% | 6.0% | 8.3% | 8.5% | 8.6% | 7.3% | 6.3% | 5.8% | 4.1% | -0.1% | -7.3% |
| ROA | 4.8% | 4.8% | 6.8% | 6.9% | 6.9% | 5.9% | 5.2% | 4.6% | 3.9% | -0.1% | -6.9% |
| ROIC | 4.3% | 4.3% | 6.0% | 6.1% | 6.3% | 6.0% | 4.9% | 4.4% | 2.6% | -0.4% | — |
| ROCE | 5.8% | 5.8% | 7.5% | 7.7% | 8.1% | 7.5% | 5.9% | 5.3% | 3.2% | -0.3% | -7.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.21 | 0.21 | 0.15 | 0.15 | 0.15 | 0.20 | 0.09 | 0.25 | — | — | — |
| Debt / EBITDA | 1.99 | 1.99 | 1.25 | 1.24 | 1.31 | 1.84 | 1.41 | 4.05 | — | — | — |
| Net Debt / Equity | — | 0.19 | 0.08 | 0.08 | 0.11 | 0.15 | 0.01 | 0.10 | -0.05 | -0.16 | -0.55 |
| Net Debt / EBITDA | 1.75 | 1.75 | 0.63 | 0.66 | 0.93 | 1.38 | 0.12 | 1.60 | -1.64 | -16.99 | — |
| Debt / FCF | — | 1.98 | 0.59 | 0.63 | — | 1.30 | — | — | — | — | — |
| Interest Coverage | 6.67 | 6.67 | 10.94 | 11.29 | 9.36 | 7.21 | 9.72 | 4.60 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.15 | 0.15 | 1.27 | 1.24 | 0.71 | 0.68 | 1.20 | 1.89 | 0.76 | 1.83 | 12.74 |
| Quick Ratio | 0.15 | 0.15 | 1.27 | 1.24 | 0.71 | 0.68 | 1.20 | 1.89 | 0.76 | 1.83 | 12.74 |
| Cash Ratio | 0.15 | 0.15 | 1.10 | 1.06 | 0.58 | 0.56 | 1.20 | 1.33 | 0.76 | 1.83 | 12.64 |
| Asset Turnover | — | 0.11 | 0.13 | 0.13 | 0.11 | 0.10 | 0.07 | 0.06 | 0.05 | 0.08 | 0.01 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 13.9% | 16.1% | 11.1% | 7.1% | 6.6% | 1.9% | 2.1% | 2.8% | 2.0% | 1.0% | — |
| Payout Ratio | 189.0% | 189.0% | 131.1% | 122.4% | 119.1% | 114.9% | 114.8% | 96.2% | 95.1% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.2% | 8.3% | 8.3% | 5.7% | 5.4% | 1.7% | 1.8% | 2.1% | 2.1% | — | — |
| FCF Yield | 12.4% | 13.0% | 13.6% | 9.0% | — | 2.7% | — | — | — | — | — |
| Buyback Yield | 1.3% | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | 0.0% |
| Total Shareholder Yield | 15.2% | 17.6% | 11.1% | 7.1% | 6.6% | 1.9% | 2.1% | 2.8% | 2.0% | 1.2% | 0.0% |
| Shares Outstanding | — | $28M | $29M | $28M | $28M | $26M | $20M | $11M | $7M | $3M | $962775 |
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying IIPR stock.
Innovative Industrial Properties, Inc.'s current P/E ratio is 10.9x. The historical average is 33.5x.
Innovative Industrial Properties, Inc.'s current EV/EBITDA is 9.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.2x.
Innovative Industrial Properties, Inc.'s return on equity (ROE) is 6.0%. The historical average is 4.8%.
Based on historical data, Innovative Industrial Properties, Inc. is trading at a P/E of 10.9x. Compare with industry peers and growth rates for a complete picture.
Innovative Industrial Properties, Inc.'s current dividend yield is 13.90% with a payout ratio of 189.0%.
Innovative Industrial Properties, Inc. has 88.7% gross margin and 46.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Innovative Industrial Properties, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Tenant credit stress and revenue contraction
Metrics are mathematically derived from official filings.
Discount Multiples Reflect Contracting Revenue Base
Based on EDBL's reported figures, IIPR trades at a P/E of 10.92, a P/B of 0.84, and an EV/EBITDA of 9.18, multiples that appear low for an industrial REIT but may reflect the market's discount on cannabis tenant credit and a 13.8% year-over-year revenue decline.
P/FFO and P/AFFO are unavailable in the supplied data, so the standard REIT valuation anchor cannot be confirmed directly. The sub-1.0x price-to-book ratio suggests the market values the portfolio below its carrying cost, which warrants monitoring of whether asset impairments are being recognized. The 13.9% dividend yield is elevated relative to peers and may signal investor skepticism about payout durability rather than a pure valuation opportunity.
NOI Margin Volatility Masks Underlying Property Economics
As reported in quarterly income statements, IIPR's NOI margin fell from roughly 89% in Q3 2025 to about 32% in Q4 2025 and 35% in Q1 2026, a swing that suggests non-recurring property charges rather than a structural shift in cost structure.
The gap between the stable 88 to 91 percent margins in 2024 and the sharp drop in late 2025 indicates the deterioration is concentrated in specific periods rather than spread across the portfolio. FFO per share recovered from $1.57 in Q2 2025 to $2.09 in Q2 2026, which may suggest earnings quality is being supported by items outside core operations. Investors should monitor whether NOI margins normalize toward the historical range.
Payout Ratios Leave Little Margin for Error
According to reported figures, IIPR's FFO payout ratio reached 103.2% in Q3 2026 and 106.7% in Q4 2025, indicating dividends have at times exceeded FFO generated in the period and leaving minimal retained cash flow.
Payout ratios above 100 percent in several recent quarters suggest the dividend is not fully covered by current operating cash generation. AFFO coverage of roughly 0.87 times in Q2 2026 and about 1.03 times in Q3 2026, as reflected in the cash flow data, reinforces that the margin of safety is thin. A sustained revenue decline could compress coverage further and may warrant a dividend reassessment.
Debt Expansion Accelerates Against Stable Equity Base
Based on reported balance sheets, IIPR's debt-to-equity ratio rose from 0.15 at year-end 2024 to 0.38 in Q3 2026 as total debt climbed from $297.9M to $696.0M while equity remained near $1.8B to $1.9B.
Interest coverage fell from above 10 times in 2024 to roughly 3.7 times in Q3 2026, which may indicate tighter debt service headroom as borrowing increases. The shift toward debt-funded activity, including the IQHQ investment, appears to be altering the capital structure faster than earnings are growing. Maturity profile and fixed-rate exposure are not supplied, so refinancing risk cannot be fully assessed from the available data.
Price-to-FFO Misapplied Without Clean Cash Flow Base
Standard P/E is the metric most often misapplied to IIPR, and because depreciation and non-recurring property charges distort reported earnings, P/E may understate or overstate valuation relative to an FFO-based measure that the data does not fully supply.
P/E of 10.92 is calculated on GAAP earnings, which include depreciation and the sharp Q4 2025 NOI decline, making it an unreliable anchor for a REIT. Using price-to-FFO or price-to-AFFO instead, adjusted for maintenance capex and tenant improvement allowances, would better reflect distributable cash. Since those inputs are unavailable here, valuation conclusions should be treated as provisional.