Latest Ratios: P/E Ratio 14.1x · EV/EBITDA 9.8x · 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 → | 14.07 | 12.05 | 12.07 | 17.47 | 18.36 | 57.78 | 56.00 | 47.12 | 47.28 | — | — |
| P/S Ratio | 6.03 | 5.05 | 6.16 | 9.20 | 10.15 | 33.75 | 30.64 | 18.15 | 22.36 | 16.99 | 54.56 |
| P/B Ratio | 0.85 | 0.73 | 0.98 | 1.46 | 1.43 | 4.28 | 2.35 | 1.48 | 1.25 | 1.48 | 0.29 |
| P/FCF | 9.17 | 7.69 | 7.36 | 11.15 | — | 36.58 | — | — | — | — | — |
| P/OCF | 8.09 | 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 | 9.83 | 8.53 | 8.58 | 12.45 | 13.07 | 40.36 | 36.76 | 25.77 | 21.48 | 15.16 | -48.26 |
| EV / EBIT | 15.70 | 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 | -0.88 | -1.83 | -102.81 |
| 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 | 13.8% | 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 | 7.1% | 8.3% | 8.3% | 5.7% | 5.4% | 1.7% | 1.8% | 2.1% | 2.1% | — | — |
| FCF Yield | 10.9% | 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 | 15.0% | 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 |
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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 14.1x. The historical average is 33.5x. This places it at the 25th percentile of its historical range.
Innovative Industrial Properties, Inc.'s current EV/EBITDA is 9.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.2x.
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 14.1x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Innovative Industrial Properties, Inc.'s current dividend yield is 13.79% 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 and revenue decline
Metrics are mathematically derived from official filings.
P/FFO Elevated Amid Earnings Recovery
IIPR's P/FFO of 61.7x in 2026Q2, per earnings releases, remains well above the broader industrial REIT average, suggesting the market is pricing in a recovery that has yet to materialize in revenue.
Despite a 40.7% YoY surge in FFO per share to $2.09, the P/FFO multiple of 61.7x is historically high, reflecting investor optimism about the IQHQ life science pivot and potential cannabis stabilization. However, with revenue still contracting 13.8% YoY, the multiple implies expectations of a sharp earnings rebound that may not be sustainable. The implied cap rate, derived from NOI and enterprise value, appears compressed relative to private market cannabis transactions, suggesting limited upside unless operational performance improves.
NOI Margin Volatility Masks Core Trends
NOI margin swung from 89.1% in 2025Q2 to 35.1% in 2026Q1, per financial statements, before recovering to 100% in 2026Q2, indicating non-cash adjustments or one-time charges distorting property-level profitability.
The extreme volatility in NOI margin—ranging from 35.1% to 100% over the past year—suggests that reported margins are being influenced by non-recurring items, such as impairment charges or lease termination income, rather than stable operational performance. The 100% margin in 2026Q2 appears anomalous and may reflect aggressive expense capitalization or one-time gains, warranting scrutiny. Underlying profitability, as measured by FFO growth, has improved, but this appears driven by cost savings or non-operating gains rather than organic NOI expansion, given the persistent revenue decline.
Dividend Coverage Tightens Sharply
AFFO covered dividends at 0.87x in 2026Q2, per earnings releases, down from 1.05x in 2026Q1, indicating a narrowing buffer that warrants monitoring.
The FFO payout ratio improved to 86.9% in 2026Q2 from 104.6% in the prior quarter, but AFFO coverage remains below 1.0x, suggesting the dividend is not fully covered by distributable cash flow. This is a critical concern given the 13.2% dividend yield, which may be unsustainable if revenue continues to decline. The company's decision to maintain a high payout despite negative revenue growth suggests a prioritization of shareholder returns over balance sheet preservation, but investors should monitor whether this is sustainable as tenant stress persists.
Leverage Rises but Remains Conservative
Debt-to-equity rose to 0.33 in 2026Q2, per balance sheet data, from 0.15 a year earlier, reflecting increased borrowing to fund the IQHQ investment, yet interest coverage of 6.25x remains adequate.
The doubling of D/E to 0.33, while still conservative relative to peers, indicates a strategic shift toward using debt to finance growth, likely for the $270M IQHQ acquisition. Interest coverage of 6.25x, though down from 13.82x in 2024Q4, remains healthy and provides a cushion against rising rates. However, the increased leverage, combined with a declining revenue base, could strain coverage if tenant defaults escalate. The company's low absolute debt levels provide flexibility, but the trend warrants monitoring as the portfolio transitions.
Occupancy and Concentration Risks Persist
With revenue contracting 13.8% YoY, per SEC filings, and a portfolio shift toward life sciences, IIPR's occupancy and tenant credit quality remain key vulnerabilities, as cannabis operators face wholesale price pressure.
The negative revenue growth suggests ongoing tenant defaults or rent abatements, indicating occupancy may be under pressure. The portfolio's concentration in limited-license states like Pennsylvania and Illinois provides some protection, but the specialized nature of cannabis facilities makes re-leasing difficult if tenants fail. The recent IQHQ investment diversifies into life sciences, but this new asset class introduces execution risk and may not immediately offset cannabis-related revenue declines. G&A efficiency appears stable, but the wide gap between gross and operating margins suggests high corporate overhead relative to scale.
P/E Misleads Due to Depreciation
Standard P/E of 14.68, per valuation metrics, is distorted by large non-cash depreciation charges, obscuring IIPR's true earnings power; P/FFO or P/AFFO are more appropriate for REIT valuation.
The P/E ratio is misleading for REITs because depreciation is a non-cash expense that reduces GAAP net income but does not reflect the actual cash-generating ability of the properties. For IIPR, the gap between net income and FFO is significant—GAAP net income of $43.9M versus FFO of $62.7M in 2026Q2—highlighting the distortion. Investors should use P/FFO or P/AFFO, which add back depreciation and adjust for maintenance capex, to better assess valuation. The current P/FFO of 61.7x, while high, provides a more accurate picture than the P/E of 14.68, which understates the earnings multiple due to depreciation.