Revenue declined from $79.8M in Q2 2024 to $63-69M in 2026 while NOI margin collapsed from about 89-91% to 32.4% in Q4 2025, suggesting non-recurring property charges that warrant monitoring.
Innovative Industrial Properties, Inc. (IIPR) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Revenue | 263.89M | 265.95M | 308.52M | 309.51M | 276.36M | 204.55M | 116.9M | 44.67M | 14.79M | 6.42M | 321K |
| Revenue Growth % | -4.4% | -13.8% | -0.32% | 11.99% | 35.11% | 74.99% | 161.71% | 202.07% | 130.33% | 1900% | - |
| Property Operating Expenses | 103.94M | 30.18M | 28.47M | 24.89M | 10.52M | 4.44M | 4.95M | 1.31M | 445K | 118K | 87K |
| Net Operating Income (NOI) | 159.95M | 235.78M | 280.05M | 284.61M | 265.84M | 200.11M | 111.94M | 43.35M | 14.34M | 6.3M | 234K |
| NOI Margin % | 60.61% | 88.65% | 90.77% | 91.96% | 96.19% | 97.83% | 95.76% | 97.06% | 96.99% | 98.16% | 72.9% |
| Operating Expenses | 24.46M | 111.66M | 111.7M | 110.03M | 96.22M | 64.74M | 42.21M | 18.42M | 9M | 6.41M | 919K |
| G&A Expenses | 34.49M | 33.73M | 37.44M | 42.83M | 38.52M | 22.96M | 14.18M | 9.82M | 6.38M | 5.5M | 828K |
| EBITDA | 210.98M | 198.19M | 239.15M | 241.78M | 230.92M | 177.15M | 97.76M | 33.53M | 7.97M | 692K | -4.37M |
| EBITDA Margin % | 79.95% | 74.52% | 77.52% | 78.12% | 83.56% | 86.6% | 83.63% | 75.08% | 53.88% | 10.78% | -1359.81% |
| Depreciation & Amortization | 75.49M | 74.07M | 70.81M | 67.19M | 61.3M | 41.78M | 28.02M | 8.6M | 2.63M | 915K | 27K |
| D&A / Revenue % | 28.61% | 27.85% | 22.95% | 21.71% | 22.18% | 20.42% | 23.97% | 19.25% | 17.78% | 14.25% | 8.41% |
| Operating Income | 135.49M | 124.12M | 168.34M | 174.59M | 169.62M | 135.37M | 69.74M | 24.93M | 5.34M | -223K | -4.39M |
| Operating Margin % | 51.34% | 46.67% | 54.57% | 56.41% | 61.38% | 66.18% | 59.66% | 55.82% | 36.1% | -3.47% | -1368.22% |
| Interest Expense | 4M | 20.2M | 16.26M | 16.1M | 18.3M | 18.09M | 7.43M | 6.31M | 0 | 0 | 0 |
| Interest Coverage | - | 6.67x | 10.94x | 11.29x | 9.36x | 7.21x | 9.72x | 4.60x | - | - | - |
| Non-Operating Income | -38.23M | -10.51M | -9.57M | -7.1M | -1.72M | 5M | -2.48M | -4.07M | -1.65M | 0 | -3.71M |
| Pretax Income | 140.4M | 114.44M | 161.65M | 165.59M | 154.39M | 113.99M | 65.73M | 23.48M | 6.99M | -72K | -4.39M |
| Pretax Margin % | 53.2% | 43.03% | 52.4% | 53.5% | 55.86% | 55.73% | 56.23% | 52.56% | 47.24% | -1.12% | -1368.22% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 140.4M | 114.44M | 161.66M | 165.59M | 154.39M | 113.99M | 65.73M | 23.48M | 6.99M | -72K | -4.39M |
| Net Margin % | 53.2% | 43.03% | 52.4% | 53.5% | 55.86% | 55.73% | 56.23% | 52.56% | 47.24% | -1.12% | -1368.22% |
| Net Income Growth % | 11.05% | -29.21% | -2.37% | 7.26% | 35.44% | 73.42% | 180% | 236.08% | 9801.39% | 98.36% | - |
| Funds From Operations (FFO) | 215.89M | 188.5M | 232.47M | 232.78M | 215.69M | 155.77M | 93.75M | 32.07M | 9.61M | 843K | -4.37M |
| FFO Margin % | 81.81% | 70.88% | 75.35% | 75.21% | 78.05% | 76.15% | 80.2% | 71.81% | 65.02% | 13.13% | -1359.81% |
| FFO Growth % | 38.42% | -18.91% | -0.13% | 7.92% | 38.47% | 66.14% | 192.31% | 233.62% | 1040.45% | 119.31% | - |
| FFO per Share | 7.72 | 6.64 | 8.15 | 8.24 | 7.80 | 5.93 | 4.79 | 3.00 | 1.32 | 0.25 | -4.53 |
| FFO Payout Ratio % | 99.65% | 114.73% | 91.18% | 87.08% | 85.28% | 84.07% | 80.49% | 70.41% | 69.09% | 124.56% | 0% |
| EPS (Diluted) | 5.02 | 3.93 | 5.52 | 5.77 | 5.52 | 4.55 | 3.27 | 1.61 | 0.96 | -0.02 | -4.56 |
| EPS Growth % | 5.21% | -28.8% | -4.33% | 4.53% | 21.32% | 39.14% | 103.11% | 67.71% | 4607.04% | 99.53% | - |
| EPS (Basic) | - | 3.98 | 5.58 | 5.82 | 5.57 | 4.69 | 3.28 | 1.63 | 0.98 | -0.02 | -4.56 |
| Diluted Shares Outstanding | 27.96M | 28.38M | 28.53M | 28.26M | 27.66M | 26.26M | 19.56M | 10.68M | 7.29M | 3.38M | 962.77K |
Quick answers to the most common questions about buying IIPR stock.
For fiscal year 2025, Innovative Industrial Properties, Inc. (IIPR) reported total revenue of $266.0M. This represents a 82752.0% increase compared to $0.3M in 2016.
Innovative Industrial Properties, Inc. (IIPR) is profitable, generating $114.4M in net income for the fiscal year ending 2025 with a net profit margin of 43.0%.
Innovative Industrial Properties, Inc. (IIPR) reported an operating income of $124.1M, resulting in an operating profit margin of 46.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Innovative Industrial Properties, Inc. (IIPR) generated $235.8M in gross profit for the year, representing a gross profit margin of 88.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Tenant credit stress from cannabis operators
Metrics are mathematically derived from official filings.
Revenue Contraction Persists Despite Recent Stabilization
Based on reported figures, IIPR's quarterly revenue fell from $79.8M in Q2 2024 to roughly $63-69M through 2025 and 2026, a decline of about 13.8% year over year that has not yet clearly reversed.
The sequential stabilization in the last two quarters, with Q2 and Q3 2026 revenue of $63.3M and $64.9M, suggests the rent base may be bottoming, but the trailing contraction indicates portfolio attrition and tenant stress have not fully resolved. Investors should monitor whether rent collections and occupancy stabilize, since a sustained top-line decline would pressure dividend coverage.
NOI Margin Swings Signal Unstable Property Economics
As reported in the quarterly income statements, IIPR's NOI margin ranged from roughly 89-91% in 2024 and mid-2025 down to 32-35% in Q4 2025 and Q1 2026, a shift that appears driven by non-recurring property-level charges rather than a structural cost change.
The collapse in NOI margin to the low-30s while revenue remained near $67-69M suggests impairments, reserves, or reclassification effects rather than routine operating costs, though the filings provided do not isolate the cause. The return to 88-89% in Q2 and Q3 2026 indicates the underlying triple-net economics remain intact, but the volatility warrants further investigation before treating recent margins as durable.
FFO Recovery Outpaces Revenue Trend
According to the reported figures, FFO per share rose from $1.57 in Q2 2025 to $2.09 in Q2 2026, while Q3 2026 FFO per share of $1.84 remained well above the 2025 trough, though still below the 2024 level near $2.04.
The FFO recovery against a flat-to-declining revenue base suggests lower depreciation, interest, or G&A burdens are contributing to per-share earnings rather than top-line growth. Investors should check whether share count changes or one-time items account for the Q2 2026 spike, since FFO per share at $1.84 is still below 2024 levels.
Earnings Strength May Not Reflect Core Leasing Health
Based on reported figures, the Q3 2026 EPS beat of $0.99 against an $0.88 estimate and sequential AFFO growth contrast with a 13.8% YoY revenue decline, which could indicate earnings quality is being supported by non-operating or non-recurring items.
Beats on EPS while revenue contracts may reflect gains, lower impairments, or favorable accounting adjustments rather than leasing momentum, and the filings do not provide a bridge to confirm this. Investors should treat the single-quarter beat cautiously until subsequent periods show revenue reversal and consistent NOI margins above 85%.
Q4 2025 Margin Collapse Marks Key Turning Point
As reported in the income statement, IIPR's NOI fell from $56.7M in Q3 2025 to $21.6M in Q4 2025 on nearly unchanged revenue of $66.7M, the most significant single-period deterioration in the dataset.
A roughly $35M drop in NOI on stable revenue points to a discrete charge, possibly impairments or reserves tied to tenant defaults, and the reversal in Q2 2026 suggests the charge was not fully recurring. The filings provided do not disclose the root cause, so this inflection warrants review of the impairment and reserve disclosures before drawing firm conclusions.