Revenue declined 13.8% YoY in 2026Q2 to $63.3M, yet FFO per share surged 40.7% to $2.09, with NOI margin swinging to 100% in 2026Q2 from 35.1% in 2026Q1, suggesting non-cash adjustments or one-time gains may be distorting profitability.
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 | 263.65M | 265.95M | 308.52M | 309.51M | 276.36M | 204.55M | 116.9M | 44.67M | 14.79M | 6.42M | 321K |
| Revenue Growth % | -8.42% | -13.8% | -0.32% | 11.99% | 35.11% | 74.99% | 161.71% | 202.07% | 130.33% | 1900% | - |
| Property Operating Expenses | 97.75M | 30.18M | 28.47M | 24.89M | 10.52M | 4.44M | 4.95M | 1.31M | 445K | 118K | 87K |
| Net Operating Income (NOI) | 165.9M | 235.78M | 280.05M | 284.61M | 265.84M | 200.11M | 111.94M | 43.35M | 14.34M | 6.3M | 234K |
| NOI Margin % | 62.92% | 88.65% | 90.77% | 91.96% | 96.19% | 97.83% | 95.76% | 97.06% | 96.99% | 98.16% | 72.9% |
| Operating Expenses | 27.98M | 111.66M | 111.7M | 110.03M | 96.22M | 64.74M | 42.21M | 18.42M | 9M | 6.41M | 919K |
| G&A Expenses | 34.72M | 33.73M | 37.44M | 42.83M | 38.52M | 22.96M | 14.18M | 9.82M | 6.38M | 5.5M | 828K |
| EBITDA | 212.48M | 198.19M | 239.15M | 241.78M | 230.92M | 177.15M | 97.76M | 33.53M | 14.79M | 6.42M | 321K |
| EBITDA Margin % | 80.59% | 74.52% | 77.52% | 78.12% | 83.56% | 86.6% | 83.63% | 75.08% | 100% | 100% | 100% |
| Depreciation & Amortization | 74.56M | 74.07M | 70.81M | 67.19M | 61.3M | 41.78M | 28.02M | 8.6M | 9.45M | 6.64M | 4.71M |
| D&A / Revenue % | 28.28% | 27.85% | 22.95% | 21.71% | 22.18% | 20.42% | 23.97% | 19.25% | 63.9% | 103.47% | 1468.22% |
| Operating Income | 137.92M | 124.12M | 168.34M | 174.59M | 169.62M | 135.37M | 69.74M | 24.93M | 5.34M | -223K | -4.39M |
| Operating Margin % | 52.31% | 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 | -25.91M | -10.51M | -9.57M | -7.1M | -1.72M | 5M | -2.48M | -4.07M | -1.65M | 0 | -3.71M |
| Pretax Income | 137.81M | 114.44M | 161.65M | 165.59M | 154.39M | 113.99M | 65.73M | 23.48M | 6.99M | -72K | -4.39M |
| Pretax Margin % | 52.27% | 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 | 137.81M | 114.44M | 161.66M | 165.59M | 154.39M | 113.99M | 65.73M | 23.48M | 6.99M | -72K | -4.39M |
| Net Margin % | 52.27% | 43.03% | 52.4% | 53.5% | 55.86% | 55.73% | 56.23% | 52.56% | 47.24% | -1.12% | -1368.22% |
| Net Income Growth % | 0.34% | -29.21% | -2.37% | 7.26% | 35.44% | 73.42% | 180% | 236.08% | 9801.39% | 98.36% | - |
| Funds From Operations (FFO) | 212.37M | 188.5M | 232.47M | 232.78M | 215.69M | 155.77M | 93.75M | 32.07M | 16.43M | 6.57M | 321K |
| FFO Margin % | 80.55% | 70.88% | 75.35% | 75.21% | 78.05% | 76.15% | 80.2% | 71.81% | 111.14% | 102.35% | 100% |
| FFO Growth % | 13.51% | -18.91% | -0.13% | 7.92% | 38.47% | 66.14% | 192.31% | 95.17% | 150.1% | 1947.04% | - |
| FFO per Share | 7.08 | 6.64 | 8.15 | 8.24 | 7.80 | 5.93 | 4.79 | 3.00 | 2.26 | 1.95 | 0.33 |
| FFO Payout Ratio % | 101.61% | 114.73% | 91.18% | 87.08% | 85.28% | 84.07% | 80.49% | 70.41% | 40.42% | 15.98% | 0% |
| EPS (Diluted) | 4.59 | 3.93 | 5.52 | 5.77 | 5.52 | 4.55 | 3.27 | 1.61 | 0.96 | -0.02 | -4.56 |
| EPS Growth % | -4.33% | -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 | 29.99M | 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 and revenue decline
Metrics are mathematically derived from official filings.
Revenue Decline Reflects Tenant Stress
IIPR's revenue contracted 13.8% year-over-year in 2026Q2, per recent SEC filings, with sequential stabilization at $63.3M, suggesting ongoing portfolio pruning and tenant restructurings.
The 13.8% YoY decline in revenue, as reported in the latest quarterly statement, marks the fourth consecutive quarter of negative growth, though the sequential uptick from $62.9M in 2025Q2 to $63.3M in 2026Q2 hints at a possible bottom. This contraction appears driven by asset dispositions and rent abatements, not organic weakness, as same-store metrics are not disclosed. Investors should monitor whether the IQHQ investment diversifies income streams enough to offset cannabis-related declines.
NOI Margin Volatility Signals Transition
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 dramatic fluctuation in NOI margin—from 89.1% to 35.1% and back to 100%—is atypical for a triple-net REIT and suggests that reported NOI is being impacted by non-recurring items, possibly including impairment charges or lease termination fees. The 100% margin in 2026Q2 implies minimal property-level expenses, which may reflect a shift in expense classification or a portfolio composition change. Analysts should adjust for these anomalies to assess true operational efficiency.
FFO Growth Outpaces Revenue Decline
FFO per share surged 40.7% YoY to $2.09 in 2026Q2, as per earnings releases, despite revenue contraction, suggesting cost savings or non-operating gains may be boosting earnings quality.
The 40.7% YoY FFO growth, while revenue fell, appears counterintuitive and may indicate that FFO is being supported by one-time items such as lease termination fees or reduced G&A. The FFO payout ratio, based on the current dividend, remains manageable, but the sustainability of this growth is questionable if revenue continues to slide. Investors should scrutinize the reconciliation between FFO and net income to identify non-recurring contributions.
Depreciation Distorts GAAP Earnings
GAAP net income of $43.9M in 2026Q2, per income statement, is significantly lower than FFO of $62.7M, highlighting the large non-cash depreciation charge typical of real estate assets.
The gap between net income and FFO—$18.8M in 2026Q2—represents depreciation and amortization, which is a non-cash expense that overstates the economic cost of asset wear. For a specialized portfolio like IIPR's, actual maintenance capex may be lower than depreciation, but the specialized nature of the properties could require higher capital expenditures upon re-tenanting. This divergence underscores why FFO is the preferred earnings metric for REIT analysis.
Same-Store Metrics Opaque Amid Churn
Same-store NOI trends are not disclosed in the provided data, but the revenue decline suggests negative organic growth, as per financial statements, with occupancy and rent spreads likely under pressure.
Without explicit same-store disclosures, the revenue contraction implies that existing properties are generating less rental income, possibly due to rent concessions or tenant defaults. The company's focus on limited-license states may provide some protection, but the lack of transparency on renewal spreads and occupancy changes warrants investor caution. Monitoring future disclosures for same-store metrics will be critical to assess organic health.
Earnings Quality Under Scrutiny
The 100% NOI margin in 2026Q2, as reported, appears anomalous and may reflect aggressive expense capitalization or one-time gains, potentially inflating reported profitability.
A 100% NOI margin is virtually impossible for a triple-net REIT unless property-level expenses are zero, which is unlikely. This could indicate that certain expenses were capitalized or that the quarter included a large non-recurring benefit. Additionally, the wide gap between gross margin (88.65%) and operating margin (46.67%) suggests significant G&A or impairment charges that may not be recurring. Investors should adjust for these items to assess true cash-generating ability.