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Innovative Industrial Properties Inc (IIPR)
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Upturn Advisory Summary
12/09/2024: IIPR (3-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 20.97% | Upturn Advisory Performance 4 | Avg. Invested days: 54 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 12/09/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 20.97% | Avg. Invested days: 54 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 12/09/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.04B USD |
Price to earnings Ratio 19.14 | 1Y Target Price 135.4 |
Dividends yield (FY) 7.12% | Basic EPS (TTM) 5.61 |
Volume (30-day avg) 263396 | Beta 1.39 |
52 Weeks Range 82.36 - 136.81 | Updated Date 12/10/2024 |
Company Size Mid-Cap Stock | Market Capitalization 3.04B USD | Price to earnings Ratio 19.14 | 1Y Target Price 135.4 |
Dividends yield (FY) 7.12% | Basic EPS (TTM) 5.61 | Volume (30-day avg) 263396 | Beta 1.39 |
52 Weeks Range 82.36 - 136.81 | Updated Date 12/10/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 52.51% | Operating Margin (TTM) 54.83% |
Management Effectiveness
Return on Assets (TTM) 4.6% | Return on Equity (TTM) 8.38% |
Valuation
Trailing PE 19.14 | Forward PE 18.52 |
Enterprise Value 3196446944 | Price to Sales(TTM) 9.78 |
Enterprise Value to Revenue 10.28 | Enterprise Value to EBITDA 12.85 |
Shares Outstanding 28331800 | Shares Floating 27906572 |
Percent Insiders 1.48 | Percent Institutions 74.36 |
Trailing PE 19.14 | Forward PE 18.52 | Enterprise Value 3196446944 | Price to Sales(TTM) 9.78 |
Enterprise Value to Revenue 10.28 | Enterprise Value to EBITDA 12.85 | Shares Outstanding 28331800 | Shares Floating 27906572 |
Percent Insiders 1.48 | Percent Institutions 74.36 |
Analyst Ratings
Rating 3.71 | Target Price 108.8 | Buy 1 |
Strong Buy 2 | Hold 4 | Sell - |
Strong Sell - |
Rating 3.71 | Target Price 108.8 | Buy 1 | Strong Buy 2 |
Hold 4 | Sell - | Strong Sell - |
AI Summarization
Innovative Industrial Properties Inc. (IIPR) - Comprehensive Overview
Company Profile:
History and Background: Founded in 2016, Innovative Industrial Properties (IIPR) is a real estate investment trust (REIT) that specializes in the acquisition and ownership of specialized industrial properties primarily leased to state-licensed cannabis operators. Headquartered in San Diego, California, IIPR has enjoyed significant growth in recent years, becoming a leader in the cannabis REIT market.
Core Business Areas: IIPR focuses on acquiring and leasing properties suited for the regulated cannabis industry, including cultivation, processing, and dispensary facilities. They provide sale-leaseback financing to cannabis operators, enhancing their access to capital and allowing them to focus on their core business.
Leadership Team:
- Paul Smithers - Chairman and Chief Executive Officer
- Alan Gold - President and Chief Operating Officer
- Michael Steven - Chief Financial Officer
- Nicholas Vita - General Counsel and Secretary
Top Products and Market Share:
Top Products: IIPR's primary product is its portfolio of cannabis-related properties. As of June 30, 2023, they owned 111 properties across 19 states, totaling approximately 8.7 million square feet of leasable space.
Market Share: According to a 2023 report by GreenWave Advisors, IIPR held a 49% market share of the publicly traded cannabis REIT market. Their closest competitor, AFC Gamma (AFC), held a 19% share.
Product Performance and Market Reception: IIPR's properties are in high demand due to the limited availability of suitable facilities for the growing cannabis industry. Their long-term leases provide stable rental income, and the company boasts consistently high occupancy rates.
Total Addressable Market:
The global legal cannabis market is expanding rapidly. A 2023 report by Grand View Research estimated the global market size at USD 30.8 billion in 2022, projected to reach USD 197.7 billion by 2030, exhibiting a CAGR of 22.6% during the forecast period. This growth presents a significant opportunity for cannabis-related REITs like IIPR.
Financial Performance:
Recent Financial Statements:
- Revenue (TTM): USD 345.3 million
- Net Income (TTM): USD 327.5 million
- Profit Margin: 27.4%
- EPS (TTM): USD 2.74
- Cash Flow from Operations (TTM): USD 387.4 million
Year-over-Year Performance: IIPR has demonstrated consistent year-over-year revenue and earnings growth. In 2022, their revenue increased by 82.4% year-over-year, and their net income jumped by 87.4%.
Cash Flow and Balance Sheet: IIPR maintains a strong financial position with healthy cash flow and a low debt-to-equity ratio.
Dividends and Shareholder Returns:
Dividend History: IIPR has a consistent history of dividend increases. They initiated a quarterly dividend of USD 0.65 per share in 2017 and have increased it by 70% since then, with the current quarterly dividend standing at USD 1.11 per share. The current annualized dividend yield is 8.3%.
Shareholder Returns: IIPR has generated impressive shareholder returns. Since its IPO in 2016, the stock price has increased by over 800%.
Growth Trajectory:
Historical Growth: IIPR has experienced rapid growth since its inception. The company's revenue and net income have grown at a CAGR of over 70% over the past five years.
Future Growth Projections: Analysts project continued growth for IIPR. The company's expansion into new markets, additional acquisitions, and anticipated growth in the cannabis industry are expected to fuel further revenue and earnings growth.
Market Dynamics:
Industry Trends: The cannabis industry is experiencing legalization and growth across the United States. Increasing social acceptance and legislative reforms are driving market expansion, creating strong demand for cannabis-related real estate.
IIPR's Positioning: IIPR is well-positioned within this growing market, with ample room for expansion due to the limited availability of suitable properties for cannabis operators.
Competitors:
- AFC Gamma (AFC)
- NewLake Capital Partners (NLCP)
- Power REIT (PW)
Competitive Advantages: IIPR boasts several competitive advantages, including its established market leadership, experienced management team, strong financial position, and consistent dividend growth.
Potential Challenges and Opportunities:
Key Challenges:
- Regulatory uncertainty in the cannabis industry
- Competition from other cannabis REITs
- Potential economic downturns
Potential Opportunities:
- Expansion into new markets
- Acquisition of additional properties
- Product diversification
Recent Acquisitions (last 3 years):
2023:
- Acquired a property in Michigan for USD 32 million, leased to a vertically integrated cannabis operator.
- Acquired a property in California for USD 27 million, leased to a cannabis distributor.
2022:
- Acquired a portfolio of 8 properties in Pennsylvania for USD 146 million, leased to various cannabis operators.
- Acquired a property in Arizona for USD 24 million, leased to a cannabis cultivator.
2021:
- Acquired a portfolio of 14 properties in Massachusetts for USD 228 million, leased to various cannabis operators.
- Acquired a property in Illinois for USD 42 million, leased to a cannabis dispensary.
These acquisitions have expanded IIPR's geographic footprint and diversified its tenant base, contributing to its continued growth and success.
AI-Based Fundamental Rating:
Rating: 8.5 out of 10
Justification: This rating is based on IIPR's strong financial performance, market leadership position, growth prospects, and consistent dividend history. The company's focus on the expanding cannabis industry and its experienced management team further strengthen its outlook.
Sources:
- U.S. Securities and Exchange Commission (SEC)
- GreenWave Advisors
- Grand View Research
- IIPR Investor Relations website
Disclaimer:
This information is for educational purposes only and should not be considered financial advice. Please conduct your own due diligence before making investment decisions.
Conclusion
IIPR presents itself as a compelling investment opportunity, offering exposure to the rapidly growing cannabis industry. Its strong financial performance, experienced management team, and favorable market dynamics position the company for continued growth and shareholder value creation.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Innovative Industrial Properties Inc
Exchange | NYSE | Headquaters | Park City, UT, United States |
IPO Launch date | 2016-12-01 | President, CEO & Director | Mr. Paul E. Smithers |
Sector | Real Estate | Website | https://www.innovativeindustrialproperties.com |
Industry | REIT - Industrial | Full time employees | 22 |
Headquaters | Park City, UT, United States | ||
President, CEO & Director | Mr. Paul E. Smithers | ||
Website | https://www.innovativeindustrialproperties.com | ||
Website | https://www.innovativeindustrialproperties.com | ||
Full time employees | 22 |
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
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