Latest Ratios: P/E Ratio 15.7x · EV/EBITDA 10.7x · 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 | $1.8B | $1.3B | $1.9B | $2.8B | $2.8B | $6.9B | $3.6B | $811M | $331M | $109M | $18M |
| Enterprise Value | $2.1B | $1.7B | $2.1B | $3.0B | $3.0B | $7.1B | $3.6B | $864M | $318M | $97M | $-15490123 |
| P/E Ratio → | 15.74 | 12.05 | 12.07 | 17.47 | 18.36 | 57.78 | 56.00 | 47.12 | 47.28 | — | — |
| P/S Ratio | 6.65 | 5.05 | 6.16 | 9.20 | 10.15 | 33.75 | 30.64 | 18.15 | 22.36 | 16.99 | 54.56 |
| P/B Ratio | 0.95 | 0.73 | 0.98 | 1.46 | 1.43 | 4.28 | 2.35 | 1.48 | 1.25 | 1.48 | 0.29 |
| P/FCF | 10.11 | 7.69 | 7.36 | 11.15 | — | 36.58 | — | — | — | — | — |
| P/OCF | 8.92 | 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 | 10.66 | 8.53 | 8.58 | 12.45 | 13.07 | 40.36 | 36.76 | 25.77 | 21.48 | 15.16 | -48.26 |
| EV / EBIT | 17.03 | 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 | 12.3% | 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 | 6.4% | 8.3% | 8.3% | 5.7% | 5.4% | 1.7% | 1.8% | 2.1% | 2.1% | — | — |
| FCF Yield | 9.9% | 13.0% | 13.6% | 9.0% | — | 2.7% | — | — | — | — | — |
| Buyback Yield | 1.1% | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | 0.0% |
| Total Shareholder Yield | 13.5% | 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 |
Tenant Credit and Regulatory
As reported in recent financial filings, the P/FFO multiple has trended toward 66.55x in 2026Q1, reflecting a market that appears increasingly skeptical of the company's ability to sustain historical growth rates given the current negative revenue trajectory and the inherent risks of the specialized cannabis real estate sector.
The lack of a clear P/AFFO multiple in recent periods complicates traditional valuation, suggesting that investors should monitor the spread between FFO and cash-generative AFFO. The current valuation appears to price in significant operational risk, as the market likely discounts the potential for future rent restructurings and the high cost of re-tenanting specialized facilities.
Based on the company's reported quarterly figures, the NOI margin has experienced a material decline from historical levels above 90% to 35.1% in 2026Q1, indicating that property-level profitability is under significant pressure despite the triple-net lease structure that typically shields the landlord from direct operating expenses.
This sharp contraction suggests that the company may be absorbing costs related to non-performing assets or is being forced to offer rent concessions to retain tenants. Investors should investigate whether this margin compression is a temporary byproduct of lease restructurings or a permanent shift in the profitability profile of the existing portfolio.
According to the provided quarterly data, the FFO payout ratio reached 106.7% in 2025Q4, which suggests that the company is currently distributing more cash than it generates from its core property operations, raising concerns regarding the long-term durability of the dividend in the face of declining operational performance.
A payout ratio exceeding 100% is generally unsustainable and warrants further investigation into the company's reliance on cash reserves to maintain distributions. The trend indicates that the dividend may be at risk if the company cannot stabilize its FFO per share, which has fluctuated downward in recent quarters.
As indicated by the company's reported figures, the debt-to-equity ratio remains exceptionally low at 0.19 as of 2026Q1, providing a significant defensive cushion that distinguishes the firm from more highly levered industrial REIT peers operating in traditional, less volatile real estate sectors.
While this low leverage profile is a strength, it may also reflect a limited ability or willingness to access debt markets at current interest rates to fund new acquisitions. This balance sheet conservatism appears necessary given the high-risk nature of the tenant base and the potential for further asset impairments.
The most commonly misapplied metric for this REIT is the standard P/E ratio, which fails to account for the significant non-cash depreciation charges inherent in the real estate business model, thereby obscuring the true cash-generating capacity of the company's specialized industrial portfolio.
Investors should prioritize FFO or AFFO over P/E to better understand the company's ability to cover its dividend and fund capital expenditures. Relying on P/E ignores the reality that depreciation is an accounting entry rather than a cash expense, leading to a distorted view of the company's actual economic profitability.
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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 15.7x. 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 10.7x. 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 15.7x. 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 12.32% 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.