Innovative Industrial Properties (IIPR) reported Q3 2025 revenue of $64.7 million and normalized FFO per share of $1.60, topping analysts' expectations of $63.9 million and $1.57 respectively, while GAAP net income was $28.29 million ($0.97 per diluted share).

IIPR owns about 108 properties totaling roughly 9.0 million square feet, with 722,000 RSF under development across 19 states.

Valuation indicators show potential undervaluation with a low P/E and P/B, a target price around $57, and substantial institutional ownership, though sentiment reflects some stress signals.

The quarter underscores a broader trend of REITs diversifying beyond cannabis to mitigate regulatory and market risks, even as cannabis-tenant challenges persist.

Total Q3 2025 revenues reached $64.7 million with net income attributable to common stockholders of $28.3 million, or $0.97 per diluted share, reflecting a year-over-year decline in earnings and revenue driven by tenant defaults.

Looking ahead, IIPR plans to integrate the IQHQ investment, manage a mixed portfolio of cannabis and life sciences assets, and pursue additional diversified opportunities for long-term growth.

Forward-looking statements accompany the results, with noted risks and references to 2024 Form 10-K for risk factors.

The company is actively replacing underperforming tenants (4Front Ventures, Gold Flora, TILT Holdings) and pursuing litigation against PharmaCann; a MIH Note disposition contributed $2.7 million as interest and other income in September 2025.

IIPR maintains a lean corporate structure with 23 employees.

Acquisitions are executed via sale-leaseback transactions and third-party purchases to build the portfolio.

IIPR is a Park City, Utah-based REIT focused on specialized industrial properties leased to state-licensed operators in regulated cannabis facilities.

IIPR operates across multiple states including Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia, and Washington.