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IIPR's Q1 Earnings Coming Up: Key Factors to Impact the Stock
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Innovative Industrial Properties, Inc. (IIPR - Free Report) , a leading real estate investment trust (REIT) specializing in the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities, is set to announce its first-quarter 2025 earnings results on May 7, after market close.
In the last reported quarter, Innovative Industrial reported adjusted funds from operations (AFFO) per share of $2.22, in line with the Zacks Consensus Estimate.
Over the last four quarters, IIPR’s AFFO per share surpassed the consensus mark on one occasion, met on another and missed in the remaining two periods, with the average miss being 0.43%. The graph below depicts the surprise history of the company:
Innovative Industrial Properties, Inc. Price and EPS Surprise
In the first quarter of 2025, IIPR’s results are likely to be affected because of taking back possession of certain properties or those sold since 2023, lease amendments that adjusted and deferred rent for certain properties, as well as partial payment of rent by certain tenants. However, amendments to leases for additional improvement allowances at existing properties that resulted in adjustments to rent and contractual rent escalations on its other existing properties are expected to have partially offset the negatives.
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $70.79 million. The figure suggests a decline of 6.2% year over year.
Innovative Industrial Properties’ activities during the quarter in discussion were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the first-quarter AFFO per share has been revised seven cents downward over the past month to $1.99. Also, it suggests a 9.9% decrease year over year.
IIPR’s Notable Developments During Q1
In March 2025, IIPR announced a major initiative to replace and renew tenants to strengthen its portfolio and enhance long-term shareholder value. Due to persistent challenges in the regulated cannabis sector — such as high taxes, falling cannabis prices, competition from illicit markets, inflation and capital constraints — several tenants have struggled to meet lease obligations.
As a result, IIPR has declared defaults on leases with three major tenants: 4Front Ventures (5.7% of rent), Gold Flora (2.9%) and TILT Holdings (2.2%). As of March 28, 2025, the total amounts owed for contractual base rent, property management fees, and estimated tax and insurance payments were $9.0 million for the 4Front Leases, $1.7 million for the Gold Flora Leases, and $2.4 million for the TILT Leases. Additionally, IIPR declared a $16.1 million secured loan in default after the borrower failed to pay $0.8 million in interest and taxes.
IIPR plans to enforce its rights, which may include evictions and foreclosures, to recover owed amounts and stabilize its operations. The company sees this proactive tenant refresh as crucial for ensuring more financially stable tenants and positioning itself for future growth.
In January 2025, IIPR announced that it had reached an agreement to resolve lease defaults with PharmaCann covering 11 properties. The company fully utilized security deposits to cover the defaulted rent in full for December 2024 and January 2025, along with certain penalties. Leases for nine properties were amended to lower the rent from $2.8 million to $2.6 million monthly, with increased security deposits. Two cultivation sites will transition to new tenants by August 2025, or IIPR will regain full control. PharmaCann issued an interest-bearing, secured promissory note. If PharmaCann doesn’t refinance key debt by June 2025, all amendments will be void.
Here is What Our Quantitative Model Predicts for IIPR:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Innovative Industrial Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
Innovative Industrial Properties currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of -3.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — EPR Properties (EPR - Free Report) and Lamar Advertising Company (LAMR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Lamar Advertising is slated to report quarterly numbers on May 8. LAMR has an Earnings ESP of +1.63% and carries a Zacks Rank of 3 presently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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IIPR's Q1 Earnings Coming Up: Key Factors to Impact the Stock
Innovative Industrial Properties, Inc. (IIPR - Free Report) , a leading real estate investment trust (REIT) specializing in the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities, is set to announce its first-quarter 2025 earnings results on May 7, after market close.
In the last reported quarter, Innovative Industrial reported adjusted funds from operations (AFFO) per share of $2.22, in line with the Zacks Consensus Estimate.
Over the last four quarters, IIPR’s AFFO per share surpassed the consensus mark on one occasion, met on another and missed in the remaining two periods, with the average miss being 0.43%. The graph below depicts the surprise history of the company:
Innovative Industrial Properties, Inc. Price and EPS Surprise
Innovative Industrial Properties, Inc. price-eps-surprise | Innovative Industrial Properties, Inc. Quote
IIPR: Factors at Play and Projections
In the first quarter of 2025, IIPR’s results are likely to be affected because of taking back possession of certain properties or those sold since 2023, lease amendments that adjusted and deferred rent for certain properties, as well as partial payment of rent by certain tenants. However, amendments to leases for additional improvement allowances at existing properties that resulted in adjustments to rent and contractual rent escalations on its other existing properties are expected to have partially offset the negatives.
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $70.79 million. The figure suggests a decline of 6.2% year over year.
Innovative Industrial Properties’ activities during the quarter in discussion were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the first-quarter AFFO per share has been revised seven cents downward over the past month to $1.99. Also, it suggests a 9.9% decrease year over year.
IIPR’s Notable Developments During Q1
In March 2025, IIPR announced a major initiative to replace and renew tenants to strengthen its portfolio and enhance long-term shareholder value. Due to persistent challenges in the regulated cannabis sector — such as high taxes, falling cannabis prices, competition from illicit markets, inflation and capital constraints — several tenants have struggled to meet lease obligations.
As a result, IIPR has declared defaults on leases with three major tenants: 4Front Ventures (5.7% of rent), Gold Flora (2.9%) and TILT Holdings (2.2%). As of March 28, 2025, the total amounts owed for contractual base rent, property management fees, and estimated tax and insurance payments were $9.0 million for the 4Front Leases, $1.7 million for the Gold Flora Leases, and $2.4 million for the TILT Leases. Additionally, IIPR declared a $16.1 million secured loan in default after the borrower failed to pay $0.8 million in interest and taxes.
IIPR plans to enforce its rights, which may include evictions and foreclosures, to recover owed amounts and stabilize its operations. The company sees this proactive tenant refresh as crucial for ensuring more financially stable tenants and positioning itself for future growth.
In January 2025, IIPR announced that it had reached an agreement to resolve lease defaults with PharmaCann covering 11 properties. The company fully utilized security deposits to cover the defaulted rent in full for December 2024 and January 2025, along with certain penalties. Leases for nine properties were amended to lower the rent from $2.8 million to $2.6 million monthly, with increased security deposits. Two cultivation sites will transition to new tenants by August 2025, or IIPR will regain full control. PharmaCann issued an interest-bearing, secured promissory note. If PharmaCann doesn’t refinance key debt by June 2025, all amendments will be void.
Here is What Our Quantitative Model Predicts for IIPR:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Innovative Industrial Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
Innovative Industrial Properties currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of -3.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — EPR Properties (EPR - Free Report) and Lamar Advertising Company (LAMR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
EPR Properties, scheduled to report quarterly numbers on May 7, has an Earnings ESP of +1.18% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lamar Advertising is slated to report quarterly numbers on May 8. LAMR has an Earnings ESP of +1.63% and carries a Zacks Rank of 3 presently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.