Wolfe Research Issues Negative Estimate for IIPR Earnings

Key Points

• Wolfe Research lowered its Q1 2027 EPS estimate for Innovative Industrial Properties to $1.65 from $1.71. The firm also forecast EPS of $1.96, $1.94 and $1.99 for the first three quarters of 2028.
• Analyst sentiment remains mixed, with IIPR holding a consensus “Hold” rating and an average price target of $51.31. Recent calls ranged from Piper Sandler’s $44 underweight target to Stifel Nicolaus’ $56.25 buy target.
• IIPR’s $1.90 quarterly dividend equates to an annualized $7.60 payout and a 14.4% yield, although its payout ratio is elevated at 172.34%.

Innovative Industrial Properties, Inc. (NYSE:IIPR - Free Report) - Equities research analysts at Wolfe Research reduced their Q1 2027 earnings estimates for Innovative Industrial Properties in a research note issued to investors on Friday, October 16th. Wolfe Research analyst A. Rosivach now expects that the company will post earnings of $1.65 per share for the quarter, down from their prior forecast of $1.71. The consensus estimate for Innovative Industrial Properties' current full-year earnings is $7.02 per share. Wolfe Research also issued estimates for Innovative Industrial Properties' Q1 2028 earnings at $1.96 EPS, Q2 2028 earnings at $1.94 EPS and Q3 2028 earnings at $1.99 EPS.

Other analysts have also recently issued reports about the company. Weiss Ratings cut Innovative Industrial Properties from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. Huntington assumed coverage on Innovative Industrial Properties in a report on Friday, October 2nd. They set an "outperform" rating and a $60.00 price objective on the stock. Piper Sandler cut their price objective on Innovative Industrial Properties from $51.00 to $44.00 and set an "underweight" rating for the company in a research report on Monday, October 12th. Finally, Stifel Nicolaus assumed coverage on Innovative Industrial Properties in a report on Wednesday, October 14th. They issued a "buy" rating and a $56.25 target price for the company. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Innovative Industrial Properties currently has a consensus rating of "Hold" and a consensus target price of $51.31.

Innovative Industrial Properties Stock Performance

NYSE IIPR opened at $52.73 on Wednesday. The stock has a market capitalization of $1.45 billion, a price-to-earnings ratio of 11.96 and a beta of 1.37. The business's 50 day moving average is $54.92 and its two-hundred day moving average is $56.96. Innovative Industrial Properties has a 12-month low of $44.58 and a 12-month high of $65.38. The company has a current ratio of 24.51, a quick ratio of 24.51 and a debt-to-equity ratio of 0.35.

Innovative Industrial Properties (NYSE:IIPR - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The company reported $1.36 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.34. Innovative Industrial Properties had a net margin of 52.27% and a return on equity of 7.73%. The firm had revenue of $63.31 million during the quarter, compared to the consensus estimate of $67.09 million.

Innovative Industrial Properties Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $1.90 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $7.60 dividend on an annualized basis and a dividend yield of 14.4%. Innovative Industrial Properties's dividend payout ratio is currently 172.34%.

Insider Buying and Selling

In related news, Director Scott Shoemaker sold 611 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $56.36, for a total value of $34,435.96. Following the completion of the transaction, the director directly owned 2,000 shares of the company's stock, valued at $112,720. This trade represents a 23.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Bruce Ives acquired 528 shares of Innovative Industrial Properties stock in a transaction that occurred on Monday, August 31st. The shares were purchased at an average cost of $56.70 per share, with a total value of $29,937.60. Following the completion of the acquisition, the director owned 3,180 shares of the company's stock, valued at $180,306. The trade was a 19.91% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 2.30% of the company's stock.

Institutional Trading of Innovative Industrial Properties

Several large investors have recently bought and sold shares of the company. CWA Asset Management Group LLC boosted its stake in shares of Innovative Industrial Properties by 14.0% during the third quarter. CWA Asset Management Group LLC now owns 34,959 shares of the company's stock valued at $1,842,000 after acquiring an additional 4,301 shares during the last quarter. Retirement Planning Co of New England Inc. raised its stake in Innovative Industrial Properties by 9.4% in the 3rd quarter. Retirement Planning Co of New England Inc. now owns 4,579 shares of the company's stock valued at $241,000 after purchasing an additional 395 shares during the last quarter. Fortitude Family Office LLC acquired a new position in Innovative Industrial Properties in the 3rd quarter valued at about $26,000. Focus Financial Network Inc. raised its stake in Innovative Industrial Properties by 4.6% in the 3rd quarter. Focus Financial Network Inc. now owns 4,602 shares of the company's stock valued at $242,000 after purchasing an additional 204 shares during the last quarter. Finally, GAMMA Investing LLC lifted its holdings in Innovative Industrial Properties by 26.3% in the 3rd quarter. GAMMA Investing LLC now owns 1,833 shares of the company's stock valued at $97,000 after purchasing an additional 382 shares in the last quarter. Institutional investors and hedge funds own 70.58% of the company's stock.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc NYSE: IIPR is a real estate investment trust focused on the regulated cannabis industry in the United States. The company acquires, owns and manages specialized industrial properties, including cultivation, processing and manufacturing facilities used by state-licensed cannabis operators.

Innovative Industrial Properties generally leases its properties to cannabis companies under long-term, typically triple-net lease agreements. Under these arrangements, tenants are generally responsible for property-level operating expenses, while the company provides real estate capital and manages its portfolio as a landlord.

Founded in 2016, Innovative Industrial Properties has expanded through property acquisitions, sale-leaseback transactions and investments in the development or redevelopment of cannabis facilities.

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