Innovative Industrial Properties Reports Q4 FY2025 Financial Results

SAN DIEGO – Innovative Industrial Properties, Inc., the real estate investment trust specializing in properties leased to Cannabis operators, reported its fourth-quarter and full-year results for the period ended December 31, 2025.

For the full year, total revenues came in at $266 million, down from $308.5 million in 2024. Net income attributable to common stockholders totaled $114.4 million, or $3.93 per diluted share, compared with $159.9 million, or $5.52 per diluted share, the prior year. Adjusted funds from operations (AFFO) reached $205.4 million, or $7.24 per diluted share.

In the fourth quarter, revenues were $66.7 million, a 13.1% decrease from $76.7 million in the same period of 2024. Net income attributable to common stockholders was $30.7 million, or $1.06 per diluted share. AFFO stood at $53.3 million, or $1.88 per diluted share, surpassing analyst estimates for funds from operations.

The year-over-year declines stemmed mainly from tenant defaults, including those involving PharmaCann, TILT, and 4Front, which reduced rental revenue by about $8.5 million in the fourth quarter alone. The company collected partial payments from some defaulted tenants, such as $4.0 million from Gold Flora and PharmaCann in the quarter.

Despite these pressures, IIPR maintained a high occupancy rate of 96.7% across 109 operating properties, with a weighted-average remaining lease term of 12.8 years. The company executed or signed leases covering 337,000 square feet in Q4 and into early 2026.

On the capital front, IIPR raised $146 million in debt and preferred equity since October 2025 and established a new $100 million secured revolving credit facility. These steps, along with a committed investment of up to $270 million in the life sciences platform IQHQ, reflect efforts to diversify beyond Cannabis-focused holdings and bolster the balance sheet. Debt-to-total-gross-assets stood at 14% at year-end, with liquidity at $107.6 million.

The board declared dividends totaling $7.60 per common share for 2025, continuing an annual increase since the company’s inception in 2016. Cumulative dividends paid exceed $1.1 billion. Market reaction was positive, with shares rising in after-hours trading following the release.

The results highlight ongoing strain in the regulated Cannabis sector, where tenant financial stress has weighed on operators reliant on state-level markets. As federal policy discussions on Cannabis continue and state markets mature unevenly, the company’s ability to manage tenant risks and deploy capital selectively will remain key for long-term stability.