Innovative Industrial Properties’ (IIPR) Q4 earnings and revenue exceeded estimates as the company announced progress in diversifying its portfolio, strengthening its balance sheet, and resolving tenant-related matters.
Shares were 2.49% higher Monday after the market close at $47.31.
FFO per share of $1.78, which beats by $0.09, is down from $2.05 recorded in the same period a year ago.
The San Diego-based industrial REIT reported Q4 revenue of $66.66M, which beats the consensus estimate by $0.73M but comes below the year-ago level of $76.74M.
IIPR attributed the decrease primarily to a $8.5M reduction in rental revenue and a $1.6M decrease in tenant reimbursements, which stemmed from tenant defaults for properties leased to PharmaCann, TILT, and 4Front.
Innovative Industrial Properties disclosed payments of $3.74M received from the defaulted tenant, Gold Flora, during the quarter, which had a per share impact of $0.13 in earnings. PharmaCann paid $0.24M during the quarter, having a per-share impact of $0.01.
Gold Flora has paid $1.5M quarter-to-date, while PharmaCann has paid $1.45M.
“During 2025, we made significant progress executing on our strategy to diversify the company’s portfolio, strengthen our balance sheet, and actively resolve tenant-related matters,” said Executive Chairman Alan Gold.
“Our strategic investment in IQHQ and establishment of a new $100 million revolving credit facility reflect our disciplined approach to capital allocation, while our ongoing tenant resolutions and new leasing activity demonstrate the underlying value of, and demand for, our real estate portfolio,” added Gold.