Innovative Industrial Properties' Q3 revenue edges up, aided by security deposits
IIPR•Innovative Industrial Properties' third-quarter revenue rose 0.4% year over year to $64.9 million, above the $61.24 million analyst estimate. Adjusted funds from operations per share increased 15% to $1.96, and the company completed $275 million in investment activity.
1. Quarterly results
Innovative Industrial Properties reported third-quarter revenue of $64.9 million, up 0.4% year over year and above the $61.24 million analyst estimate. Net income was $28.7 million, while earnings per share were $0.99 and adjusted funds from operations per share rose 15% to $1.96.
2. Revenue and investments
The company said higher revenue reflected properties repossessed in the quarter and the application of security deposits, partly offset by lower rent from property sales and lease terminations. Increased interest and dividend income from IQHQ investments also contributed to higher interest and other income. Innovative Industrial Properties completed $275 million in investment activity.
3. Leasing and loan outlook
The company expects to fund the remaining $134 million of the Alewife Park loan through the fourth quarter of 2027, subject to conditions. It has tentative arrangements with new tenants for three 4Front assets, pending receivership and licensing approvals, and a new lease for its Saxton, Pennsylvania, property is contingent on cannabis license transfer approvals.
