Alliance Global Boosts IIPR Valuation on Improving Tenant Payment Outlook

Innovative Industrial Properties, Inc. (NYSE:IIPR) is included among the 14 Value Stocks to Buy with High Dividend Yields.

On February 26, Alliance Global analyst Aaron Grey raised the firm’s price objective on Innovative Industrial Properties, Inc. (NYSE:IIPR) to $55 from $50. The analyst reiterated a Neutral rating on the shares. The firm said the increase reflects improved visibility into the company’s ability to resume rent collection on previously defaulted assets following its Q4 report.

The company reported its Q4 2025 results on February 23, with both earnings and revenue exceeding expectations. The results showed continued progress in diversifying its portfolio, improving its financial position, and addressing tenant-related issues. The company reported FFO per share of $1.78, which came in $0.09 above estimates. Still, this was down from $2.05 in the same quarter last year.

The REIT generated revenue of $66.66 million during the quarter, exceeding consensus estimates by $0.73 million. Revenue remained below the $76.74 million reported a year earlier. The company also received $3.74 million in payments from its defaulted tenant, Gold Flora, which contributed $0.13 per share to earnings. PharmaCann made payments of $0.24 million, adding another $0.01 per share. Quarter-to-date, Gold Flora had paid $1.5 million, while PharmaCann had paid $1.45 million.

Executive Chairman Alan Gold said the company made meaningful progress throughout 2025 in executing its strategy. He pointed to efforts to diversify the portfolio, strengthen the balance sheet, and actively resolve tenant-related challenges. He also said the company’s strategic investment in IQHQ and the creation of a new $100 million revolving credit facility reflected its disciplined approach to capital allocation. He added that continued tenant resolutions and new leasing activity reinforced the value and demand for the company’s real estate assets.

Innovative Industrial Properties, Inc. (NYSE:IIPR) operates as an internally managed real estate investment trust. The company focuses on acquiring, owning, and managing specialized industrial properties leased to licensed operators for regulated cannabis facilities.

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