Compass Point Moves Innovative Industrial Properties (IIPR) to Neutral

Innovative Industrial Properties, Inc. (NYSE:IIPR) is included among the 15 Best High Dividend Stocks to Invest in Under $100.

On March 3, Merrill Ross of Compass Point Research & Trading upgraded Innovative Industrial Properties, Inc. (NYSE:IIPR) to Neutral from Sell. The firm kept its price target unchanged at $45.

The company released its fourth-quarter 2025 results on February 23. During the earnings call, Executive Chairman Alan Gold said the company spent much of 2025 working through a few key priorities. Management focused on diversifying the portfolio, strengthening the balance sheet, and addressing tenant-related challenges.

Gold said the strategic investment in IQHQ, along with the creation of a new $100 million revolving credit facility, reflected the company’s disciplined approach to capital allocation. He also noted that tenant resolutions and new leasing activity during the year continued to show demand for the company’s real estate and reinforced the value of its portfolio. For the full year, Innovative Industrial Properties reported total revenue of $266.0 million.

Net income attributable to common stockholders reached $114.4 million, or $3.93 per diluted share. Adjusted funds from operations totaled $205.4 million, equal to $7.24 per diluted share. The company declared dividends totaling $7.60 per share during the year. That extended its pattern of raising annual dividends since the company was founded in 2016. Since then, Innovative Industrial Properties has returned more than $1.1 billion in dividends to shareholders. In August, the company announced a strategic investment of up to $270.0 million in IQHQ. The plan included a fully funded $100.0 million revolving credit facility and $170.0 million in preferred equity.

By the end of the year, $50.0 million of that investment had already been funded. During 2025, the company signed new leases covering about 339,000 square feet. That represented roughly 4% of the portfolio’s total rentable space.

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

While we acknowledge the potential of IIPR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 14 Best Dividend Stocks to Invest in Under $50 and 40 Most Popular Stocks Among Hedge Funds Heading into 2026.

Disclosure: None.  Follow Insider Monkey on Google News.