MeritValue

INNOVATIVE INDUSTRIAL PROPERTIES INC

IIPRdata completeness 88%9 fiscal years on file

Data notes: no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

INNOVATIVE INDUSTRIAL PROPERTIES INC earns about 8% on equity, but has diluted owners by 8% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $56.38 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$204.6M1$276.4M2$309.5M3$308.5M3$266M3
Net income$114M4$154.4M5$165.6M6$161.7M6$118.2M6
Operating cash flow$188.7M7$234.1M8$255.5M9$258.4M9$198.2M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt————$393.7M10
Cash & equivalents$81.1M11$87.1M12$140.2M13$146.2M14$47.6M14
Diluted shares26.3M27.7M28.3M28.5M28.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$651.23
your share of equity
Profit it earned you last year
$41.67
Free cash flow it threw off
—
Debt you’d be carrying
$138.74

10 shares is a claim on $651.23 of net worth that earned you $41.67 last year, against $138.74 of debt.

iii. Is this a good business?
Moat signal · return on equity
8% avg · 5y
FY21 7%FY22 8%FY23 8%FY24 8%FY25 6%

It earned an average 8% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 5y

Share count is up 8% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$56.38
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$154.4M
  • growthAssumed0.0%
Graham Number
$75.88
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-001866 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-25-001322 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001677576-26-000001 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-001866 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001558370-25-001322 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001677576-26-000001 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-001866 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-25-001322 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001677576-26-000001 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2025-12-31 · accession 0001677576-26-000001 (LongTermDebt)
  11. 10-K · period ending 2021-12-31 · accession 0001558370-23-002394 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2022-12-31 · accession 0001558370-24-001866 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0001558370-25-001322 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2024-12-31 · accession 0001677576-26-000001 (CashAndCashEquivalentsAtCarryingValue)