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Innovative Industrial Properties Inc
NYSE:IIPR

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Innovative Industrial Properties Inc
NYSE:IIPR
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Price: 53.48 USD -0.15%
Market Cap: 1.5B USD

Net Margin
Innovative Industrial Properties Inc

51.1%
Current
53%
Average
9.8%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
51.1%
=
Net Income
157.6m
/
Revenue
308.5m

Net Margin Across Competitors

Innovative Industrial Properties Inc
Glance View

Economic Moat
None
Market Cap
1.5B USD
Industry
Real Estate

Innovative Industrial Properties Inc. (IIPR) emerged in the rapidly evolving landscape of the cannabis industry, taking advantage of a niche that marries the complex world of real estate investment with the burgeoning demand for medical cannabis facilities. Founded in 2016, the company established itself as a real estate investment trust (REIT), focusing exclusively on the acquisition, ownership, and management of specialized properties leased to state-licensed operators for their regulated medical-use cannabis facilities. This strategic focus enabled IIPR to tap into the expanding cannabis market, capitalizing on the industry's explosive growth while maintaining a solid footing in the real estate domain. The company’s method involves purchasing properties for cash and leasing them back to the cannabis operators under long-term, triple-net leases, effectively minimizing operational liabilities and ensuring consistent revenue flow. What sets IIPR apart is its adeptness in navigating the intricate regulatory framework that surrounds the cannabis industry, especially in the United States, where cannabis legality varies dramatically from state to state. By positioning itself as a funding source for cash-strapped cannabis operators who often struggle to find financing due to federal restrictions, IIPR provides essential capital that operators need to expand operations, update facilities, and meet rising demand. Its business model ensures a steady income stream through lease agreements while enjoying the benefits of property appreciation. Furthermore, these leases include annual rent escalations, contributing to the growth in rental income over time. Thus, IIPR’s business success hinges on its dual role as both a financial partner to the cannabis sector and a prudent real estate manager, exemplifying a distinctive approach to merging two dynamic industries.

IIPR Intrinsic Value
76.21 USD
Undervaluation 30%
Intrinsic Value
Price
I
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
51.1%
=
Net Income
157.6m
/
Revenue
308.5m
What is the Net Margin of Innovative Industrial Properties Inc?

Based on Innovative Industrial Properties Inc's most recent financial statements, the company has Net Margin of 51.1%.

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