← Innovative Industrial Properties
The business behind the dividend
| Measure | IIPR | Median | Formula |
|---|---|---|---|
| Return on equity | 6.4% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 5.5% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 46.7% | 14.3% | Operating income ÷ revenue |
| Net margin | 44.5% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.21x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 6.15x | 4.22x | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.68x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -3.4% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Current ratio, Free cash flow, Owner earnings — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 6.4% | 8.3% | 8.5% | 7.9% | 7.1% | 4.3% | 4.3% | 2.6% | -0.1% | 6.4% |
| Return on capital employed | 5.5% | — | — | — | — | — | 3.7% | — | — | 3.7% |
| Operating margin | 46.7% | 54.6% | 56.4% | 61.4% | 66.2% | 59.7% | 55.8% | 36.1% | -3.5% | 55.8% |
| Net margin | 44.5% | 52.4% | 53.5% | 55.9% | 55.7% | 56.2% | 52.6% | 47.2% | -1.1% | 52.6% |
| Debt to equity | 0.21x | — | — | — | — | — | 0.25x | — | — | 0.21x |
| Cash conversion | 1.68x | 1.60x | 1.54x | 1.52x | 1.66x | 1.69x | 1.91x | 2.25x | — | 1.68x |
How it compares in real estate
Among the 99 real estate companies here measured on funds from operations, Innovative Industrial Properties pays out less than 4 of them. The median for that group is 67.5%, against this company’s 112.3%.
Closest on funds from operations
- W. P. Carey (WPC) 100.3%
- Apollo Commercial Real Estate Finance (ARI) 100.7%
- CTO Realty Growth (CTO) 100.8%
- Macerich (MAC) 101.1%
Same sector and same denominator, so the figures are comparable. All 130 in real estate →