Innovative Industrial Properties (NYSE:IIPR) (NYSE:IIP), the sole real estate firm listed on the New York Stock Exchange that caters to the U.S. cannabis sector, has reported a year-on-year increase of 10% in Q3 2023 revenues, reaching $77.8 million. The company's net income for common stockholders amounted to $41.3 million, or $1.45 per share, reflecting a 7.8% increase year-on-year.
The firm's adjusted funds from operations (AFFO) stood at approximately $64.8 million, or $2.29 per share, marking a year-on-year rise of 7.5%. In October, IIP distributed a quarterly dividend of $1.80 per share, indicating a 6% year-on-year dividend increase.
The company demonstrated strong rent collection efficiency at 97%. This includes about $2.2 million of security deposits applied from amendments with Holistic Industries Inc., Temescal Wellness of Massachusetts, LLC, and 4Front Ventures (OTC:FFNTF) Corp. at IIP's properties in California, Michigan, Massachusetts, and Illinois respectively.
However, rent defaults were mainly attributed to SH Parent, Inc., a tenant at one of IIP's Pennsylvania properties. This led to uncollected rent totaling approximately $2.2 million.
InvestingPro Insights
Innovative Industrial Properties has shown an impressive financial performance, as revealed by the real-time data from InvestingPro. With a market cap of $2030.0M, the company has a P/E ratio of 12.65, indicating a healthy valuation. Over the last twelve months as of Q2 2023, the company has generated $293.87M in revenue, marking an 18.58% growth. The company's gross profit margin stands at a robust 94.05%, pointing to efficient operations.
Looking at the InvestingPro Tips, it's worth noting that the company has consistently increased its earnings per share and has raised its dividend for 6 consecutive years. This aligns with the company's recent distribution of a quarterly dividend of $1.80 per share, indicating a 6% year-on-year dividend increase. Furthermore, the company operates with a moderate level of debt, which may provide financial stability.
For more insights like these, InvestingPro offers an extensive list of 16 additional tips for IIPR. These tips can assist investors in making informed decisions about their investments in the company.
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