Iipr stock price is showing relative strength compared to other cannabis-linked equities, supported by solid cash flow metrics and minimal debt maturities over the next three years. Accordingly, for Q4, despite the lack of any acquisitions to help boost the top line, IIPR achieved revenues and normalized AFFO/share of $79.2 million and $2.28 , up 12% and 8%, respectively. It’s interesting to note that despite most REITs seeing their profitability decline in 2023 due to rising interest rates, IIPR’s interest expenses actually declined by 8.2% to $4.15 million for the quarter, since its 2024 and 2026 notes, which comprise almost all of the company’s borrowings, feature fixed interest payments. In the context of valuation, Innovative Industrial Properties is at present trading with a Forward P/E ratio of 8.67. For comparison, its industry has an average Forward P/E of 11.52, which means Innovative Industrial Properties is trading at a discount to the group.
