IIP Defies Revenue Dip with 11% Stock Surge and Life Sciences Expansion
Innovative Industrial Properties (IIP) has reported strong financial results for the last quarter of 2025, despite a drop in revenue. The company's stock also saw a notable rise, climbing over 11% in just seven days.
This performance comes as IIP expands into new areas, including life sciences real estate, while managing challenges from tenant defaults.
IIP's quarterly results for Q4 2025 showed a 13% decline in revenue, falling to $66.7 million. However, adjusted funds from operations (AFFO) grew by 10%, reaching $1.88 per share. The company also kept its quarterly dividend steady at $1.90 per share.
During the same period, IIP successfully recovered funds from two tenants. A court ruling secured $7 million from Temescal Wellness, while Gold Flora contributed $3.7 million. These recoveries helped offset some of the revenue loss.
To support further growth, IIP raised over $145 million in fresh capital since October 2025. Part of this funding will go towards a new venture—a $270 million commitment to the IQHQ platform, marking the company's entry into life sciences real estate.
Meanwhile, IIP is working to re-lease more than 900,000 square feet of space left vacant by tenant defaults. The company's stock price has rebounded, surpassing its recent 52-week low of €38.35 after a 11% surge in the past week.
IIP's latest financial results highlight both challenges and progress. The company's expansion into life sciences real estate and successful capital raising point to future growth. At the same time, recovering funds from tenants and re-leasing vacant space remain key priorities for stability.
