IIPR Should I Buy
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$
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0.000(0.000%)
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Innovative Industrial Properties Inc (IIPR) is not a strong buy at the moment given the user's long-term investment strategy and beginner level. The company faces significant financial challenges, including declining revenue, net income, and EPS. Additionally, technical indicators are bearish, and there is no strong positive catalyst to suggest a reversal in the near term. While the dividend yield is attractive, its sustainability is in question, making this a risky investment for a beginner investor.
The technical indicators for IIPR are bearish. The MACD is negative and expanding downward, the RSI is neutral but leaning towards oversold territory, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 45.647), with resistance levels at R1: 49.32 and R2: 50.454. The stock has a 90% chance of declining by -0.6% in the next day and a 5.14% chance of increasing in the next week.
The potential rescheduling of marijuana to Schedule III could improve tenants' financial positions, which might benefit the company in the long term.
Concerns about the sustainability of its high dividend yield (15.7%) further add to the risks. Additionally, the stock has declined over 60% since Q3 2024, reflecting market concerns about its growth and financial health.
In Q3 2025, revenue dropped to $64.69 million (-15.47% YoY), net income dropped to $27.55 million (-29.51% YoY), and EPS dropped to $0.97 (-29.20% YoY). Gross margin also declined to 58.89% (-12.13% YoY). These figures indicate a deteriorating financial performance.
Analysts expect a slight revenue increase of 1.5% in 2026 to $269.7 million, but this is not sufficient to offset the company's recent financial struggles. There is no indication of a strong positive shift in analyst sentiment or price targets.
