Recent News
On July 3rd Wolfe Research cut its rating on Innovative Industrial Properties to Peer Perform, citing re-evaluation of near-term outlook. On August 5th BTIG maintained a Hold stance with a $70.33 average price target, reflecting ongoing analyst scrutiny of the company’s operating environment.
Technical Analysis
Directional indicators: ADX at 19.08 indicates no established trend; DI+ at 24.10 shows a dip-and-reversal that signals renewed bullish directional pressure, while DI- at 22.14 and its increasing trend indicates concurrent downside pressure. Together these measures suggest competing forces rather than a clear directional trend, which aligns with the valuation being lower than peers while market action digests recent news.
MACD measures: MACD at 0.06 sits below the signal line at 0.42 and the MACD trend declines, indicating prevailing bearish momentum in the oscillator and that momentum has weakened relative to the recent signal line level.
MRO (Momentum/Regression Oscillator): MRO at -15.25 registers negative, indicating price sits below the model target and therefore carries potential to move higher; the MRO recent dip-and-reversal implies that upward pressure could resume toward the modeled target, moderating short-term downside risk.
RSI and mean reversion: RSI 51.74 with a dip-and-reversal trend shows momentum attempting to recover from a pullback; RSI sits near the midpoint, consistent with consolidation rather than an extreme overbought or oversold state.
Price vs averages and bands: Last close $55.26 trades below the 200-day average $58.58 and marginally below the 20-day average $55.92; the 12-day EMA and 26-day EMA sit at $55.31 and $55.35 with the 12-day EMA trending down, indicating short-term moving-average resistance. Bollinger bands place price inside the bands (lower ~ $54.33, upper ~ $57.50), implying normal volatility; SuperTrend upper at $56.66 offers a nearby technical resistance level. Short-term volatility (42-day beta 1.76) exceeds the one-year beta 0.62, reflecting elevated recent beta and price sensitivity to news. These price/average relationships suggest range-bound action with potential for mean-reversion rallies if MRO-driven buying resumes.
Fundamental Analysis
Margins and profitability: EBIT $30,468,000 and EBITDA $48,968,000 produce an EBIT margin of 48.45%. QoQ EBIT margin fell by 2.33%, and YoY EBIT margin declined by 16.53%. WMDST notes the EBIT margin sits above the industry peer mean of 42.47% and above the industry peer median of 41.10%, indicating superior operating profitability relative to the peer averages despite recent contraction.
Top-line and growth: Total revenue $62,891,000 and reported revenue growth at -12.31% (revenueGrowth) with a revenue growth year-over-year figure of -314.10% as provided. QoQ revenue growth shows a strong sequential increase of 88.16%. Net income $26,024,000 and reported earnings growth measures include an earningsGrowth QoQ uptick of 24.71% contrasted with an earningsGrowth figure of -16.505% and an earningsGrowthYoY of 1,022.03% per the supplied labels; these mixed growth readings reflect large period-to-period swings in the reported metrics and warrant attention to underlying drivers disclosed in filings.
Cash, liquidity and leverage: Cash and short-term investments $99,666,000 with operating cash flow $48,449,000 and free cash flow $48,449,000, producing a free cash flow yield of 3.20%, above the industry peer mean of 1.398%. Current ratio equals 1.00 and net debt stands at $190,195,000. Debt-to-assets 12.58% and debt-to-equity 15.72% both fall below the industry peer low thresholds in the provided peer range, indicating relatively light balance-sheet leverage versus the peer range. Interest coverage at 6.86x exceeds the industry peer mean of ~4.32x, signaling manageable interest burden on current earnings.
Returns and efficiency: Return on equity equals 1.41% and return on assets 1.12%, both modest but roughly in line with peer medians; asset turnover 2.70% sits below the industry peer mean of 3.424%, consistent with a capital-intensive REIT model where rental income drives returns more than turnover. Dividend metrics show a dividend rate $1.97 and dividend yield 3.645% while dividend payout ratio registers 212.28% and dividend coverage ratio 47.11%, indicating the dividend payout materially exceeds reported earnings on the reported basis and relies on cash flow and non-GAAP cash measures for coverage.
Valuation summary: Price-to-book 0.82 sits below the industry peer mean of 1.968 and industry peer median of 1.905, while forward P/E at 38.27 and trailing P/E ~63.72x reflect stretched earnings multiples on reported earnings. Free cash flow yield above the peer mean and the low price-to-book support WMDST’s determination that the current valuation is under-valued. WMDST values the stock as under-valued given strong margin metrics, ample cash, and low balance-sheet leverage despite revenue and earnings pressure.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 128.0 M |
| Operating Cash Flow | $ 48.4 M | |
| Capital Expenditures | $ -7.51 M | |
| Change In Working Capital | $ 761.0 K | |
| Dividends Paid | $ -55.24 M | |
| Cash Flow Delta | $ -28.34 M | |
| End Period Cash Flow | $ 99.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 62.9 M | |
| Forward Revenue | $ 24.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 6.9 M | |
| Depreciation | $ 18.5 M | |
| Depreciation and Amortization | $ 18.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 34.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 56.0 M | |
| EBITDA | $ 49.0 M | |
| EBIT | $ 30.5 M | |
| Operating Income | $ 28.9 M | |
| Interest Income | $ 1.6 M | |
| Interest Expense | $ 4.4 M | |
| Net Interest Income | $ -2.87 M | |
| Income Before Tax | $ 26.0 M | |
| Tax Provision | — | |
| Tax Rate | 21.0 % | |
| Net Income | $ 26.0 M | |
| Net Income From Continuing Operations | $ 26.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.91 | |
| EPS Actual | $ 0.86 | |
| EPS Difference | $ -0.05 | |
| EPS Surprise | -5.495 % | |
| Forward EPS | $ 1.47 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.3 B | |
| Intangible Assets | $ 7.0 M | |
| Net Tangible Assets | $ 1.9 B | |
| Total Current Assets | $ 122.5 M | |
| Cash and Short-Term Investments | $ 99.7 M | |
| Cash | $ 99.7 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 22.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 15.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 122.1 M | |
| Net Debt | $ 190.2 M | |
| Total Debt | $ 289.9 M | |
| Total Liabilities | $ 424.6 M | |
| EQUITY | ||
| Total Equity | $ 1.8 B | |
| Retained Earnings | $ -264.43 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 65.80 | |
| Shares Outstanding | 28.018 M | |
| Revenue Per-Share | $ 2.24 | |
| VALUATION | Market Capitalization | $ 1.5 B |
| Enterprise Value | $ 1.7 B | |
| Enterprise Multiple | 34.836 | |
| Enterprise Multiple QoQ | -0.868 % | |
| Enterprise Multiple YoY | -30.356 % | |
| Enterprise Multiple IPRWA | high: 86.153 median: 83.413 mean: 78.552 IIPR: 34.836 low: 13.18 |
|
| EV/R | 27.124 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.25 | |
| Asset To Liability | 5.428 | |
| Debt To Capital | 0.136 | |
| Debt To Assets | 0.126 | |
| Debt To Assets QoQ | 2.186 % | |
| Debt To Assets YoY | 0.899 % | |
| Debt To Assets IPRWA | high: 0.804 mean: 0.411 median: 0.355 low: 0.149 IIPR: 0.126 |
|
| Debt To Equity | 0.157 | |
| Debt To Equity QoQ | 2.61 % | |
| Debt To Equity YoY | 2.29 % | |
| Debt To Equity IPRWA | high: 2.079 mean: 1.054 median: 0.658 low: 0.188 IIPR: 0.157 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.822 | |
| Price To Book QoQ | -10.472 % | |
| Price To Book YoY | -47.272 % | |
| Price To Book IPRWA | high: 3.302 mean: 1.968 median: 1.905 IIPR: 0.822 low: 0.555 |
|
| Price To Earnings (P/E) | 63.715 | |
| Price To Earnings QoQ | 22.972 % | |
| Price To Earnings YoY | -19.751 % | |
| Price To Earnings IPRWA | high: 175.15 mean: 143.269 median: 131.315 IIPR: 63.715 low: -111.883 |
|
| PE/G Ratio | -3.86 | |
| Price To Sales (P/S) | 24.1 | |
| Price To Sales QoQ | -0.376 % | |
| Price To Sales YoY | -36.204 % | |
| Price To Sales IPRWA | high: 51.764 median: 42.193 mean: 40.966 IIPR: 24.1 low: 2.569 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 38.271 | |
| Forward PE/G | -2.319 | |
| Forward P/S | 61.12 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.166 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.027 | |
| Asset Turnover Ratio QoQ | -10.917 % | |
| Asset Turnover Ratio YoY | -19.035 % | |
| Asset Turnover Ratio IPRWA | high: 0.082 mean: 0.034 IIPR: 0.027 median: 0.023 low: 0.019 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 191.741 | |
| CapEx To Revenue | -0.119 | |
| CapEx To Depreciation | -0.406 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.2 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ 1.9 B | |
| Net Working Capital | $ 328.0 K | |
| LIQUIDITY | ||
| Cash Ratio | 0.816 | |
| Current Ratio | 1.003 | |
| Current Ratio QoQ | -13.518 % | |
| Current Ratio YoY | -8.969 % | |
| Current Ratio IPRWA | high: 4.088 mean: 1.093 IIPR: 1.003 median: 0.614 low: 0.126 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.919 | |
| Cost Of Debt | 1.212 % | |
| Interest Coverage Ratio | 6.856 | |
| Interest Coverage Ratio QoQ | -13.281 % | |
| Interest Coverage Ratio YoY | -36.048 % | |
| Interest Coverage Ratio IPRWA | high: 14.255 IIPR: 6.856 mean: 4.321 median: 3.564 low: 0.348 |
|
| Operating Cash Flow Ratio | 0.319 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 230.363 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.471 | |
| Dividend Payout Ratio | 2.123 | |
| Dividend Rate | $ 1.97 | |
| Dividend Yield | 0.036 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.02 % | |
| Revenue Growth | -12.313 % | |
| Revenue Growth QoQ | 88.157 % | |
| Revenue Growth YoY | -314.102 % | |
| Revenue Growth IPRWA | high: 5.422 % median: 2.066 % mean: 1.932 % low: -1.102 % IIPR: -12.313 % |
|
| Earnings Growth | -16.505 % | |
| Earnings Growth QoQ | 24.707 % | |
| Earnings Growth YoY | 1022.026 % | |
| Earnings Growth IPRWA | high: 145.161 % median: -3.175 % mean: -3.385 % IIPR: -16.505 % low: -166.667 % |
|
| MARGINS | ||
| Gross Margin | 89.081 % | |
| Gross Margin QoQ | -0.703 % | |
| Gross Margin YoY | -2.536 % | |
| Gross Margin IPRWA | IIPR: 89.081 % high: 86.028 % median: 74.683 % mean: 73.984 % low: 68.464 % |
|
| EBIT Margin | 48.446 % | |
| EBIT Margin QoQ | -2.334 % | |
| EBIT Margin YoY | -16.531 % | |
| EBIT Margin IPRWA | high: 89.376 % IIPR: 48.446 % mean: 42.472 % median: 41.1 % low: 5.489 % |
|
| Return On Sales (ROS) | 45.949 % | |
| Return On Sales QoQ | -7.368 % | |
| Return On Sales YoY | -20.834 % | |
| Return On Sales IPRWA | high: 47.886 % IIPR: 45.949 % mean: 41.317 % median: 39.159 % low: 8.342 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 48.4 M | |
| Free Cash Flow Yield | 3.197 % | |
| Free Cash Flow Yield QoQ | 2.271 % | |
| Free Cash Flow Yield YoY | 50.094 % | |
| Free Cash Flow Yield IPRWA | high: 6.392 % IIPR: 3.197 % mean: 1.398 % median: 1.237 % low: -1.258 % |
|
| Free Cash Growth | -10.68 % | |
| Free Cash Growth QoQ | 73.236 % | |
| Free Cash Growth YoY | 3.83 % | |
| Free Cash Growth IPRWA | high: 61.894 % mean: 11.059 % median: 6.975 % IIPR: -10.68 % low: -38.748 % |
|
| Free Cash To Net Income | 1.862 | |
| Cash Flow Margin | 61.896 % | |
| Cash Flow To Earnings | 1.496 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.117 % | |
| Return On Assets QoQ | -14.992 % | |
| Return On Assets YoY | -36.39 % | |
| Return On Assets IPRWA | high: 3.919 % IIPR: 1.117 % mean: 0.989 % median: 0.856 % low: -0.408 % |
|
| Return On Capital Employed (ROCE) | 1.396 % | |
| Return On Equity (ROE) | 0.014 | |
| Return On Equity QoQ | -14.164 % | |
| Return On Equity YoY | -34.991 % | |
| Return On Equity IPRWA | high: 0.071 mean: 0.027 IIPR: 0.014 median: 0.013 low: -0.041 |
|
| DuPont ROE | 1.395 % | |
| Return On Invested Capital (ROIC) | 1.128 % | |
| Return On Invested Capital QoQ | -12.558 % | |
| Return On Invested Capital YoY | -94.564 % | |
| Return On Invested Capital IPRWA | high: 2.796 % mean: 1.514 % IIPR: 1.128 % median: 0.991 % low: 0.176 % |
|