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Innovative Industrial Properties offers high AFFO yield but faces tenant and sector risks.

Analyst Insights
06 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Innovative Industrial Properties (IIPR) offers a strong AFFO yield of 13.7% on common stock and over 10% on preferred shares, trading at a price-to-book ratio below 1 due to concerns over tenant troubles and cannabis industry uncertainty. The company’s diversification into life sciences brings higher credit risk, with new investments yielding 14% but increasing leverage and reducing fixed charge coverage. Preferred stock IIPR.PR.A provides a safer option with a 10.2% yield, lower credit risk, and strong EBITDA coverage. Investors should weigh these risks against the attractive yields when considering IIPR's securities.

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