AlphaMadera's AlphaVal page classifies Innovative Industrial Properties, Inc. as a Real Estate Investment Trust business and values it using P/FFO × Industrial REIT Multiple, then compares the result to the current market price to flag IIPR as undervalued, fairly valued, or overvalued.

What is Innovative Industrial Properties, Inc.'s fair value?

Fair value for IIPR comes from a P/FFO × Industrial REIT Multiple model -- the approach AlphaVal selected for this company's Real Estate Investment Trust classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value IIPR?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. IIPR was classified as Real Estate Investment Trust and is valued using P/FFO × Industrial REIT Multiple, built from IIPR's most recent reported fundamentals.

IIPR - Innovative Industrial Properties, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $84.67 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Industrial REIT Multiple

Valuation Signal Undervalued Strong

Trading 69.5% below fair value

Current Price $56.72

Bear Case $152.13 168.2% upside ($152.13 - $56.72) / $56.72 = 168.2% $6.50 FFO × 23x

Fair Value $185.93 227.8% upside ($185.93 - $56.72) / $56.72 = 227.8% $6.50 FFO × 29x

Bull Case $219.74 287.4% upside ($219.74 - $56.72) / $56.72 = 287.4% $6.50 FFO × 34x

Adjust Assumptions

P/FFO Multiple

28.6x

FFO per Share

6.5$

Key Value Driver

FFO/share ($6.50) × industrial P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 8.7x

Market is pricing in (growth)

Plain-Language Summary

At $6.50 FFO/share with a 29x industrial REIT multiple, the base-case value is $185.93 per share. Dividend yield: 13.4%. DDM cross-check: $162.56.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (11 analysts) $84.67

Analyst Range $44.00 – $150.00

Divergence from AlphaVal 120%

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

⚠ Dividend yield of 13.4% is unusually high — make sure the company generates enough cash to keep paying it.

ℹ Wall Street's average price target is $84.67 (from 11 analysts). Our estimate is 120% above the consensus -- consider that gap carefully.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify