Revenue: As of FY2026 Q1, the actual value is USD 69 M.EPS: As of FY2026 Q1, the actual value is USD 1.02, missing the estimate of USD 1.0733.EBIT: As of FY2026 Q1, the actual value is USD 33.01 M.<h4>Segment Revenue</h4><ul><li>Cannabis Portfolio Segment<ul><li>Rental revenues (including tenant reimbursements) were $68,920 thousand for the three months ended March 31, 2026, a decrease from $71,697 thousand for the three months ended March 31, 2025. This decline was primarily due to a -$6.9 million decrease from tenant defaults, partially offset by a $3.1 million increase from annual contractual rent escalations and a $1.0 million increase from properties acquired or new leases executed .</li><li>Other revenues were $76 thousand for the three months ended March 31, 2026, an increase from $25 thousand for the three months ended March 31, 2025 .</li><li>Total reportable segment revenue for the Cannabis Portfolio Segment was $68,996 thousand for the three months ended March 31, 2026, compared to $71,722 thousand for the three months ended March 31, 2025 .</li></ul></li><li>Life Science Portfolio Segment<ul><li>Interest and other income was $5,544 thousand for the three months ended March 31, 2026, compared to -$0 thousand for the three months ended March 31, 2025, as these investments were made in September 2025 .</li></ul></li></ul><h4>Operational Metrics</h4><ul><li>Cannabis Portfolio Segment<ul><li>Property expenses were -$7,576 thousand for the three months ended March 31, 2026, an increase from -$7,379 thousand for the three months ended March 31, 2025, primarily due to $0.6 million higher property taxes on additional investments in existing properties, partially offset by a -$0.4 million decrease in insurance expense .</li><li>Depreciation and amortization expense was -$18,584 thousand for the three months ended March 31, 2026, an increase from -$18,391 thousand for the three months ended March 31, 2025, primarily due to new assets placed into service .</li><li>Impairment loss on real estate was -$0 thousand for the three months ended March 31, 2026, compared to -$3,527 thousand for the three months ended March 31, 2025, which related to a property in Palm Springs, California .</li><li>Gain (loss) on sale of real estate was $422 thousand for the three months ended March 31, 2026, from the sale of a property in Phoenix, Arizona, compared to -$0 thousand for the three months ended March 31, 2025 .</li><li>Interest and other income was $442 thousand for the three months ended March 31, 2026, a decrease from $600 thousand for the three months ended March 31, 2025 .</li><li>Cannabis Portfolio Segment net income was $43,700 thousand for the three months ended March 31, 2026, an increase from $43,025 thousand for the three months ended March 31, 2025 .</li></ul></li><li>Life Science Portfolio Segment<ul><li>Life Science Portfolio Segment net income was $5,544 thousand for the three months ended March 31, 2026, compared to -$0 thousand for the three months ended March 31, 2025 .</li></ul></li><li>Unallocated Items<ul><li>General and administrative expense was -$10,349 thousand for the three months ended March 31, 2026, an increase from -$8,461 thousand for the three months ended March 31, 2025, primarily due to a $1.5 million increase in litigation expense .</li><li>Interest and other income was $345 thousand for the three months ended March 31, 2026, a decrease from $1,013 thousand for the three months ended March 31, 2025, due to lower interest-bearing investments and rates .</li><li>Interest expense was -$6,431 thousand for the three months ended March 31, 2026, an increase from -$4,500 thousand for the three months ended March 31, 2025, primarily due to interest on revolving credit facilities .</li><li>Preferred stock dividends were -$2,654 thousand for the three months ended March 31, 2026, an increase from -$781 thousand for the three months ended March 31, 2025, due to additional Series A Preferred Stock issued .</li></ul></li><li>Consolidated Operational Metrics<ul><li>Net income was $32,809 thousand for the three months ended March 31, 2026, compared to $31,077 thousand for the three months ended March 31, 2025 .</li><li>Net income attributable to common stockholders was $30,155 thousand for the three months ended March 31, 2026, compared to $30,296 thousand for the three months ended March 31, 2025 .</li></ul></li></ul><h4>Cash Flow</h4><ul><li>Net cash provided by operating activities was $56,031 thousand for the three months ended March 31, 2026, up from $54,242 thousand for the three months ended March 31, 2025, primarily due to interest and dividend income from life science investments .</li><li>Net cash provided by (used in) investing activities was -$341 thousand for the three months ended March 31, 2026, an improvement from -$17,156 thousand for the three months ended March 31, 2025 .</li><li>Net cash provided by (used in) financing activities was -$14,170 thousand for the three months ended March 31, 2026, an improvement from -$55,321 thousand for the three months ended March 31, 2025 .</li><li>Ending cash and cash equivalents were $89,117 thousand as of March 31, 2026, compared to $128,010 thousand as of March 31, 2025 .</li></ul><h4>Unique Metrics</h4><ul><li>Portfolio Overview<ul><li>Innovative Industrial Properties, Inc. owned 110 properties across 19 states, totaling 8.9 million square feet as of March 31, 2026 .</li><li>The operating portfolio of 108 properties was 97.8% leased with a weighted-average remaining lease term of 12.4 years .</li><li>The largest property, located in New York, accounted for 5.5% of net real estate held for investment as of March 31, 2026 .</li></ul></li><li>Tenant Concentration (Percentage of total rental revenues for three months ended March 31, 2026)<ul><li>Ascend Wellness Holdings, Inc.: 12% </li><li>Green Thumb Industries, Inc.: 9% </li><li>Curaleaf Holdings, Inc.: 8% </li><li>Trulieve Cannabis Corp.: 8% </li><li>Cresco Labs Inc.: 7% </li></ul></li><li>IQHQ Life Science Investments (as of March 31, 2026)<ul><li>Total Life Science Investments were $153,980 thousand, comprising investments in IQHQ Preferred Stock ($47,430 thousand), IQHQ Warrant ($5,321 thousand), Forward contract for the purchase of IQHQ Preferred Stock ($2,562 thousand), PIK dividend ($1,075 thousand), Investment in IQHQ Credit Facility ($96,806 thousand), and PIK interest ($786 thousand) .</li></ul></li><li>Non-GAAP Financial Measures (Three Months Ended March 31, 2026)<ul><li>FFO attributable to common stockholders (basic and diluted) was $48,317 thousand .</li><li>Normalized FFO attributable to common stockholders (diluted) was $50,585 thousand .</li><li>AFFO attributable to common stockholders (diluted) was $53,434 thousand .</li></ul></li></ul><h4>Future Outlook and Strategy</h4>Innovative Industrial Properties, Inc. is evaluating options to address the maturity of its Notes due 2026, which have an outstanding principal balance of $291.2 million and mature in May 2026, as the company currently lacks sufficient liquidity . The company plans to fund its remaining $120.0 million commitment to purchase IQHQ Preferred Stock through various installments by June 30, 2027, utilizing available cash, credit facilities, and potential future financing activities . Additionally, Innovative Industrial Properties, Inc. continues to manage tenant defaults through litigation and eviction proceedings to reposition its tenant base, and anticipates potential improvements in operator economics and access to capital for the cannabis industry following recent regulatory reclassification announcements .

Innovative Industrial Properties | 10-Q: FY2026 Q1 Revenue: USD 69 M