Innovative Industrial Properties posted lower revenues and net income in Q3 2025 due to tenant defaults but made a notable diversification move with a $270M investment in a life sciences platform.
Revenue fell 15% YoY to $64.7 million due to tenant defaults.
Net income attributable to common stockholders was $28.3 million or $0.97 per diluted share.
AFFO was $48.3 million, representing $1.71 per diluted share.
Invested $105 million into life sciences firm IQHQ, diversifying away from cannabis assets.
IIPR expects further funding into its life sciences investment and is actively re-leasing defaulted properties while continuing to manage through tenant credit issues.
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