Why Innovative Industrial Properties Stock Crumbled Today
Innovative Industrial Properties (NYSE: IIPR) released its latest set of quarterly-earnings figures after market hours Wednesday, and investors reacted accordingly on Thursday. Unfortunately, that reaction was negative, with the market pushing the stock's value down by nearly 11%. The bellwether S&P 500 index, by contrast, landed in positive territory with a 0.7% gain on Thursday.
Innovative, a highly specialized real estate investment trust (REIT) that focuses on properties used by the cannabis industry, unveiled its third-quarter numbers. These showed that the company earned $76.5 million in revenue for the period, which was down by nearly 2% from the $77.8 million in the same quarter of 2023. It also missed the consensus-analyst forecast of $77.4 million.
Net income also slipped, declining to $39.7 million ($1.37 per share) from the year-ago profit of $41.3 million. Those prognosticators tracking Innovative stock were expecting $1.45 per share. Meanwhile adjusted funds from operations (AFFO), the most-critical profitability metric for REITs, also headed south. It was $64.3 million against the $64.8 million of 2023's Q3.
Source Fool.com
