Innovative Industrial Properties (NYSE:IIPR), a real estate investment trust focused on properties leased to the regulated U.S. cannabis industry, released its earnings results for the second quarter of fiscal 2025 on August 6, 2025. The most notable news was a significant decline in both revenue and earnings per share (GAAP), driven by tenant defaults and broader challenges in the cannabis sector. Revenue (GAAP) fell to $62.9 million, well below the analyst consensus estimate of $64.41 million, while diluted earnings per share (EPS) (GAAP) dropped to $0.86, missing the estimate of $0.91. The period was marked by a 21% decrease in revenue year over year and a 40.3% decline in diluted EPS (GAAP) compared to Q2 2024. Overall, the quarter reflected continued operational headwinds, with a focus on transitioning to new tenants and stabilizing the real estate portfolio.

Source: Analyst estimates for the quarter provided by FactSet.

Innovative Industrial Properties is a real estate investment trust (REIT) specializing in owning and leasing specialized industrial and greenhouse properties to licensed operators in the U.S. cannabis industry. It generates income primarily from long-term, triple-net leases, meaning tenants pay real estate taxes, insurance, and maintenance in addition to rent. This structure aims to provide stable, recurring cash flow.

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Source Fool.com