Fintel reports that on September 5, 2023, Compass Point downgraded their outlook for Innovative Industrial Properties (NYSE:IIPR) from Buy to Neutral.

Analyst Price Forecast Suggests 27.67% Upside

As of August 31, 2023, the average one-year price target for Innovative Industrial Properties is 112.00. The forecasts range from a low of 80.80 to a high of $187.95. The average price target represents an increase of 27.67% from its latest reported closing price of 87.72.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Innovative Industrial Properties is 301MM, an increase of 2.57%. The projected annual non-GAAP EPS is 5.84.

Innovative Industrial Properties Declares $1.80 Dividend

On June 15, 2023 the company declared a regular quarterly dividend of $1.80 per share ($7.20 annualized). Shareholders of record as of June 30, 2023 received the payment on July 14, 2023. Previously, the company paid $1.80 per share.

At the current share price of $87.72 / share, the stock’s dividend yield is 8.21%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.44%, the lowest has been 1.79%, and the highest has been 10.66%. The standard deviation of yields is 2.40 (n=236).

The current dividend yield is 1.57 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 1.25. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.70%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 580 funds or institutions reporting positions in Innovative Industrial Properties. This is a decrease of 31 owner(s) or 5.07% in the last quarter. Average portfolio weight of all funds dedicated to IIPR is 0.18%, a decrease of 22.41%. Total shares owned by institutions decreased in the last three months by 6.64% to 21,394K shares. The put/call ratio of IIPR is 0.80, indicating a bullish outlook.

What are Other Shareholders Doing?

IJR – iShares Core S&P Small-Cap ETF holds 1,966K shares representing 7.01% ownership of the company. In it’s prior filing, the firm reported owning 2,035K shares, representing a decrease of 3.50%. The firm decreased its portfolio allocation in IIPR by 10.10% over the last quarter.

Zimmer Partners holds 1,238K shares representing 4.41% ownership of the company. In it’s prior filing, the firm reported owning 1,877K shares, representing a decrease of 51.66%. The firm decreased its portfolio allocation in IIPR by 27.29% over the last quarter.

VGSIX – Vanguard Real Estate Index Fund Investor Shares holds 1,229K shares representing 4.38% ownership of the company. In it’s prior filing, the firm reported owning 1,247K shares, representing a decrease of 1.47%. The firm decreased its portfolio allocation in IIPR by 16.62% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 869K shares representing 3.10% ownership of the company. In it’s prior filing, the firm reported owning 866K shares, representing an increase of 0.34%. The firm decreased its portfolio allocation in IIPR by 11.06% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 724K shares representing 2.58% ownership of the company. In it’s prior filing, the firm reported owning 732K shares, representing a decrease of 1.15%. The firm decreased its portfolio allocation in IIPR by 9.63% over the last quarter.

Innovative Industrial Properties Background Information
(This description is provided by the company.)

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.

This article originally appeared on Fintel

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