A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Innovative Industrial Properties's Debt-to-EBITDA or its related term are showing as below:
IIPR'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.2 Med: 1.36 Max: 3.61
Current: 1.7
During the past 10 years, the highest Debt-to-EBITDA Ratio of Innovative Industrial Properties was 3.61. The lowest was 1.20. And the median was 1.36.
IIPR's Debt-to-EBITDA is ranked better than 90.57% of 583
companies
in the REITs industry
Industry Median: 6.49
vs IIPR: 1.70
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Innovative Industrial Properties Debt-to-EBITDA Related Terms
Innovative Industrial Properties Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Industrial subindustry, Innovative Industrial Properties's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Innovative Industrial Properties Debt-to-EBITDA vs REITs Industry
For the REITs industry and Real Estate sector, Innovative Industrial Properties's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Innovative Industrial Properties's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Innovative Industrial Properties (IIPR) has a Debt-to-EBITDA of 1.58 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Innovative Industrial Properties. This is 16% above median its historical median of 1.36. Over the past decade, Innovative Industrial Properties' Debt-to-EBITDA has ranged from 1.20 to 3.61. According to the industry distribution chart, Innovative Industrial Properties ranks #55 out of 583 companies in the REITs industry, placing it in the top 9.4%.
Is Innovative Industrial Properties' Debt-to-EBITDA too high?
Innovative Industrial Properties' current Debt-to-EBITDA of 1.58 is 16% above median its 10-year median of 1.36. Over the past 10 years, this metric has ranged from a low of 1.20 to a high of 3.61. The REITs industry median Debt-to-EBITDA is 6.49. Innovative Industrial Properties' value of 1.58 is 75.7% below this industry median. Based on the distribution chart, Innovative Industrial Properties ranks #55 out of 583 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Innovative Industrial Properties has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Innovative Industrial Properties' Debt-to-EBITDA compare to SMA and ILPT?
According to the REITs industry distribution chart, Innovative Industrial Properties ranks #55 out of 583 companies for Debt-to-EBITDA. This places Innovative Industrial Properties in the top 9% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 6.49. Innovative Industrial Properties' value of 1.58 is 75.7% below this benchmark. Historically, Innovative Industrial Properties' own Debt-to-EBITDA has ranged from 1.20 to 3.61 over the past decade. While the company's 10-year median is 1.36 vs. the industry median of 6.49, Innovative Industrial Properties has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a REITs company?
The median Debt-to-EBITDA among REITs companies is 6.49, based on 583 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Innovative Industrial Properties's current Debt-to-EBITDA of 1.58 is 75.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Innovative Industrial Properties. For the REITs industry, the median Debt-to-EBITDA is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Industrial Properties's current Debt-to-EBITDA is 1.58, which is 16% above median its own 10-year median of 1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innovative Industrial Properties stock overvalued right now?
Based on GuruFocus' analysis, Innovative Industrial Properties (IIPR) is currently considered Fairly Valued. The stock's GF Value™ is $64.75, compared to a current price of $63.36 — trading 2.1% below its estimated fair value. The current Debt-to-EBITDA is 1.58, which is 16% above median its 10-year median of 1.36 and 75.7% below the REITs industry median of 6.49. Innovative Industrial Properties' overall GF Score™ is 77/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Innovative Industrial Properties (IIPR), the current Debt-to-EBITDA is 1.58 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Innovative Industrial Properties (IIPR) Overvalued in 2026?
Based on GuruFocus' analysis, Innovative Industrial Properties stock appears to be undervalued.
The current stock price of $63.36 is trading 2.1% below its estimated GF Value™ of $64.75.
GuruFocus considers Innovative Industrial Properties to be Fairly Valued.
Key valuation signals for IIPR:
Debt-to-EBITDA: 1.58 (16% above median its 10-year median of 1.36)
GF Value™: $64.75 vs. price of $63.36 (2.1% below fair value)
Industry Position: 75.7% below the REITs median (#55 of 583)
No single metric tells the full story. See the IIPR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Innovative Industrial Properties Business Description
Innovative Industrial Properties Inc is a real estate investment trust focused on the acquisition, ownership and management of specialized industrial and commercial properties in the United States. Its properties are prominently leased to state-licensed operators for their regulated cannabis facilities. The company conducts its business through a traditional umbrella partnership real estate investment trust, or UPREIT structure, in which properties are owned by its Operating Partnership, directly or through subsidiaries. Its segments are: Cannabis Portfolio and Life Science Portfolio, with the majority of revenue coming from the Cannabis Portfolio segment, which involves acquiring, developing, and leasing real estate to regulated cannabis operators on long-term triple-net leases.
77GF Score
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