The historical rank and industry rank for Innovative Industrial Properties's Return-on-Tangible-Asset or its related term are showing as below:
IIPR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6.94 Med: 5.11 Max: 6.92
Current: 5.12
During the past 10 years, Innovative Industrial Properties's highest Return-on-Tangible-Asset was 6.92%. The lowest was -6.94%. And the median was 5.11%.
IIPR's Return-on-Tangible-Asset is ranked better than 67.62% of 942
companies
in the REITs industry
Industry Median: 3.265
vs IIPR: 5.12
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Innovative Industrial Properties Return-on-Tangible-Asset Related Terms
Innovative Industrial Properties Return-on-Tangible-Asset 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.
IIPR vs SMA, ILPT, LXP: Return-on-Tangible-Asset Comparison
For the REIT - Industrial subindustry, Innovative Industrial Properties's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs REITs Industry
For the REITs industry and Real Estate sector, Innovative Industrial Properties's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Innovative Industrial Properties's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.52% mean?
Innovative Industrial Properties (IIPR) has a Return-on-Tangible-Asset of 5.52% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Innovative Industrial Properties and its competitors. This is near median its historical median of 5.11. According to the industry distribution chart, Innovative Industrial Properties ranks #305 out of 942 companies in the REITs industry, placing it in the top 32.4%.
Is Innovative Industrial Properties' Return-on-Tangible-Asset too high?
Innovative Industrial Properties' current Return-on-Tangible-Asset of 5.52% is near median its 10-year median of 5.11. The REITs industry median Return-on-Tangible-Asset is 3.27. Innovative Industrial Properties' value of 5.52% is 69.1% above this industry median. Based on the distribution chart, Innovative Industrial Properties ranks #305 out of 942 companies in the REITs industry, which is above the industry midpoint. 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' Return-on-Tangible-Asset compare to SMA and ILPT?
According to the REITs industry distribution chart, Innovative Industrial Properties ranks #305 out of 942 companies for Return-on-Tangible-Asset. This puts Innovative Industrial Properties in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.27. Innovative Industrial Properties' value of 5.52% is 69.1% above this benchmark. While the company's 10-year median is 5.11 vs. the industry median of 3.27, Innovative Industrial Properties has consistently been above 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 Return-on-Tangible-Asset for a REITs company?
The median Return-on-Tangible-Asset among REITs companies is 3.27, based on 942 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Innovative Industrial Properties's current Return-on-Tangible-Asset of 5.52% is 69.1% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Innovative Industrial Properties and its competitors. For the REITs industry, the median Return-on-Tangible-Asset is 3.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Industrial Properties's current Return-on-Tangible-Asset is 5.52%, which is near median its own 10-year median of 5.11. 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 $64.70, compared to a current price of $61.49 — trading 5% below its estimated fair value. The current Return-on-Tangible-Asset is 5.52%, which is near median its 10-year median of 5.11 and 69.1% above the REITs industry median of 3.27. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Innovative Industrial Properties (IIPR), the current Return-on-Tangible-Asset is 5.52% 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 $61.49 is trading 5% below its estimated GF Value™ of $64.70.
GuruFocus considers Innovative Industrial Properties to be Fairly Valued.
Key valuation signals for IIPR:
Return-on-Tangible-Asset: 5.52% (near median its 10-year median of 5.11)
GF Value™: $64.70 vs. price of $61.49 (5% below fair value)
Industry Position: 69.1% above the REITs median (#305 of 942)
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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