ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Innovative Industrial Properties's annualizedNet Income for the quarter that ended in Mar. 2026 was $131.2 Mil.
Innovative Industrial Properties's average Total Assets over the quarter that ended in Mar. 2026 was $2,382.4 Mil. Therefore, Innovative Industrial Properties's annualized ROA % for the quarter that ended in Mar. 2026 was 5.51%.
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Innovative Industrial Properties ROA % Related Terms
Innovative Industrial Properties ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
* 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Innovative Industrial Properties (LTS:0JBD) has a ROA % of 5.51% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total 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 #302 out of 942 companies in the REITs industry, placing it in the top 32.1%.
Is Innovative Industrial Properties' ROA % too high?
Innovative Industrial Properties' current ROA % of 5.51% is near median its 10-year median of 5.11. The REITs industry median ROA % is 3.20. Innovative Industrial Properties' value of 5.51% is 72.2% above this industry median. Based on the distribution chart, Innovative Industrial Properties ranks #302 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' ROA % compare to SMA and ILPT?
According to the REITs industry distribution chart, Innovative Industrial Properties ranks #302 out of 942 companies for ROA %. This puts Innovative Industrial Properties in the upper half of its industry. The industry median ROA % is 3.20. Innovative Industrial Properties' value of 5.51% is 72.2% above this benchmark. While the company's 10-year median is 5.11 vs. the industry median of 3.20, 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 ROA % for a REITs company?
The median ROA % among REITs companies is 3.20, based on 942 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Innovative Industrial Properties's current ROA % of 5.51% is 72.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Innovative Industrial Properties and its competitors. For the REITs industry, the median ROA % is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Industrial Properties's current ROA % is 5.51%, 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 (LTS:0JBD) is currently considered Fairly Valued. The stock's GF Value™ is $64.59, compared to a current price of $63.15 — trading 2.2% below its estimated fair value. The current ROA % is 5.51%, which is near median its 10-year median of 5.11 and 72.2% above the REITs industry median of 3.20. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Innovative Industrial Properties (LTS:0JBD), the current ROA % is 5.51% 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 (LTS:0JBD) Overvalued in 2026?
Based on GuruFocus' analysis, Innovative Industrial Properties stock appears to be undervalued.
The current stock price of $63.15 is trading 2.2% below its estimated GF Value™ of $64.59.
GuruFocus considers Innovative Industrial Properties to be Fairly Valued.
Key valuation signals for LTS:0JBD:
ROA %: 5.51% (near median its 10-year median of 5.11)
GF Value™: $64.59 vs. price of $63.15 (2.2% below fair value)
Industry Position: 72.2% above the REITs median (#302 of 942)
No single metric tells the full story. See the LTS:0JBD 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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