Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Mar. 2026, Innovative Industrial Properties has a Sloan Ratio of 3.24%, indicating the company is in the safe zone and there is no funny business with accruals.
Innovative Industrial Properties (NYSE:IIPR) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Innovative Industrial Properties has a Sloan Ratio of 3.24%, indicating the company is in the safe zone and there is no funny business with accruals.
Innovative Industrial Properties Sloan Ratio % Related Terms
Innovative Industrial Properties Sloan Ratio % 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.
Innovative Industrial Properties Sloan Ratio % Chart
For the REIT - Industrial subindustry, Innovative Industrial Properties's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs REITs Industry
For the REITs industry and Real Estate sector, Innovative Industrial Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Innovative Industrial Properties's Sloan Ratio % falls into.
Innovative Industrial Properties Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Innovative Industrial Properties's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 26.024 (Jun. 2025 ) + 29.305 (Sep. 2025 ) + 31.841 (Dec. 2025 ) + 32.809 (Mar. 2026 ) = $120.0 Mil.
Innovative Industrial Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 48.449 (Jun. 2025 ) + 45.591 (Sep. 2025 ) + 49.907 (Dec. 2025 ) + 56.031 (Mar. 2026 ) = $200.0 Mil.
Innovative Industrial Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -5.756 (Jun. 2025 ) + -109.664 (Sep. 2025 ) + -41.725 (Dec. 2025 ) + -0.341 (Mar. 2026 ) = $-157.5 Mil.
* 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.
Innovative Industrial Properties (IIPR) has a Sloan Ratio % of 3.24% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Innovative Industrial Properties and its competitors.
Is Innovative Industrial Properties' Sloan Ratio % too high?
Innovative Industrial Properties' current Sloan Ratio % is 3.24%. 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' Sloan Ratio % compare to SMA and ILPT?
Innovative Industrial Properties' Sloan Ratio % of 3.24% can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a REITs company?
A good Sloan Ratio % depends on the REITs industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Innovative Industrial Properties and its competitors. Innovative Industrial Properties's current Sloan Ratio % is 3.24%. 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 Sloan Ratio % is 3.24%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Innovative Industrial Properties (IIPR), the current Sloan Ratio % is 3.24% 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:
Sloan Ratio %: 3.24%
GF Value™: $64.75 vs. price of $63.36 (2.1% below fair value)
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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