The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.32 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Innovative Industrial Properties has a Altman Z-Score of 2.32, indicating it is in Grey Zones. This implies that Innovative Industrial Properties is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Innovative Industrial Properties's Altman Z-Score or its related term are showing as below:
LTS:0JBD'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.61 Med: 4.31 Max: 15.84
Current: 2.32
During the past 10 years, Innovative Industrial Properties's highest Altman Z-Score was 15.84. The lowest was 1.61. And the median was 4.31.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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.
LTS:0JBD vs SMA, ILPT, LXP: Altman Z-Score Comparison
For the REIT - Industrial subindustry, Innovative Industrial Properties's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs REITs Industry
For the REITs industry and Real Estate sector, Innovative Industrial Properties's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Innovative Industrial Properties's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Innovative Industrial Properties (LTS:0JBD) has a Altman Z-Score of 2.32 as of Jul. 05, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Innovative Industrial Properties and its competitors. This is 46% below median its historical median of 4.31. Over the past decade, Innovative Industrial Properties' Altman Z-Score has ranged from 1.61 to 15.84. According to the industry distribution chart, Innovative Industrial Properties ranks #157 out of 735 companies in the REITs industry, placing it in the top 21.4%.
Is Innovative Industrial Properties' Altman Z-Score too high?
Innovative Industrial Properties' current Altman Z-Score of 2.32 is 46% below median its 10-year median of 4.31. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 15.84. The REITs industry median Altman Z-Score is 1.08. Innovative Industrial Properties' value of 2.32 is 114.8% above this industry median. Based on the distribution chart, Innovative Industrial Properties ranks #157 out of 735 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 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Innovative Industrial Properties' Altman Z-Score compare to SMA and ILPT?
According to the REITs industry distribution chart, Innovative Industrial Properties ranks #157 out of 735 companies for Altman Z-Score. This places Innovative Industrial Properties in the top 21% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 1.08. Innovative Industrial Properties' value of 2.32 is 114.8% above this benchmark. Historically, Innovative Industrial Properties' own Altman Z-Score has ranged from 1.61 to 15.84 over the past decade. While the company's 10-year median is 4.31 vs. the industry median of 1.08, 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 Altman Z-Score for a REITs company?
The median Altman Z-Score among REITs companies is 1.08, based on 735 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Innovative Industrial Properties's current Altman Z-Score of 2.32 is 114.8% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Innovative Industrial Properties and its competitors. For the REITs industry, the median Altman Z-Score is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Industrial Properties's current Altman Z-Score is 2.32, which is 46% below median its own 10-year median of 4.31. 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 $64.21, compared to a current price of $62.83 — trading 2.1% below its estimated fair value. The current Altman Z-Score is 2.32, which is 46% below median its 10-year median of 4.31 and 114.8% above the REITs industry median of 1.08. Innovative Industrial Properties' overall GF Score™ is 78/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Innovative Industrial Properties (LTS:0JBD), the current Altman Z-Score is 2.32 as of Jul. 05, 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 $62.83 is trading 2.1% below its estimated GF Value™ of $64.21.
GuruFocus considers Innovative Industrial Properties to be Fairly Valued.
Key valuation signals for LTS:0JBD:
Altman Z-Score: 2.32 (46% below median its 10-year median of 4.31)
GF Value™: $64.21 vs. price of $62.83 (2.1% below fair value)
Industry Position: 114.8% above the REITs median (#157 of 735)
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.
78GF Score
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