Innovative Industrial Properties, Inc. (NYSE: IIPR) reported its financial results for the third quarter ended September 30, 2026, highlighting strong earnings and continued investment activity. The company announced total revenues of $64.9 million for the quarter, up 0.4% compared to the same period in 2025. Net income attributable to common stockholders was $28.7 million, or $0.99 per diluted share.
Adjusted funds from operations (AFFO) for the quarter were $54.8 million, or $1.96 per share, representing a 7% increase compared to the second quarter of 2026. The company declared a dividend of $1.90 per common share for the third quarter, representing an annualized rate of $7.60 per share. This dividend was paid on October 15, 2026.
In terms of portfolio activity, the company terminated 16 leases representing 1.2 million square feet and entered into 6 new leases for 604,000 square feet. During the quarter, the company applied $3.8 million of security deposits on properties leased to The Cannabist and Parallel. Additionally, the company received repayment in full of a $49.0 million seller financing note associated with the sale of its Perth, New York property.
In life science investments, the company entered into a $245.0 million mezzanine loan commitment to affiliates of IQHQ, Inc. for the Alewife Park campus in Cambridge, Massachusetts. Approximately $111.0 million was funded at closing, with the remaining amount expected in the fourth quarter of 2027. The loan is expected to yield an interest rate of approximately 15.8% over its term, subject to a floor of 14.0%, and matures in February 2028. The company also funded $30.0 million of IQHQ Series G preferred equity, bringing its total strategic investment in the company to $300.0 million.
On the balance sheet, as of September 30, 2026, the company reported total gross assets of $3.0 billion and net debt to total gross assets of 18.7%. Total liquidity was $142.4 million, consisting of cash and cash equivalents. Net debt to adjusted EBITDA was 2.1x.
Subsequent to the quarter end, the company completed an underwritten public offering of 2,167,500 shares of its 9.25% Series B Cumulative Redeemable Preferred Stock at a public offering price of $25.00 per share, generating $54.2 million in gross proceeds. The company also executed a 90-day extension of its $87.5 million revolving credit facility, extending the maturity date to January 21, 2027.
