IIPR's adjusted earnings now top its dividend. What changed?

Innovative Industrial Properties reported $1.96 per share in adjusted funds from operations, or AFFO, for Q3. That exceeded its $1.90 common dividend, after Q2's $1.83 fell short.

AFFO adds back real estate depreciation and selected other costs to reported profit. The latest per-share improvement reflects both higher total AFFO and fewer shares over which to spread it.

The share count changes the comparison

Total AFFO increased about 3% from Q2, to $54.8 million from $53.0 million. The weighted share count used for AFFO fell about 3.5%, helping the per-share figure rise 7%.

Research by Ticker Byline shows that dividing the same Q3 AFFO by Q2's share count produces about $1.89 per share. With the lower Q3 count, the reported figure was $1.96.

Earlier buybacks helped reduce the count. In Q2, IIPR bought back $89 million of shares, with most of those purchases accompanying an exchangeable-note offering.

Rent revenue includes money collected earlier

Total revenue was almost flat from a year earlier at $64.9 million. It included $3.8 million of previously collected tenant security deposits applied to rent, compared with $0.8 million a year earlier.

The company terminated 16 leases and signed six during Q3 as it worked to replace struggling cannabis tenants.

Life sciences adds a different income stream

Investments in life-science property company IQHQ contributed $10.4 million of interest and dividend income. About $2.5 million of the quarter's life-science income was paid in kind, recognized without a cash payment during the quarter.

In September, IIPR funded $111 million under a $245 million loan commitment for IQHQ's Alewife Park campus. That initial funding mainly refinanced an existing bridge loan, with further advances expected through Q4 2027.

The IIPR company profile tracks the dividend comparison, actual cash flows, tenant changes and financing behind the life-science expansion.