Innovative Industrial Properties (IIPR) reported total revenues of $71.7 million for the first quarter ended March 31, 2025, a 5% decrease from $75.5 million in the same period of 2024. Net income attributable to common stockholders was $30.296 million, or $1.03 per share, a significant drop from $39.090 million, or $1.36 per share, year-over-year. Adjusted Funds From Operations (AFFO) also declined to $55.332 million, or $1.94 per share, from $62.999 million, or $2.21 per share, in Q1 2024.
The revenue decline was primarily driven by a $4.4 million decrease on properties leased to PharmaCann due to tenant default and a $1.6 million decrease on properties leased to TILT due to tenant default. An additional $1.0 million decrease was related to certain properties vacated or sold since the first quarter of 2024. These reductions were partially offset by a $2.2 million increase from new acquisitions and new leases, and a $1.6 million increase from contractual rent escalations.
IIP applied $5.8 million of security deposits for rent payments from PharmaCann, Gold Flora, TILT, and Sozo during the quarter. The company also re-leased two properties totaling 211,000 square feet year-to-date Q1 2025, with rent commencement contingent on tenants obtaining operating approvals. The company repurchased 371,538 shares of common stock for $20.1 million at a weighted average price of $54.09 per share by the end of Q2 2025, indicating ongoing capital allocation efforts during this period.
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