Innovative Industrial Properties remains a Hold due to worsening AFFO dividend coverage and ongoing tenant distress. Despite a 23.5% share price appreciation, Q2 2026 revenue and AFFO declined by 5% and 2.7%, respectively, compared to Q4, with the payout ratio rising to 104%. IIPR's tenant diversification has improved, reducing bankruptcy risk, but occupancy has trended down to 95.8%.