San Diego, January 19, 2023–(BUSINESS WIRE)–Innovative Industrial Properties (IIP), the first and only real estate company listed on the New York Stock Exchange (NYSE:IIPR), has established a regulated U.S. cannabis We announced today that we are focusing on industries. Capital markets activity for the quarter and year ended December 31, 2022.
Property portfolio information and operational updates (as of December 31, 2022 unless otherwise stated)
IIP owns 110 properties in 19 states, totaling approximately 8.7 million leasable square feet (including approximately 1.9 million leasable square feet under development or redevelopment) .
– Portfolio under management: 108 properties with approximately 8.3 million leasable square feet.
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100% lease (triple net).
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Weighted average lease term: 15.3 years.
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Total invested/committed capital per square foot: $274
– Portfolio statistics by invested/committed capital:
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No tenants represent more than 14% of the total portfolio.
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No state exceeds 16% of the total portfolio.
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Multi-state operators (MSOs) represent 85% of our managed portfolio.
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Public company operators represent 55% of the operating portfolio.
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Industrial (growing and/or processing), retail (pharmaceutical) and combined industrial/retail account for 90%, 3% and 7% of the investment portfolio respectively.
– Rent collection/deferral:
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As of January 18, 2023:
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SH Parent, Inc. (Parallel) failed to pay rent on one of IIP’s Pennsylvania properties (approximately 2.9% of invested/committed capital).
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Green Peak Industries, Inc. (Skymint) failed to pay rent on one of IIP’s Michigan properties under construction (approximately 2.7% of invested/committed capital).
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An affiliate of Medical Investor Holdings, LLC (Vertical) failed to pay rent at IIP’s California facility (approximately 0.7% of invested/committed capital).
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As of January 18, 2023, IIP has executed lease amendments to include cross-default clauses and/or extend lease terms in exchange for limited deferrals of base rents for the following three properties: .
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One California real estate and one Michigan real estate leased by Holistic (approximately 1.8% of total invested/committed capital):
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Base rent applicable from security deposits held by IIP for the nine months ending September 30, 2023 for properties in Michigan and eight months ending September 30, 2023 for properties in California. 100% pro-rata amount of security deposit for 12 months from January 2024.
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Rents have been paid in full by January 31, 2023 at Holistic at IIP’s California facility and all other IIP properties leased by Holistic.
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Added cross-default and extension term for all leases. There are no other adjustments to the lease term.
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One Missouri property leased by Calyx Peak, Inc. (approximately 1.2% of invested/committed capital):
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100% base rent deferral until March 31, 2023, followed by pro-rata repayments over the next 12 months.
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Extension of the lease term. There are no other lease term adjustments.
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– King’s Garden updates:
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Kings Garden pays rent on four California properties that it continues to own. This includes the rent of capital invested in an expansion project that is part of the lease of one of the properties (this project is included as construction in progress below). .
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During the three months ended December 31, 2022, Kings Garden paid approximately $1.8 million in base rent for these four properties. This was in addition to a prorated tax and insurance reimbursement to IIP and direct payment of all other property operating expenses.
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Kings Garden has indicated it is considering a potential merger deal.
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IIP recovered an additional approximately $5.4 million from King’s Garden during the three months ended December 31, 2022.
– Under Construction: Two properties (previously leased to King’s Gardens) and an expansion project at a property where King’s Gardens continues to use and rent the property.
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San Bernardino Real Estate (approximately 192,000 leasable square feet): IIP is actively evaluating alternative non-cannabis uses for real estate due to changes in market conditions and real estate zoning in California.
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Cathedral City property (approximately 23,000 leasable square feet): IIP has entered into a letter of intent to lease the property and is in negotiations with potential tenants on lease terms. There is no guarantee that IIP will lease the property on the expected terms.
investment activities
In 2022, IIP will acquire 9 properties in 7 states and execute 12 lease modifications to provide additional remediation allowances to properties in 7 states, totaling approximately $394 million. (includes initial acquisition investment and commitment to fund future enhancement allowances). .
In November 2022, IIP leased an industrial property in Pennsylvania to a subsidiary of Maitri Holdings, LLC and sold it for $23.5 million (approximately $461 per square foot).
As of January 18, 2023, IIP has entered into two definitive purchase agreements to acquire two properties. The total investment is approximately $63 million. This includes the amount the applicable tenant is expected to have available as a refund for qualifying improvements to the property. As of January 18, 2023, IIP has also acquired two properties and has executed four non-binding agreements to provide IIP with additional funding for improvements to his two properties. bottom. Potential acquisitions and additional financing are subject to continued vigilance, execution of definitive agreements (if applicable), and satisfaction of closing conditions, subject to the completion of IIP’s acquisition of any of these properties. There is no guarantee that any additional funding will be made available. In the expected conditions or in existing properties at all.
Balance sheet statistics (as of December 31, 2022)
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12% of total assets are in debt and total assets are approximately $2.6 billion.
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Total quarterly fixed cash interest is approximately $4.2 million.
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No secured debt.
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There are no debt maturities until May 2026, except for $6.4 million principal of 3.75% convertible senior notes in 2024.
About innovative industrial property
Innovative Industrial Properties, Inc. is a self-owned property focused on acquiring, owning, and managing specialty industrial properties leased to experienced, state-licensed operators for regulated cannabis facilities. It is an advisory Maryland corporation. Innovative Industrial Properties, Inc. elected to be taxed as a real estate investment trust beginning with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
This press release contains statements that IIP believes are “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. When used in this press release, IIP’s words such as “expect,” “intend,” “plan,” “estimate,” “expect,” “believe,” “should,” or Its negative form, or similar terms, are generally intended to identify. Forward-Looking Statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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contact address
IIP contact:
Catherine Hastings
CFO
Innovative Industrial Properties Co., Ltd.
(858) 997-3332