Innovative Industrial Properties Third Quarter Financial Report 2019

A summary of a successful quarter for real estate company Innovative Industrial Properties

Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry rounded up their third quarter today, ending September 30, 2019.

Investments

In September, IIP completed the acquisition of a four-property portfolio in southern California for a $17.3 million total purchase price (excluding transaction costs), comprising approximately 79,000 square feet of industrial space in the aggregate, and entered into long-term leases with subsidiaries of Medical Investor Holdings LLC (Vertical) for continued operation as licensed cannabis cultivation, extraction, manufacturing and distribution facilities. 

In addition, IIP amended its lease with PharmaCann at one of its Massachusetts properties to provide an additional $8.0 million for tenant improvements at the property, which resulted in a corresponding adjustment to base rent.

It was a busy quarter for IIP, as they also completed the acquisition of a 2,000 square foot dispensary location in Arizona for a total investment of $2.5 million (excluding transaction costs), including reimbursement for certain development costs, and entered into a long-term lease with a subsidiary of The Pharm, LLC (The Pharm) for operation as a licensed dispensary upon completion of development.

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The US Ancillary Cannabis Market

Subsequent to quarter end, in October, IIP completed the acquisition of a property in Florida for $17.0 million (excluding transaction costs), comprising approximately 120,000 square feet of industrial space, and entered into a long-term with a subsidiary of Trulieve for continued operation as a licensed cannabis cultivation facility.

Since January 1, 2019, IIP has acquired 30 properties in nine states. IIP entered into new tenant relationships with Cresco, DYME, EGP, Grassroots, Green Leaf, LivWell, Maitri, MJardin, Trulieve, Vertical and two other licensed operators in California, while expanding its tenant relationships with AWH, GPI, Holistic, PharmaCann, The Pharm and Vireo as each company continues to execute on its growth initiatives.

Financial Results

For the three months ended September 30, 2019, IIP recorded net income and net income per diluted share of approximately $6.2 million and $0.55, respectively; funds from operations (FFO) and FFO per diluted share of approximately $8.4 million and $0.76, respectively; and AFFO and AFFO per diluted share of approximately $9.5 millionand $0.86, respectively.

For the three months ended September 30, 2019, AFFO and AFFO per diluted share increased by approximately 270% and 126% from the prior year period, respectively.

IIP expects to use the proceeds from these offerings to invest in specialized industrial real estate assets that support the regulated cannabis cultivation and processing industry and for general corporate purposes.

To read the full financial report from Innovative Industrial Properties click here.

Disclaimer: Past performance is not an indicator of future performance.

To learn more about Innovative Industrial Properties, visit their Company HQ here.

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Niki Mohazeb
Niki Mohazeb

Niki is a Sydney based writer, with a passion for promoting the health benefits of medicinal cannabis. Niki also enjoys researching and writing about the future of cannabis along with the many other benefits that the plant provides, such as the diverse utilities of hemp.

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