8-K - IIPR - Equibles

UNITED STATES

SECURITIES ANDEXCHANGE COMMISSION

WASHINGTON,D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant toSection 13 or 15(d)

of the SecuritiesExchange Act of 1934

Date ofReport (Date of earliest event reported): May 7, 2025

Innovative IndustrialProperties, Inc.

(Exact nameof registrant as specified in its charter)

Maryland	001-37949	81-2963381
(State or Other Jurisdiction<br><br> <br>of Incorporation)	(Commission<br><br> <br>File No.)	(I.R.S. Employer<br><br> <br>Identification No.)

1389 CenterDrive, Suite 200

Park City, UT84098

(Address ofprincipal executive offices, including zip code)

Registrant’s

telephone number, including area code: (858) 997-3332

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨	Pre-commencement communications pursuant<br> to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨	Pre-commencement communications pursuant to Rule 13e-4(c) under<br>the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Securities Registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	IIPR	New York Stock Exchange
Series A Preferred Stock, par value $0.001 per share	IIPR-PA	New York Stock Exchange

Item 2.02Results of Operations and Financial Condition.

On May 7, 2025, Innovative Industrial Properties, Inc. (the “Company”) issued a press release regarding its financial results for the first quarter ended March 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On May 7, 2025, the Company posted on its website, http://investors.innovativeindustrialproperties.com, certain supplemental financial information for the first quarter ended March 31, 2025, which is attached hereto as Exhibit 99.2 and is incorporated by reference herein.

Item 7.01Regulation FD Disclosure.

On May 7, 2025, the Company posted an investor presentation to its website located at http://investors.innovativeindustrialproperties.com. A copy of the investor presentation is attached hereto as Exhibit 99.3 and is incorporated by reference herein.

The information contained in this Current Report, including Exhibits 99.1, 99.2 and 99.3 referenced herein, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements andExhibits.

(d)	Exhibits
Exhibit Number	Description of Exhibit
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99.1	Press Release issued by Innovative Industrial Properties, Inc. on May 7, 2025.
99.2	Supplemental Financial Information for the quarter ended March 31, 2025.
99.3	Innovative Industrial Properties, Inc. Investor Presentation dated May 7, 2025.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 7, 2025	INNOVATIVE INDUSTRIAL PROPERTIES, INC.
	By:	/s/ David Smith
	Name:	David Smith
	Title:	Chief Financial Officer

Exhibit 99.1

Innovative Industrial Properties Reports First Quarter 2025 Results

Year-to-Date Leasing Activity Totals 211,000Square Feet Across Two Properties

SAN DIEGO, CA – May 7, 2025 – Innovative Industrial Properties, Inc. (NYSE: IIPR) (“IIP” or the “Company”), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, announced today results for the first quarter ended March 31, 2025.

First Quarter 2025 and Year-to-Date Highlights

Financial Results and Dividend

·	Total revenues of $71.7 million for the quarter.
·	Net income attributable to common stockholders of $30.3 million for the quarter, or $1.03 per share (all per share amounts in thispress release are reported on a diluted basis unless otherwise noted).
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·	AFFO of $55.3 million, or $1.94 per share.
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·	Paid a quarterly dividend of $1.90 per common share on April 15, 2025 to stockholders of record as of March 31, 2025.
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	Three Months Ended March 31,
---	---	---	---	---	---	---	---	---	---
(Per share)	2025		2024		Change		% Change
Net income attributable to common stockholders	$	1.03	$	1.36		)		(24	)%
Normalized FFO	$	1.84	$	1.98		)		(7	)%
AFFO	$	1.94	$	2.21		)		(12	)%

All values are in US Dollars.

Balance Sheet Highlights (at March 31, 2025)

·	11% debt to total gross assets, with $2.6 billion in total gross assets.
·	Total liquidity was $220.8 million as of March 31, 2025, consisting of cash and cash equivalents and short-term investments (each<br>as reported in IIP’s consolidated balance sheet as of March 31, 2025) and availability under IIP’s revolving credit facility.
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·	Debt service coverage ratio of 16.8x (calculated in accordance with IIP’s 5.50% Unsecured Senior Notes due 2026).
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Financing Activity Year-to-Date

·	Issued 406,125 shares of Series A Preferred Stock under IIP’s “at-the-market” equity offering program for $9.7 million<br>in net proceeds.
·	Repurchased 371,538 shares of common stock for $20.1 million at a weighted average price of $54.09 per share under the Company’s<br>$100 million share repurchase program, which expires March 2026.
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·	Repurchased $8.8 million of the Company’s 5.50% Unsecured Notes at a discount for $8.7 million.
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Portfolio Updates

·	In February, acquired a 22,000 square foot Maryland property for $7.8 million and executed a long-term lease with a private Maryland<br>operator for use as a regulated cannabis facility.
·	In January, leased 6,000 square feet at IIP’s North Del Sol Road property in Palm Springs, California to a non-cannabis tenant.
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·	In March, the Company announced multiple lease defaults, including a $2.7 million March rent default by PharmaCann. The Company also<br>declared defaults on leases with 4Front, Gold Flora, and TILT (totaling $13.1 million owed), and a $16.1 million loan default secured<br>by certain California properties, as part of a broader tenant replacement initiative aimed at strengthening tenant credit quality and<br>improving long-term portfolio performance amid ongoing challenges in the regulated cannabis industry.
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·	In April, leased 205,000 square feet to Berry Green at IIP’s property in Warren, Michigan.
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·	In April, sold a property in Michigan for $9.0 million (excluding transaction costs) and provided an interest only, secured loan for<br>$8.5 million to the buyer of the property. The Company also received a $1.0 million loan origination fee in connection with the transaction.
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·	In April, executed a purchase and sale agreement to sell a property in Palm Springs, California for $2.0 million. In connection with<br>the expected sale, the Company recognized an impairment loss on real estate of $3.5 million during the three months ended March 31, 2025.
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Property Portfolio Statistics (as of March 31, 2025)

·	Total property portfolio comprises 110 properties across 19 states, with 9.0 million RSF (including 666,000 RSF under development<br>/ redevelopment), consisting of:
o	Operating portfolio: 107 properties, representing 8.6 million RSF.
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o	Under development / redevelopment portfolio consists of three properties expected to comprise 491,000 RSF at completion and is as<br>follows:
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§	236,000 square feet located at 63795 19th Avenue in Palm Springs, California (pre-leased)
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§	192,000 square feet located at Inland Center Drive in San Bernardino, California
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§	12-acre development site located at Leah Avenue in San Marcos, Texas
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Select Financial Results

For the three months ended March 31, 2025, IIP generated total revenues of $71.7 million, compared to $75.5 million for the same period in 2024, a decrease of 5%. The decline was primarily driven by a decrease of $4.4 million on properties leased to PharmaCann due to the tenant’s default, a decrease of $1.6 million on properties leased to TILT due to the tenant’s default, and a decrease of $1.0 million related to certain properties vacated or sold since the first quarter of 2024. This decline was partially offset by an increase of $2.2 million related to new acquisitions and new leases executed on existing properties that commenced since March 31, 2024, and an increase of $1.6 million primarily driven by contractual rent escalations.

For the three months ended March 31, 2025, $5.8 million of security deposits were applied for payment of rent on properties leased to PharmaCann, Gold Flora, TILT and Sozo. No security deposits were applied for rent during the three months ended March 31, 2024.

The Company has re-leased three properties in which rent commencement is contingent on the tenants obtaining the requisite approvals to operate. As a result, the Company does not expect to recognize rental revenue from these properties until such events have occurred.

Dividend

On March 14, 2025, the Board of Directors declared a first quarter 2025 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on April 15, 2025 to stockholders of record as of March 31, 2025. Since its inception, IIP has paid over $940 million in common stock dividends to its shareholders.

Supplemental Information

Supplemental financial information is available in the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com.

Teleconference and Webcast

Innovative Industrial Properties, Inc. will conduct a conference call and webcast at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) on Thursday, May 8, 2025 to discuss IIP’s financial results and operations for the year ended March 31, 2025. The call will be open to all interested investors through a live audio webcast at the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com, or live by calling 1 (877) 328-5514 (domestic) or 1 (412) 902-6764 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call. The complete webcast will be archived for 90 days on IIP’s website. A telephone playback of the conference call will also be available from 12:00 p.m. Pacific Time on Thursday, May 8, 2025 until 12:00 p.m. Pacific Time on Thursday, May 15, 2025, by calling 1 (877) 344-7529 (domestic), 855-669-9658 (Canada) or 1 (412) 317-0088 (international) and using access code 2796375.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Additional information is available at www.innovativeindustrialproperties.com.

This press release contains statements that IIP believes to be “forward-lookingstatements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statementsother than historical facts are forward-looking statements. When used in this press release, words such as IIP “expects,” “intends,” “plans,” “estimates,” “anticipates,” “believes” or “should”or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statementsare subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, suchstatements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or reviseany forward-looking statements, whether as a result of new information, future events or otherwise.

Innovative Industrial Properties, Inc.

Condensed Consolidated Balance SheetS

(Unaudited)

(In thousands, except share and per share amounts)

			December 31,
			2024
Assets
Real estate, at cost:
Land	147,385		$	146,772
Buildings and improvements	2,244,156			2,230,807
Construction in progress	60,494			62,393
Total real estate, at cost	2,452,035			2,439,972
Less accumulated depreciation	(289,366	)		(271,190	)
Net real estate held for investment	2,162,669			2,168,782
Construction loan receivable	22,800			22,800
Cash and cash equivalents	128,010			146,245
Investments	5,258			5,000
Right of use office lease asset	839			946
In-place lease intangible assets, net	7,170			7,385
Other assets, net	25,841			26,889
Total assets	2,352,587		$	2,378,047
Liabilities and stockholders’ equity
Liabilities:
Notes due 2026, net	289,499		$	297,865
Building improvements and construction funding payable	9,009			10,230
Accounts payable and accrued expenses	12,418			10,561
Dividends payable	55,244			54,817
Rent received in advance and tenant security deposits	53,403			57,176
Other liabilities	10,850			11,338
Total liabilities	430,423			441,987
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value 0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, liquidation preference of 25.00 per share, 1,387,820 and 1,002,673 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	32,818			23,632
Common stock, par value 0.001 per share, 50,000,000 shares authorized: 28,378,181 and 28,331,833 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	28			28
Additional paid-in capital	2,125,109			2,124,113
Dividends in excess of earnings	(235,791	)		(211,713	)
Total stockholders’ equity	1,922,164			1,936,060
Total liabilities and stockholders’ equity	2,352,587		$	2,378,047

All values are in US Dollars.

Innovative Industrial Properties, Inc.

Condensed Consolidated STATEMENTS OF INCOME

For the Three Months Ended March 31, 2025 and2024

(Unaudited)

(In thousands, except share and per share amounts)

	For the Three Months Ended
	March 31,
	2025			2024
Revenues:
Rental (including tenant reimbursements)	$	71,697		$	74,914
Other		25			540
Total revenues		71,722			75,454
Expenses:
Property expenses		7,379			6,709
General and administrative expense		8,461			9,562
Depreciation and amortization expense		18,391			17,150
Impairment loss on real estate		3,527			—
Total expenses		37,758			33,421
Income from operations		33,964			42,033
Interest income		1,613			1,784
Interest expense		(4,500	)		(4,389	)
Net income		31,077			39,428
Preferred stock dividends		(781	)		(338	)
Net income attributable to common stockholders	$	30,296		$	39,090
Net income attributable to common stockholders per share:
Basic	$	1.05		$	1.37
Diluted	$	1.03		$	1.36
Weighted-average shares outstanding:
Basic		28,275,549			28,145,017
Diluted		28,588,022			28,461,986

Innovative Industrial Properties, Inc.

CONSOLIDATED FFO, NORMALIZED FFO AND AFFO

For the Three Months Ended March 31, 2025and 2024

(Unaudited)

(In thousands, except share and per share amounts)

	For the Three Months Ended
	March 31,
	2025			2024
Net income attributable to common stockholders	$	30,296		$	39,090
Real estate depreciation and amortization		18,391			17,150
Impairment loss on real estate		3,527			—
FFO attributable to common stockholders (basic)		52,214			56,240
Cash and non-cash interest expense on Exchangeable Senior Notes		—			28
FFO attributable to common stockholders (diluted)		52,214			56,268
Litigation-related expense		406			146
Loss (gain) on partial repayment of Notes due 2026		(32	)		—
Normalized FFO attributable to common stockholders (diluted)		52,588			56,414
Interest income on seller-financed note^(1)^		153			403
Deferred lease payments received on sale-type leases^(2)^		20			1,456
Stock-based compensation		2,078			4,315
Non-cash interest expense		470			388
Above-market lease amortization		23			23
AFFO attributable to common stockholders (diluted)	$	55,332		$	62,999
FFO per common share – diluted	$	1.83		$	1.98
Normalized FFO per common share – diluted	$	1.84		$	1.98
AFFO per common share – diluted	$	1.94		$	2.21
Weighted average common shares outstanding – basic		28,275,549			28,145,017
Restricted stock and RSUs		312,473			278,890
Dilutive effect of Exchangeable Senior Notes		—			38,079
Weighted average common shares outstanding – diluted		28,588,022			28,461,986
(1)	Amount reflects the non-refundable interest received on the seller-financed note issued to IIP by the buyer in connection with IIP’s<br>disposition of a portfolio of four properties in southern California, which is recognized as a deposit liability and is included in other<br>liabilities in IIP’s condensed consolidated balance sheet as of March 31, 2025, as the transaction did not qualify for recognition<br>as a completed sale.
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(2)	Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting<br>on January 1, 2024, and is included in other liabilities in IIP’s condensed consolidated balance sheet as of March 31, 2025, as<br>the transaction did not qualify for recognition as a completed sale. Prior to the lease modifications on January 1, 2024, which extended<br>the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue<br>and therefore, included in net income attributable to common stockholders.
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FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (NAREIT). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT’s operating performance equal to net income, computed in accordance with accounting principles generally accepted in the United States (GAAP), excluding gains (or losses) from sales of property, depreciation, amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures.

Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO and FFO per share to be supplemental measures of a REIT’s performance because they provide an understanding of the operating performance of IIP’s properties without giving effect to certain significant non-cash items, primarily depreciation expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. IIP believes that by excluding the effect of depreciation, FFO and FFO per share can facilitate comparisons of operating performance between periods. IIP reports FFO and FFO per share because these measures are observed by management to also be the predominant measures used by the REIT industry and industry analysts to evaluate REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and publications about REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share.

IIP computes Normalized FFO by adjusting FFO to exclude certain GAAP income and expense amounts that management believes are infrequent and unusual in nature and/or not related to IIP’s core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to assist in their evaluation of IIP’s operating performance across multiple periods and in comparison to the operating performance of other companies, because it removes the effect of unusual items that are not expected to impact IIP’s operating performance on an ongoing basis. Normalized FFO is used by management in evaluating the performance of its core business operations. Items included in calculating FFO that may be excluded in calculating Normalized FFO include certain transaction-related gains, losses, income or expense or other non-core amounts as they occur.

Management believes that AFFO and AFFO per share are also appropriate supplemental measures of a REIT’s operating performance. IIP calculates AFFO by adjusting Normalized FFO for certain cash and non-cash items.

For the three months ended March 31, 2024, FFO (diluted), Normalized FFO and AFFO, and FFO, Normalized FFO and AFFO per diluted share include the dilutive impact of the assumed full exchange of the Exchangeable Senior Notes for shares of common stock as if the Exchangeable Senior Notes were exchanged at the beginning of the respective reporting period. The Exchangeable Senior Notes matured in February 2024.

For the three months ended March 31, 2024, the performance share units (“PSUs”) granted to certain employees were not included in dilutive securities as the performance thresholds for vesting of the PSUs were not met as measured as of March 31, 2024. The PSUs expired on December 31, 2024.

IIP’s computation of FFO, Normalized FFO and AFFO may differ from the methodology for calculating FFO, Normalized FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such REITs. Further, FFO, Normalized FFO and AFFO do not represent cash flow available for management’s discretionary use. FFO, Normalized FFO and AFFO should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of IIP’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of IIP’s liquidity, nor is it indicative of funds available to fund IIP’s cash needs, including IIP’s ability to pay dividends or make distributions. FFO, Normalized FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of IIP’s operations.

Company Contact:

David Smith

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

Exhibit 99.2

Innovative Industrial Properties<br>First Quarter 2025<br>Supplemental Financial Information
Innovative Industrial Properties 2<br>Overview<br>Forward-Looking Statements 3<br>Company Overview 4<br>Financial Information<br>Quarterly Performance Summary 5<br>Balance Sheet 6<br>Net Income 7<br>Statements of Cash Flows 8<br>FFO, Normalized FFO, and AFFO Reconciliation 9<br>Historical Net Income 10<br>Historical FFO, Normalized FFO, and AFFO Reconciliation 11<br>Portfolio Data<br>Capital Commitments 12<br>Leasing Summary 13<br>Top Tenants Overview 14<br>Property List 15 – 17<br>Secured Loans 18<br>Capitalization<br>Capital and Debt Summary 19<br>Definitions 20 – 21<br>Analyst Coverage 22<br>Senior Management Team and Board of Directors 23<br>Table of Contents
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Innovative Industrial Properties 3<br>Forward-Looking Statements<br>This Supplemental Financial Information Package includes "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities<br>Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that are subject to risks and uncertainties. In particular, statements pertaining to our capital<br>resources, portfolio performance and results of operations contain forward-looking statements. Likewise, our statements regarding anticipated growth in our funds from operations and<br>anticipated market and regulatory conditions, our strategic direction, our dividend rate and policy, demographics, results of operations, plans and objectives are forward-looking statements.<br>Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data<br>or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they<br>will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as "believes“, "expects“, "may“, "will“, "should“, "seeks“, "approximately“,<br>"intends“, "plans“, "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy,<br>plans or intentions. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:<br>rates of default on leases for our assets; our ability to re-lease properties upon tenant defaults or lease terminations for the rent we currently receive, or at all; concentration of our portfolio of<br>assets and limited number of tenants; the estimated growth in and evolving market dynamics of the regulated cannabis market; the demand for regulated cannabis facilities; decreased<br>economic activity due to fluctuations in trade policies, tariffs and related government actions; inflation dynamics; our ability to improve our internal control over financial reporting, including our<br>inability to remediate an identified material weakness, and the costs and the time associated with such efforts; the impact of pandemics on us, our business, our tenants, or the economy<br>generally; war and other hostilities, including the conflicts in Ukraine and Israel; our business and investment strategy; our projected operating results; actions and initiatives of the U.S. or state<br>governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal under federal law;<br>availability of suitable investment opportunities in the regulated cannabis industry; our understanding of our competition and our potential tenants’ alternative financing sources; the expected<br>medical-use or adult-use cannabis legalization in certain states; shifts in public opinion regarding regulated cannabis; the potential impact on us from litigation matters, including rising liability<br>and insurance costs; the additional risks that may be associated with certain of our tenants cultivating, processing and/or dispensing adult-use cannabis in our facilities; the state of the U.S.<br>economy generally or in specific geographic areas; economic trends and economic recoveries; our ability to access equity or debt capital; financing rates for our target assets; our level of<br>indebtedness, which could reduce funds available for other business purposes and reduce our operational flexibility; covenants in our debt instruments, which may limit our flexibility and<br>adversely affect our financial condition; our ability to maintain our investment grade credit rating; changes in the values of our assets; our expected portfolio of assets; our expected investments;<br>interest rate mismatches between our assets and our borrowings used to fund such investments; changes in interest rates and the market value of our assets; the degree to which any interest rate<br>or other hedging strategies may or may not protect us from interest rate volatility; the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar<br>matters; how and when any forward equity sales may settle; our ability to maintain our qualification as a real estate investment trust for U.S. federal income tax purposes; our ability to maintain<br>our exemption from registration under the Investment Company Act of 1940; availability of qualified personnel; and market trends in our industry, interest rates, real estate values, the securities<br>markets or the general economy.<br>The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. In addition, we discussed a number of material risks in our most<br>recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a<br>very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact<br>of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking<br>statements. Any forward-looking statement made by us speaks only of the date on which we make it. We undertake no obligation to publicly update or revise any forward-looking statements,<br>whether as a result of new information, future events or otherwise, except as may be required by law. Stockholders and investors are cautioned not to unduly rely on such forward-looking<br>statements when evaluating the information presented in our filings and reports.<br>This supplemental financial information package includes certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental information and should not be<br>considered a substitute for financial information presented in accordance with GAAP. The definition of these non-GAAP measures is set forth under the section entitled "Definitions." A<br>reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is set forth in section entitled "FFO, Normalized FFO and AFFO Reconciliation.<br>Market and industry data are included in this presentation. We have obtained substantially all of this information from internal studies, public filings, other independent published industry<br>sources and market studies prepared by third parties. We believe these internal studies, public filings, other independent published industry sources and market studies prepared by third<br>parties are reliable. However, this information may prove to be inaccurate. No representation or warranty is made as to the accuracy of such information. All amounts shown in this report are<br>unaudited. This Supplemental Financial Information Package is not an offer to sell or solicitation to buy securities of Innovative Industrial Properties, Inc. Any offers to sell or solicitations to buy<br>securities of Innovative Industrial Properties, Inc. shall be made only by means of a prospectus approved for that purpose.
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Innovative Industrial Properties 4<br>Company Snapshot<br>State Diversification (1)<br>Illinois 14.5%<br>Pennsylvania 13.5%<br>Massachusetts 12.7%<br>New York 10.7%<br>Michigan 10.2%<br>Florida 9.6%<br>Ohio 5.8%<br>New Jersey 4.5%<br>Maryland 4.4%<br>California 4.1%<br>Other 10.0%<br>Total 100%<br>Company Overview<br>Innovative Industrial Properties, Inc. (NYSE: IIPR) is an internally managed real estate investment trust (REIT) focused on the acquisition, ownership<br>and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities.<br>Note: As of March 31, 2025, values in thousands except for property count, $/PSF, or otherwise noted. Refer to “Definitions”for additional details.<br>1) Based on “Annualized Base Rent”.<br>2) Refer to “Capital and Debt Summary” for additional details.<br>3) Reflects annualized common stock dividend paid on April 15, 2025 of $1.90 per share. The decision to declare or pay dividends is in the sole discretion of our board of directors in light of conditions then existing, and there can be no assurance that a dividend will be declared or paid for any time period in<br>any amount.<br>4) Includes 231,000 square feet under development or redevelopment.<br>5) Weighted by Total Committed / Invested Capital.<br>Equity Market Capitalization(2) $1,534,976 Operating Portfolio (107 Properties)<br>Current Annualized Dividend ($)(3) $7.60 / share Total Rentable Square Feet(4) 8,552<br>Total Portfolio Total Committed / Invested Capital per Square Foot $281<br>Total Committed / Invested Capital $2,480,847 % Leased(5) 98.4%<br>Total Properties 110 Weighted Average Lease Length 13.5 Years<br>10-15%<br>No Presence<br>0-5%<br>5-10%
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Innovative Industrial Properties 5<br>Delta<br>2025 2024 QoQ<br>1Q2025 4Q2024 3Q2024 2Q2024 1Q2024<br>Total Revenues $71,722 $76,744 $76,526 $79,793 $75,454<br>General and administrative expense $8,461 $8,891 $9,330 $9,661 $9,562<br>General and administrative expense / total revenues 12% 12% 12% 12% 13%<br>Net income attributable to common stockholders $30,296 $39,461 $39,651 $41,655 $39,090<br>Net income attributable to common stockholders – diluted (“EPS”) $1.03 $1.36 $1.37 $1.44 $1.36<br>Funds from operations attributable to common stockholders – diluted (“FFO”)(1) $52,214 $57,701 $57,595 $58,677 $56,268<br>FFO per common share – diluted(1) $1.83 $2.02 $2.02 $2.06 $1.98<br>Normalized FFO attributable to common stockholders – diluted (“Normalized FFO”)(1) $52,588 $57,969 $57,805 $58,841 $56,414<br>Normalized FFO per common share – diluted(1) $1.84 $2.03 $2.02 $2.06 $1.98<br>Adjusted funds from operations attributable to common stockholders – diluted (“AFFO”)(1) $55,332 $63,361 $64,283 $65,501 $62,999<br>AFFO per common share – diluted(1) $1.94 $2.22 $2.25 $2.29 $2.21<br>Common stock dividend per share(2) $1.90 $1.90 $1.90 $1.90 $1.82<br>AFFO Payout Ratio(3) 98% 86% 84% 83% 82%<br>Total Committed / Invested Capital(4) $2.5B $2.5B $2.5B $2.5B $2.4B<br>% Leased – Operating Portfolio 98.4% 98.3% 95.7% 95.6% 95.2%<br>Quarterly Performance Summary<br>Note: Dollars in thousands except for $/share or otherwise noted. All per share amounts are shown on a diluted basis.<br>1) Refer to “FFO, NormalizedFFO, and AFFO Reconciliation”for additional details.<br>2) Reflects quarterly common stock dividend declared in the quarter.<br>3) Calculated by dividing the common stock dividend declared per share by AFFO per common share – diluted.<br>4) Dollars in billions.<br>$2.21 $2.29 $2.25 $2.22<br>$1.94<br>1Q2024 2Q2024 3Q2024 4Q2024 1Q2025<br>AFFO(1)<br>$1.98 $2.06 $2.02 $2.03<br>$1.84<br>1Q2024 2Q2024 3Q2024 4Q2024 1Q2025<br>Normalized FFO(1)<br>$75,454 $79,793 $76,526 $76,744 $71,722<br>1Q2024 2Q2024 3Q2024 4Q2024 1Q2025<br>Total Revenues
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Innovative Industrial Properties 6<br>March 31, December 31,<br>(In thousands, except share and per share amounts) 2025 2024<br>Assets<br>Real estate, at cost:<br>Land $147,385 $146,772<br>Buildings and improvements 2,244,156 2,230,807<br>Construction in progress 60,494 62,393<br>Total real estate, at cost 2,452,035 2,439,972<br>Less accumulated depreciation (289,366) (271,190)<br>Net real estate held for investment 2,162,669 2,168,782<br>Construction Loan receivable 22,800 22,800<br>Cash and cash equivalents 128,010 146,245<br>Investments 5,258 5,000<br>Right of use office lease asset 839 946<br>In-place lease intangible assets, net 7,170 7,385<br>Other assets, net 25,841 26,889<br>Total assets $2,352,587 $2,378,047<br>Liabilities and stockholders’ equity<br>Liabilities:<br>Notes due 2026, net $289,499 $297,865<br>Building improvements and construction funding payable 9,009 10,230<br>Accounts payable and accrued expenses 12,418 10,561<br>Dividends payable 55,244 54,817<br>Rent received in advance and tenant security deposits 53,403 57,176<br>Other liabilities 10,850 11,338<br>Total liabilities 430,423 441,987<br>Stockholders’ equity:<br>Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A<br>cumulative redeemable preferred stock, liquidation preference of $25.00 per share, 1,387,820 and<br>1,002,673 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 32,818 23,632<br>Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,378,181 and<br>28,331,833 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 28 28<br>Additional paid-in capital 2,125,109 2,124,113<br>Dividends in excess of earnings (235,791) (211,713)<br>Total stockholders’ equity 1,922,164 1,936,060<br>Total liabilities and stockholders’ equity $2,352,587 $2,378,047<br>Balance Sheet
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Innovative Industrial Properties 7<br>For the Three Months Ended For the Three Months Ended<br>March 31,<br>(In thousands, except share and per share amounts) 2025 2024<br>Revenues:<br>Rental (including tenant reimbursements) $71,697 $74,914<br>Other 25 540<br>Total revenues 71,722 75,454<br>Expenses:<br>Property expenses 7,379 6,709<br>General and administrative expense 8,461 9,562<br>Depreciation and amortization expense 18,391 17,150<br>Impairment loss on real estate 3,527 -<br>Total expenses 37,758 33,421<br>Income from operations 33,964 42,033<br>Interest income 1,613 1,784<br>Interest expense (4,500) (4,389)<br>Net income 31,077 39,428<br>Preferred stock dividends (781) (338)<br>Net income attributable to common stockholders $30,296 $39,090<br>Net income attributable to common stockholders per share:<br>Basic $1.05 $1.37<br>Diluted $1.03 $1.36<br>Weighted-average shares outstanding:<br>Basic 28,275,549 28,145,017<br>Diluted 28,588,022 28,461,986<br>Net Income
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Innovative Industrial Properties 8<br>For the Three Months Ended<br>March 31,<br>(In thousands) 2025 2024<br>Cash flows from operating activities<br>Net income $31,077 $39,428<br>Adjustments to reconcile net income to net cash provided by (used in) operating activities<br>Depreciation and amortization 18,391 17,150<br>Impairment loss on real estate 3,527 -<br>Other non-cash adjustments (11) 28<br>Stock-based compensation 2,078 4,315<br>Amortization of discounts on investments - (188)<br>Amortization of debt discount and issuance costs 470 406<br>Changes in assets and liabilities<br>Other assets, net 906 1,760<br>Accounts payable, accrued expenses and other liabilities 1,577 7,874<br>Rent received in advance and tenant security deposits (3,773) 793<br>Net cash provided by (used in) operating activities 54,242 71,566<br>Cash flows from investing activities<br>Purchases of investments in real estate (7,857) -<br>Funding of draws for improvements and construction (9,041) (16,505)<br>Purchases of short-term investments (5,258) (20,026)<br>Maturities of short-term investments 5,000 22,136<br>Net cash provided by (used in) investing activities (17,156) (14,395)<br>Cash flows from financing activities<br>Issuance of common stock, net of offering costs - 11,757<br>Repurchase of common stock (290) -<br>Issuance of preferred stock, net of offering costs 9,186 -<br>Principal payment on exchangeable senior notes - (4,436)<br>Principal payment on notes due 2026 (8,697) -<br>Payment of deferred financing costs - (112)<br>Dividends paid to common stockholders (54,253) (51,489)<br>Dividends paid to preferred stockholders (564) (338)<br>Taxes paid related to net share settlement of equity awards (703) (750)<br>Net cash provided by (used in) financing activities (55,321) (45,368)<br>Net increase (decrease) in cash, cash equivalents and restricted cash (18,235) 11,803<br>Cash, cash equivalents and restricted cash, beginning of period 146,245 141,699<br>Cash, cash equivalents and restricted cash, end of period $128,010 $153,502<br>Supplemental disclosure of cash flow information:<br>Cash paid during the period for interest, net of interest capitalized $81 $71<br>Supplemental disclosure of non-cash investing and financing activities:<br>Accrual for current-period additions to real estate $6,093 $8,980<br>Accrual for common and preferred stock dividends declared 55,244 52,295<br>Statements of Cash Flows
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Innovative Industrial Properties 9<br>For the Three Months Ended For the Three Months Ended<br>March 31,<br>(In thousands, except share and per share amounts) 2025 2024<br>Net income attributable to common stockholders $30,296 $39,090<br>Real estate depreciation and amortization 18,391 17,150<br>Impairment loss on real estate 3,527 -<br>FFO attributable to common stockholders (basic) 52,214 56,240<br>Cash and non-cash interest expense on Exchangeable Senior Notes - 28<br>FFO attributable to common stockholders (diluted) 52,214 56,268<br>Litigation-related expense 406 146<br>Loss (gain) on partial repayment of Notes due 2026 (32) -<br>Normalized FFO attributable to common stockholders (diluted) 52,588 56,414<br>Interest income on seller-financed note(1) 153 403<br>Deferred lease payments received on sales-type leases(2) 20 1,456<br>Stock-based compensation 2,078 4,315<br>Non-cash interest expense 470 388<br>Above-market lease amortization 23 23<br>AFFO attributable to common stockholders (diluted) $55,332 $62,999<br>FFO per common share – diluted $1.83 $1.98<br>Normalized FFO per common share – diluted $1.84 $1.98<br>AFFO per common share – diluted $1.94 $2.21<br>Weighted average common shares outstanding – basic 28,275,549 28,145,017<br>Restricted stock and restricted stock units ("RSUs") 312,473 278,890<br>Dilutive effect of Exchangeable Senior Notes - 38,079<br>Weighted average common shares outstanding – diluted 28,588,022 28,461,986<br>FFO, Normalized FFO, and AFFO Reconciliation<br>1) Amount reflects the non-refundable interest paid on the seller-financed note issued to us by the buyer in connection with our disposition of a portfolio of four properties in southern California previously leased to affiliates of Medical Investor Holdings, which is recognized as a deposit liability and is<br>included in other liabilities in our consolidated balance sheet as of March 31, 2025, as the transaction did not qualify for recognition as a completed sale.<br>2) Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting on January 1, 2024, and is included in other liabilities in our consolidated balance sheet as of March 31, 2025, as the transaction did not qualify for recognition as a<br>completed sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders.
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Innovative Industrial Properties 10<br>2025 2024<br>(In thousands, except share and per share amounts) 1Q2025 4Q2024 3Q2024 2Q2024 1Q2024<br>Revenues:<br>Rental (including tenant reimbursements) $71,697 $76,717 $76,052 $79,253 $74,914<br>Other 25 27 474 540 540<br>Total revenues 71,722 76,744 76,526 79,793 75,454<br>Expenses:<br>Property expenses 7,379 7,605 7,295 6,863 6,709<br>General and administrative expense 8,461 8,891 9,330 9,661 9,562<br>Depreciation and amortization expense 18,391 18,240 17,944 17,473 17,150<br>Impairment loss on real estate 3,527 - - - -<br>Total expenses 37,758 34,736 34,569 33,997 33,421<br>Gain (loss) on sale of real estate - - - (3,449) -<br>Income from operations 33,964 42,008 41,957 42,347 42,033<br>Interest income 1,613 2,553 2,685 3,966 1,784<br>Interest expense (4,500) (4,536) (4,427) (4,320) (4,389)<br>Net income 31,077 40,025 40,215 41,993 39,428<br>Preferred stock dividends (781) (564) (564) (338) (338)<br>Net income attributable to common stockholders $30,296 $39,461 $39,651 $41,655 $39,090<br>Net income attributable to common stockholders per share:<br>Basic $1.05 $1.38 $1.38 $1.45 $1.37<br>Diluted $1.03 $1.36 $1.37 $1.44 $1.36<br>Weighted-average shares outstanding:<br>Basic 28,275,549 28,254,565 28,254,565 28,250,843 28,145,017<br>Diluted 28,588,022 28,554,335 28,579,687 28,572,138 28,461,986<br>Historical Net Income
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Innovative Industrial Properties 11<br>2025 2024<br>(In thousands, except share and per share amounts) 1Q2025 4Q2024 3Q2024 2Q2024 1Q2024<br>Net income attributable to common stockholders $30,296 $39,461 $39,651 $41,655 $39,090<br>Real estate depreciation and amortization 18,391 18,240 17,944 17,473 17,150<br>Impairment loss on real estate 3,527 - - - -<br>Disposition-contingent lease termination fee, net of loss on sale of real estate(1)<br>- - - (451) -<br>FFO attributable to common stockholders (basic) 52,214 57,701 57,595 58,677 56,240<br>Cash and non-cash interest expense on Exchangeable Senior Notes - - - - 28<br>FFO attributable to common stockholders (diluted) 52,214 57,701 57,595 58,677 56,268<br>Litigation-related expense 406 268 210 164 146<br>Loss (gain) on partial repayment of Notes due 2026 (32) - - - -<br>Normalized FFO attributable to common stockholders (diluted) 52,588 57,969 57,805 58,841 56,414<br>Interest income on seller-financed note(2) 153 30 268 403 403<br>Deferred lease payments received on sales-type leases(3) 20 568 1,452 1,462 1,456<br>Stock-based compensation 2,078 4,315 4,316 4,371 4,315<br>Non-cash interest expense 470 456 419 401 388<br>Above-market lease amortization 23 23 23 23 23<br>AFFO attributable to common stockholders (diluted) $55,332 $63,361 $64,283 $65,501 $62,999<br>FFO per common share – diluted $1.83 $2.02 $2.02 $2.06 $1.98<br>Normalized FFO per common share – diluted $1.84 $2.03 $2.02 $2.06 $1.98<br>AFFO per common share – diluted $1.94 $2.22 $2.25 $2.29 $2.21<br>Weighted average common shares outstanding – basic 28,275,549 28,254,565 28,254,565 28,250,843 28,145,017<br>Restricted stock and RSUs 312,473 299,770 299,770 300,582 278,890<br>PSUs - - 25,352 20,713 -<br>Dilutive effect of Exchangeable Senior Notes - - - - 38,079<br>Weighted average common shares outstanding – diluted 28,588,022 28,554,335 28,579,687 28,572,138 28,461,986<br>Historical FFO, Normalized FFO, and AFFO Reconciliation<br>1) Amount reflects the $3.9 million disposition-contingent lease termination fee received concurrently with the sale of our property in Los Angeles, California, net of the loss on sale of real estate of $3.4 million.<br>2) Amount reflects the non-refundable interest paid on the seller-financed note issued to us by the buyer in connection with our disposition of a portfolio of four properties in southern California previously leased to affiliates of Medical Investor Holdings, which is recognized as a deposit liability and is<br>included in other liabilities in our consolidated balance sheet as of March 31, 2025, as the transaction did not qualify for recognition as a completed sale.<br>3) Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting on January 1, 2024, and is included in other liabilities in our consolidated balance sheet as of March 31, 2025, as the transaction did not qualify for recognition as a<br>completed sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders.
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Innovative Industrial Properties 12<br>Current Quarter Existing Total<br>Rentable Purchase Additional Investment Investment Total<br>State Closing / Execution Square Feet Price(1) Commitment / Commitment(1) / Commitment Investment / PSF(2)<br>Acquisitions<br>Maryland Feb-25 22 $7,750 - - $7,750 $352<br>Total / Wtd. Avg. 22 $7,750 - - $7,750 $352<br>Capital Commitments<br>Note: Values in thousands. Capital commitments consist of purchase prices of acquisitions and commitments to fund construction and improvements at properties made during the applicable period. Excludes transaction costs and commitments related to senior secured loans.<br>1) Excludes transaction costs.<br>2) Calculated as IIP’s total investment divided by the rentable square feet.<br>3) The 2Q 2024 TI commitment for AYR Florida was reduced by $2.5 million following an amendment to the lease in Q1 2025.<br>Two Year Capital Commitment History(3)<br>- -<br>$14,000 $16,000<br>$49,100<br>-<br>$5,570 $7,750<br>2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025<br>First Quarter Capital Commitments
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Innovative Industrial Properties 13<br># of Rentable Square Feet Rentable Square Feet<br>Tenant State Closing / Execution Leases # % of Total Portfolio<br>Non-Cannabis Tenant California Jan-25 1 6 0%<br>Total 1 6 0%<br>Note: Rentable square feet values in thousands.<br>1) The commencement date under certain of these leases is conditionedupon, among other things, the tenant’s receipt of approvals to conduct cannabis operations by the requisite state and local authorities.<br>2) As a % of annualized base rent for the Operating Portfolio.<br>3) Includes Pre-Leased Development Properties.<br>Leasing Summary<br>2025 Leasing Activity as of March 31, 2025(1)<br>- - 0% 0% 1% 2% 1% 0% 2% 12% 82%<br>2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Thereafter<br>Representing $306 Million in Annualized Base Rent<br>Expiring<br>Leases(3) 1 - 1 4 2 2 5 1 14 19 58<br>Lease Expiration Schedule as of March 31, 2025(2)
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Innovative Industrial Properties 14<br>IIP Portfolio Full Year 2024(3) Tenant Information<br>Annualized Base Rent (ABR)(1) ABR # of Adjusted Market MSO<br># Tenant $ % Square Feet(2) / Square Foot Leases Revenue EBITDA(4) Capitalization(5) / SSO(6)<br>1 PharmaCann(7) $49,706 16.2% 697 $71 11 Private Co. Private Co. Private Co. MSO<br>2 Ascend Wellness Holdings 30,873 10.1% 624 49 4 $562 $116 $72 MSO<br>3 Green Thumb Industries 22,535 7.4% 664 34 3 1,137 371 1,375 MSO<br>4 Curaleaf 20,566 6.7% 578 36 8 1,343 301 700 MSO<br>5 Trulieve 19,562 6.4% 740 26 6 1,186 420 727 MSO<br>6 The Cannabist Company 18,173 5.9% 588 31 21 459 55 23 MSO<br>7 4Front Ventures(8) 17,750 5.8% 488 36 4 NA NA 10 MSO<br>8 Holistic Industries 16,932 5.5% 298 57 4 Private Co. Private Co. Private Co. MSO<br>9 Cresco Labs 16,726 5.5% 379 44 5 724 200 252 MSO<br>10 Parallel 16,034 5.2% 593 27 2 Private Co. Private Co. Private Co. MSO<br>Top 10 Tenants Total $228,857 74.7% 5,649 $41 68<br>Top Tenants Overview<br>1) Dollars in thousands.<br>2) Square feet in thousands.<br>3) Dollars in millions, based on each company’s public securities filings and earnings release, available at www.sec.gov, www.sedar.com, or each company’s respective website, for the year ended December 31, 2024.<br>4) Adjusted EBITDA is a non-GAAP financial measure utilized in the industry. For definitions and reconciliations of Adjusted EBITDA to net income, see each company’s public securities filings, available at www.sec.gov or www.sedar.com.<br>5) Dollars in millions, per S&P Capital IQ Pro as of 3/31/2025.<br>6) “MSO” stands for Multi-State Operator which means the tenant (or guarantor) conducts cannabis operations in more than one state. “SSO” stands for Single-State Operator which means the tenant (or guarantor) conducts cannabis operations in a single state.<br>7) These leases are in default, as disclosed in our 8-K filed on March 14, 2025.<br>8) These leases are in default, as disclosed in our 8-K filed on March 28, 2025. Includes one property acquired in January 2022 for $16.0 million, which did not satisfy the requirements for sale leaseback accounting, and therefore, the transaction is recognized as a note receivable and is included in other<br>assets, net on our consolidated balance sheet. NA = financial statements are not yet available.
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Innovative Industrial Properties 15<br>Square Feet Invested / Committed Capital $<br>Date % Under Dev. Total $ /<br># Tenant State City Acquired Leased In Place(1) / Redev.(2) Total Invested Committed Total $ Square Feet<br>Operating: Cannabis - Industrial<br>1 4Front Ventures Illinois Matteson 8/3/2021 100.0% 250 - 250 $71,684 $66 $71,750 $287<br>2 4Front Ventures Washington Olympia 12/17/2020 100.0% 114 - 114 17,500 - 17,500 154<br>3 4Front Ventures* Massachusetts Holliston 1/28/2022 100.0% 57 - 57 16,000 - 16,000 281<br>4 4Front Ventures Massachusetts Georgetown 12/17/2020 100.0% 67 - 67 15,500 - 15,500 231<br>5 Ascend Wellness Holdings Illinois Barry 12/21/2018 100.0% 166 - 166 71,000 - 71,000 428<br>6 Ascend Wellness Holdings Massachusetts Athol 4/2/2020 100.0% 199 - 199 63,900 - 63,900 321<br>7 Ascend Wellness Holdings New Jersey Franklin 2/10/2022 100.0% 114 - 114 55,000 - 55,000 482<br>8 Ascend Wellness Holdings Michigan Lansing 7/2/2019 100.0% 145 - 145 24,150 - 24,150 167<br>9 AYR Wellness Florida Ocala 6/7/2024 100.0% 47 98 145 28,963 11,537 40,500 279<br>10 AYR Wellness Ohio Akron 5/14/2019 100.0% 11 - 11 3,550 - 3,550 323<br>11 Battle Green Ohio Columbus 3/3/2023 100.0% 157 - 157 45,257 1,243 46,500 296<br>12 Calyx Peak Missouri Smithville 9/17/2021 100.0% 83 - 83 28,250 - 28,250 340<br>13 Cresco Labs Michigan Marshall 4/22/2020 100.0% 115 - 115 32,000 - 32,000 278<br>14 Cresco Labs Illinois Kankakee 10/22/2019 100.0% 51 - 51 25,496 104 25,600 502<br>15 Cresco Labs Illinois Joliet 10/22/2019 100.0% 39 - 39 20,950 - 20,950 537<br>16 Cresco Labs Ohio Yellow Springs 1/24/2020 100.0% 50 - 50 12,927 618 13,545 271<br>17 Curaleaf Pennsylvania Chambersburg 12/20/2019 100.0% 179 - 179 60,889 751 61,640 344<br>18 Curaleaf Illinois Litchfield 10/30/2019 100.0% 127 - 127 40,000 - 40,000 315<br>19 Curaleaf New Jersey Blue Anchor 7/13/2020 100.0% 123 - 123 35,000 - 35,000 285<br>20 Curaleaf Massachusetts Webster 9/1/2022 100.0% 104 - 104 21,500 - 21,500 207<br>21 Curaleaf North Dakota Fargo 12/20/2019 100.0% 33 - 33 12,190 - 12,190 369<br>22 Curran Highway Massachusetts North Adams 5/26/2021 - 71 - 71 26,800 - 26,800 377<br>23 Emerald Growth Michigan Harrison Township 6/7/2019 100.0% 45 - 45 10,000 - 10,000 222<br>24 Gold Flora California Desert Hot Springs 10/15/2021 100.0% 204 - 204 63,500 - 63,500 311<br>25 Gold Flora California North Palm Springs 5/12/2020 100.0% 70 - 70 18,107 - 18,107 259<br>26 Green Thumb Industries Pennsylvania Danville 11/12/2019 100.0% 300 - 300 94,600 - 94,600 315<br>27 Green Thumb Industries Illinois Oglesby 3/6/2020 100.0% 266 - 266 50,000 - 50,000 188<br>28 Green Thumb Industries Ohio Toledo 1/31/2020 100.0% 98 - 98 32,200 - 32,200 329<br>29 Holistic Industries Maryland Capitol Heights 5/26/2017 100.0% 72 - 72 33,719 31 33,750 469<br>30 Holistic Industries Pennsylvania New Castle 6/10/2020 100.0% 108 - 108 25,629 21 25,650 238<br>31 Holistic Industries Massachusetts Monson 7/12/2018 100.0% 55 - 55 19,750 - 19,750 359<br>32 Jushi Pennsylvania Scranton 4/6/2018 100.0% 145 - 145 45,800 - 45,800 316<br>33 Lume Cannabis Company Michigan Dimondale 8/2/2018 100.0% 56 - 56 17,402 397 17,799 318<br>34 Maryland Cultivation Processing (MCP) Maryland Hagerstown 4/13/2022 100.0% 84 - 84 25,000 - 25,000 298<br>35 Maryland Cultivation Processing (MCP) Maryland Hagerstown 10/2/2024 100.0% 23 - 23 5,570 - 5,570 242<br>36 Mitten Extracts Michigan Dimondale 4/16/2021 100.0% 201 - 201 70,927 1,152 72,079 359<br>37 Parallel Florida Lakeland 9/18/2020 100.0% 220 - 220 56,400 - 56,400 256<br>38 Parallel Florida Wimauma 3/11/2020 100.0% 373 - 373 51,500 - 51,500 138<br>39 PharmaCann New York Hamptonburgh 12/19/2016 100.0% 186 48 234 130,628 8,872 139,500 596<br>40 PharmaCann Michigan Warren 10/9/2019 100.0% 205 - 205 83,595 - 83,595 408<br>41 PharmaCann Massachusetts Holliston 5/31/2018 100.0% 58 - 58 30,500 - 30,500 526<br>42 PharmaCann Illinois Dwight 10/30/2019 100.0% 66 - 66 28,000 - 28,000 424<br>43 PharmaCann Pennsylvania Olyphant 8/7/2019 100.0% 56 - 56 28,000 - 28,000 500<br>44 PharmaCann Ohio Buckeye Lake 3/13/2019 100.0% 58 - 58 20,000 - 20,000 345<br>45 Sacramento CA (Undisclosed Tenant) California Sacramento 2/8/2019 100.0% 43 - 43 12,710 - 12,710 296<br>46 Texas Original Texas Bastrop 6/14/2022 100.0% - 85 85 21,500 500 22,000 259<br>47 The Cannabist Company Pennsylvania Saxton 5/20/2019 100.0% 270 - 270 42,891 109 43,000 159<br>48 The Cannabist Company Virginia Richmond 1/15/2020 100.0% 82 - 82 19,750 - 19,750 241<br>49 The Cannabist Company New Jersey Vineland 7/16/2020 100.0% 50 - 50 11,820 - 11,820 236<br>50 The Cannabist Company Colorado Denver 10/30/2018 100.0% 58 - 58 11,250 - 11,250 194<br>Note: Subtotals and Totals include fractional amounts. Square footage and dollars in thousands except for $/PSF. “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space.<br>Data as of March 31, 2025.<br>*This property did not satisfy the requirements for sale-leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our consolidated balance sheet.<br>1) Existing square footage for properties where there is no active development or redevelopment.<br>2) Estimated square footage upon completion of development or redevelopment.<br>Property List
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Innovative Industrial Properties 16<br>Square Feet Invested / Committed Capital $<br>Date % Under Dev. Total $ /<br># Tenant State City Acquired Leased In Place(1) / Redev.(2) Total Invested Committed Total $ Square Feet<br>51 The Cannabist Company Colorado Denver 12/14/2021 100.0% 18 - 18 $9,917 - $9,917 $551<br>52 The Cannabist Company Colorado Denver 12/14/2021 100.0% 12 - 12 3,276 - 3,276 273<br>53 The Pharm Arizona Willcox 12/15/2017 100.0% 358 - 358 20,000 - 20,000 56<br>54 TILT Holdings Pennsylvania White Haven 2/15/2023 100.0% 58 - 58 15,000 - 15,000 259<br>55 Tri-Mountain Pure Pennsylvania Pittsburgh 5/13/2021 100.0% 239 - 239 68,038 394 68,432 286<br>56 Trulieve Massachusetts Holyoke 7/26/2019 100.0% 150 - 150 43,500 - 43,500 290<br>57 Trulieve Florida Alachua 1/22/2021 100.0% 295 - 295 41,650 - 41,650 141<br>58 Trulieve Maryland Hancock 8/13/2021 100.0% 115 - 115 29,515 - 29,515 257<br>59 Trulieve Florida Quincy 10/23/2019 100.0% 120 - 120 17,000 - 17,000 142<br>60 Trulieve* Nevada Las Vegas 7/12/2019 100.0% 43 - 43 9,600 - 9,600 223<br>61 Trulieve Arizona Cottonwood 4/27/2022 100.0% 17 - 17 5,238 - 5,238 308<br>62 Verdant California Cathedral City 3/25/2022 100.0% 23 - 23 15,250 - 15,250 663<br>63 Verdant Maryland Frederick 2/21/2025 100.0% 22 - 22 7,750 - 7,750 352<br>64 Vireo New York Perth 10/23/2017 100.0% 389 - 389 81,358 - 81,358 209<br>65 Vireo Minnesota Otsego 11/8/2017 100.0% 89 - 89 9,710 - 9,710 109<br>Operating: Cannabis - Industrial Subtotal / Wtd. Avg. 98.8% 7,702 231 7,933 $2,166,057 $25,794 $2,191,851 $276<br>Operating: Cannabis - Retail<br>66 Curaleaf North Dakota Dickinson 12/14/2021 100.0% 5 - 5 $2,045 - $2,045 $409<br>67 Curaleaf North Dakota Devils Lake 12/14/2021 100.0% 4 - 4 1,614 - 1,614 404<br>68 Curaleaf Pennsylvania Bradford 12/14/2021 100.0% 3 - 3 1,058 - 1,058 353<br>69 Green Peak (Skymint) Michigan East Lansing 10/25/2019 100.0% 3 - 3 3,372 28 3,400 1,133<br>70 Green Peak (Skymint) Michigan Lansing 11/4/2019 100.0% 14 - 14 2,225 - 2,225 159<br>71 Green Peak (Skymint) Michigan Flint 11/4/2019 100.0% 6 - 6 2,180 - 2,180 363<br>72 PharmaCann Colorado Commerce City 2/21/2020 100.0% 5 - 5 2,300 - 2,300 460<br>73 PharmaCann Colorado Aurora 12/14/2021 100.0% 2 - 2 1,674 - 1,674 837<br>74 PharmaCann Colorado Berthoud 12/14/2021 100.0% 6 - 6 1,406 - 1,406 234<br>75 PharmaCann Colorado Mancos 12/14/2021 100.0% 4 - 4 1,148 - 1,148 287<br>76 PharmaCann Colorado Pueblo 2/19/2020 100.0% 3 - 3 1,049 - 1,049 350<br>77 Schwazze Colorado Ordway 12/14/2021 100.0% 2 - 2 400 - 400 200<br>78 Schwazze Colorado Rocky Ford 12/14/2021 100.0% 13 - 13 400 - 400 31<br>79 Schwazze Colorado Las Animas 12/14/2021 100.0% 2 - 2 400 - 400 200<br>80 South Mason Drive Michigan Newaygo 11/8/2019 - 2 - 2 995 - 995 498<br>81 The Cannabist Company Colorado Denver 12/14/2021 100.0% 4 - 4 7,338 - 7,338 1,834<br>82 The Cannabist Company Colorado Pueblo 12/14/2021 100.0% 6 - 6 4,878 - 4,878 813<br>83 The Cannabist Company Colorado Aurora 12/14/2021 100.0% 5 - 5 4,229 - 4,229 846<br>84 The Cannabist Company Colorado Glenwood Springs 12/14/2021 100.0% 4 - 4 4,187 - 4,187 1,047<br>85 The Cannabist Company Colorado Fort Collins 12/14/2021 100.0% 5 - 5 3,977 - 3,977 795<br>86 The Cannabist Company Colorado Aurora 12/14/2021 100.0% 4 - 4 3,601 - 3,601 900<br>87 The Cannabist Company New Jersey Vineland 7/16/2020 100.0% 4 - 4 2,165 - 2,165 541<br>88 The Cannabist Company Colorado Aurora 12/14/2021 100.0% 5 - 5 1,991 - 1,991 398<br>89 The Cannabist Company Colorado Englewood 12/14/2021 100.0% 4 - 4 1,778 - 1,778 445<br>90 The Cannabist Company Colorado Trinidad 12/14/2021 100.0% 9 - 9 1,728 - 1,728 192<br>91 The Cannabist Company Colorado Silver Plume 12/14/2021 100.0% 4 - 4 1,444 - 1,444 361<br>92 The Cannabist Company Colorado Black Hawk 12/14/2021 100.0% 4 - 4 1,321 - 1,321 330<br>93 The Cannabist Company Colorado Edgewater 12/14/2021 100.0% 5 - 5 1,089 - 1,089 218<br>94 The Cannabist Company Colorado Sheridan 12/14/2021 100.0% 2 - 2 890 - 890 445<br>95 The Pharm Arizona Phoenix 9/19/2019 100.0% 2 - 2 2,500 - 2,500 1,250<br>96 Verano Pennsylvania Harrisburg 3/23/2022 100.0% 3 - 3 2,750 - 2,750 917<br>97 Wilder Road Michigan Bay City 11/4/2019 - 4 - 4 1,740 - 1,740 435<br>Note: Subtotals and Totals include fractional amounts. Square footage and dollars in thousands except for $/PSF. “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space.<br>Data as of March 31, 2025.<br>Includes an additionaltwo non-cannabis tenants currently occupying 79,000 sqft.<br>*Harvest Health & Recreation Inc., which is a subsidiary of Trulieve Inc., executed a lease guaranty in favor of IIP for tenant’s obligations at the property.<br>1) Existing square footage for properties where there is no active development or redevelopment.<br>2) Estimated square footage upon completion of development or redevelopment.<br>Property List (Continued)
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Innovative Industrial Properties 17<br>Square Feet Invested / Committed Capital $<br>Date % Under Dev. Total $ /<br># Tenant State City Acquired Leased In Place(1) / Redev.(2) Total Invested Committed Total $ Square Feet<br>Operating: Cannabis - Retail Subtotal / Wtd. Avg. 96.1% 148 - 148 $69,870 $28 $69,898 $472<br>Operating: Cannabis - Industrial / Retail<br>98 Cresco Labs Massachusetts Fall River 6/30/2020 100.0% 124 - 124 $27,202 $1,548 $28,750 $232<br>99 Holistic Industries Michigan Madison Heights 9/1/2020 100.0% 63 - 63 28,500 - 28,500 452<br>100 Kaya Cannabis Colorado Denver 12/14/2021 100.0% 6 - 6 1,299 - 1,299 217<br>101 Schwazze Colorado Pueblo 12/14/2021 100.0% 8 - 8 2,165 - 2,165 271<br>102 Sozo Michigan Warren 5/14/2021 100.0% 85 - 85 17,230 - 17,230 203<br>103 The Cannabist Company Colorado Denver 12/14/2021 100.0% 33 - 33 8,206 - 8,206 249<br>104 TILT Holdings Massachusetts Taunton 5/16/2022 100.0% 104 - 104 40,000 - 40,000 385<br>Operating: Cannabis - Industrial / Retail Subtotal / Wtd. Avg. 100.0% 423 - 423 $124,602 $1,548 $126,150 $298<br>Operating: Non-Cannabis<br>105 Non-Cannabis Tenant Michigan Traverse City 11/25/2019 100.0% 2 - 2 $1,272 - $1,272 $636<br>106 North Anza Road California Palm Springs 4/16/2019 - 24 - 24 6,309 - 6,309 263<br>107 North Anza Road and Del Sol Road California Palm Springs 4/16/2019 54.5% 22 - 22 5,788 - 5,788 263<br>Operating: Non-Cannabis Subtotal / Wtd. Avg. 33.1% 48 - 48 $13,369 - $13,369 $279<br>Operating Portfolio Total / Wtd. Avg. 98.4% 8,321 231 8,552 $2,373,899 $27,369 $2,401,268 $281<br>Dev. / Redev. Properties(3)<br>108 Inland Center Drive California San Bernardino 11/16/2020 - - 192 192 $35,819 - $35,819 $187<br>109 Leah Avenue Texas San Marcos 3/10/2021 - - 63 63 8,231 - 8,231 131<br>Dev. / Redev. Properties / Wtd. Avg. - - 255 255 $44,050 - $44,050 $173<br>Pre-Leased Dev. Properties(3)<br>110 Gold Flora California Palm Springs 4/16/2019 100.0% 56 180 236 $35,530 - $35,530 $151<br>Pre-Leased Dev. Property / Wtd. Avg. 100.0% 56 180 236 $35,530 - $35,530 $151<br>Total Portfolio / Wtd. Avg. 96.7% 8,377 666 9,043 $2,453,478 $27,369 $2,480,847 $274<br>State Subtotal / Wtd. Avg.<br>1 Pennsylvania 100.0% 1,361 - 1,361 $384,655 $1,274 $385,930 $284<br>2 Illinois 100.0% 965 - 965 $307,131 $169 $307,300 $318<br>3 Massachusetts 91.2% 989 - 989 $304,652 $1,548 $306,200 $310<br>4 Michigan 99.1% 946 - 946 $295,587 $1,577 $297,164 $314<br>5 New York 100.0% 575 48 623 $211,986 $8,872 $220,858 $355<br>6 Florida 100.0% 1,055 98 1,153 $195,513 $11,537 $207,050 $180<br>7 California 76.8% 442 372 814 $193,013 - $193,013 $237<br>8 Ohio 100.0% 374 - 374 $113,934 $1,861 $115,795 $310<br>9 New Jersey 100.0% 291 - 291 $103,985 - $103,985 $357<br>10 Maryland 100.0% 316 - 316 $101,554 $31 $101,585 $321<br>11 Colorado 100.0% 233 - 233 $83,340 - $83,340 $358<br>12 Texas 72.8% - 148 148 $29,731 $500 $30,231 $204<br>13 Missouri 100.0% 83 - 83 $28,250 - $28,250 $340<br>14 Arizona 100.0% 377 - 377 $27,737 - $27,737 $74<br>15 Virginia 100.0% 82 - 82 $19,750 - $19,750 $241<br>16 Washington 100.0% 114 - 114 $17,500 - $17,500 $154<br>17 North Dakota 100.0% 42 - 42 $15,849 - $15,849 $377<br>18 Minnesota 100.0% 89 - 89 $9,710 - $9,710 $109<br>19 Nevada 100.0% 43 - 43 $9,600 - $9,600 $223<br>Property List (Continued)<br>Note: Subtotals and Totals include fractional amounts. Square footage and dollars in thousands except for $/PSF. “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space.<br>Data as of March 31, 2025.<br>1) Existing square footage for properties where there is no active development or redevelopment.<br>2) Estimated square footage upon completion of development or redevelopment.<br>3) Represents properties that are not included in the Company's operating portfolio.
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Innovative Industrial Properties 18<br>Date Maturity / Wtd. Amount Loan<br># City State Loan Type Executed Avg. Maturity Outstanding Commitment<br>1 Coachella California Senior Secured 6/25/2021 0.3 Years $22,800 $23,000<br>2 Needles(1) California Senior Secured 3/3/2023 2.9 Years 16,100 16,100<br>Loan Portfolio Total / Wtd. Avg. 1.4 Years $38,900 $39,100<br>Secured Loans<br>Note: Loan list maturity does not include available loan extensions. Dollars in thousands.<br>1) Relates to the seller-financed note issued to us by the buyer in connection with our disposition of a portfolio of four properties in southern California. The transaction did not qualify for recognition as a completed sale in accordance with GAAP and therefore, we have not derecognized the assets<br>transferred and have not recognized the seller-financed note on our consolidated balance sheet. This loan is in default, as disclosed in our 8-K filed on March 28, 2025.
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Innovative Industrial Properties 19<br>Interest Rate /<br>Preferred Rate / Maturity / Wtd. As of<br>(In thousands, except share and per share amounts) Wtd. Avg. Rate Avg. Maturity March 31, 2025<br>Unsecured debt:<br>Notes due 2026 5.50% 1.2 Years 291,215<br>Total Unsecured Debt 5.50% 1.2 Years $291,215<br>Gross Debt 5.50% 1.2 Years $291,215<br>Series A Preferred Stock:<br>Redemption price per share $25.00<br>Shares outstanding 1,387,820<br>Total Preferred Equity 9.00% $34,696<br>Total Senior Capital 5.87% $325,911<br>Equity Market Capitalization:<br>Stock Price as of 03/31/2025 $54.09<br>Shares outstanding 28,378,181<br>Equity Market Capitalization $1,534,976<br>Covenant (1) March 31, 2025<br>Debt / Total Gross Assets <60% 11%<br>Secured Debt <40% -<br>Unencumbered Total Gross Assets / Unsecured Debt >150% 908%<br>Debt Service Coverage Ratio >1.5x 16.8x<br>Egan Jones Credit Rating BBB+<br>Debt Maturity Schedule<br>Capital and Debt Summary<br>$291.2 Million<br>2025 2026 2027 2028 2029 Thereafter<br>Notes Due 2026<br>Capital Overview<br>1) Calculated in accordance with the indenture governing the Notes due 2026, included in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2021.
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Innovative Industrial Properties 20<br>Definitions<br>Definitions listed hereafter apply throughout the Supplemental unless otherwise specifically noted.<br> • Adjusted Funds From Operations (“AFFO”): Management believes that AFFO and AFFO per share are appropriate supplemental measures of<br>a REIT’s operating performance. We calculate AFFO by adjusting Normalized FFO for certain cash and non-cash items.<br> • Annualized Base Rent (“ABR”): ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the<br>last month in the quarter, by twelve.<br> • Development / Redevelopment (“Dev. / Redev.”) Properties: Defined as non-operating assets under development that are not leased and<br>not ready for their intended use.<br> • Exchangeable Senior Notes: 3.75% Exchangeable Senior Notes paid off in full in February 2024.<br> • Funds From Operations (“FFO”): FFO and FFO per share are operating performance measures adopted by the National Association of Real<br>Estate Investment Trusts, Inc. (“NAREIT”). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT’s operating<br>performance equal to net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, depreciation,<br>amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures.<br>Management also excludes from FFO any disposition-contingent lease termination fee received in connection with a property sale.<br>Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes<br>FFO and FFO per share to be supplemental measures of a REIT’s performance because they provide an understanding of the operating<br>performance of our properties without giving effect to certain significant non-cash items, primarily depreciation expense. Historical cost<br>accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However,<br>real estate values instead have historically risen or fallen with market conditions. We believe that by excluding the effect of depreciation, FFO and<br>FFO per share can facilitate comparisons of operating performance between periods. We report FFO and FFO per share because these<br>measures are observed by management to also be the predominant measures used by the REIT industry and by industry analysts to evaluate<br>REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and publications about<br>REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share.<br> • GAAP: Accounting principles generally accepted in the United States.<br> • Gross Debt: Calculated as the sum of the principal amount outstanding of the Notes due 2026.
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Innovative Industrial Properties 21<br>Definitions (Continued)<br> • Normalized Funds From Operations (“Normalized FFO”): We compute normalized funds from operations (“Normalized FFO”) by adjusting<br>FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature and/or<br>not related to our core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry,<br>and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to assist in their<br>evaluation of our operating performance across multiple periods and in comparison to the operating performance of other companies, because<br>it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. Normalized FFO is used<br>by management in evaluating the performance of our core business operations. Items included in calculating FFO that may be excluded in<br>calculating Normalized FFO include certain transaction-related gains, losses, income or expense or other non-core amounts as they occur.<br> • Notes due 2026: 5.50% Unsecured Senior Notes due 2026.<br> • Operating Portfolio: All properties that (a) are leased or (b) are not leased but ready for their intended use.<br> • Pre-Leased Development (“Dev.”) Properties: Defined as non-operating assets under development that are leased but not ready for their<br>intended use.<br> • Series A Preferred: 9.00% Series A Cumulative Redeemable Preferred Stock, $0.001 par value per share.<br> • Total Committed / Invested Capital: Includes (1) total investments in properties (consisting of purchase price and construction funding and<br>improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants<br>and sellers for completion of construction and improvements at the properties. Excludes loans listed in the section entitled “Secured Loans”.<br> • Total Portfolio: All properties, including Development / Redevelopment Properties, Pre-Leased Redevelopment Properties, and Operating<br>Portfolio, as of quarter end.<br> • Total Preferred Equity: Calculated by multiplying the total Series A Preferred shares outstanding by the $25 redemption price per share.<br> • Total Senior Capital: Calculated as the sum of Gross Debt and the redemption value of the Series A Preferred Stock.<br> • % Leased: The weighted average leased percentage of the Operating Portfolio by Total Committed / Invested Capital. Excludes Redevelopment<br>Properties and Pre-Leased Redevelopment Properties. Includes leases that are in default, as disclosed in our 8-K's filed on March 14, 2025 and<br>March 28, 2025.
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Innovative Industrial Properties 22<br>Analyst Coverage<br>Analyst Research Firms Contact Information<br>Aaron Grey Alliance Global Partners Email: agrey@allianceg.com<br>Phone: 888-543-4448<br>Tom Catherwood BTIG Email: tcatherwood@btig.com<br>Phone: 212-738-6140<br>Merrill Ross Compass Point Research and Trading Email: mross@compasspointllc.com<br>Phone: 202-534-1392<br>Aaron Hecht JMP Securities Email: ahecht@jmpsecurities.com<br>Phone: 415-835-3963<br>Alexander Goldfarb Piper Sandler Email: alexander.goldfarb@psc.com<br>Phone: 212-466-7937<br>Bill Kirk Roth Capital Partners Email: bkirk@roth.com<br>Phone: 203-355-3473<br>Andy Liu Wolfe Research Email: aliu@wolferesearch.com<br>Phone: 646-582-9257<br>Investor Relations Email: ir@iipreit.com<br>Phone: 858-997-3332
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Innovative Industrial Properties 23<br>Senior Management Team and Board of Directors<br>Senior Management<br>Name Title<br>Alan Gold Executive Chairman<br>Paul Smithers President, Chief Executive Officer and Director<br>David Smith Chief Financial Officer and Treasurer<br>Catherine Hastings Chief Operating Officer<br>Ben Regin Chief Investment Officer<br>Tracie Hager Senior Vice President, Asset Management<br>Kelly Spicher Senior Vice President, Real Estate Counsel<br>Andy Bui Vice President, Chief Accounting Officer<br>Board of Directors<br>Name Title<br>Alan Gold Executive Chairman<br>Paul Smithers President, Chief Executive Officer and Director<br>Gary Kreitzer Vice Chairman (Independent)<br>David Stecher Director (Independent)<br>Scott Shoemaker, MD Director (Independent)<br>Mary Allis Curran Director (Independent)
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Exhibit 99.3

Innovative Industrial Properties<br>1<br>INNOVATIVE<br>INDUSTRIAL<br>PROPERTIES<br>NYSE: IIPR<br>INNOVATIVEINDUSTRIALPROPERTIES.COM<br>COMPANY PRESENTATION<br> – MAY 2025
Innovative Industrial Properties 2<br>This presentation and our associated comments includes "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended,<br>and Section 21E of the Securities Exchange Act of 1934, as amended) that are subject to risks and uncertainties. In particular, statements pertaining to our capital resources, portfolio performance and results of<br>operations contain forward-looking statements. Likewise, our statements regarding anticipated growth in our funds from operations and anticipated market and regulatory conditions, our strategic direction, our<br>dividend rate and policy, demographics, results of operations, plans and objectives are forward-looking statements. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on<br>them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the<br>transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as "believes“, "expects“, "may“,<br>"will“, "should“, "seeks“, "approximately“, "intends“, "plans“, "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by<br>discussions of strategy, plans or intentions. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:<br>rates of default on leases for our assets; our ability to re-lease properties upon tenant defaults or lease terminations for the rent we currently receive, or at all; concentration of our portfolio of assets and limited number<br>of tenants; the estimated growth in and evolving market dynamics of the regulated cannabis market; the demand for regulated cannabis facilities; decreased economic activity due to fluctuations in trade policies, tariffs<br>and related government actions; inflation dynamics; our ability to improve our internal control over financial reporting, including our inability to remediate an identified material weakness, and the costs and the time<br>associated with such efforts; the impact of pandemics on us, our business, our tenants, or the economy generally; war and other hostilities, including the conflicts in Ukraine and Israel; our business and investment<br>strategy; our projected operating results; actions and initiatives of the U.S. or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the<br>fact that cannabis remains illegal under federal law; availability of suitable investment opportunities in the regulated cannabis industry; our understanding of our competition and our potential tenants’ alternative<br>financing sources; the expected medical-use or adult-use cannabis legalization in certain states; shifts in public opinion regarding regulated cannabis; the potential impact on us from litigation matters, including rising<br>liability and insurance costs; the additional risks that may be associated with certain of our tenants cultivating, processing and/or dispensing adult-use cannabis in our facilities; the state of the U.S. economy generally or<br>in specific geographic areas; economic trends and economic recoveries; our ability to access equity or debt capital; financing rates for our target assets; our level of indebtedness, which could reduce funds available<br>for other business purposes and reduce our operational flexibility; covenants in our debt instruments, which may limit our flexibility and adversely affect our financial condition; our ability to maintain our investment<br>grade credit rating; changes in the values of our assets; our expected portfolio of assets; our expected investments; interest rate mismatches between our assets and our borrowings used to fund such investments;<br>changes in interest rates and the market value of our assets; the degree to which any interest rate or other hedging strategies may or may not protect us from interest rate volatility; the impact of and changes in<br>governmental regulations, tax law and rates, accounting guidance and similar matters; how and when any forward equity sales may settle; our ability to maintain our qualification as a real estate investment trust for U.S.<br>federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940; availability of qualified personnel; and market trends in our industry, interest rates, real<br>estate values, the securities markets or the general economy.<br>The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. In addition, we discussed a number of material risks in our most recent Annual Report on<br>Form 10-K and subsequent Quarterly Reports on Form 10-Q. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing<br>environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any<br>factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Any forward-looking statement made by us speaks only of the date on which we<br>make it. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Stockholders and<br>investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in our filings and reports.<br>This presentation includes certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental information and should not be considered a substitute for financial information presented in<br>accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is set forth in the Appendix to this presentation.<br>Market and industry data are included in this presentation. We have obtained substantially all of this information from internal studies, public filings, other independent published industry sources and market studies<br>prepared by third parties. We believe these internal studies, public filings, other independent published industry sources and market studies prepared by third parties are reliable. However, this information may prove<br>to be inaccurate. No representation or warranty is made as to the accuracy of such information. All amounts shown in this presentation are unaudited. This is not an offer to sell or solicitation to buy securities of<br>Innovative Industrial Properties, Inc. Any offers to sell or solicitations to buy securities of Innovative Industrial Properties, Inc. shall be made only by means of a prospectus approved for that purpose.<br>FORWARD LOOKING STATEMENTS
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Innovative Industrial Properties 3<br>NNN cannabis REIT<br> • Large diversified portfolio of $2.5B of cannabis real estate<br> • Diversified across 19 states and 31 tenants<br>(4)<br> • Contractual, annual escalations provide built in cash flow growth<br>History of providing value to shareholders<br> • Increased dividend every year since inception through 2024<br> • One of the lowest leveraged publicly traded REITs<br> • Demonstrated access to multiple capital markets<br>IIPR provides direct investment exposure to cannabis with the<br>stability of real estate<br> • The only NYSE-listed cannabis REIT<br> • High growth industry with an estimated 7% CAGR over next 5 years<br>(5)<br> • Exposure to numerous cannabis markets and tenants<br>Seasoned management team with significant REIT experience<br> • Our founder, Alan Gold, has a history of establishing real estate companies<br> • Senior management team with long term public REIT experience<br>Note: Data as of March 31, 2025, unless otherwise noted.<br>(1) Total Committed / Invested Capital includes (1) total investments in properties (consisting of purchase price and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants for completion of construction and improvements at the<br>properties.<br>(2) Reflects annualized common stock dividend paid on April 15, 2025 of $1.90 per share.<br>(3) Weighted average lease length calculated by weighting the remaining lease term based on the base rent and management fees, after the expiration of applicable base rent phase-in periods for the Operating Portfolio.<br>(4) Each “Tenant” represents the parent company of the tenant, for which the parent company has provided a corporate guaranty. A parent company may have multiple tenant subsidiaries across IIPR’s properties. Excludes non-cannabis tenants.<br>(5) BDSA Legal Cannabis Market Forecast (March 2025).<br>IIPR AT A GLANCE<br>$2.5B<br>Total<br>Committed /<br>Invested<br>Capital(1)<br>110<br>Total<br>Properties<br>9.0M<br>Total Rentable<br>Square Feet<br>19<br>U.S. States<br>$7.60<br>Q1 2025<br>Annualized<br>Dividend(2)<br>$71.7M<br>Q1 2025<br>Total Revenue<br>13.5 Years<br>Weighted<br>Average Lease<br>Length(3)<br>COMPANY SPOTLIGHT
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Innovative Industrial Properties 4<br>Founded in 2016 to Support the Growth<br>and Capital Needs of the Regulated<br>Cannabis Industry<br>First and only publicly traded company on the NYSE<br>(NYSE: IIPR) to provide real estate capital to address<br>the specific needs of cannabis facility operators<br>Specialized Real<br>Estate<br>U.S. cannabis operators require mission<br>critical facilities with specialized buildouts<br>to optimize environment and conform to<br>licensing and zoning requirements<br>Operators’ Outsized<br>Need for Capital<br>U.S. cannabis operators have an outsized<br>need for capital to fund growth<br>Rapid Adoption of<br>State Legalization<br>As of March 2025, 41 states and<br>Washington, D.C. have legalized cannabis<br>for medical-use, and 24 states and<br>Washington, D.C. have legalized cannabis<br>for adult-use<br>(2)<br>Large and Growing<br>Industry<br>Regulated cannabis sales estimated to<br>grow to $44 billion by 2029, 40% more<br>than 2024 estimated regulated sales of<br>$31 billion(1)<br>Operators’ Limited<br>Access to Financing<br>Due to federal prohibition and being a<br>nascent industry, U.S. cannabis operators<br>were historically required to fund growth<br>through highly dilutive forms of capital<br>absent other forms of financing<br>(1) BDSA Legal Cannabis Market Forecast (March 2025).<br>(2) National Conference of State Legislatures (www.ncsl.org), MJBizDaily (mjbizdaily.com).<br>WHY IIPR WAS FORMED
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Innovative Industrial Properties 5<br>Structured long-term cash flows<br> • Generally, 15-20 year initial lease terms (vs. ~5 years<br>for traditional industrial leases)<br> • Leases generally subject to parent company<br>guarantees covering operations throughout the<br>United States<br>Capital efficient lease structure<br> • Target leases are generally 100% triple-net<br> ⚬ No recurring capital expenditures during lease<br>term<br> ⚬ All property expenses paid by the tenant,<br>including capital repairs, property taxes and<br>property insurance<br>Strong initial rental yields with annual<br>escalations<br>Align closely with<br>state-licensed<br>cannabis operators<br>Provide attractively<br>priced financing that<br>maximizes tenants’<br>access to capital<br>Facilitate our tenants’<br>growth plans<br>Execute sale-leasebacks<br>and fund improvements<br>for cultivation,<br>processing and retail<br>properties<br>OUR BUSINESS<br>MODEL & BENEFITS<br>Established<br>to Meet the<br>Needs of<br>Our Tenants
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Innovative Industrial Properties 6<br>Balance Sheet Statistics<br>$291.2 Million<br>2025 2026 2027 2028 2029 Thereafter<br>Notes Due 2026<br>Debt Overview<br>Revolving Credit Facility:<br> • Entire $87.5M facility is undrawn<br>Unsecured Senior Notes:<br> • Investment grade rating BBB+ from Egan Jones, since May 2021<br> • $291.2M of 5.50% unsecured senior notes due May 25, 2026<br>Capital Structure(3) Debt Maturity Profile<br>Note: As of March 31, 2025, unless otherwise noted.<br>(1) Calculated in accordance with the indenture governing the Notes due 2026, included in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2021.<br>(2) Total liquidity consists of cash and cash equivalents and short-term investments (each as reported in IIP’s consolidated balance sheet as of quarter end) and availability under IIP’s revolving credit facility.<br>(3) Share price per S&P Capital IQ Pro as of 3/31/2025.<br>$0.0B<br>$0.5B<br>$1.0B<br>$1.5B<br>$1.5B in Common Equity<br>$34.7M in Preferred Equity<br>$291.2M in Gross Debt<br>11% Debt to<br>Total Gross<br>Assets(1)<br>17x Debt Service<br>Coverage Ratio(1)<br>$220+ Million<br>Liquidity<br>Available(2)<br>IIPR is One of the Lowest Leveraged Public REITs<br>STRONG, LOW LEVERAGED<br>BALANCE SHEET
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Innovative Industrial Properties 7<br>PORTFOLIO OVERVIEW<br>IIPR has a geographically diversified portfolio of properties throughout the United States<br>Note: Data as of March 31, 2025, unless otherwise noted.<br>(1) As a % of Annualized Base Rent (“ABR”). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve.<br>(2) “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space.<br>Property Type<br>(1)<br>State Diversification(1)<br>State ABR ($000s)(1) % of ABR(1) # of Properties Square Feet (000s)<br>Illinois $44,276 14.5% 7 965<br>Pennsylvania 41,384 13.5% 10 1,361<br>Massachusetts 38,962 12.7% 10 989<br>New York 32,855 10.7% 2 623<br>Michigan 31,305 10.2% 14 946<br>Florida 29,404 9.6% 5 1,153<br>Ohio 17,753 5.8% 5 374<br>New Jersey 13,658 4.5% 4 291<br>Maryland 13,457 4.4% 5 316<br>California 12,433 4.1% 8 814<br>Total – Top 10 States $275,487 90.0% 70 7,832<br>0-5% 5-10% 10-15% No Presence<br>2%<br>Retail<br>92%<br>Industrial(2)<br>6%<br>Industrial<br>/ Retail
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Innovative Industrial Properties 8<br>Tenant ABR ($000s) ABR (%)(1) Square Feet (000s) ABR/SF<br>$49,706 16.2% 697 $71<br>30,873 10.1% 624 49<br>22,535 7.4% 664 34<br>20,566 6.7% 578 36<br>19,562 6.4% 740 26<br>18,173 5.9% 588 31<br>17,750 5.8% 488 36<br>16,932 5.5% 298 57<br>16,726 5.5% 379 44<br>16,034 5.2% 593 27<br>Total $228,857 74.7% 5,649 $41<br>TOP 10 TENANTS<br>Note: Data as of March 31, 2025, unless otherwise noted.<br>(1) As a % of Annualized Base Rent (“ABR”). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve.<br>(2) Each “Tenant” represents the parent company of the tenant, for which the parent company has provided a corporate guaranty. A parent company may have multiple tenant subsidiaries across IIP’s properties. Excludes non-cannabis tenants from tenant count. Total Committed / Invested Capital includes (1) total<br>investments in properties (consisting of purchase price and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants for completion of construction and improvements at the properties.<br>(3) Excludes non-cannabis tenants that comprise less than 1% of annualized base rent in the aggregate.<br>(4) “MSO” stands for Multi-State Operator which means the tenant (or guarantor) conducts cannabis operations in more than one state. “SSO” stands for Single-State Operator which means the tenant (or guarantor) conducts cannabis operations in a single state.<br>(5) These leases are in default, as disclosed in our 8-K filed on March 14, 2025.<br>(6) These leases are in default, as disclosed in our 8-K filed on March 28, 2025.<br>Company Type<br>62% Public 38% Private<br>$30.0M $73.3M $167.4M<br>$690.0M<br>$1.3B<br>$2.0B<br>$2.3B<br>$2.4B $2.5B $2.5B<br>1 4 8<br>18 20<br>26<br>29 30 31 31<br>2016 2017 2018 2019 2020 2021 2022 2023 2024 3/31/25<br>Invested Capital<br># of Tenants<br>Total Committed / Invested Capital & Tenant Growth<br>(2)<br>Tenant Composition(1)(3)<br>Operator Type<br>(4)<br>90% MSO 10% SSO<br>(5)<br>(6)
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Innovative Industrial Properties 9<br>$0.55<br>$1.20<br>$2.83<br>$4.47<br>$5.72<br>$7.10<br>$7.22<br>$7.52<br>$0.67<br>$1.34<br>$3.28<br>$5.01<br>$6.66<br>$8.45<br>$9.08 $8.98<br>2017 2018 2019 2020 2021 2022 2023 2024<br>Dividend/Share AFFO/Share<br>HISTORICAL PERFORMANCE OF<br>AFFO AND DIVIDENDS<br>AFFO Payout(3): 82% 90% 86% 89% 86% 84% 80% 84%<br>Annual AFFO Per Diluted Share CAGR (1,2) ‘17 – ’24: 45%<br>Annual Dividend Per Share CAGR (2) ‘17 – ’24: 45%<br>Average AFFO Payout Ratio ‘17 – ’24: 85%<br>(1) Adjusted funds from operations (“AFFO”) is a supplemental non-GAAP financial measure used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to<br>AFFO is included in the “AFFO Reconciliation” found on page 18.<br>(2) "CAGR" represents compound annualized growth rate for the relevant metric.<br>(3) Calculated as dividends declared for the specified period divided by AFFO per diluted share.
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Innovative Industrial Properties 10<br>Review of<br>Management<br>Ability to Raise<br>Capital<br>Financial<br>Underwriting<br>Guarantees and<br>Security Deposits<br>Ongoing<br>Monitoring<br>UNDERWRITING & MONITORING<br>Diligent underwriting process with a focus on best-in-class operators within the regulated cannabis industry<br> • Experienced<br>management team<br> • Alignment of<br>management within<br>ownership of the<br>business<br> • Evaluation of the<br>macro environment<br>surrounding<br>strategic capital<br>raising in the<br>tenants’ prospective<br>markets<br> • History of successful<br>capital raising and a<br>cash balance on<br>hand today<br> • Evaluation of<br>financial projections<br>utilizing existing<br>knowledge of<br>industry dynamics<br> • Detailed review of<br>financial statements,<br>strategic initiatives,<br>and growth plans<br> • Leases generally<br>subject to parent<br>company guarantees<br>covering operations<br>throughout the<br>United States<br> • Security deposits<br>with larger deposits<br>for less mature<br>tenants<br> • Quarterly financial<br>and operational<br>review of all<br>properties<br> • Meetings with<br>tenants to talk<br>through operations<br>and financials
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Innovative Industrial Properties 11<br> © GeoNames, Microsoft, TomTom<br>Powered by Bing<br>Market Overview<br>U.S. CANNABIS MARKET<br>CONTINUES TO GROW<br>Increasing U.S. Acceptance<br>(3)<br>Industry Revenue Comparison(1) Growing U.S. Legalization(4)<br>(1) BDSA Legal Cannabis Market Forecast (March 2025), Distilled Spirits Council of the United States.<br>(2) Pew Research Center (March 2024).<br>(3) Gallup News Service: October 2-23, 2023 – Final Topline.<br>(4) National Conference of State Legislatures (www.ncsl.org), MJBizDaily (mjbizdaily.com).<br>Other, N/A<br>Adult-Use<br>Medical-Use<br>70%<br> -<br>15%<br>30%<br>45%<br>60%<br>75% % Americans Supporting Legalization<br>$37B $37B<br>$14B<br>$31B<br>$44B<br>-<br>$5<br>$10<br>$15<br>$20<br>$25<br>$30<br>$35<br>$40<br>$45<br>$50<br>2024 US<br>Spirits Market<br>2024 US<br>Beer Market<br>2024 US<br>Wine Market<br>Est. 2024 US Legal<br>Cannabis Sales<br>Projected 2029 US<br>Legal Cannabis Sales<br>Forecast<br> • Market Growth: The U.S. legal cannabis sales market grew 6% to $31.4 billion in<br>2024 vs. a 1% decline for the U.S. Spirits Market to $37.2 billion in the same<br>period(1)<br> • Emerging Adult-Use Markets: Projected to drive meaningful growth through<br>2029, in particular NY, NJ, OH, PA, MN, CT, and MD(1)<br> • Expansion of Legalization:. Approximately 74% of Americans live in a state where<br>marijuana is legal for either recreational or medical use and 54% of Americans live<br>in a state where the recreational use of marijuana is legal(2)
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Innovative Industrial Properties 12<br>INDUSTRY TAILWINDS<br>$31B<br>$44B<br>2024 2025E 2026E 2027E 2028E 2029E<br>Long-Term Growth Outlook<br>for Cannabis<br>$44B<br>Estimated<br>Legal<br>Cannabis<br>Sales by<br>2029(1)<br>68%<br>U.S.<br>Population of<br>States with an<br>IIPR Presence(2)<br>88%<br>U.S. adults say<br>marijuana<br>should be<br>legal at some<br>level(3)<br>(1) BDSA Legal Cannabis Market Forecast (March 2025).<br>(2) 2020 US Census Data.<br>(3) Pew Research Center (March 2024).<br>US Legal Cannabis Sales<br>Forecast<br>(1)
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Innovative Industrial Properties 13<br>Institutions (by type) Providing Banking Services to MRBs(2)<br>Institutional Adoption Continues Percentage of FDIC Banks that Offer Services to MRBs<br>(1)<br>INCREASED BANKING SERVICES<br>FOR CANNABIS INDUSTRY<br>Note: “MRB” refers to Marijuana Related Business, businesses that “manufacture,” “distribute” or “dispense” marijuana.<br>(1) Treasury Department, FDIC data.<br>(2) Treasury Department.<br> -<br>2%<br>4%<br>6%<br>8%<br>10%<br>12%<br>2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>511<br>172<br>135<br>0<br>100<br>200<br>300<br>400<br>500<br>600<br>1Q 2014 3Q 2014 1Q 2015 3Q 2015 1Q 2016 3Q 2016 1Q 2017 3Q 2017 1Q 2018 3Q 2018 1Q 2019 3Q 2019 1Q 2020 3Q 2020 1Q 2021 3Q 2021 1Q 2022 3Q 2022 1Q 2023 3Q 2023 1Q 2024 3Q 2024<br>Banks Credit Unions Non-Depository<br> • Increasing trend in FDIC banks offering services to marijuana-related<br>business (“MRBs”) (from 2014 to 2024) reaching an all-time high of ~13%<br>of the total number of banks in 2024<br> • Steady growth in the number of depository institutions supporting MRBs<br> • ~800 banks, credit unions and other institutions providing services to<br>marijuana-related businesses
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Innovative Industrial Properties 14<br>Licensing<br> • A regulated cannabis operator must obtain<br>proper licensing from the state for the facility<br> • Licensing driven by state specific program<br>requirements, including costs and applicant<br>requirements for licensing, identification of<br>specific real estate for license approval<br> • In many states, a highly competitive process<br> • Limited opportunities for locating regulated<br>cannabis facilities based on zoning and<br>permitting requirements imposed at county and<br>city levels, including community support<br> • Extensive negotiations with local governments<br>for permitting and approvals<br> • Highly regulated at the state and local levels,<br>including extensive security, fire protection,<br>seed to sale tracking, testing, and other<br>requirements<br> • Periodic inspections by local fire and safety<br>officials and cannabis authorities to ensure<br>compliance<br>LICENSING, ZONING &<br>REGULATORY DYNAMICS<br>IIPR has built a strong competitive advantage through its scale, industry network and long-term industry experience<br>Zoning Regulatory
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Innovative Industrial Properties 15<br>Alan Gold<br>Executive Chairman & Co-Founder<br>Co-founder of BioMed Realty Trust (formerly NYSE: BMR);<br>served as Chairman and CEO from inception of its predecessor<br>in 1998 through BMR’s sale in 2016<br> • Owner and operator of high-quality life science real estate<br> • Previously publicly traded investment grade REIT<br>Co-founded Alexandria Real Estate Equities (NYSE: ARE) in<br>1994 and served as President and a director until 1998<br> • Invests in office buildings and laboratories leased to<br>life science and technology companies<br>Co-founder of IQHQ, Inc.; served as Executive<br>Chairman from December 2018 until December 2024<br> • Privately-held life science real estate company with<br>properties in both the U.S. and U.K.<br>EXECUTIVE CHAIRMAN<br> & CO-FOUNDER<br>Alan Gold has experience founding and leading real estate companies focused on nuanced, regulated industries.
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Innovative Industrial Properties 16<br>David Smith<br> • 20+ years of finance and real<br>estate experience<br> • Former CFO of Aventine Property<br>Group and New Senior<br>Investment Group (NYSE: SNR)<br>CFO and Treasurer<br> • 35+ years of legal and<br>regulatory experience<br> • Previously co-founded Iso<br>Nano International, LLC<br>Paul Smithers<br>President, CEO and Co-Founder<br> • 20+ years of real estate and<br>accounting experience<br> • Former Senior Associate,<br>Investments and Asset<br>Management at BioMed Realty<br>CIO<br>Catherine Hastings Ben Regin<br> • 25+ years of accounting and<br>real estate experience<br> • Former VP, Internal Audit of<br>BioMed Realty<br>COO<br>Andy Bui<br> • Former Senior Director,<br>Financial Reporting at BioMed<br>Realty<br>VP, Chief Accounting Officer<br> • 20+ years legal experience<br>representing real estate<br>matters<br> • Former attorney at Foley &<br>Lardner LLP<br>SVP, Real Estate Counsel<br>Tracie Hager Kelly Spicher<br> • 30+ years of experience in<br>property management<br> • Former VP, Property<br>Management at BioMed Realty<br>SVP, Asset Management<br>SENIOR MANAGEMENT TEAM
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Innovative Industrial Properties 17<br>APPENDIX
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Innovative Industrial Properties 18<br>AFFO RECONCILIATION<br>Years Ended December 31,<br>2024 2023 2022 2021 2020 2019 2018 2017<br>Net income attributable to common stockholders $159,857 $164,236 $153,034 $112,638 $64,378 $22,123 $5,633 $(395)<br>Real estate depreciation and amortization 70,807 67,194 61,303 41,776 28,025 8,599 2,629 915<br>Loss (gain) on sale of real estate — — (3,601) — — — — —<br>Disposition-contingent lease termination fee, net of loss on sale of real estate(1) (451) — — — — — — —<br>FFO attributable to common stockholders (basic) $230,213 $231,430 $210,736 $154,414 $92,403 $30,722 $8,262 $520<br>Cash and non-cash interest expense on Exchangeable Senior Notes 28 219 546 7,517 — — — —<br>FFO attributable to common stockholders (diluted) $230,241 $231,649 $211,282 $161,931 $92,403 $30,722 $8,262 $520<br>Acquisition-related expense — — — — 94 97 — —<br>Financing expense — — 367 — 211 — — —<br>Litigation-related expense 788 2,480 3,010 — — — — —<br>Loss (gain) on induced exchange of Exchangeable Senior Notes — (22) 125 3,692 — — — —<br>Normalized FFO attributable to common stockholders (diluted) 231,029 234,107 214,784 165,623 92,708 30,819 8,262 520<br>Interest income on seller-financed note(2) 1,104 1,342 — — — — — —<br>Deferred lease payments received on sales-type leases(3) 4,938 — — — — — — —<br>Stock-based compensation 17,317 19,581 17,507 8,616 3,330 2,495 1,465 1,719<br>Severance — — — — — — — 113<br>Non-cash interest expense 1,664 1,375 1,255 715 2,040 1,678 — —<br>Above-market lease amortization 92 92 91 4 — — — —<br>AFFO attributable to common stockholders (diluted) $256,144 $256,497 $233,637 $174,958 $98,078 $34,992 $9,727 $2,352<br>FFO per common share – diluted $8.07 $8.20 $7.64 $6.17 $4.72 $2.88 $1.13 $0.15<br>Normalized FFO per common share – diluted $8.10 $8.29 $7.76 $6.31 $4.74 $2.88 $1.13 $0.15<br>AFFO per common share – diluted $8.98 $9.08 $8.45 $6.66 $5.01 $3.28 $1.34 $0.67<br>Weighted average common shares outstanding – basic 28,226,402 27,977,807 27,345,047 23,903,017 19,443,602 10,546,016 7,138,952 3,375,284<br>Restricted stock and RSUs 294,780 196,821 116,046 96,174 114,017 138,052 146,849 131,861<br>PSUs — — — 81,414 — — — —<br>Dilutive effect of Exchangeable Senior Notes 9,468 81,169 202,076 2,180,550 — — — —<br>Weighted average common shares outstanding – diluted 28,530,650 28,255,797 27,663,169 26,261,155 19,557,619 10,684,068 7,285,801 3,507,145<br>(1) Amount reflects the $3.9 million disposition-contingent lease termination fee received concurrently with the sale of a property in Los Angeles, California, net of the loss on sale of real estate of $3.4 million.<br>(2) Amount reflects the non-refundable interest paid on the seller-financed note issued to us by the buyer in connection with our disposition of a portfolio of four properties in southern California previously leased to affiliates of Medical Investor Holdings, which is recognized as a deposit liability and is included in other<br>liabilities in our consolidated balance sheet as of December 31, 2023 and 2024, as the transaction did not qualify for recognition as a completed sale.<br>(3) Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting on January 1, 2024, and is included in other liabilities in our consolidated balance sheet as of December 31, 2024, as the transaction did not qualify for recognition as a completed<br>sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders.
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