Innovative Industrial Properties Inc【IIPR】株式ニュース

Innovative Industrial Properties Reports First Quarter 2026 ResultsMay 4, 2026 4:30 PM
Business Wire $128 Million of Equity and Debt Capital Raised Year-To-Date Executed Leases for 389,000 Square Feet Year-To-Date Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company") announced today results for the first quarter ended March 31, 2026. Executive Chairman Remarks “We are encouraged by the pace of leasing activity year-to-date, including nearly 400,000 square feet of executed leases, which underscores the ongoing demand for our properties," said Alan Gold, Executive Chairman of IIP. "At the same time, we have taken deliberate steps to fortify our balance sheet through equity and debt capital raising activity, and have additional secured and unsecured debt financings underway totaling nearly $130 million, to be used to address our upcoming bond maturity and position us for growth.” First Quarter 2026 and Second Quarter to Date Highlights Financial Results and Dividend Total revenues of $69.0 million and net income attributable to common stockholders of $30.2 million, or $1.02 per diluted share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted). Adjusted funds from operations ("AFFO") of $53.4 million, or $1.88 per share. Declared dividends to common stockholders totaling $1.90 per share. Since its inception, IIP has paid over $1.1 billion in common stock dividends to its stockholders. Three Months Ended Three Months Ended March 31, 2026 March 31, 2025 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income attributable to common stockholders $ 30,155 $ 1.02 $ 30,296 $ 1.03 Normalized FFO 50,585 1.78 52,761 1.85 AFFO 53,434 1.88 55,332 1.94 __________________________________________________________________ Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income in accordance with GAAP and other definitions of capitalized terms used herein, appear at the end of this release. IQHQ Investment As of March 31, 2026, the Company had funded an aggregate of $150.0 million of its strategic investment in IQHQ, Inc., consisting of a fully funded $100.0 million revolving credit facility and $50.0 million of Series G preferred equity. Subsequent to quarter end, the Company funded an additional $25.0 million of Series G preferred equity. The Company remains committed to funding up to an additional $95.0 million of preferred equity, in multiple tranches through the second quarter of 2027. Portfolio - Leasing In January 2026, executed a 204,000 square foot full-building lease in Desert Hot Springs, California with Gramlin, a private California operator. In March 2026, executed a 5,000 square foot lease in Palm Springs, California. In March 2026, executed a 56,000 square foot full-building lease in Palm Springs, California with Gramlin, a private California operator. In March 2026, executed a 66,000 square foot full-building lease in Dwight, Illinois with Grown Rogue, a public multi-state operator. In April 2026, executed a 58,000 square foot full-building lease in Buckeye Lake, Ohio with Curaleaf, a public multi-state operator. Portfolio - Tenant Updates The following table summarizes payments received from certain defaulted tenants during the periods presented and the corresponding per share impact (in thousands, except per share amounts): Three Months Ended December 31, 2025 Three Months Ended March 31, 2026 Q2'26 To Date Tenant Total Payments Per Share(1) Total Payments Per Share(1) Total Payments Per Share(1) Gold Flora $ 3,738 $ 0.13 $ 1,500 $ 0.05 $ — $ — PharmaCann 242 0.01 3,244 0.11 850 0.03 4Front — — 225 0.01 400 0.01 Total $ 3,980 $ 0.14 $ 4,969 $ 0.17 $ 1,250 $ 0.04 ___________________________________________________________________ (1) For the three months ended December 31, 2025, the weighted-average common stock outstanding was 28,303,530 shares. For the three months ended March 31, 2026, the weighted-average common stock outstanding was 28,467,184 shares, which was also used to calculate the total payments per share for the period Q2'26 To Date. PharmaCann During the first quarter of 2026, the Ohio and Pennsylvania courts released $1.7 million and $1.3 million, respectively, to the Company comprised of the rent payments previously required to be escrowed with the court by PharmaCann. As previously disclosed, the Company has resolved all pending litigation with PharmaCann with respect to PharmaCann's prior lease defaults. The settlement agreement that the Company has entered into with PharmaCann includes monetary judgments for amounts owed by PharmaCann under the leases for New York, Ohio and Pennsylvania and mandates the turnover of these properties to the Company by May 20, 2026 for the New York and Pennsylvania properties and by May 26, 2026 for the Ohio property. As noted above in "Portfolio - Leasing", the Company has executed new leases for its properties in Ohio and Illinois that were previously leased to PharmaCann. Gold Flora During the first quarter of 2026, the Company received $1.5 million in settlement of all remaining unpaid administrative rents due from the receivership. The Company has executed lease agreements for the three properties previously leased by Gold Flora, executing a lease agreement for its 70,000 Palm Springs property in November 2025, executing a lease agreement for its 204,000 square foot Desert Hot Springs property in January 2026, and executing a lease agreement for its 56,000 square foot Palm Springs property in March 2026. 4Front The Company has reached tentative arrangements with prospective new tenants for the four assets leased to 4Front, including a 250,000 square foot asset in Illinois, a 114,000 square foot asset in Washington, and two assets in Massachusetts totaling 124,000 square feet. Each of these arrangements is subject to customary diligence and licensing processes and are expected to go into effect at the conclusion of receivership proceedings, expected by year end 2026. Balance Sheet Highlights (at March 31, 2026) 13% debt to total gross assets, with $2.8 billion in total gross assets. Total liquidity was $176.6 million, consisting of cash and cash equivalents (as reported in IIP’s consolidated balance sheet as of March 31, 2026) and availability under IIP’s revolving credit facility. Debt service coverage ratio of 11.6x (calculated in accordance with IIP’s 5.50% Unsecured Senior Notes due 2026). Financing Activity Preferred Stock In total, the Company has raised $70.9 million in net proceeds from preferred stock issuances year-to-date comprised of the following: During the quarter ended March 31, 2026, the Company issued 2,698,523 shares its of 9.00% Series A Preferred Stock under its ATM Program for $60.3 million in net proceeds. Subsequent to March 31, 2026, the Company issued an additional 506,628 shares of its 9.00% Series A Preferred Stock under its ATM Program for $10.6 million in net proceeds. Common Stock In total, the Company has raised $34.9 million in net proceeds from common stock issuances year-to-date comprised of the following: During the quarter ended March 31, 2026, the Company issued 178,655 shares of its common stock under its ATM Program for $9.3 million in net proceeds. Subsequent to March 31, 2026, the Company issued an additional 514,950 shares of its common stock under its ATM Program for $25.6 million in net proceeds. Note Repurchase Subsequent to March 31, 2026, the Company repurchased $9.1 million of the Company’s 5.50% Unsecured Notes at a discount to par. Secured Debt Subsequent to March 31, 2026, the Company closed on a $20.0 million, three-year secured term loan which bears interest at a fixed rate of 9.0%. Financial Results For the three months ended March 31, 2026, IIP generated total revenues of $69.0 million, compared to $71.7 million for the same period in 2025, a decrease of 3.8%. The decline was primarily driven by a $6.9 million decrease related to tenant defaults, partially offset by increases due to annual contractual rent escalations, rental revenue related to the property acquired in February 2025 and new leases executed on existing properties. For the three months ended March 31, 2026, the Company applied $1.2 million of security deposits for payment of rent on properties leased to Battle Green and The Cannabist Company. For the three months ended March 31, 2025, we applied $5.8 million of security deposits for payment of rent on properties leased to PharmaCann, Gold Flora, TILT and Sozo. For the three months ended March 31, 2026, interest and other income increased by $4.6 million to $6.3 million compared to $1.6 million for the three months ended March 31, 2025. The increase was primarily driven by the recognition of $5.5 million of interest and dividend income related to our financial investments in IQHQ. The increase was partially offset by lower income from interest-bearing investments as a result of lower invested balances and lower interest rates earned on those balances. Dividend On March 13, 2026, the Board of Directors declared a first quarter 2026 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on April 15, 2026 to stockholders of record as of March 31, 2026. 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 Tuesday, May 5, 2026 to discuss IIP’s financial results and operations for the first quarter ended March 31, 2026. 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 1-800-715-9871 (domestic) or 1-646-307-1963 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call. The complete webcast will be archived for one year on IIP’s website. A telephone playback of the conference call will also be available from 12:00 p.m. Pacific Time on Tuesday, May 5, 2026 until 8:59 p.m. Pacific Time on Tuesday, May 12, 2026, by calling 1-800-770-2030 (domestic), or 1-609-800-9909 (international) and using access code 5072512. The website replay will be posted in the Investor Relations section of innovativeindustrialproperties.com. 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 and life science real estate. Additional information is available at www.innovativeindustrialproperties.com. This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other 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. Forward-looking statements in this press release include, but are not limited to, statements regarding potential transactions, including proposed leases of our properties and potential debt financings, the consummation of which remains subject to the negotiation and execution of definitive documentation, satisfaction of customary closing conditions and other contingencies, including those relating to receivership sale processes. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that the Company's expectations will be realized. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. INNOVATIVE INDUSTRIAL PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) March 31, December 31, Assets 2026 2025 Real estate, at cost: Land $ 145,104 $ 146,320 Buildings and improvements 2,269,439 2,269,597 Construction in progress 40,311 40,593 Total real estate, at cost 2,454,854 2,456,510 Less accumulated depreciation (361,093 ) (343,062 ) Net real estate held for investment 2,093,761 2,113,448 Life science investments 153,980 152,665 Construction loan receivable 22,800 22,800 Cash and cash equivalents 89,117 47,597 In-place lease intangible assets, net 6,155 6,366 Other assets, net 28,167 27,982 Total assets $ 2,393,980 $ 2,370,858 Liabilities and stockholders’ equity Liabilities: Notes due 2026, net $ 290,981 $ 290,602 Revolving credit facilities 75,000 102,500 Building improvements and construction funding payable 851 2,964 Accounts payable and accrued expenses 14,702 10,870 Dividends payable 57,100 54,913 Rent received in advance and tenant security deposits 50,060 50,307 Other liabilities 10,746 10,698 Total liabilities 499,440 522,854 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, 4,718,048 and 2,019,525 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 108,081 47,780 Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,314,520 and 28,022,975 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 28 28 Additional paid-in capital 2,123,710 2,113,184 Dividends in excess of earnings (337,279 ) (312,988 ) Total stockholders’ equity 1,894,540 1,848,004 Total liabilities and stockholders’ equity $ 2,393,980 $ 2,370,858 INNOVATIVE INDUSTRIAL PROPERTIES, INC. CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended March 31, 2026 and 2025 (Unaudited) (In thousands, except share and per share amounts) For the Three Months Ended
March 31, 2026 2025 Revenues: Rental (including tenant reimbursements) $ 68,920 $ 71,697 Other 76 25 Total revenues 68,996 71,722 Expenses: Property expenses 7,576 7,379 General and administrative expense 10,349 8,461 Depreciation and amortization expense 18,584 18,391 Impairment loss on real estate — 3,527 Total expenses 36,509 37,758 Gain (loss) on sale of real estate 422 — Income from operations 32,909 33,964 Interest and other income 6,331 1,613 Interest expense (6,431 ) (4,500 ) Net income 32,809 31,077 Preferred stock dividends (2,654 ) (781 ) Net income attributable to common stockholders $ 30,155 $ 30,296 Net income attributable to common stockholders per share: Basic $ 1.04 $ 1.05 Diluted $ 1.02 $ 1.03 Weighted-average shares outstanding: Basic 27,991,910 28,275,549 Diluted 28,467,184 28,588,022 INNOVATIVE INDUSTRIAL PROPERTIES, INC. FFO, NORMALIZED FFO AND AFFO For the Three Months Ended March 31, 2026 and 2025 (Unaudited) (In thousands, except share and per share amounts) For the Three Months Ended
March 31, 2026 2025 Net income attributable to common stockholders $ 30,155 $ 30,296 Real estate depreciation and amortization 18,584 18,391 Impairment loss on real estate — 3,527 Loss (gain) on sale of real estate (422 ) — FFO attributable to common stockholders (basic and diluted) 48,317 52,214 Litigation-related expense 1,870 406 Loss (gain) on partial repayment of Notes due 2026 — (32 ) Income on seller-financed notes(1) 223 153 Deferred lease payments received on sales-type leases(2) 175 20 Normalized FFO attributable to common stockholders (diluted) 50,585 52,761 Stock-based compensation 2,584 2,078 Non-cash interest expense 576 470 Non-cash accretion of life science investments (334 ) — Above-market lease amortization 23 23 AFFO attributable to common stockholders (diluted) $ 53,434 $ 55,332 FFO per common share – diluted $ 1.70 $ 1.83 Normalized FFO per common share – diluted $ 1.78 $ 1.85 AFFO per common share – diluted $ 1.88 $ 1.94 Weighted average common shares outstanding – basic 27,991,910 28,275,549 Restricted stock and RSUs 475,274 312,473 Weighted average common shares outstanding – diluted 28,467,184 28,588,022 ____________________________________________________________________ (1) Amount reflects non-refundable cash payments received pursuant to seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. (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 sheets as of March 31, 2026 and December 31, 2025 as the transaction did not qualify for recognition as a completed sale. Non-GAAP Financial Measures Funds From Operations (FFO) 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. IIP also excludes from FFO any disposition-contingent lease termination fee received in connection with a property sale. 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 by 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. Normalized Funds from Operations (Normalized FFO) IIP computes Normalized FFO by adjusting FFO, as defined by NAREIT, 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 IIP's core business operations. Adjusted Funds from Operations (AFFO) 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 non-cash items. 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. Definitions Debt: Calculated as the sum of the carrying value of the Notes due 2026 and the Revolving Credit Facilities, as presented on IIP's consolidated balance sheet as of March 31, 2026. Gross Assets: Calculated as total assets plus accumulated depreciation, as presented on IIP's consolidated balance sheet as of March 31, 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260504110176/en/ Company Contact:
David Smith
Chief Financial Officer
Innovative Industrial Properties, Inc.
(858) 997-3332 Original: Innovative Industrial Properties Reports First Quarter 2026 Results

Innovative Industrial Properties Reports Fourth Quarter and Full Year 2025 ResultsFebruary 23, 2026 4:35 PM
Business Wire
Raised $146 Million of Attractively Priced Debt and Preferred Equity Since October 2025

Executed leases for 337,000 square feet in Q4'25 and Q1'26 To Date

Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company") announced today results for the fourth quarter and full year ended December 31, 2025.

Executive Chairman Remarks

“During 2025, we made significant progress executing on our strategy to diversify the Company’s portfolio, strengthen our balance sheet, and actively resolve tenant-related matters," said Alan Gold, Executive Chairman of IIP. "Our strategic investment in IQHQ and establishment of a new $100 million revolving credit facility reflect our disciplined approach to capital allocation, while our ongoing tenant resolutions and new leasing activity demonstrate the underlying value of, and demand for, our real estate portfolio.”

Full Year 2025 Highlights

Total revenues of $266.0 million and net income attributable to common stockholders of $114.4 million, or $3.93 per diluted share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted).

Adjusted funds from operations ("AFFO") of $205.4 million, or $7.24 per diluted share.

Declared dividends to common stockholders totaling $7.60 per share, increasing IIP’s common stock dividends declared each year since its inception in 2016. Since its inception, IIP has paid over $1.1 billion in common stock dividends to its stockholders.

In August, announced a strategic and diversifying investment of up to $270.0 million in IQHQ, Inc., a premier life science real estate platform ("IQHQ"), including a fully funded $100.0 million revolving credit facility and $170.0 million of preferred equity, of which $50.0 million had been funded as of year end.

Signed new leases comprising 339,000 square feet and totaling 4% of the total portfolio’s rentable square feet.

Issued 1,016,852 shares of Series A Preferred Stock under IIP's "at-the-market" equity offering program ("ATM Program") for $24.1 million in net proceeds.

Closed on a new three-year, $100.0 million secured revolving credit facility with a federally regulated commercial bank that bears interest at one-month SOFR + 200 basis points.

Year Ended

Year Ended

December 31, 2025

December 31, 2024

(in thousands, except per share amounts)

Amount

Per Share

Amount

Per Share

Net income attributable to common stockholders

$

114,435

$

3.93

$

159,857

$

5.52

Normalized FFO

193,522

6.82

237,071

8.31

AFFO

205,412

7.24

256,144

8.98

___________________________________________________

Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income in accordance with GAAP and other definitions of capitalized terms used herein, appear at the end of this release.

Fourth Quarter 2025 and Recent Highlights

Financial Results and Dividend

Total revenues of $66.7 million and net income attributable to common stockholders of $30.7 million, or $1.06 per share.

AFFO of $53.3 million, or $1.88 per share.

Paid a quarterly dividend of $1.90 per common share on January 15, 2026 to stockholders of record as of December 31, 2025.

Three Months Ended

December 31, 2025

Three Months Ended

December 31, 2024

(in thousands, except per share amounts)

Amount

Per Share

Amount

Per Share

Net income attributable to common stockholders

$

30,705

$

1.06

$

39,461

$

1.36

Normalized FFO

50,377

1.78

58,567

2.05

AFFO

53,333

1.88

63,361

2.22

___________________________________________________

Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income in accordance with GAAP and other definitions of capitalized terms used herein, appear at the end of this release.

IQHQ Investment

As of December 31, 2025, the Company had funded an aggregate of $150.0 million of its strategic investment in IQHQ, Inc., consisting of a fully funded $100.0 million revolving credit facility and $50.0 million of Series G preferred equity. The Company remains committed to funding up to an additional $120.0 million of preferred equity, in multiple tranches between the second quarter of 2026 and the second quarter of 2027.

Portfolio - Leasing

In November 2025, executed a 70,000 square foot full-building lease for IIP’s North Palm Springs, California property to a private California operator.

In November 2025, executed a 58,000 square foot full-building lease for IIP’s Holliston, Massachusetts property to Perpetual Brands, a private Massachusetts operator.

In January 2026, executed a 204,000 square foot full-building lease for IIP's Desert Hot Springs, California property to Gramlin, a private California operator.

Portfolio - Tenant Updates

The following table summarizes payments received from certain defaulted tenants during the periods presented and the corresponding per share impact (in thousands, except per share amounts):

Three Months Ended

September 30, 2025

Three Months Ended

December 31, 2025

Q1'26 To Date

Tenant

Total Payments

Per Share(1)

Total Payments

Per Share(1)

Total Payments

Per Share(1)

Gold Flora

$

820

$

0.03

$

3,738

$

0.13

$

1,500

$

0.05

PharmaCann

252

0.01

242

0.01

1,454

0.05

Total

$

1,072

$

0.04

$

3,980

$

0.14

$

2,954

$

0.10

_______________________________________________

(1)

For the three months ended September 30, 2025, the weighted-average common stock outstanding was 28,303,600 shares. For the three months ended December 31, 2025, the weighted-average common stock outstanding was 28,303,530 shares, which was also used to calculate the total payments per share for the period Q1'26 To Date.

PharmaCann

In December, the Company regained possession of its 66,000 square foot cultivation property in Illinois and subsequently signed an LOI with a new tenant in January.

In January 2026, the Ohio court released $1.3 million, or $0.05 per share, to the Company comprised of the rent payments previously required to be escrowed with the court by PharmaCann for the time period from July through December 2025.

The Company is actively working to regain possession of its remaining cultivation properties in Pennsylvania, Ohio and New York.

Gold Flora

During the fourth quarter of 2025, the Company received $3.7 million, or $0.13 per share, to be applied toward the unpaid rent due during the receivership.

During the first quarter of 2026, the Company has received an additional $1.5 million, or $0.05 per share, in settlement of all remaining unpaid administrative rents due from the receivership.

4Front

The Company has an executed LOI for its 250,000 cultivation property in Illinois with a new tenant.

The Company agreed to terms with a tenant for its 67,000 square foot property in Georgetown, MA, subject to the close out of certain contingencies relating to the receivership sale.

The Company agreed to terms with a tenant for its 114,000 square foot property in Olympia, WA, subject to the close out of certain contingencies relating to the receivership sale.

The Company agreed to terms with a tenant for its 57,000 square foot property in Holliston, MA, subject to the close out of certain contingencies relating to the receivership sale.

Balance Sheet Highlights (at December 31, 2025)

14% debt to total gross assets, with $2.7 billion in total gross assets.

Total liquidity was $107.6 million, consisting of cash and cash equivalents (as reported in IIP’s consolidated balance sheet as of December 31, 2025) and availability under IIP’s revolving credit facility.

Debt service coverage ratio of 10.4x (calculated in accordance with IIP’s 5.50% Unsecured Senior Notes due 2026).

Financing Activity

Preferred Stock

During the quarter ended December 31, 2025, the Company issued 211,843 shares its of 9.00% Series A Preferred Stock under its ATM Program for $5.0 million in net proceeds.

Subsequent to December 31, 2025, the Company issued an additional 1,794,323 shares of its 9.00% Series A Preferred Stock under its ATM Program for $40.4 million in net proceeds.

In total, the Company has raised $45.4 million in net proceeds from preferred stock issuances since the beginning of the fourth quarter of 2025.

New Revolving Credit Facility

In October, closed on a new three-year, $100.0 million secured revolving credit facility (the “Life Science Credit Facility”) with a federally regulated commercial bank. The Life Science Credit Facility is secured by the Company’s IQHQ investment and had an interest rate of 6.1% as of December 31, 2025. The Life Science Credit Facility also includes a $35.0 million “accordion feature” that permits the Company to expand the borrowing capacity to a total of $135.0 million, subject to the addition of other lenders. As of December 31, 2025, outstanding borrowings under our Life Science Credit Facility were $75.0 million.

Financial Results

For the three months ended December 31, 2025, IIP generated total revenues of $66.7 million, compared to $76.7 million for the same period in 2024, a decrease of 13.1%. The decrease was primarily driven by an $8.5 million decrease in rental revenue and a $1.6 million decrease in tenant reimbursements primarily due to tenant defaults for properties leased to PharmaCann, TILT and 4Front.

For the three months ended December 31, 2025, IIP did not apply any security deposits for the payment of rent. For the three months ended December 31, 2024, IIP applied $5.7 million of security deposits for payment of rent on properties leased to five tenants.

For the three months ended December 31, 2025, interest and other income increased by $4.1 million to $6.7 million, compared to $2.6 million for the three months ended December 31, 2024. The increase was primarily driven by the recognition of $5.0 million of interest and dividend income related to our financial investments in IQHQ. The increase was partially offset by lower income from interest-bearing investments as a result of lower invested balances and lower interest rates earned on those balances.

Dividend

On December 15, 2025, the Board of Directors declared a fourth quarter 2025 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on January 15, 2026 to stockholders of record as of December 31, 2025.

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 Tuesday, February 24, 2026 to discuss IIP’s financial results and operations for the fourth quarter and year ended December 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 1-800-715-9871 (domestic) or 1-646-307-1963 (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 Tuesday, February 24, 2026 until 8:59 p.m. Pacific Time on Tuesday, March 3, 2026, by calling 1-800-770-2030 (domestic), or 1-609-800-9909 (international) and using access code 5072512. The website replay will be posted in the Investor Relations section of innovativeindustrialproperties.com.

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 and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other 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. Forward-looking statements in this press release include, but are not limited to, statements regarding potential transactions, including properties subject to letters of intent or other non-binding agreements, the consummation of which remains subject to the negotiation and execution of definitive documentation, satisfaction of customary closing conditions and other contingencies, including those relating to receivership sale processes. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that the Company's expectations will be realized. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

INNOVATIVE INDUSTRIAL PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share amounts)

Assets

December 31,

2025

December 31,

2024

Real estate, at cost:

Land

$

146,320

$

146,772

Buildings and improvements

2,269,597

2,230,807

Construction in progress

40,593

62,393

Total real estate, at cost

2,456,510

2,439,972

Less accumulated depreciation

(343,062

)

(271,190

)

Net real estate held for investment

2,113,448

2,168,782

Life science investments

152,665

—

Construction loan receivable

22,800

22,800

Cash and cash equivalents

47,597

146,245

Investments

—

5,000

Right of use office lease asset

509

946

In-place lease intangible assets, net

6,366

7,385

Other assets, net

27,473

26,889

Total assets

$

2,370,858

$

2,378,047

Liabilities and stockholders’ equity

Liabilities:

Notes due 2026, net

$

290,602

$

297,865

Revolving credit facilities

102,500

—

Building improvements and construction funding payable

2,964

10,230

Accounts payable and accrued expenses

10,870

10,561

Dividends payable

54,913

54,817

Rent received in advance and tenant security deposits

50,307

57,176

Other liabilities

10,698

11,338

Total liabilities

522,854

441,987

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, 2,019,525 and 1,002,673 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively

47,780

23,632

Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,022,975 and 28,331,833 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively

28

28

Additional paid-in capital

2,113,184

2,124,113

Dividends in excess of earnings

(312,988

)

(211,713

)

Total stockholders’ equity

1,848,004

1,936,060

Total liabilities and stockholders’ equity

$

2,370,858

$

2,378,047

INNOVATIVE INDUSTRIAL PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

For the Three Months and Years Ended December 31, 2025 and 2024

(Unaudited)

(In thousands, except share and per share amounts)

For the Three Months Ended

December 31,

For the Years Ended

December 31,

2025

2024

2025

2024

Revenues:

Rental (including tenant reimbursements)

$

66,631

$

76,717

$

265,486

$

306,936

Other

26

27

469

1,581

Total revenues

66,657

76,744

265,955

308,517

Expenses:

Property expenses

7,980

7,605

30,177

28,472

General and administrative expense

7,967

8,891

33,735

37,444

Depreciation and amortization expense

18,538

18,240

74,068

70,807

Impairment loss on real estate

—

—

3,527

—

Total expenses

34,485

34,736

141,507

136,723

Gain (loss) on sale of real estate

(326

)

—

(326

)

(3,449

)

Income from operations

31,846

42,008

124,122

168,345

Interest and other income

6,721

2,553

14,320

10,988

Interest expense

(6,726

)

(4,536

)

(20,195

)

(17,672

)

Net income

31,841

40,025

118,247

161,661

Preferred stock dividends

(1,136

)

(564

)

(3,812

)

(1,804

)

Net income attributable to common stockholders

$

30,705

$

39,461

$

114,435

$

159,857

Net income attributable to common stockholders per share:

Basic

$

1.07

$

1.38

$

3.98

$

5.58

Diluted

$

1.06

$

1.36

$

3.93

$

5.52

Weighted-average shares outstanding:

Basic

27,913,384

28,254,565

28,005,228

28,226,402

Diluted

28,303,530

28,554,335

28,377,227

28,530,650

INNOVATIVE INDUSTRIAL PROPERTIES, INC.

FFO, NORMALIZED FFO AND AFFO

For the Three Months and Years Ended December 31, 2025 and 2024

(Unaudited)

(In thousands, except share and per share amounts)

For the Three Months Ended

December 31,

For the Years Ended

December 31,

2025

2024

2025

2024

Net income attributable to common stockholders

$

30,705

$

39,461

$

114,435

$

159,857

Real estate depreciation and amortization

18,538

18,240

74,068

70,807

Impairment loss on real estate

—

—

3,527

—

Loss on sale of real estate/(Disposition-contingent lease termination fee, net of loss on sale of real estate)(1)

326

—

326

(451

)

FFO attributable to common stockholders (basic)

49,569

57,701

192,356

230,213

Cash and non-cash interest expense on Exchangeable Senior Notes

—

—

—

28

FFO attributable to common stockholders (diluted)

49,569

57,701

192,356

230,241

Litigation-related expense

585

268

2,008

788

Loss (gain) on partial repayment of Notes due 2026

—

—

(32

)

—

Income on seller-financed notes(2)

223

30

(835

)

1,104

Deferred lease payments received on sales-type leases(3)

—

568

25

4,938

Normalized FFO attributable to common stockholders (diluted)

50,377

58,567

193,522

237,071

Stock-based compensation

2,698

4,315

10,132

17,317

Non-cash interest expense

568

456

1,999

1,664

Non-cash accretion of life science investments

(333

)

—

(333

)

—

Above-market lease amortization

23

23

92

92

AFFO attributable to common stockholders (diluted)

$

53,333

$

63,361

$

205,412

$

256,144

FFO per common share – diluted

$

1.75

$

2.02

$

6.78

$

8.07

Normalized FFO per common share – diluted

$

1.78

$

2.05

$

6.82

$

8.31

AFFO per common share – diluted

$

1.88

$

2.22

$

7.24

$

8.98

Weighted average common shares outstanding – basic

27,913,384

28,254,565

28,005,228

28,226,402

Restricted stock and RSUs

390,146

299,770

371,999

294,780

Dilutive effect of Exchangeable Senior Notes

—

—

—

9,468

Weighted average common shares outstanding – diluted

28,303,530

28,554,335

28,377,227

28,530,650

__________________________________________________

(1)

For the year ended December 31, 2024, amount reflects the $3.9 million disposition-contingent lease termination fee received concurrently with the sale of IIP’s property in Los Angeles, California, net of the loss on sale of the property of $3.4 million.

(2)

Positive amounts represent non-refundable cash payments received pursuant to two seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments were initially recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. For the year ended December 31, 2025, the negative amount resulted from the recognition of $2.6 million of nonrefundable cash payments received on one of the seller-financed notes as interest and other income in connection with the termination of the note.

(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 IIP’s consolidated balance sheets as of December 31, 2025 and 2024, as the transactions did not qualify for recognition as completed sales. 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.

Non-GAAP Financial Measures

Funds From Operations (FFO)

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. IIP also excludes from FFO any disposition-contingent lease termination fee received in connection with a property sale.

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 by 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.

Normalized Funds from Operations (Normalized FFO)

IIP computes Normalized FFO by adjusting FFO, as defined by NAREIT, 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 IIP's core business operations.

During the year ended December 31, 2025, IIP revised its presentation of Normalized FFO to include two adjustments related to income on seller-financed notes and deferred lease payments received on sales-type leases that were previously reflected in adjusted funds from operations (“AFFO”), which has been reflected for all periods presented. Management believes this change better aligns the Company’s presentation with its assessment of core operating performance and improves comparability with industry peers. 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.

Adjusted Funds from Operations (AFFO)

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 non-cash items.

For the year ended December 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 of the Exchangeable Senior Notes were exchanged at the beginning of the respective reporting period. The Exchangeable Senior Notes matured in February 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.

Definitions

Debt: Calculated as the sum of the carrying value of the Notes due 2026 and the Revolving Credit Facilities, as presented on IIP's consolidated balance sheet as of December 31, 2025.

Gross Assets: Calculated as total assets plus accumulated depreciation, as presented on IIP's consolidated balance sheet as of December 31, 2025.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223001239/en/
Company Contact:

David Smith

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

Original: Innovative Industrial Properties Reports Fourth Quarter and Full Year 2025 Results