Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q4 2022 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter 2022 Supplemental Financial Information
Innovative Industrial Properties Fourth Quarter 2022 Supplemental Financial Information
Slide 2: Table of Contents
Innovative Industrial Properties 2 Overview Forward - Looking Statements 3 Company Overview 4 Financial Information Quarterly Performance Summary 5 Balance Sheet 6 Net Income 7 FFO, Normalized FFO, and AFFO Reconciliation 8 Historical Net Income 9 Historical FFO, Normalized FFO, and AFFO Reconciliat
Slide 3: Forward-Looking Statements
Innovative Industrial Properties 3 Forward - Looking Statements This Supplemental Financial Information Package include "forward - looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995 , Section 27 A of the Securities Act of 1933 , as amended, and Section 21
Slide 4: Company Snapshot
Innovative Industrial Properties 4 Company Snapshot State Diversification (1) Pennsylvania 15.9% Massachusetts 13.1% Illinois 13.1% Michigan 12.3% California 9.4% New York 7.3% Florida 7.1% New Jersey 3.8% Maryland 3.8% Colorado 3.6% Other 10.6% Total 100% Company Overview Innovative Industrial Prop
Slide 5: Quarterly Performance Summary
Innovative Industrial Properties 5 2022 2021 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Total Revenues $70,461 $70,883 $70,511 $64,504 $58,943 General and administrative expense $10,232 $10,804 $8,707 $8,777 $6,450 General and administrative expense / total revenues 15% 15% 12% 14% 11% Net income attributab
Slide 6: Balance Sheet
Innovative Industrial Properties 6 December 31, December 31, (In thousands, except share and per share amounts) 2022 2021 Assets Real estate, at cost: Land $139,953 $122,386 Buildings and improvements 1,305,306 979,417 Tenant improvements 705,322 620,301 Construction in progress 54,106 - Total real
Slide 7: Net Income
Innovative Industrial Properties 7 For the Three Months Ended For the Years Ended December 31, December 31, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Revenues: Rental (including tenant reimbursements) $69,923 $58,943 $274,377 $204,551 Other 538 - 1,982 - Total revenues 7
Slide 8: FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 8 For the Three Months Ended For the Years Ended December 31, December 31, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Net income attributable to common stockholders $41,168 $28,292 $153,034 $112,638 Real estate depreciation and amortizatio
Slide 9: Historical Net Income
Innovative Industrial Properties 9 2022 2021 (In thousands, except share and per share amounts) 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Revenues: Rental (including tenant reimbursements) $69,923 $70,345 $69,995 $64,114 $58,943 Other 538 538 516 390 - Total revenues 70,461 70,883 70,511 64,504 58,943 Expe
Slide 10: Historical FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 10 2022 2021 (In thousands, except share and per share amounts) 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Net income attributable to common stockholders $41,168 $37,278 $39,876 $34,712 $28,292 Real estate depreciation and amortization 16,302 15,900 15,233 13,868 12,205 Gain
Slide 11: Statements of Cash Flows
Innovative Industrial Properties 11 For the Years Ended December 31, (In thousands) 2022 2021 Cash flows from operating activities Net income $154,386 $113,990 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 61,303 41,776 Loss on exchang
Slide 12: Capital Commitments and Dispositions
Innovative Industrial Properties 12 Current Quarter Rentable Purchase Additional Existing Total Total State Closing / Execution Square Feet Price (1) Commitment Investment (1) Investment Investment / PSF (2) Amendments Massachusetts Oct-22 55 - $2,000 $17,750 $19,750 $359 Illinois Nov-22 250 - 19,90
Slide 13: Leasing Summary
Innovative Industrial Properties 13 # of Rentable Square Feet Annualized Base Rent Year Leases # % $ % 2023 - - - - - 2024 - - - - - 2025 - - - - - 2026 - - - - - 2027 - - - - - 2028 - - - - - 2029 1 120 1% $2,043 1% 2030 2 153 2% $5,494 2% 2031 6 183 2% $5,374 2% 2032 1 3 0% $106 0% Thereafter 94 7
Slide 14: Top Tenants Overview
Innovative Industrial Properties 14 IIP Portfolio 3rd Quarter 2022 (3) Tenant Information Total Invested Capital (1) Investment # of Adjusted Market MSO #Tenant $ % Square Feet (2) / Square Feet Leases Revenue EBITDA (4) Capitalization (5) / SSO (6) 1PharmaCann $306,172 13.1% 688 $445 11 Private Co.
Slide 15: Property List
Innovative Industrial Properties 15 Square Feet Invested / Committed Capital $ Date % Under Dev. Total $ / #Tenant State City Acquired Leased In Place (1) / Redev. (2) Total Invested Committed Total $ Square Feet Industrial 1PharmaCann New York Hamptonburgh 12/19/2016 100% 74 151 225 $80,562 $27,938
Slide 16: Property List
Innovative Industrial Properties 16 Square Feet Invested / Committed Capital $ Date % Under Dev. Total $ / #Tenant State City Acquired Leased In Place (1) / Redev. (2) Total Invested Committed Total $ Square Feet 49Gold Flora California Desert Hot Springs 10/15/2021 100% 131 70 201 $61,984 $1,516 $6
Slide 17: Property List
Innovative Industrial Properties 17 Square Feet Invested / Committed Capital $ Date % Under Dev. Total $ / #Tenant State City Acquired Leased In Place (1) / Redev. (2) Total Invested Committed Total $ Square Feet 96Schwazze Colorado Ordway 12/14/2021 100% 2 - 2 $400 - $400 $200 97Schwazze Colorado R
Slide 18: Senior Capital and Debt Summary
Innovative Industrial Properties 18 Interest Rate / Quarter End Preferred Rate / Maturity / Wtd. (In thousands, except share and per share amounts) December 31, 2022 Wtd. Avg. Rate Avg. Maturity Unsecured debt: Exchangeable Senior Notes $6,436 3.75% 1.1 Years Notes due 2026 300,000 5.50% 3.4 Years T
Slide 19: Capitalization
Innovative Industrial Properties 19 Quarter End December 31, 2022 Cash and Investments Cash and cash equivalents $87,122 Restricted cash 1,450 Investments 200,935 Cash and Investments $289,507 Cash Not Available for Investment: Short term liabilities (1) $61,455 Tenant improvements and construction
Slide 20: Definitions
Innovative Industrial Properties 20 Definitions • Adjusted Funds From Operations (“AFFO”): Management believes that AFFO and AFFO per share are appropriate supplemental measures of a REIT’s operating performance. We calculate AFFO by adjusting Normalized FFO for certain non - cash items. • Annualize
Slide 21: Definitions (Continued)
Innovative Industrial Properties 21 Definitions (Continued) • Gross Debt: Calculated as the sum of the principal amount outstanding of the Notes due 2026 and Exchangeable Senior Notes. • Normalized Funds From Operations (“Normalized FFO”): We compute normalized funds from operations (“Normalized FFO
Slide 22: Analyst Coverage
Innovative Industrial Properties 22 Analyst Coverage Analyst Research Firms Contact Information Tom Catherwood BTIG Email: tcatherwood@btig.com Phone: 212 - 738 - 6140 Merrill Ross Compass Point Research and Trading Email: mross@compasspointllc.com Phone: 202 - 534 - 1392 Eric Des Lauriers Craig - H
Slide 23: Senior Management Team and Board of Directors
Innovative Industrial Properties 23 Senior Management Team and Board of Directors Senior Management Name Title Alan Gold Executive Chairman Paul Smithers President, Chief Executive Officer and Director Catherine Hastings Chief Financial Officer and Treasurer Ben Regin Chief Investment Officer Brian
Innovative Industrial Properties — Q4 2022 Earnings Presentation on 6ix