Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q3 2024 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Supplemental Financial Information
Innovative Industrial Properties Third Quarter 2024 Supplemental Financial Information
Slide 2: Table of Contents
Innovative Industrial Properties 2 Overview 3 Forward - Looking Statements 4 Company Overview Financial Information 5 Quarterly Performance Summary 6 Balance Sheet 7 Net Income 8 Statements of Cash Flows 9 FFO, Normalized FFO, and AFFO Reconciliation 10 Historical Net Income 11 Historical FFO, Norma
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) 14.6% Illinois 13.9% Pennsylvania 13.2% Massachusetts 10.9% New York 9.7% Michigan 9.1% Florida 5.9% Ohio 4.6% New Jersey 4.1% California 3.9% Maryland 10.1% Other 100% Total Company Overview Innovative Industrial Properti
Slide 5: Quarterly Performance Summary
Innovative Industrial Properties 5 Delta 2024 2023 QoQ 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 Total Revenues $76,526 $79,793 $75,454 $79,156 $77,826 General and administrative expense $9,330 $9,661 $9,562 $10,908 $10,981 General and administrative expense / total revenues 12% 12% 13% 14% 14% Net income
Slide 6: Balance Sheet
Innovative Industrial Properties 6 September 30, December 31, (In thousands, except share and per share amounts) 2024 2023 Assets Real estate, at cost: Land $146,043 $142,524 Buildings and improvements 2,209,720 2,108,218 Construction in progress 59,998 117,773 Total real estate, at cost 2,415,761 2
Slide 7: Net Income
Innovative Industrial Properties 7 For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except share and per share amounts) 2024 2023 2024 2023 Revenues: Rental (including tenant reimbursements) $76,052 $77,286 $230,219 $228,734 Other 474 540 1,554 1,616 To
Slide 8: Statements of Cash Flows
Innovative Industrial Properties 8 For the Nine Months Ended September 30, (In thousands) 2024 2023 Cash flows from operating activities Net income $121,636 $123,955 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 52,567 50,096
Slide 9: FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 9 For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except share and per share amounts) 2024 2023 2024 2023 Net income attributable to common stockholders $39,651 $41,256 $120,396 $122,941 Real estate depreciation and amo
Slide 10: Historical Net Income
Innovative Industrial Properties 10 2024 2023 (In thousands, except share and per share amounts) 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 Revenues: Rental (including tenant reimbursements) $76,052 $79,253 $74,914 $78,615 $77,286 Other 474 540 540 541 540 Total revenues 76,526 79,793 75,454 79,156 77,826 E
Slide 11: Historical FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 11 2024 2023 (In thousands, except share and per share amounts) 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 Net income attributable to common stockholders $39,651 $41,655 $39,090 $41,295 $41,256 Real estate depreciation and amortization 17,944 17,473 17,150 17,098 16,678 Disp
Slide 12: Capital Commitments
Innovative Industrial Properties 12 Capital Commitments 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 relat
Slide 13: Leasing Summary
Innovative Industrial Properties 13 # of Rentable Square Feet Rentable Square Feet Tenant State Closing / Execution Leases # % of Total Portfolio Verdant California Jun-23 1 23 0% Mitten Extracts Michigan Dec-23 1 201 2% Cottage Inn Michigan Jan-24 1 2 0% Gold Flora California Mar-24 1 236 3% Lume C
Slide 14: Top Tenants Overview
Innovative Industrial Properties 14 IIP Portfolio Second Quarter 2024 (3) Tenant Information Annualized Base Rent (ABR) (1) ABR # of Adjusted Market MSO #Tenant $ % Square Feet (2) / Square Foot Leases Revenue EBITDA (4) Capitalization (5) / SSO (6) 1PharmaCann $48,608 16.5% 697 $70 11 Private Co. P
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 Operating: Cannabis - Industrial 14Front Ventures Illinois Matteson 8/3/2021 100.0% 250
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 50The Cannabist Company Colorado Denver 10/30/2018 100.0% 58 - 58 $11,250 - $11,250 $19
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 Operating: Cannabis - Industrial / Retail 96Cresco Labs Massachusetts Fall River 6/30/2
Slide 18: Secured Loans
Innovative Industrial Properties 18 Date Maturity / Wtd. Amount Loan #City State Loan Type Executed Avg. Maturity Outstanding Commitment 1Coachella California Senior Secured 6/25/2021 0.3 Years $22,000 $23,000 2 Needles (1) California Senior Secured 3/3/2023 3.4 Years 16,100 16,100 Loan Portfolio To
Slide 19: Capital and Debt Summary
Innovative Industrial Properties 19 Interest Rate / Preferred Rate / Maturity / Wtd. Quarter End (In thousands, except share and per share amounts) Wtd. Avg. Rate Avg. Maturity September 30, 2024 Unsecured debt: Notes due 2026 5.50% 1.6 Years 300,000 Total Unsecured Debt 5.50% 1.6 Years $300,000 Gro
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 cash and non - cash items. •
Slide 21: Definitions (Continued)
Innovative Industrial Properties 21 Definitions (Continued) • Normalized Funds From Operations (“Normalized FFO”): We compute normalized funds from operations (“Normalized FFO”) by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that we believe are infrequent
Slide 22: Analyst Coverage
Innovative Industrial Properties 22 Analyst Coverage Contact Information Research Firms Analyst Email: tcatherwood@btig.com Phone: 212 - 738 - 6140 BTIG Tom Catherwood Email: mross@compasspointllc.com Phone: 202 - 534 - 1392 Compass Point Research and Trading Merrill Ross Email: eric.deslauriers@cra
Slide 23: Senior Management Team and Board of Directors
Innovative Industrial Properties 23 Senior Management Team and Board of Directors Senior Management Title Name Executive Chairman Alan Gold President, Chief Executive Officer and Director Paul Smithers Chief Financial Officer and Treasurer David Smith Chief Operating Officer Catherine Hastings Chief
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