Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q1 2023 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Supplemental Financial Information
Innovative Industrial Properties First Quarter 2023 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 16.2% Massachusetts 12.9% Illinois 12.9% Michigan 11.5% California 8.5% New York 8.0% Florida 7.0% Ohio 4.7% New Jersey 4.4% Maryland 3.7% Other 10.2% Total 100% Company Overview Innovative Industrial Properti
Slide 5: Quarterly Performance Summary
Innovative Industrial Properties 5 Delta 2023 2022 QoQ 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Total Revenues $76,067 $70,461 $70,883 $70,511 $64,504 General and administrative expense $10,373 $10,232 $10,804 $8,707 $8,777 General and administrative expense / total revenues 14% 15% 15% 12% 14% Net income
Slide 6: Balance Sheet
Innovative Industrial Properties 6 March 31, December 31, (In thousands, except share and per share amounts) 2023 2022 Assets Real estate, at cost: Land $142,524 $139,953 Buildings and improvements 2,054,859 2,010,628 Construction in progress 108,464 54,106 Total real estate, at cost 2,305,847 2,204
Slide 7: Net Income
Innovative Industrial Properties 7 For the Three Months Ended For the Three Months Ended March 31, March 31, (In thousands, except share and per share amounts) 2023 2022 Revenues: Rental (including tenant reimbursements) $75,529 $64,114 Other 538 390 Total revenues 76,067 64,504 Expenses: Property e
Slide 8: FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 8 For the Three Months Ended For the Three Months Ended March 31, March 31, (In thousands, except share and per share amounts) 2023 2022 Net income attributable to common stockholders $40,754 $34,712 Real estate depreciation and amortization 16,714 13,868 FFO attribu
Slide 9: Historical Net Income
Innovative Industrial Properties 9 2023 2022 (In thousands, except share and per share amounts) 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Revenues: Rental (including tenant reimbursements) $75,529 $69,923 $70,345 $69,995 $64,114 Other 538 538 538 516 390 Total revenues 76,067 70,461 70,883 70,511 64,504 Ex
Slide 10: Historical FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 10 2023 2022 (In thousands, except share and per share amounts) 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Net income attributable to common stockholders $40,754 $41,168 $37,278 $39,876 $34,712 Real estate depreciation and amortization 16,714 16,302 15,900 15,233 13,868 Gain
Slide 11: Statements of Cash Flows
Innovative Industrial Properties 11 For the Three Months Ended March 31, (In thousands) 2023 2022 Cash flows from operating activities Net income $41,092 $35,050 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 16,714 13,868 (Gain) loss o
Slide 12: Capital Commitments
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) Acquisitions Pennsylvania Feb-23 58 $15,000 - - $15,000 $259 Ohio Mar-23 157 20,100 21,900 -
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% $5,438 2% 2032 1 3 0% $106 0% Thereafter 90 7
Slide 14: Top Tenants Overview
Innovative Industrial Properties 14 IIP Portfolio Full Year 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 $321,172 13.5% 688 $467 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 Industrial 1PharmaCann New York Hamptonburgh 12/19/2016 100% 74 151 225 $103,861 $19,63
Slide 16: Property List (continued)
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 48TILT Holdings Pennsylvania White Haven 2/15/2023 100% 58 - 58 $15,000 - $15,000 $259
Slide 17: Property List (continued)
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 93Schwazze Colorado Rocky Ford 12/14/2021 100% 13 - 13 $400 - $400 $31 94Schwazze Color
Slide 18: Secured Loans
Innovative Industrial Properties 18 Date Maturity / Wtd. Loan #City State Loan Type Executed Avg. Maturity Total $ 1 Coachella (1) California Senior Secured 6/25/2021 0.8 Years $23,000 2 Needles (2) California Senior Secured 3/3/2023 4.9 Years 16,100 Loan Portfolio Total / Wtd. Avg. 2.5 Years $39,10
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 March 31, 2023 Unsecured debt: Exchangeable Senior Notes 3.75% 0.9 Years $4,436 Notes due 2026 5.50% 3.2 Years 300,000 Tota
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) • Notes due 2026 : 5.50% Unsecured Senior Notes due 2026. • Operating Portfolio: All properties that (a) are leased or (b) are not leased but ready for their intended use. • Rent Collection: Calculated as actual base rent and property manag
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 David Smith Chief Financial Officer and Treasurer Catherine Hastings Chief Operating Officer Ben R
Innovative Industrial Properties — Q1 2023 Earnings Presentation on 6ix