Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q2 2022 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, Aug 4, 2022
Slide 1: Second Quarter 2022 Supplemental Financial Information
Innovative Industrial Properties Second 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 16.7% Michigan 12.2% Illinois 12.1% Massachusetts 12.0% California 11.1% New York 7.3% Florida 7.1% New Jersey 3.8% Maryland 3.8% Colorado 3.5% Other 10.4% Total 100% Company Overview Innovative Industrial Pro
Slide 5: Quarterly Performance Summary
Innovative Industrial Properties 5 2022 2021 2Q2022 1Q2022 4Q2021 3Q2021 2Q2021 Total Revenues $70,511 $64,504 $58,943 $53,856 $48,867 General and administrative expense $8,707 $8,777 $6,450 $5,307 $5,604 General and administrative expense / total revenues 12% 14% 11% 10% 11% Net income attributable
Slide 6: Balance Sheet
Innovative Industrial Properties 6 June 30, December 31, (In thousands, except share and per share amounts) 2022 2021 Assets Real estate, at cost: Land $136,123 $122,386 Buildings and improvements 1,220,821 979,417 Tenant improvements 699,856 620,301 Construction in progress 68,909 - Total real esta
Slide 7: Net Income
Innovative Industrial Properties 7 For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Revenues: Rental (including tenant reimbursements) $69,995 $48,867 $134,109 $91,752 Other 516 - 906 - Total revenues 70,511
Slide 8: FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 8 For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Net income attributable to common stockholders $39,876 $29,001 $74,588 $54,590 Real estate depreciation and amortization 15,
Slide 9: Historical Net Income
Innovative Industrial Properties 9 2022 2021 (In thousands, except share and per share amounts) 2Q2022 1Q2022 4Q2021 3Q2021 2Q2021 Revenues: Rental (including tenant reimbursements) $69,995 $64,114 $58,943 $53,856 $48,867 Other 516 390 - - - Total revenues 70,511 64,504 58,943 53,856 48,867 Expenses
Slide 10: Historical FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 10 2022 2021 (In thousands, except share and per share amounts) 2Q2022 1Q2022 4Q2021 3Q2021 2Q2021 Net income attributable to common stockholders $39,876 $34,712 $28,292 $29,756 $29,001 Real estate depreciation and amortization 15,233 13,868 12,205 10,891 9,841 FFO a
Slide 11: Statements of Cash Flows
Innovative Industrial Properties 11 For the Six Months Ended June 30, (In thousands) 2022 2021 Cash flows from operating activities Net income $75,264 $55,266 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 29,101 18,680 Loss on exchange
Slide 12: Capital Commitments
Innovative Industrial Properties 12 Current Quarter Rentable Purchase Additional Existing Total Total State Closing / Execution Square Feet (1) Price (2) Commitment Investment (2) Investment Investment / PSF (3) Acquisitions Maryland Apr-22 84 $25,000 - - $25,000 $298 Arizona Apr-22 17 5,238 - - 5,2
Slide 13: Leasing Summary
Innovative Industrial Properties 13 # of Rentable Square Feet Annualized Base Rent Year Leases # % $ % 2022 - - - - - 2023 - - - - - 2024 - - - - - 2025 - - - - - 2026 - - - - - 2027 - - - - - 2028 - - - - - 2029 1 120 1% $1,984 1% 2030 2 153 2% 5,334 2% 2031 6 183 2% 5,286 2% Therafter 101 8,122 95
Slide 14: Top Tenants Overview
Innovative Industrial Properties 14 IIP Portfolio Calendar Year 2021 (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 13.0% 688 $445 11 Private C
Slide 15: Property List
Innovative Industrial Properties 15 Note : 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
Slide 16: Property List (Continued)
Innovative Industrial Properties 16 Property List (Continued) Note : 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 in
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 91Green Peak (Skymint) Michigan East Lansing 10/25/2019 100% 3 - 3 3,372 28 3,400 1,133 92Gre
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) June 30, 2022 Wtd. Avg. Rate Avg. Maturity Unsecured debt: Exchangeable Senior Notes $6,453 3.75% 1.6 Years Notes Due 2026 300,000 5.50% 3.9 Years Total
Slide 19: Capitalization
Innovative Industrial Properties 19 Quarter End June 30, 2022 Cash and Investments Cash and cash equivalents $45,432 Restricted cash 530 Investments 309,442 Cash and Investments $355,404 Cash Not Available for Investment: Short term liabilities (1) $55,867 Tenant improvements and construction fundin
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) • 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 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 Brian Wolfe Vice President, General Couns
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