Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q3 2022 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Supplemental Financial Information
Innovative Industrial Properties Third Quarter 2022 Supplemental Financial Information
Slide 2: Table of Contents
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 Reconciliation 10 Statements of Cash Flows 11
Slide 3: Forward-Looking Statements
Forward - Looking Statements Innovative Industrial Properties 3 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
Company Snapshot State Diversification (1) Pennsylvania 16.8% Massachusetts 13.0% Michigan 12.2% Illinois 12.2% California 9.5% New York 7.3% Florida 7.1% New Jersey 3.8% Maryland 3.8% Colorado 3.6% Other 10 .7% Total 100% Company Overview Innovative Industrial Properties, Inc. (NYSE “IIPR”) is an i
Slide 5: Quarterly Performance Summary
2022 2021 Total Revenues 3Q2022 $70,883 2Q2022 $70,511 1Q2022 $64,504 4Q2021 $58,943 3Q2021 $53,856 General and administrative expense $10,804 $8,707 $8,777 $6,450 $5,307 General and administrative expense / total revenues 15% 12% 14% 11% 10% Net income attributable to common stockholders $37,278 $3
Slide 6: Balance Sheet
September 30, December 31, (In thousands, except share and per share amounts) 2022 2021 Assets Real estate, at cost: Land $14 0,187 $12 2,386 Buildings and improvements 1,261,651 979,417 Tenant improvements 712,983 620,301 Innovative Industrial Properties 6 Construction in progress Total real estate
Slide 7: Net Income
For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Revenues: Rental (including tenant reimbursements) $70,345 $53,856 $20 4,454 $14 5,608 Other 538 - 1,444 - Total revenues 70,883 53,856 205,898 145,
Slide 8: FFO, Normalized FFO, and AFFO Reconciliation
For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Net income attributable to common stockholders $37,278 $29,756 $11 1,866 $84,346 Real estate depreciation and amortization 15,900 10,891 45,001 29,5
Slide 9: Historical Net Income
(In thousands, except share and per share amounts) 2022 2021 3Q2022 2Q2022 1Q2022 4Q2021 3Q2021 Innovative Industrial Properties 9 Revenues: Rental (including tenant reimbursements) $70,345 $69,995 $64,114 $58,943 $53,856 Other 538 516 390 - - Total revenues 70,883 70,511 64,504 58,943 53,856 Expens
Slide 10: Historical FFO, Normalized FFO, and AFFO Reconciliation
(In thousands, except share and per share amounts) 2022 2021 3Q2022 2Q2022 1Q2022 4Q2021 3Q2021 Innovative Industrial Properties 10 Net income attributable to common stockholders $37,278 $39,876 $34,712 $28,292 $29,756 Real estate depreciation and amortization 15,900 15,233 13,868 12,205 10,891 FFO
Slide 11: Statements of Cash Flows
For the Nine Months Ended September 30, (In thousands) 2022 2021 Cash flows from operating activities Net income $11 2,880 $85,360 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 45,001 29,571 Loss on exchange of Exchangeable Senior Note
Slide 12: Capital Commitments
R e ntab le Current Quarter Purchase Additional Ex i st i n g Total Total State Closing / Execution Square Feet Pri c e ( 1) C o mmi tmen t In v e stment ( 1) In v e stmen t Investment / PSF (2) Acquisitions Massachusetts Sep - 22 104 $21 , 50 0 - - $21 , 50 0 $207 Totals / Wtd. Avg. 104 $21,500 - -
Slide 13: Leasing Summary
Note: Square footage and dollars in thousands. 1) As a % of annualized base rent for Operating Portfolio. See “Definitions” for additional details. Excludes properties that Kings Garden continues to occupy pursuant to confidential, conditional settlement agreement reported by IIP on its current repo
Slide 14: Top Tenants Overview
Top Tenants Overview 1) Total Portfolio representation. Dollars in thousands, see “Definitions” for additional details. 2) Square feet in thousands. 3) Dollars in millions, based on each company’s public securities filings and earnings release, available at www.sec.gov, www.sedar.com, or each compan
Slide 15: Property List
Industria l 1 PharmaCann New York Hamptonburgh 12/19/2016 100% 74 151 225 $61,043 $47,457 $108,500 $482 2 PharmaCann Michigan Warren 10/9/2019 100% 205 - 205 83,045 550 83,595 408 3 PharmaCann Massachusetts Holliston 5/31/2018 100% 58 - 58 30,500 - 30,500 526 4 PharmaCann Illinois Dwight 10/30/2019
Slide 16: Property List (continued)
Square Feet Invested / Committed Capital $ Date % Under Dev. Total $ / # Tenant State City Acq u i red Leas ed In Place (1) / Redev. (2) Total Inve st ed Comm i tted Total $ Square Feet 49 Gold Flora California Desert Hot Springs 10/15/2021 100% 131 70 201 $59,850 $150 $60,000 $299 50 Jushi Pennsylv
Slide 17: Property List (continued)
Date % Square Feet Under Dev. Invested / Commit ted Capital $ # Tenant State City Acq u i red Leas ed In Place (1) / Redev. (2) Total Inve st ed Comm i tted Total $ 96 The Pharm Arizona Phoenix 9/19/2019 100% 2 - 2 $2,500 - $2,500 97 Schwazze Colorado Ordway 12/14/2021 100% 2 - 2 400 - 400 98 Schwaz
Slide 18: Senior Capital and Debt Summary
Quarter End September 30, 2022 Interest Rate / Preferred Rate / Wtd . Avg . R (In thousands, except share and per share amounts) Unsecured debt: Exchangeable Senior Notes Notes Due 2026 Total Unsecured Debt Gross Debt Series A Preferred Stock: Redemption price per share Shares outstanding Total Pref
Slide 19: Capitalization
Qu Sept Innovative Industrial Properties 19 Cash and Investments Cash and cash equivalents Restricted cash Investments Cash and Investments Cash Not Available for Investment: Short term liabilities (1) Tenant improvements and construction funding payable (2) Tenant security deposits Construction com
Slide 20: Definitions
Definitions Innovative Industrial Properties 20 • 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)
Definitions (Continued) Innovative Industrial Properties 21 • Gross Debt: Calculated as the sum of the principal amount outstanding of the Notes due 2026 and Exchangeable Senior Notes. • Operating Portfolio: All properties that (a) are leased or (b) are not leased but ready for their intended use. •
Slide 22: Analyst Coverage
Analyst Coverage Innovative Industrial Properties 22 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
Senior Management Team and Board of Directors Innovative Industrial Properties 23 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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