Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q4 2023 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, Feb 27, 2024
Slide 1: Fourth Quarter 2023 Supplemental Financial Information
Innovative Industrial Properties Fourth 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) Illinois 14.7% Pennsylvania 14.1% Massachusetts 13.6% Michigan 10.6% New York 10.2% Florida 8.3% Ohio 5.4% New Jersey 4.6% California 4.1% Maryland 3.9% Other 10.5% Total 100% Company Overview Innovative Industrial Propert
Slide 5: Quarterly Performance Summary
Innovative Industrial Properties 5 Delta 2023 2022 4Q2023 3Q2023 2Q2023 1Q2023 4Q2022 Total Revenues $79,156 $77,826 $76,457 $76,067 $70,461 General and administrative expense $10,908 $10,981 $10,570 $10,373 $10,232 General and administrative expense / total revenues 14% 14% 14% 14% 15% Net income a
Slide 6: Balance Sheet
Innovative Industrial Properties 6 December 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 2,108,218 2,010,628 Construction in progress 117,773 54,106 Total real estate, at cost 2,368,515 2,
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) 2023 2022 2023 2022 Revenues: Rental (including tenant reimbursements) $78,615 $69,923 $307,349 $274,377 Other 541 538 2,157 1,982 Total reve
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) 2023 2022 2023 2022 Net income attributable to common stockholders $41,295 $41,168 $164,236 $153,034 Real estate depreciation and amortizatio
Slide 9: Historical Net Income
Innovative Industrial Properties 9 2023 2022 (In thousands, except share and per share amounts) 4Q2023 3Q2023 2Q2023 1Q2023 4Q2022 Revenues: Rental (including tenant reimbursements) $78,615 $77,286 $75,919 $75,529 $69,923 Other 541 540 538 538 538 Total revenues 79,156 77,826 76,457 76,067 70,461 Ex
Slide 10: Historical FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 10 2023 2022 (In thousands, except share and per share amounts) 4Q2023 3Q2023 2Q2023 1Q2023 4Q2022 Net income attributable to common stockholders $41,295 $41,256 $40,931 $40,754 $41,168 Real estate depreciation and amortization 17,098 16,678 16,704 16,714 16,302 Gain
Slide 11: Statements of Cash Flows
Innovative Industrial Properties 11 For the Years Ended December 31, (In thousands) 2023 2022 Cash flows from operating activities Net income $165,588 $154,386 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 67,194 61,303 (Gain
Slide 12: Capital Commitments
Innovative Industrial Properties 12 Current Quarter Existing Total Rentable Purchase Additional Investment Investment Total State Closing / Execution Square Feet Price (1) Commitment / Commitment (1) / Commitment Investment / PSF (2) Amendments New York Oct-23 388 - $14,000 $67,366 $81,366 $210 Amen
Slide 13: Leasing Summary
Innovative Industrial Properties 13 1) As a % of annualized base rent for Operating Portfolio . Refer to “Definitions” for additional details . 2) Includes Pre - Leased Development Properties . Refer to “Definitions” for additional details . Leasing Summary Lease Expiration Schedule as of December 3
Slide 14: Top Tenants Overview
Innovative Industrial Properties 14 IIP Portfolio Third Quarter 2023 (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 $45,181 15.8% 697 $65 11 Private Co. Pr
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 100.0% 234 - 234 $122,959 $541
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 48Battle Green Ohio Columbus 3/3/2023 100.0% - 157 157 $40,625 $1,375 $42,000 $268 49Ju
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 94Front Street Michigan Traverse City 11/25/2019 - 2 - 2 $1,272 - $1,272 $636 95South M
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 0.5 Years $22,000 $23,000 2 Needles (1) California Senior Secured 3/3/2023 4.2 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 December 31, 2023 Unsecured debt: Exchangeable Senior Notes (2) 3.75% 0.1 Years $4,436 Notes due 2026 5.50% 2.4 Years 300,0
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. • Pre - Leased Development (“Dev.”) Property: Defined as non - opera
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
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