Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q1 2025 Earnings Presentation
18 slides from Innovative Industrial Properties's earnings presentation, May 8, 2025
Slide 1: Innovative Industrial Properties Company Presentation – May 2025
INNOVATIVE INDUSTRIAL PROPERTIES NYSE: IIPR INNOVATIVEINDUSTRIALPROPERTIES.COM COMPANY PRESENTATION – MAY 2025 Innovative Industrial Properties 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and our associated comments includes "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, a
Slide 3: IIPR at a Glance
IIPR AT A GLANCE NNN cannabis REIT $2.5B • Large diversified portfolio of $2.5B of cannabis real estate Total • Diversified across 19 states and 31 tenants(4) Committed / Invested • Contractual, annual escalations provide built in cash flow growth Capital (1) 13.5 Years 110 COMPANY SPOTLIGHT Weighte
Slide 4: Why IIPR Was Formed
WHY IIPR WAS FORMED Operators’ Outsized Founded in 2016 to Support the Growth Specialized Real Need for Capital and Capital Needs of the Regulated Estate U.S. cannabis operators have an outsized Cannabis Industry U.S. cannabis operators require mission need for capital to fund growth critical facili
Slide 5: Our Business Model & Benefits
OUR BUSINESS MODEL & BENEFITS Structured long-term cash flows • Generally, 15-20 year initial lease terms (vs. ~5 years for traditional industrial leases) Align closely with Execute sale-leasebacks • Leases generally subject to parent company state-licensed and fund improvements cannabis operators f
Slide 6: Strong, Low Leveraged Balance Sheet
STRONG, LOW LEVERAGED BALANCE SHEET Balance Sheet Statistics Debt Overview IIPR is One of the Lowest Leveraged Public REITs Revolving Credit Facility: • Entire $87.5M facility is undrawn 11% Debt to $220+ Million Unsecured Senior Notes: Total Gross 17x Debt Service Liquidity Assets(1) Coverage Ratio
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW IIPR has a geographically diversified portfolio of properties throughout the United States State ABR ($000s)(1) % of ABR(1) # of Properties Square Feet (000s) Illinois $44,276 14.5% 7 965 Pennsylvania 41,384 13.5% 10 1,361 Massachusetts 38,962 12.7% 10 989 New York 32,855 10.7% 2
Slide 8: Top Tenants
TOP 10 TENANTS Tenant ABR ($000s) ABR (%)(1) Square Feet (000s) ABR/SF Total Committed / Invested Capital & Tenant Growth(2) (5) 30 31 31 $49,706 16.2% 697 $71 26 29 18 20 8 30,873 10.1% 624 49 1 4 $2.4B $2.5B $2.5B $2.3B 22,535 7.4% 664 34 Invested Capital $2.0B 20,566 6.7% 578 36 # of Tenants $1.3
Slide 9: Historical Performance of AFFO and Dividends
HISTORICAL PERFORMANCE OF AFFO AND DIVIDENDS Annual AFFO Per Diluted Share CAGR (1,2) ‘17 – ’24: 45% Annual Dividend Per Share CAGR (2) ‘17 – ’24: 45% $9.08 $8.98 Average AFFO Payout Ratio ‘17 – ’24: 85% $8.45 $7.52 $7.10 $7.22 $6.66 $5.72 $5.01 $4.47 $3.28 $2.83 $1.20 $1.34 $0.55 $0.67 2017 2018 20
Slide 10: Underwriting & Monitoring
UNDERWRITING & MONITORING Diligent underwriting process with a focus on best-in-class operators within the regulated cannabis industry Review of Ability to Raise Financial Guarantees and Ongoing Management Capital Underwriting Security Deposits Monitoring • Experienced • Evaluation of the • Evaluati
Slide 11: U.S. Cannabis Market Continues to Grow
U.S. CANNABIS MARKET CONTINUES TO GROW Market Overview Increasing U.S. Acceptance(3) 75% % Americans Supporting Legalization 70% • Market Growth: The U.S. legal cannabis sales market grew 6% to $31.4 billion in 2024 vs. a 1% decline for the U.S. Spirits Market to $37.2 billion in the same 60% period
Slide 12: Industry Tailwinds
INDUSTRY TAILWINDS Long-Term Growth Outlook US Legal Cannabis Sales for Cannabis Forecast(1) $44B $44B 68% 88% $31B Estimated U.S. U.S. adults say Legal Population of marijuana Cannabis States with an should be Sales by IIPR Presence(2) legal at some 2029(1) level(3) 2024 2025E 2026E 2027E 2028E 202
Slide 13: Increased Banking Services for Cannabis Industry
INCREASED BANKING SERVICES FOR CANNABIS INDUSTRY Institutional Adoption Continues Percentage of FDIC Banks that Offer Services to MRBs(1) • Increasing trend in FDIC banks offering services to marijuana-related 12% business (“MRBs”) (from 2014 to 2024) reaching an all-time high of ~13% of the total n
Slide 14: Licensing, Zoning & Regulatory Dynamics
LICENSING, ZONING & REGULATORY DYNAMICS IIPR has built a strong competitive advantage through its scale, industry network and long-term industry experience Licensing Zoning Regulatory • A regulated cannabis operator must obtain • Limited opportunities for locating regulated • Highly regulated at the
Slide 15: Executive Chairman & Co-Founder
EXECUTIVE CHAIRMAN & CO-FOUNDER Alan Gold has experience founding and leading real estate companies focused on nuanced, regulated industries. Co-founded Alexandria Real Estate Equities (NYSE: ARE) in 1994 and served as President and a director until 1998 • Invests in office buildings and laboratorie
Slide 16: Senior Management Team
SENIOR MANAGEMENT TEAM Paul Smithers David Smith Catherine Hastings Ben Regin President, CEO and Co-Founder CFO and Treasurer COO CIO • 35+ years of legal and • 20+ years of finance and real • 25+ years of accounting and • 20+ years of real estate and regulatory experience estate experience real est
Slide 17: Appendix
APPENDIX Innovative Industrial Properties 17
Slide 18: AFFO Reconciliation
AFFO RECONCILIATION Years Ended December 31, 2024 2023 2022 2021 2020 2019 2018 2017 Net income attributable to common stockholders $159,857 $164,236 $153,034 $112,638 $64,378 $22,123 $5,633 $(395) Real estate depreciation and amortization 70,807 67,194 61,303 41,776 28,025 8,599 2,629 915 Loss (gai
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