Innovative Industrial Properties, Inc. · NYSE:IIPR

Innovative Industrial Properties — Q4 2024 Earnings Presentation

23 slides from Innovative Industrial Properties's earnings presentation, Feb 20, 2025

  1. Slide 1: Fourth Quarter 2024 Supplemental Financial Information

    Innovative Industrial Properties Fourth Quarter 2024 Supplemental Financial Information

  2. Slide 2: Table of Contents

    Innovative Industrial Properties 2 Overview 3 Forward - Looking Statements 4 Company Overview Financial Information 5 Quarterly Performance Summary 6 Balance Sheet 7 Net Income 8 Statements of Cash Flows 9 FFO, Normalized FFO, and AFFO Reconciliation 10 Historical Net Income 11 Historical FFO, Norma

  3. Slide 3: Forward-Looking Statements

    Innovative Industrial Properties 3 Forward - Looking Statements This Supplemental Financial Information Package includes "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 2

  4. Slide 4: Company Snapshot

    Innovative Industrial Properties 4 Company Snapshot State Diversification (1) 14.4% Illinois 13.7% Pennsylvania 12.9% Massachusetts 10.8% New York 10.2% Michigan 9.5% Florida 5.8% Ohio 4.5% New Jersey 4.1% California 4.0% Maryland 10.1% Other 100% Total Company Overview Innovative Industrial Propert

  5. Slide 5: Quarterly Performance Summary

    Innovative Industrial Properties 5 Delta 2024 2023 4Q2024 3Q2024 2Q2024 1Q2024 4Q2023 Total Revenues $76,744 $76,526 $79,793 $75,454 $79,156 General and administrative expense $8,891 $9,330 $9,661 $9,562 $10,908 General and administrative expense / total revenues 12% 12% 12% 13% 14% Net income attri

  6. Slide 6: Balance Sheet

    Innovative Industrial Properties 6 December 31, December 31, (In thousands, except share and per share amounts) 2024 2023 Assets Real estate, at cost: Land $146,772 $142,524 Buildings and improvements 2,230,807 2,108,218 Construction in progress 62,393 117,773 Total real estate, at cost 2,439,972 2,

  7. 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) 2024 2023 2024 2023 Revenues: Rental (including tenant reimbursements) $76,717 $78,615 $306,936 $307,349 Other 27 541 1,581 2,157 Total reven

  8. Slide 8: Statements of Cash Flows

    Innovative Industrial Properties 8 For the Years Ended December 31, (In thousands) 2024 2023 Cash flows from operating activities Net income $161,661 $165,588 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 70,807 67,194 Loss (

  9. Slide 9: FFO, Normalized FFO, and AFFO Reconciliation

    Innovative Industrial Properties 9 For the Three Months Ended For the Years Ended December 31, December 31, (In thousands, except share and per share amounts) 2024 2023 2024 2023 Net income attributable to common stockholders $39,461 $41,295 $159,857 $164,236 Real estate depreciation and amortizatio

  10. Slide 10: Historical Net Income

    Innovative Industrial Properties 10 2024 2023 (In thousands, except share and per share amounts) 4Q2024 3Q2024 2Q2024 1Q2024 4Q2023 Revenues: Rental (including tenant reimbursements) $76,717 $76,052 $79,253 $74,914 $78,615 Other 27 474 540 540 541 Total revenues 76,744 76,526 79,793 75,454 79,156 Ex

  11. Slide 11: Historical FFO, Normalized FFO, and AFFO Reconciliation

    Innovative Industrial Properties 11 2024 2023 (In thousands, except share and per share amounts) 4Q2024 3Q2024 2Q2024 1Q2024 4Q2023 Net income attributable to common stockholders $39,461 $39,651 $41,655 $39,090 $41,295 Real estate depreciation and amortization 18,240 17,944 17,473 17,150 17,098 Disp

  12. 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) Acquisitions Maryland Oct-24 23 $5,570 - - $5,570 $242 Total / Wtd

  13. Slide 13: Leasing Summary

    Innovative Industrial Properties 13 # of Rentable Square Feet Rentable Square Feet Tenant State Closing / Execution Leases # % of Total Portfolio Non-Cannabis Tenant Michigan Jan-24 1 2 0% Gold Flora California Mar-24 1 236 3% Lume Cannabis Company Michigan Apr-24 1 56 1% Gold Flora California May-2

  14. Slide 14: Top Tenants Overview

    Innovative Industrial Properties 14 IIP Portfolio Third Quarter 2024 (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) 1 PharmaCann (7) $49,035 16.3% 697 $70 11 Private C

  15. 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 Operating: Cannabis - Industrial 14Front Ventures Illinois Matteson 8/3/2021 100.0% 250

  16. Slide 16: Property List

    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 50The Cannabist Company New Jersey Vineland 7/16/2020 100.0% 50 - 50 $11,820 - $11,820

  17. Slide 17: Property List

    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 Operating: Cannabis - Industrial / Retail 97Cresco Labs Massachusetts Fall River 6/30/2

  18. 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 $22,800 $23,000 2 Needles (1) California Senior Secured 3/3/2023 3.2 Years 16,100 16,100 Loan Portfolio To

  19. Slide 19: Capital and Debt Summary

    Innovative Industrial Properties 19 Interest Rate / Preferred Rate / Maturity / Wtd. As of (In thousands, except share and per share amounts) Wtd. Avg. Rate Avg. Maturity December 31, 2024 Unsecured debt: Notes due 2026 5.50% 1.4 Years 300,000 Total Unsecured Debt 5.50% 1.4 Years $300,000 Gross Debt

  20. 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. •

  21. 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

  22. Slide 22: Analyst Coverage

    Innovative Industrial Properties 22 Analyst Coverage Contact Information Research Firms Analyst Email: agrey@allianceg.com Phone: 888 - 543 - 4448 Alliance Global Partners Aaron Grey Email: tcatherwood@btig.com Phone: 212 - 738 - 6140 BTIG Tom Catherwood Email: mross@compasspointllc.com Phone: 202 -

  23. Slide 23: Senior Management Team and Board of Directors

    Innovative Industrial Properties 23 Senior Management Team and Board of Directors Senior Management Title Name Executive Chairman Alan Gold President, Chief Executive Officer and Director Paul Smithers Chief Financial Officer and Treasurer David Smith Chief Operating Officer Catherine Hastings Chief

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