Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Investor Presentation (September 2018)
18 slides from Innovative Industrial Properties's investor presentation, Sep 4, 2018
Slide 1: Leading Provider of Real Estate Capital for the Medical-Use Cannabis Industry
LEADING PROVIDER OF REAL ESTATE CAPITAL FOR THE MEDICAL-USE CANNABIS INDUSTRY NYSE: IIPR and IIPR Pr A As of September 4, 2018 www.innovativeindustrialproperties.com1
Slide 2: Notice to Investors and Forward-Looking Statements
Notice to Investors and Forward-Looking Statements This presentation and our associated comments include "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
Slide 3: The Company
The Company Focused Strategy: Medical cannabis approved licensees Locations in states with robust medical cannabis approved programs (30 states plus D.C.) Acquisition of existing, redeveloped and under development industrial buildings including attached enclosed greenhouse facilities. Acquis
Slide 4: The Medical Cannabis Industry
The Medical Cannabis Industry Rapidly growing industry with significant demand for cultivation facilities: Large market: North American regulated cannabis sales grew to $9.1 billion in 2017, up 32% from 2016, including $6.7 billion of medical-use cannabis sales, and is expected to reach $28.9 bi
Slide 5: The Team
The Team The Innovative Industrial Properties team has the proven experience and track record in all aspects of real estate - including acquisitions, management, development and financing, to capitalize on this rapidly expanding industry Alan Gold, Executive Chairman Paul Smithers, President and CEO
Slide 6: The Portfolio
The Portfolio Innovative Industrial Properties Portfolio Statistics (as of 8/10/18) Properties 9 Rentable Square Feet(1) 875,000 Arizona, Maryland, Massachusetts (2), Michigan, States Minnesota, New York (2), and Pennsylvania Total Invested Capital(2) $126.1 Million Average Yield on Invested Capital
Slide 7: The Portfolio – PharmaCann – New York
The Portfolio – PharmaCann – New York $30.0 million acquisition of 127,000 SF cultivation facility in New York Current Yield on Invested Capital of 17.7%(1) 15 year initial lease term Annual base rent increases of greater of 4% and 75% of CPI Base rent, supplemental rent and property management fees
Slide 8: The Portfolio – PharmaCann – Massachusetts
The Portfolio – PharmaCann – Massachusetts $18.5 million acquisition of 58,000 SF cultivation facility in Massachusetts (currently under development)(1) Current Yield on Invested Capital of 14.7%(2) 15.25 year initial lease term Annual base rent increases of greater of 3.25% and 75% of CPI Base rent
Slide 9: The Portfolio – Holistic Industries - Maryland
The Portfolio – Holistic Industries - Maryland $16.9 million acquisition of 72,000 SF industrial building in Maryland Current Yield on invested capital of 15.8%(1) 16 year initial lease term 3.25% annual base rent increases (on $15 million) Base rent and property management fees of $2.6 million(2) H
Slide 10: The Portfolio – Holistic Industries – Massachusetts
The Portfolio – Holistic Industries – Massachusetts $12.75 million acquisition of 55,000 SF cultivation facility in Massachusetts Current Yield on Invested Capital of 15.2%(1) 20 year initial lease term 3.25% annual base rent increases Base rent and property management fees of $1.9 million Lease gua
Slide 11: The Portfolio – Subsidiaries of Vireo Health
The Portfolio – Subsidiaries of Vireo Health Investment in cultivation facilities: $4.4 million acquisition of 40,000 SF in New York; $4.0 million acquisition of 20,000 SF in Minnesota; $8.6 million acquisition of 89,000 SF in Pennsylvania (1) Current Yield on Invested Capital of 15.2%(2) All leases
Slide 12: The Portfolio – The Pharm – Arizona
The Portfolio – The Pharm – Arizona $18 million acquisition of 358,000 SF cultivation facility in Arizona(1) Current Yield on Invested Capital of 14.2%(2) 15 year initial lease term 3.25% annual base rent increases Base rent and property management fees of $2.6 million(3) Lease guaranty provided by
Slide 13: The Portfolio – Green Peak – Michigan
The Portfolio – Green Peak – Michigan $13 million acquisition of 56,000 SF cultivation facility in Michigan (currently under development(1) Current yield on Invested Capital of 15.2%(2) 15 year initial lease term 3.5% annual base rent increases Base rent and property management fees of $2.0 million(
Slide 14: Per Square Foot Comparison
Per Square Foot Comparison Variances in construction type (industrial vs. greenhouse), market, building size, location, and other factors may result in significant differences in purchase prices per square foot Purchase Rentable Purchase Price Project Comments Price(1) Sq. Ft. Per Sq. Ft. Under cons
Slide 15: Per Square Foot Comparison (continued)
Per Square Foot Comparison (continued) Variances in construction type (industrial vs. greenhouse), market, building size, location, and other factors may result in significant differences in purchase prices per square foot Purchase Rentable Purchase Price Project Comments Price(1) Sq. Ft. Per Sq. Ft
Slide 16: Financial Statistics
Financial Statistics Innovative Industrial Properties Financial Statistics Current base rent and property management fees as of 8/10/18(1) $19.8 million annually Equity capital raised (net proceeds) $154.4 million Capital committed/invested(2) $126 million Current yield on invested capital as of 8/1
Slide 17: The Highlights
The Highlights Focused Strategy Experienced Management Team Unlevered Balance Sheet Strong and growing industry 17
Slide 18: Innovative Industrial Properties
INNOVATIVE Industrial Properties
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