Innovative Industrial Properties, Inc. · NYSE:IIPR
Innovative Industrial Properties — Q2 2024 Earnings Presentation
23 slides from Innovative Industrial Properties's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Supplemental Financial Information
Innovative Industrial Properties Second Quarter 2024 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 Statements of Cash Flows 8 FFO, Normalized FFO, and AFFO Reconciliation 9 Historical Net Income 10 Historical FFO, Normaliz
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) Pennsylvania 14.2% Massachusetts 13.5% Illinois 13.0% New York 11.2% Michigan 9.9% Florida 9.2% Ohio 6.1% New Jersey 4.7% Maryland 4.0% California 3.8% Other 10.4% Total 100% Company Overview Innovative Industrial Properti
Slide 5: Quarterly Performance Summary
Innovative Industrial Properties 5 Delta 2024 2023 QoQ 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 Total Revenues $79,793 $75,454 $79,156 $77,826 $76,457 General and administrative expense $9,661 $9,562 $10,908 $10,981 $10,570 General and administrative expense / total revenues 12% 13% 14% 14% 14% Net income
Slide 6: Balance Sheet
Innovative Industrial Properties 6 June 30, December 31, (In thousands, except share and per share amounts) 2024 2023 Assets Real estate, at cost: Land $142,891 $142,524 Buildings and improvements 2,161,261 2,108,218 Construction in progress 97,828 117,773 Total real estate, at cost 2,401,980 2,368,
Slide 7: Net Income
Innovative Industrial Properties 7 For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except share and per share amounts) 2024 2023 2024 2023 Revenues: Rental (including tenant reimbursements) $79,253 $75,919 $154,167 $151,448 Other 540 538 1,080 1,076 Total revenue
Slide 8: Statements of Cash Flows
Innovative Industrial Properties 8 For the Six Months Ended June 30, (In thousands) 2024 2023 Cash flows from operating activities Net income $81,421 $82,361 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 34,623 33,418 Loss (g
Slide 9: FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 9 For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except share and per share amounts) 2024 2023 2024 2023 Net income attributable to common stockholders $41,655 $40,931 $80,745 $81,685 Real estate depreciation and amortization 17,
Slide 10: Historical Net Income
Innovative Industrial Properties 10 2024 2023 (In thousands, except share and per share amounts) 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 Revenues: Rental (including tenant reimbursements) $79,253 $74,914 $78,615 $77,286 $75,919 Other 540 540 541 540 538 Total revenues 79,793 75,454 79,156 77,826 76,457 E
Slide 11: Historical FFO, Normalized FFO, and AFFO Reconciliation
Innovative Industrial Properties 11 2024 2023 (In thousands, except share and per share amounts) 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 Net income attributable to common stockholders $41,655 $39,090 $41,295 $41,256 $40,931 Real estate depreciation and amortization 17,473 17,150 17,098 16,678 16,704 Disp
Slide 12: Capital Commitments and Dispositions
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 Florida Jun-24 145 $13,000 $30,000 - $43,000 $297 Acq
Slide 13: Leasing Summary
Innovative Industrial Properties 13 # of Rentable Square Feet Rentable Square Feet Tenant State Closing / Execution Leases # % of Total Portfolio Verdant California Jun-23 1 23 0% Mitten Extracts Michigan Dec-23 1 201 2% Cottage Inn Michigan Jan-24 1 2 0% Gold Flora California Mar-24 1 236 3% Lume C
Slide 14: Top Tenants Overview
Innovative Industrial Properties 14 IIP Portfolio First 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) 1PharmaCann $48,505 17.0% 697 $70 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 Operating: Cannabis - Industrial 14Front Ventures Illinois Matteson 8/3/2021 100.0% 250
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 49The Cannabist Company (f/k/a Columbia Care) Colorado Denver 10/30/2018 100.0% 58 - 58
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 95Cresco Labs Massachusetts Fall River 6/30/2
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 3.7 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 June 30, 2024 Unsecured debt: Notes due 2026 5.50% 1.9 Years 300,000 Total Unsecured Debt 5.50% 1.9 Years $300,000 Gross De
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) • 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
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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