Innovative Industrial commits $245M to Alewife Park
A post-quarter preferred-stock offering covered 2,167,500 shares at $25.00 each and represented $54.2 million in gross proceeds.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Innovative Industrial Properties, Inc. (IIPR) reported third-quarter 2026 revenue of $64.9 million, up 0.4% from a year earlier, and net income attributable to common stockholders of $28.7 million, or $0.99 per diluted share. AFFO was $54.8 million, or $1.96 per diluted share; AFFO per share was up 7% from the second quarter. The company declared a $1.90-per-share common dividend, paid October 15, 2026.
During the quarter, IIPR committed $245.0 million to an Alewife Park mezzanine loan, funding approximately $111.0 million at closing; the remaining $134.0 million is expected to be funded through the fourth quarter of 2027, subject to funding conditions. IIPR terminated 16 leases representing 1.2 million square feet and entered six leases representing 604,000 square feet. After quarter-end, it completed an underwritten offering of 2,167,500 Series B preferred shares at $25.00 per share, representing $54.2 million in gross proceeds, and executed a 90-day extension of its $87.5 million revolving credit facility to January 21, 2027. Net Debt to Adjusted EBITDA was 2.1x as of September 30, 2026.
1 point · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointAFFO per diluted share rose 7% compared with the second quarter of 2026.
Negative
- None.
Filing Explained
At September thirtieth, 4Front replacement arrangements for properties representing 7.1 percent of annualized contractual rent remained contingent on receivership and approvals.
The
For the nine months ended
At
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenue: $64.9 million
Net income attributable to common stockholders: $28.7 million
AFFO per diluted share: $1.96 per share
+5 more
8 metrics
Total revenue
$64.9 million
Third quarter ended September 30, 2026
Net income attributable to common stockholders
$28.7 million
Third quarter ended September 30, 2026
AFFO per diluted share
$1.96 per share
Third quarter ended September 30, 2026
Common dividend
$1.90 per share
Third-quarter 2026 dividend
Alewife Park mezzanine loan commitment
$245.0 million
Commitment entered into during September 2026
Series B preferred shares offered
2,167,500 shares
Underwritten public offering completed after quarter-end
Gross proceeds
$54.2 million
Post-quarter Series B preferred stock offering
Net Debt to Adjusted EBITDA
2.1x
As of September 30, 2026
Key Terms
Adjusted funds from operations (AFFO), mezzanine loan commitment, annualized contractual rent, Net Debt to Adjusted EBITDA
4 terms
Adjusted funds from operations (AFFO) financial
"Adjusted funds from operations ("AFFO") of $54.8 million"
Adjusted funds from operations (AFFO) is a cash-based measure used mainly for real estate companies that starts with net income and removes accounting items plus recurring maintenance costs to show the cash a property business actually generates for owners. Think of it like a household budget: after counting your income, AFFO subtracts routine upkeep and tenant turnover bills so investors can see the money likely available for dividends or reinvestment. It matters because it gives a clearer picture of sustainable cash flow than raw accounting profit.
mezzanine loan commitment financial
"$245.0 million mezzanine loan commitment"
annualized contractual rent financial
"7.1% of the Company's annualized contractual rent"
Net Debt to Adjusted EBITDA financial
"Net Debt to Adjusted EBITDA of 2.1x"
Net debt to adjusted EBITDA is a leverage ratio that compares a company’s net debt (total interest-bearing debt minus cash) to its recurring operating earnings after removing one-off items. Think of it like how many years of steady take-home pay the business would need to pay off its outstanding debt; investors use it to gauge debt burden, financial risk and relative creditworthiness, with lower ratios generally indicating a safer balance sheet.
Earnings Snapshot
Total revenue: $64.9 million
Three months ended September 30, 2026
Total revenue
$64.9 million
0.4% increase from $64.7 million in the third quarter of 2025
Diluted net income per common share
$0.99 per share
Compared with $0.97 per share in the third quarter of 2025
AFFO per diluted share
$1.96 per share
Up 7% compared with the second quarter of 2026
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did IIPR perform in the third quarter of 2026?
IIPR reported $64.9 million in revenue and $28.7 million in net income attributable to common stockholders. AFFO was $54.8 million, or $1.96 per diluted share; AFFO per share was up 7% from the second quarter.
How many leases did IIPR terminate and enter into in Q3 2026?
IIPR terminated 16 leases representing 1.2 million square feet and entered into six leases representing 604,000 square feet during the quarter.
What are the terms of IIPR's Alewife Park loan?
The $245.0 million mezzanine loan commitment is expected to yield approximately 15.8%, subject to a 14.0% floor, and matures in February 2028 with a one-year extension option. Approximately $111.0 million was funded at closing; the remaining $134.0 million is expected to be funded through the fourth quarter of 2027, subject to funding conditions.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 2, 2026
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (858 ) 997-3332
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Securities Registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Item 2.02 Results of Operations and Financial Condition.
On November 2, 2026, Innovative Industrial Properties, Inc. (the “Company”) issued a press release regarding its financial results for the third quarter ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
On November 2, 2026, the Company posted on its website, www.innovativeindustrialproperties.com, certain supplemental financial information for the third quarter ended September 30, 2026, which is attached hereto as Exhibit 99.2 and is incorporated by reference herein.
The information contained in this Current Report, including Exhibits 99.1 and 99.2 referenced herein, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
On November 2, 2026, the Company posted an investor presentation on its website located at www.innovativeindustrialproperties.com. A copy of the investor presentation is attached hereto as Exhibit 99.3 and is incorporated by reference herein.
The information contained in this Current Report, including Exhibits 99.1, 99.2 and 99.3 referenced herein, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such information shall not be deemed to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
| Exhibit Number | Description of Exhibit | |||||||
99.1 | Press Release issued by Innovative Industrial Properties, Inc. on November 2, 2026. | |||||||
99.2 | Supplemental Financial Information for the quarter ended September 30, 2026. | |||||||
99.3 | Innovative Industrial Properties, Inc. Investor Presentation dated November 2, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 2, 2026 | INNOVATIVE INDUSTRIAL PROPERTIES, INC. | |||||||
| By: | /s/ David Smith | |||||||
| Name: | David Smith | |||||||
| Title: | Chief Financial Officer | |||||||
Exhibit 99.1
Innovative Industrial Properties Reports Third Quarter 2026 Results
$275 Million of Accretive Investment Activity During the Quarter
SAN DIEGO, CA – November 2, 2026 – Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company") announced today results for the third quarter ended September 30, 2026.
Executive Chairman Remarks
“We are pleased to report strong earnings with our AFFO per share up 7% compared to the second quarter, and are encouraged by the continued leasing momentum across our portfolio, reflecting our team's ongoing efforts to re-lease properties,” said Alan Gold, Executive Chairman of IIP. “At the same time, our recently announced $245 million mezzanine loan commitment at Alewife Park further expands our presence in the life science sector. Together, these initiatives reflect our focus on improving the performance of our existing portfolio while deploying capital into investments that we believe will drive earnings growth and create long-term value for our shareholders.”
Third Quarter 2026
Financial Results and Dividend
•Total revenues of $64.9 million and net income attributable to common stockholders of $28.7 million, or $0.99 per diluted share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted).
•Adjusted funds from operations ("AFFO") of $54.8 million, or $1.96 per share
•Declared dividends to common stockholders totaling $1.90 per share. Since its inception, IIP has paid over $1.2 billion in common stock dividends to its stockholders.
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
| Net income attributable to common stockholders | $ | 28,708 | $ | 0.99 | $ | 28,288 | $ | 0.97 | |||||||||||||||
| Normalized FFO | 50,234 | 1.80 | 45,156 | 1.60 | |||||||||||||||||||
| AFFO | 54,777 | 1.96 | 48,348 | 1.71 | |||||||||||||||||||
__________________________________________________________________
Amounts in thousands, except per share amounts. Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income in accordance with GAAP and other definitions of capitalized terms used herein, appear at the end of this release.
Life Science Investments
•In September, the Company entered into a $245.0 million mezzanine loan commitment to affiliates of IQHQ, Inc. in connection with Alewife Park, a life science campus located in Cambridge, Massachusetts, funding approximately $111.0 million at closing.
•The loan is expected to yield an interest rate of approximately 15.8% over the term of the loan, subject to a floor of 14.0%, and matures in February 2028, with a one-year extension option. The remaining $134.0 million is expected to be funded through the fourth quarter of 2027, subject to certain funding conditions.
•The Company also has the option to acquire up to an additional $155.0 million of mezzanine notes from another lender on the same terms, subject to certain conditions.
•In September, funded $30.0 million of IQHQ Series G preferred equity.
•As of September 30, 2026, the Company had funded an aggregate of $300.0 million of its strategic investment in IQHQ, Inc., consisting of a $100.0 million revolving credit facility and $200.0 million of Series G preferred equity.
Portfolio - Leasing and Dispositions
•During the three months ended September 30, 2026, the Company terminated 16 leases representing an aggregate of 1.2 million square feet, and entered into 6 leases representing 604,000 square feet.
•Subsequent to quarter end, the Company executed a new lease for its 270,000 square foot property in Saxton, Pennsylvania, contingent upon receipt of applicable cannabis license transfer approvals.
1
•In October, the Company received repayment in full of the $49.0 million seller financing provided in connection with the sale in May of its Perth, New York property.
Portfolio - Select Tenant Updates
•The following table summarizes payments received and security deposits applied for certain defaulted tenants during the periods presented and the corresponding per share impact (in millions, except per share amounts):
| Three Months Ended June 30, 2026 | Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||
| Tenant | Payments | Security Deposit Applied | Total | Per Share(1) | Payments | Security Deposit Applied | Total | Per Share(1) | ||||||||||||||||||||||||
| PharmaCann | $ | 1.2 | $ | — | $ | 1.2 | $ | 0.04 | $ | 0.4 | $ | — | $ | 0.4 | $ | 0.01 | ||||||||||||||||
| 4Front | 0.7 | — | 0.7 | 0.02 | 2.0 | — | 2.0 | 0.07 | ||||||||||||||||||||||||
| Parallel | 4.4 | — | 4.4 | 0.15 | — | 2.8 | 2.8 | 0.10 | ||||||||||||||||||||||||
| The Cannabist Company | 2.5 | 0.8 | 3.3 | 0.11 | 1.9 | 1.0 | 2.9 | 0.10 | ||||||||||||||||||||||||
| Battle Green | 0.3 | 0.6 | 0.9 | 0.03 | 3.5 | — | 3.5 | 0.13 | ||||||||||||||||||||||||
| Total | $ | 9.1 | $ | 1.4 | $ | 10.5 | $ | 0.35 | $ | 7.8 | $ | 3.8 | $ | 11.6 | $ | 0.41 | ||||||||||||||||
___________________________________________________________________
(1)For the three months ended June 30, 2026, the weighted-average diluted shares outstanding for FFO, Normalized FFO and AFFO was 28,972,371 shares. For the three months ended September 30, 2026, the weighted-average diluted shares outstanding for FFO, Normalized FFO and AFFO was 27,961,629 shares.
•PharmaCann
•In August 2026, the Company entered into a new lease with Grown Rogue for the prior PharmaCann New York property. In September 2026, PharmaCann surrendered the Pennsylvania property and the two remaining Colorado properties. As of September 30, 2026, the Company has terminated all leases with PharmaCann.
•4Front
•In August 2026, the Company terminated the lease with 4Front for its property located in Washington and entered into a new lease with a tenant for the property.
•As of September 30, 2026, the Company has three properties that remain leased to 4Front, representing 7.1% of the Company's annualized contractual rent as of September 30, 2026. The Company has reached tentative arrangements with prospective new tenants for the three assets leased to 4Front, including a 250,000 square foot asset in Illinois and two assets in Massachusetts totaling 124,000 square feet. Each of these arrangements is subject to certain contingencies to effectiveness (such as licensing transfer approvals) and are expected to go into effect at the conclusion of receivership proceedings, anticipated to occur by year end 2026 or early 2027.
•Parallel
•In July, Parallel defaulted under its two leases for properties located in Florida. In August, the Company regained possession of both of these properties.
•The Cannabist
•In September, the Company regained possession of seven properties leased to Cannabist. As of September 30, 2026, the Company leased 12 properties to Cannabist, representing 1.5% of our annualized contractual rent as of September 30, 2026.
•Battle Green
•In September 2026, Battle Green assigned its lease with the Company's consent to an affiliate of Vireo. Concurrently with the assignment, the Company amended the lease terms and Vireo Growth Inc. executed a guaranty of the lease.
Balance Sheet Highlights (at September 30, 2026)
•18.7% net debt to total gross assets, with $3.0 billion in total gross assets.
•Total liquidity was $142.4 million, consisting of cash and cash equivalents.
•Net Debt to Adjusted EBITDA of 2.1x.
Financing Activity
•Preferred Stock
•Subsequent to quarter end, the Company completed an underwritten public offering of 2,167,500 shares of our 9.25% Series B Cumulative Redeemable Preferred Stock, which amount includes 167,500 shares
2
issued pursuant to the underwriters’ partial exercise of their overallotment option, at a public offering price of $25.00 per share, representing $54.2 million in gross proceeds.
•Credit Facility
•Subsequent to quarter end, the Company executed a 90-day extension of its $87.5 million revolving credit facility, extending the maturity date to January 21, 2027.
Financial Results
For the three months ended September 30, 2026, IIP generated total revenues of $64.9 million, compared to $64.7 million for the same period in 2025, an increase of 0.4%. The increase was driven by higher revenue related to properties repossessed during the third quarter of 2026 as a result of the application of security deposits, partially offset by lower rental revenue from property sales and lease terminations after the third quarter of 2025.
For the three months ended September 30, 2026, the Company applied $3.8 million of security deposits on properties leased to The Cannabist and Parallel. During the three months ended September 30, 2025, the Company applied $0.8 million of security deposits on two properties leased to Verdant and a Sacramento tenant.
For the three months ended September 30, 2026, interest and other income increased by $9.9 million to $14.3 million compared to $4.4 million for the three months ended September 30, 2025. The increase was primarily driven by the recognition of $10.4 million of interest and dividend income related to our financial investments in IQHQ, as well as interest income recognized on the seller-financed note associated with the sale of a property in Perth, New York.
Dividend
On September 15, 2026, the Board of Directors declared a third quarter 2026 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on October 15, 2026 to stockholders of record as of September 30, 2026.
Supplemental Information
Supplemental financial information is available in the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com.
Teleconference and Webcast
The Company will conduct a conference call and webcast at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) on Tuesday, November 3, 2026 to discuss IIP’s financial results and operations for the third quarter ended September 30, 2026. The call will be open to all interested investors through a live audio webcast at the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com, or live by calling 1-833-461-5787 (domestic) or 1-585-542-9983 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call using meeting ID 339722854. The complete webcast will be archived for one year on IIP’s website. The website replay will be posted in the Investor Relations section of innovativeindustrialproperties.com.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.
This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward-looking statements. When used in this press release, words such as IIP “expects,” “intends,” “plans,” “estimates,” “anticipates,” “believes” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding potential transactions, including proposed leases of our properties, the consummation and timing of which remain subject to the negotiation and execution of definitive documentation, satisfaction of customary closing conditions and other contingencies, including those related to receivership sale processes; the anticipated timing, outcome and effects of pending receivership proceedings, including the effectiveness of arrangements with prospective new tenants for certain properties following the conclusion of such proceedings; and the expected transfer of existing cannabis licenses for certain properties to new tenants. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk
3
factors discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that the Company's expectations will be realized. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws.
4
INNOVATIVE INDUSTRIAL PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
| September 30, | December 31, | |||||||||||||
| Assets | 2026 | 2025 | ||||||||||||
| Real estate, at cost | ||||||||||||||
| Land | $ | 141,289 | $ | 146,320 | ||||||||||
| Buildings and improvements | 2,191,688 | 2,269,597 | ||||||||||||
| Construction in progress | 35,041 | 40,593 | ||||||||||||
| Total real estate, at cost | 2,368,018 | 2,456,510 | ||||||||||||
| Less accumulated depreciation | (387,234) | (343,062) | ||||||||||||
| Net real estate held for investment | 1,980,784 | 2,113,448 | ||||||||||||
| Life science investments | 417,416 | 152,665 | ||||||||||||
| Loans receivable | 71,800 | 22,800 | ||||||||||||
| Cash and cash equivalents | 142,352 | 47,597 | ||||||||||||
| Restricted cash | 2,908 | — | ||||||||||||
| In-place lease intangible assets, net | 3,727 | 6,366 | ||||||||||||
| Other assets, net | 31,728 | 27,982 | ||||||||||||
| Total assets | $ | 2,650,715 | $ | 2,370,858 | ||||||||||
| Liabilities and stockholders’ equity | ||||||||||||||
| Liabilities | ||||||||||||||
| Notes due 2026, net | $ | — | $ | 290,602 | ||||||||||
| Exchangeable notes, net | 389,749 | — | ||||||||||||
| Term loans, net | 118,710 | — | ||||||||||||
| Revolving credit facilities | 187,500 | 102,500 | ||||||||||||
| Accounts payable and accrued expenses | 13,358 | 10,870 | ||||||||||||
| Dividends payable | 56,314 | 54,913 | ||||||||||||
| Rent received in advance and tenant security deposits | 41,525 | 50,307 | ||||||||||||
| Other liabilities | 13,077 | 13,662 | ||||||||||||
| Total liabilities | 820,233 | 522,854 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Stockholders’ equity | ||||||||||||||
Preferred stock, par value $0.001 per share, 75,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, liquidation preference of $25.00 per share, 5,666,082 and 2,019,525 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 128,995 | 47,780 | ||||||||||||
Common stock, par value $0.001 per share, 100,000,000 shares authorized: 27,570,861 and 28,022,975 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 28 | 28 | ||||||||||||
| Additional paid-in capital | 2,075,619 | 2,113,184 | ||||||||||||
| Dividends in excess of earnings | (374,160) | (312,988) | ||||||||||||
| Total stockholders’ equity | 1,830,482 | 1,848,004 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,650,715 | $ | 2,370,858 | ||||||||||
5
INNOVATIVE INDUSTRIAL PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except share and per share amounts)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Rental (including tenant reimbursements) | $ | 64,743 | $ | 64,292 | $ | 196,553 | $ | 198,855 | ||||||||||||||||||
| Other | 177 | 393 | 678 | 443 | ||||||||||||||||||||||
| Total revenues | 64,920 | 64,685 | 197,231 | 199,298 | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Property expenses | 6,939 | 7,951 | 21,711 | 22,197 | ||||||||||||||||||||||
| General and administrative expense | 8,458 | 8,681 | 26,526 | 25,768 | ||||||||||||||||||||||
| Depreciation and amortization expense | 19,572 | 18,639 | 56,955 | 55,530 | ||||||||||||||||||||||
| Impairment loss on real estate | 567 | — | 567 | 3,527 | ||||||||||||||||||||||
| Total expenses | 35,536 | 35,271 | 105,759 | 107,022 | ||||||||||||||||||||||
| Gain (loss) on sale of real estate, net | — | — | 12,269 | — | ||||||||||||||||||||||
| Income from operations | 29,384 | 29,414 | 103,741 | 92,276 | ||||||||||||||||||||||
| Interest and other income | 14,331 | 4,416 | 31,414 | 7,599 | ||||||||||||||||||||||
| Interest expense | (11,820) | (4,525) | (26,599) | (13,469) | ||||||||||||||||||||||
| Net income | 31,895 | 29,305 | 108,556 | — | 86,406 | |||||||||||||||||||||
| Preferred stock dividends | (3,187) | (1,017) | (9,028) | (2,676) | ||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 28,708 | $ | 28,288 | $ | 99,528 | $ | 83,730 | ||||||||||||||||||
| Net income attributable to common stockholders per share | ||||||||||||||||||||||||||
| Basic | $ | 1.01 | $ | 0.99 | $ | 3.45 | $ | 2.91 | ||||||||||||||||||
| Diluted | $ | 0.99 | $ | 0.97 | $ | 3.38 | $ | 2.87 | ||||||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||||||||||||
| Basic | 27,356,738 | 27,912,881 | 27,928,270 | 28,036,179 | ||||||||||||||||||||||
| Diluted | 27,961,629 | 28,303,600 | 28,465,209 | 28,402,063 | ||||||||||||||||||||||
6
INNOVATIVE INDUSTRIAL PROPERTIES, INC.
FFO, NORMALIZED FFO AND AFFO
(Unaudited)
(In thousands, except share and per share amounts)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 28,708 | $ | 28,288 | $ | 99,528 | $ | 83,730 | ||||||||||||||||||
| Real estate depreciation and amortization | 19,572 | 18,639 | 56,955 | 55,530 | ||||||||||||||||||||||
| Impairment loss on real estate | 567 | — | 567 | 3,527 | ||||||||||||||||||||||
Loss (gain) on sale of real estate, net | — | — | (12,269) | — | ||||||||||||||||||||||
| FFO attributable to common stockholders | 48,847 | 46,927 | 144,781 | 142,787 | ||||||||||||||||||||||
| Litigation-related expense | 784 | 604 | 3,966 | 1,423 | ||||||||||||||||||||||
| Loss (gain) on partial repayment of notes due 2026 | — | — | — | (32) | ||||||||||||||||||||||
Income on seller-financed notes(1) | 223 | (2,375) | 669 | (1,058) | ||||||||||||||||||||||
Deferred lease payments received on sales-type leases(2) | 351 | — | 1,051 | 25 | ||||||||||||||||||||||
Transaction costs and other(3) | 29 | — | (434) | — | ||||||||||||||||||||||
| Normalized FFO attributable to common stockholders | 50,234 | 45,156 | 150,033 | 143,145 | ||||||||||||||||||||||
| Stock-based compensation | 3,311 | 2,684 | 8,721 | 7,434 | ||||||||||||||||||||||
| Non-cash interest expense | 1,545 | 485 | 3,402 | 1,431 | ||||||||||||||||||||||
| Non-cash accretion of life science investments | (336) | — | (1,005) | — | ||||||||||||||||||||||
| Above-market lease amortization | 23 | 23 | 69 | 69 | ||||||||||||||||||||||
| AFFO attributable to common stockholders | $ | 54,777 | $ | 48,348 | $ | 161,220 | $ | 152,079 | ||||||||||||||||||
| FFO per common share – diluted | $1.75 | $1.66 | $5.09 | $5.03 | ||||||||||||||||||||||
| Normalized FFO per common share – diluted | $1.80 | $1.60 | $5.27 | $5.04 | ||||||||||||||||||||||
| AFFO per common share – diluted | $1.96 | $1.71 | $5.66 | $5.35 | ||||||||||||||||||||||
| Weighted average common shares used for FFO, Normalized FFO, and AFFO: | ||||||||||||||||||||||||||
| Basic | 27,356,738 | 27,912,881 | 27,928,270 | 28,036,179 | ||||||||||||||||||||||
| Restricted stock and RSUs | 604,891 | 390,719 | 536,939 | 365,884 | ||||||||||||||||||||||
| Diluted | 27,961,629 | 28,303,600 | 28,465,209 | 28,402,063 | ||||||||||||||||||||||
____________________________________________________________________
(1)Positive amounts reflect non-refundable cash payments received pursuant to seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. For both the three and nine months ended September 30, 2025, the negative amounts resulted from the recognition of $2.6 million of non-refundable cash payments received on one of the seller-financed notes as interest and other income in connection with the termination of the seller-financed note.
(2)Amounts reflect the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale.
(3)Amounts reflect other items that are considered to be infrequent and unusual in nature and/or not related to our core operations. For the nine months ended September 30, 2026, amount reflects certain financing costs that were not capitalizable and write-off of certain liabilities.
Non-GAAP Financial Measures
Funds From Operations (FFO)
FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (NAREIT). NAREIT defines FFO as the most commonly accepted and reported measure of a
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REIT’s operating performance equal to net income, computed in accordance with accounting principles generally accepted in the United States (GAAP), excluding gains (or losses) from sales of property, depreciation, amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures.
Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO and FFO per share to be supplemental measures of a REIT’s performance because they provide an understanding of the operating performance of IIP's properties without giving effect to certain significant non-cash items, primarily depreciation expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. IIP believes that by excluding the effect of depreciation, FFO and FFO per share can facilitate comparisons of operating performance between periods. IIP reports FFO and FFO per share because these measures are observed by management to also be the predominant measures used by the REIT industry and by industry analysts to evaluate REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and publications about REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share.
Normalized Funds from Operations (Normalized FFO)
IIP computes Normalized FFO by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that management believes are infrequent and unusual in nature and/or not related to IIP's core operations, as detailed in the reconciliation above. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to assist in their evaluation of IIP's operating performance across multiple periods and in comparison to the operating performance of other companies, because it removes the effect of unusual items that are not expected to impact IIP's operating performance on an ongoing basis. Normalized FFO is used by management in evaluating the performance of IIP's core business operations.
Adjusted Funds from Operations (AFFO)
Management believes that AFFO and AFFO per share are also appropriate supplemental measures of a REIT’s operating performance. IIP calculates AFFO by adjusting Normalized FFO for certain non-cash items, as detailed in the reconciliation above.
For the purposes of calculating FFO, Normalized FFO and AFFO per diluted share, the dilutive impact of the Exchangeable Notes under the if-converted method are excluded as management believes the evaluation of operating performance based on actual diluted shares outstanding is more appropriate to facilitate consistent comparisons between reporting periods and reflects the actual shares that are entitled to common stock dividends each period. For the three and nine months ended September 30, 2026, the weighted-average potential shares necessary to settle the Exchangeable Notes under the if-converted method were 5,800,549 and 2,294,722, respectively, and the cash interest expense relating to the Exchangeable Notes were $6.0 million and $7.0 million, respectively.
IIP’s computation of FFO, Normalized FFO and AFFO may differ from the methodology for calculating FFO, Normalized FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such REITs. Further, FFO, Normalized FFO and AFFO do not represent cash flow available for management’s discretionary use. FFO, Normalized FFO and AFFO should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of IIP’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of IIP’s liquidity, nor is it indicative of funds available to fund IIP’s cash needs, including IIP’s ability to pay dividends or make distributions. FFO, Normalized FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of IIP’s operations.
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INNOVATIVE INDUSTRIAL PROPERTIES, INC.
Net Debt to Adjusted EBITDA
(Unaudited)
(In thousands)
| For the Three Months Ended September 30, 2026 | ||||||||
| Net income | $ | 31,895 | ||||||
| Adjustments for EBITDA | ||||||||
| Interest expense | 11,820 | |||||||
| Taxes (including corporate tax expense in G&A expense) | 1 | |||||||
| Depreciation and amortization expense | 19,572 | |||||||
| Above-market lease amortization | 23 | |||||||
| Non-cash accretion of life science investments | (336) | |||||||
| Corp. asset depreciation (included in G&A expense) | 23 | |||||||
| EBITDA | $ | 62,998 | ||||||
| Adjustments for Adjusted EBITDA | ||||||||
| Stock-based compensation | $ | 3,311 | ||||||
| Impairment loss on real estate | 567 | |||||||
| Income on seller-financed notes | 223 | |||||||
| Deferred lease payments received on sales-type leases | 351 | |||||||
| Transaction costs and other | 29 | |||||||
| Adjusted EBITDA | $ | 67,479 | ||||||
| Adjusted EBITDA annualized | $ | 269,916 | ||||||
| Total Debt | $ | 711,561 | ||||||
| Cash and cash equivalents | (142,352) | |||||||
| Net Debt | $ | 569,209 | ||||||
| Net Debt/Adjusted EBITDA | 2.1x | |||||||
Definitions
EBITDA and Adjusted EBITDA: EBITDA is defined as earnings (net income per income statement) before interest expense, income taxes, depreciation and amortization (including above-market lease amortization and corporate asset depreciation) and non-cash accretion of life science investments. Adjusted EBITDA is EBITDA adjusted for non-cash stock-based compensation, gain (loss) on sale of real estate, impairment loss on real estate, income on seller-financed notes, deferred lease payments received on sales-type leases, non-recurring transaction costs, and miscellaneous other non-cash expenses.
Management believes EBITDA and Adjusted EBITDA are meaningful supplemental measures of a REIT’s performance because they provide additional information regarding our operating performance without giving effect to certain financing decisions, tax considerations and significant non-cash items. Adjusted EBITDA further excludes certain items that management does not consider representative of IIP's ongoing operating performance or that may vary significantly between periods, and includes certain cash receipts not included in EBITDA. Management believes these measures facilitate comparisons of IIP's operating performance between periods and with other REITs. In addition, EBITDA and Adjusted EBITDA are widely followed by industry analysts, lenders, investors, rating agencies, and others as a means of evaluating the operating performance of a company prior to servicing debt obligations. When considered together with Net Debt, Adjusted EBITDA also provides supplemental information regarding IIP’s financial leverage. For these reasons, management has deemed it appropriate to disclose and discuss EBITDA and Adjusted EBITDA. We do not use Adjusted
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EBITDA as an alternative measure to net earnings computed under GAAP or as an alternative to cash from operating activities computed under GAAP or as an indicator of our ability to fund our cash needs.
Net Debt: Calculated as the sum of the outstanding principal balance of the Exchangeable Notes, term loans, and the Revolving Credit Facilities, less cash and cash equivalents, as presented on IIP's consolidated balance sheet as of September 30, 2026.
Gross Assets: Calculated as total assets plus accumulated depreciation, as presented on IIP's consolidated balance sheet as of September 30, 2026.
Company Contact:
David Smith
Chief Financial Officer
Innovative Industrial Properties, Inc.
(858) 997-3332
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Innovative Industrial Properties Third Quarter 2026 Supplemental Financial Information
Innovative Industrial Properties 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 EBITDA Reconciliation 10 Historical Net Income 11 Historical FFO, Normalized FFO, and AFFO Reconciliation 12 Historical EBITDA Reconciliation 13 Portfolio Data Highlights 14 Geographic Concentration – Real Estate Portfolio 15 Annualized Base Rent and Annualized Income From Loans and Securities 16 Capital Commitments 17 Leasing Summary 18 Property List 19 — 21 Loans and Securities 22 Capitalization Capital and Key Metrics 23 Debt Detail 24 Analyst Coverage 25 Definitions 26 — 27 Table of Contents 2
Innovative Industrial Properties Forward-Looking Statements 3 This Supplemental Financial Information Package 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, as amended) that are subject to risks and uncertainties. In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, our statements regarding anticipated growth in our funds from operations and anticipated market and regulatory conditions, our strategic direction, demographics, results of operations, plans and objectives are forward-looking statements. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: rates of default on leases for our assets; our ability to re-lease properties upon tenant defaults or lease terminations for the rent we currently receive, or at all; the extent to which Annualized Base Rent and Annualized Income from Loans and Securities are realized, including as a result of tenant defaults, prepayments or repayments of our loans, and lease terminations; concentration of our portfolio of assets and limited number of tenants and counterparties, including our significant financial exposure to IQHQ, Inc. and its affiliates through multiple investment vehicles; the estimated growth in and evolving market dynamics of the regulated cannabis market; defaults on our investments in real estate-related assets, such as the IQHQ credit facility and IQHQ preferred stock and the IQHQ Alewife Mezzanine Loan; our ability to fund our mezzanine loan commitments; our anticipated yields, returns and accretive impact of our mezzanine debt and other investments; our ability to identify, acquire, or profitably operate life science properties; market dynamics in the life science sector; the demand for regulated cannabis cultivation and processing facilities; decreased economic activity due to fluctuations in trade policies, tariffs, and related government actions; inflation dynamics; the impact of pandemics on us, our business, our tenants, or the economy generally; war and other hostilities, including the conflicts in Ukraine and Iran; our business and investment strategy; our projected operating results; actions and initiatives of the U.S. or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal under federal law; availability of suitable investment opportunities in the regulated cannabis industry; our understanding of our competition and our potential tenants’ alternative financing sources; the expected medical-use or adult-use cannabis legalization in certain states; shifts in public opinion regarding regulated cannabis; the potential impact on us from litigation matters, and governmental inquiries, investigations, subpoenas, or enforcement actions, including rising liability and insurance costs; the additional risks that may be associated with certain of our tenants cultivating, processing and/or dispensing adult-use cannabis in our facilities; the state of the U.S. economy generally or in specific geographic areas; economic trends and economic recoveries; our ability to access equity or debt capital; financing rates for our target assets; our level of indebtedness, which could reduce funds available for other business purposes and reduce our operational flexibility; covenants in our debt instruments, which may limit our flexibility and adversely affect our financial condition; our ability to extend, refinance or repay our indebtedness as it matures, including our Revolving Credit Facility; our ability to maintain our investment grade credit rating; changes in the values of our assets; our expected portfolio of assets; our expected investments; interest rate mismatches between our assets and our borrowings used to fund such investments; changes in interest rates and the market value of our assets; the degree to which any interest rate or other hedging strategies may or may not protect us from interest rate volatility; the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; how and when any forward equity sales may settle; our ability to maintain our qualification as a real estate investment trust (“REIT”) for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940; availability of qualified personnel; and market trends in our industry, interest rates, real estate values, the securities markets or the general economy. The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance, including, but not limited to, those risk factors described in our Securities and Exchange Commission (“SEC”) filings, our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) under Item 1A, as supplemented by the discussion in Item 1A of Part II of our subsequent Quarterly Reports on Form 10-Q. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Any forward-looking statement made by us speaks only of the date on which we make it. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Stockholders and investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in our filings and reports. This supplemental financial information package includes certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental information and should not be considered a substitute for financial information presented in accordance with GAAP. The definition of these non-GAAP measures is set forth under the section entitled "Definitions." Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are set forth in sections entitled “FFO, Normalized FFO, and AFFO Reconciliation” and “EBITDA Reconciliation.” Market and industry data are included in this presentation. We have obtained substantially all of this information from internal studies, public filings, other independent published industry sources and market studies prepared by third parties. We believe these internal studies, public filings, other independent published industry sources and market studies prepared by third parties are reliable. However, this information may prove to be inaccurate. No representation or warranty is made as to the accuracy of such information. All amounts shown in this report are unaudited. This Supplemental Financial Information Package is not an offer to sell or solicitation to buy securities of Innovative Industrial Properties, Inc. Any offers to sell or solicitations to buy securities of Innovative Industrial Properties, Inc. shall be made only by means of a prospectus approved for that purpose.
Innovative Industrial Properties Alan Gold Executive Chairman Paul Smithers President, Chief Executive Officer & Director David Smith Chief Financial Officer & Treasurer Catherine Hastings Chief Operating Officer Ben Regin Chief Investment Officer Executive Management Company Overview Innovative Industrial Properties, Inc. (NYSE: IIPR) is an internally managed real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and financial investments in the life science industry. As of September 30, 2026, we owned 108 properties comprising an aggregate of approximately 8.4 million rentable square feet in 19 states and had $545 million of financial investments in the life science industry.(1) For additional information, please visit www.innovativeindustrialproperties.com. Board of Directors Contact Information Alan Gold Director, Executive Chairman Paul Smithers Director, President & Chief Executive Officer Bruce Ives* Director, Nominating and Corporate Governance Committee Chair Scott Shoemaker, MD* Director, Compensation Committee Chair David Boyle* Director, Audit Committee Chair Note: * Denotes independent director 1) $134M relating to the IQHQ mezzanine loan commitment has not yet been funded. Corporate Headquarters – Innovative Industrial Properties, Inc. 11440 West Bernardo Court, STE 100 San Diego, California 92127 858-997-3332 Public Markets Detail Ticker: IIPR Exchange: NYSE Website www.innovativeindustrialproperties.com LinkedIn www.linkedin.com/company/innovative- industrial-properties Investor Relations Contact Eli Kanter Director, Finance eli.kanter@iipreit.com 4
Innovative Industrial Properties Note: Dollars in thousands except for $/share or otherwise noted. All per share amounts are shown on a diluted basis. 1) Refer to “FFO, Normalized FFO, and AFFO Reconciliation” for additional details. 2) Reflects quarterly common stock dividend declared in the quarter. 3) Calculated by dividing the common stock dividend declared per share by AFFO per common share – diluted. 4) Dollars in billions. $1.60 $1.78 $1.78 $1.70 $1.80 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 $64,685 $66,657 $68,996 $63,315 $64,920 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Historical Quarterly Results Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Total Revenues $64,920 $63,315 $68,996 $66,657 $64,685 General and administrative expense $8,458 $7,719 $10,349 $7,967 $8,681 General and administrative expense / total revenues 13 % 12 % 15 % 12 % 13 % Net income attributable to common stockholders $28,708 $40,665 $30,155 $30,705 $28,288 Net income attributable to common stockholders – diluted (“EPS”) $0.99 $1.36 $1.02 $1.06 $0.97 Funds from operations attributable to common stockholders – diluted (“FFO”)(1) $48,847 $47,617 $48,317 $49,569 $46,927 FFO per common share – diluted(1) $1.75 $1.64 $1.70 $1.75 $1.66 Normalized FFO attributable to common stockholders – diluted (“Normalized FFO”)(1) $50,234 $49,214 $50,585 $50,377 $45,156 Normalized FFO per common share – diluted(1) $1.80 $1.70 $1.78 $1.78 $1.60 Adjusted funds from operations attributable to common stockholders – diluted (“AFFO”)(1) $54,777 $53,009 $53,434 $53,333 $48,348 AFFO per common share – diluted(1) $1.96 $1.83 $1.88 $1.88 $1.71 Common stock dividend per share(2) $1.90 $1.90 $1.90 $1.90 $1.90 AFFO Payout Ratio(3) 97 % 104 % 101 % 101 % 111 % Total Gross Assets(4) $3.0B $3.0B $2.8B $2.7B $2.7B % Leased – Operating Portfolio 90.0 % 95.8 % 97.8 % 96.7 % 95.8 % Quarterly Performance Summary 5 $1.71 $1.88 $1.88 $1.83 $1.96 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Total Revenues Normalized FFO Per Share(1) AFFO Per Share(1)
Innovative Industrial Properties , September 30, December 31, (In thousands, except share and per share amounts) 2026 2025 Assets Real estate, at cost Land $141,289 $146,320 Buildings and improvements 2,191,688 2,269,597 Construction in progress 35,041 40,593 Total real estate, at cost 2,368,018 2,456,510 Less accumulated depreciation (387,234) (343,062) Net real estate held for investment 1,980,784 2,113,448 Life science investments 417,416 152,665 Loans receivable 71,800 22,800 Cash and cash equivalents 142,352 47,597 Restricted cash 2,908 — In-place lease intangible assets, net 3,727 6,366 Other assets, net 31,728 27,982 Total assets $2,650,715 $2,370,858 Liabilities and stockholders’ equity Liabilities Notes due 2026, net $— $290,602 Exchangeable notes, net 389,749 — Term loans, net 118,710 — Revolving credit facilities 187,500 102,500 Accounts payable and accrued expenses 13,358 10,870 Dividends payable 56,314 54,913 Rent received in advance and tenant security deposits 41,525 50,307 Other liabilities 13,077 13,662 Total liabilities 820,233 522,854 Stockholders’ equity Preferred stock, par value $0.001 per share, 75,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, liquidation preference of $25.00 per share, 5,666,082 and 2,019,525 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively 128,995 47,780 Common stock, par value $0.001 per share, 100,000,000 shares authorized: 27,570,861 and 28,022,975 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively 28 28 Additional paid-in capital 2,075,619 2,113,184 Dividends in excess of earnings (374,160) (312,988) Total stockholders’ equity 1,830,482 1,848,004 Total liabilities and stockholders’ equity $2,650,715 $2,370,858 Balance Sheet 6
Innovative Industrial Properties For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except share and per share amounts) 2026 2025 2026 2025 Revenues: Rental (including tenant reimbursements) $64,743 $64,292 $196,553 $198,855 Other 177 393 678 443 Total revenues 64,920 64,685 197,231 199,298 Expenses: Property expenses 6,939 7,951 21,711 22,197 General and administrative expense 8,458 8,681 26,526 25,768 Depreciation and amortization expense 19,572 18,639 56,955 55,530 Impairment loss on real estate 567 — 567 3,527 Total expenses 35,536 35,271 105,759 107,022 Gain (loss) on sale of real estate, net — — 12,269 — Income from operations 29,384 29,414 103,741 92,276 Interest and other income 14,331 4,416 31,414 7,599 Interest expense (11,820) (4,525) (26,599) (13,469) Net income 31,895 29,305 108,556 86,406 Preferred stock dividends (3,187) (1,017) (9,028) (2,676) Net income attributable to common stockholders $28,708 $28,288 $99,528 $83,730 Net income attributable to common stockholders per share: Basic $1.01 $0.99 $3.45 $2.91 Diluted $0.99 $0.97 $3.38 $2.87 Weighted-average shares outstanding: Basic 27,356,738 27,912,881 27,928,270 28,036,179 Diluted 27,961,629 28,303,600 28,465,209 28,402,063 Net Income 7
Innovative Industrial Properties For the Nine Months Ended September 30, (In thousands) 2026 2025 Cash flows from operating activities Net income $108,556 $86,406 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 56,955 55,530 Impairment loss on real estate 567 3,527 Loss (gain) on sale of real estate, net (12,269) — Paid-in-kind dividends and interest income on life science investments (5,083) — Stock-based compensation 8,721 7,434 Amortization of debt discount and issuance costs 3,402 1,431 Other non-cash adjustments (3,520) 17 Changes in assets and liabilities Other assets, net (3,601) (2,836) Accounts payable, accrued expenses and other liabilities 5,454 2,753 Rent received in advance and tenant security deposits (8,781) (5,980) Net cash provided by (used in) operating activities 150,401 148,282 Cash flows from investing activities Investments in real estate — (7,857) Investments in life science debt instruments (108,520) (100,235) Investments in life science equity securities (150,000) (5,000) Proceeds from sale of real estate assets 45,192 1,750 Funding of draws for improvements and construction (6,039) (20,976) Purchases of short-term investments — (5,258) Maturities of short-term investments — 5,000 Net cash provided by (used in) investing activities (219,367) (132,576) Cash flows from financing activities Issuance of common stock, net of issuance costs 44,031 — Repurchase of common stock (88,969) (20,108) Issuance of preferred stock, net of issuance costs 81,215 19,111 Proceeds from issuance of exchangeable notes 402,500 — Proceeds from term loans 148,660 — Principal payments on debt and term loans (318,313) (8,697) Draws on revolving credit facilities 220,000 50,000 Repayments on revolving credit facilities (135,000) — Payment of deferred financing costs (17,820) — Dividends paid to common stockholders (161,350) (162,499) Dividends paid to preferred stockholders (6,977) (2,223) Taxes paid related to net share settlement of equity awards (1,348) (864) Net cash provided by (used in) financing activities 166,629 (125,280) Net increase (decrease) in cash, cash equivalents and restricted cash 97,663 (109,574) Cash and cash equivalents, beginning of period 47,597 146,245 Cash, cash equivalents and restricted cash, end of period $145,260 $36,671 Supplemental disclosure of cash flow information Cash paid during the period for interest, net of interest capitalized $17,535 $8,019 Supplemental disclosure of non-cash investing and financing activities Accrual for current-period additions to real estate $354 $3,541 Accrual for common and preferred stock dividends declared 56,314 54,793 Statements of Cash Flows 8
Innovative Industrial Properties For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands, except share and per share amounts) 2026 2025 2026 2025 Net income attributable to common stockholders $28,708 $28,288 $99,528 $83,730 Real estate depreciation and amortization 19,572 18,639 56,955 55,530 Impairment loss on real estate 567 — 567 3,527 Loss (gain) on sale of real estate, net — — (12,269) — FFO attributable to common stockholders 48,847 46,927 144,781 142,787 Litigation-related expense 784 604 3,966 1,423 Loss (gain) on partial repayment of notes due 2026 — — — (32) Income on seller-financed notes(1) 223 (2,375) 669 (1,058) Deferred lease payments received on sales-type leases(2) 351 — 1,051 25 Transaction costs and other(3) 29 — (434) — Normalized FFO attributable to common stockholders 50,234 45,156 150,033 143,145 Stock-based compensation 3,311 2,684 8,721 7,434 Non-cash interest expense 1,545 485 3,402 1,431 Non-cash accretion of life science investments (336) — (1,005) — Above-market lease amortization 23 23 69 69 AFFO attributable to common stockholders $54,777 $48,348 $161,220 $152,079 FFO per common share – diluted $1.75 $1.66 $5.09 $5.03 Normalized FFO per common share – diluted $1.80 $1.60 $5.27 $5.04 AFFO per common share – diluted $1.96 $1.71 $5.66 $5.35 Weighted average common shares used for FFO, Normalized FFO and AFFO: Basic 27,356,738 27,912,881 27,928,270 28,036,179 Restricted stock and RSUs 604,891 390,719 536,939 365,884 Diluted 27,961,629 28,303,600 28,465,209 28,402,063 FFO, Normalized FFO, and AFFO Reconciliation 1) Positive amounts reflect non-refundable cash payments received pursuant to seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. For both the three and nine months ended September 30, 2025, the negative amounts resulted from the recognition of $2.6 million of non-refundable cash payments received on one of the seller-financed notes as interest and other income in connection with the termination of the seller-financed note. 2) Amounts reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale. 3) Amounts reflects other items that are considered to be infrequent and unusual in nature and/or not related to our core real estate operation. For the nine months ended September 30, 2026, amount reflects certain financing costs that were not capitalizable and the write-off of certain liabilities. 9
Innovative Industrial Properties For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2026 2025 2026 2025 Net Income: $31,895 $29,305 $108,556 $86,406 Adjustments for EBITDA: Interest expense 11,820 4,525 26,599 13,469 Taxes (including corporate tax expense in G&A) 1 (2) 209 206 Depreciation and amortization expense 19,572 18,639 56,955 55,530 Above-market lease amortization 23 23 69 69 Non-cash accretion of life science investments (336) — (1,005) — Corp. asset depreciation (included in G&A expense) 23 27 73 84 EBITDA $62,998 $52,517 $191,456 $155,764 Adjustments for Adjusted EBITDA: Non-cash stock-based compensation expense 3,311 2,684 8,721 7,434 Impairment loss on real estate 567 — 567 3,527 Loss (gain) on sale of real estate, net — — (12,269) — Income on seller-financed notes(1) 223 (2,375) 669 (1,058) Deferred lease payments received on sales-type leases(2) 351 — 1,051 25 Transaction costs and other(3) 29 — (434) Adjusted EBITDA $67,479 $52,826 $189,761 $165,692 EBITDA Reconciliation 10 1) Positive amounts reflect non-refundable cash payments received pursuant to seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. For both the three and nine months ended September 30, 2025, the negative amounts resulted from the recognition of $2.6 million of non-refundable cash payments received on one of the seller-financed notes as interest and other income in connection with the termination of the seller-financed note. 2) Amounts reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale. 3) Amounts reflects other items that are considered to be infrequent and unusual in nature and/or not related to our core real estate operation. For the nine months ended September 30, 2026, amount reflects certain financing costs that were not capitalizable and the write-off of certain liabilities.
Innovative Industrial Properties Historical Quarterly Results (In thousands, except share and per share amounts) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Revenues: Rental (including tenant reimbursements) $64,743 $62,890 $68,920 $66,631 $64,292 Other 177 425 76 26 393 Total revenues 64,920 63,315 68,996 66,657 64,685 Expenses: Property expenses 6,939 7,196 7,576 7,980 7,951 General and administrative expense 8,458 7,719 10,349 7,967 8,681 Depreciation and amortization expense 19,572 18,799 18,584 18,538 18,639 Impairment loss on real estate 567 — — — — Total expenses 35,536 33,714 36,509 34,485 35,271 Gain (loss) on sale of real estate, net — 11,847 422 (326) — Income from operations 29,384 41,448 32,909 31,846 29,414 Interest and other income 14,331 10,752 6,331 6,721 4,416 Interest expense (11,820) (8,348) (6,431) (6,726) (4,525) Net income 31,895 43,852 32,809 31,841 29,305 Preferred stock dividends (3,187) (3,187) (2,654) (1,136) (1,017) Net income attributable to common stockholders $28,708 $40,665 $30,155 $30,705 $28,288 Net income attributable to common stockholders per share: Basic $1.01 $1.39 $1.04 $1.07 $0.99 Diluted $0.99 $1.36 $1.02 $1.06 $0.97 Weighted-average shares outstanding: Basic 27,356,738 28,443,143 27,991,910 27,913,384 27,912,881 Diluted 27,961,629 29,992,248 28,467,184 28,303,530 28,303,600 Historical Net Income 11
Innovative Industrial Properties 1) Positive amounts reflect non-refundable cash payments received pursuant to seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. For the three months ended September 30, 2025, the negative amount resulted from the recognition of $2.6 million of non-refundable cash payments received on one of the seller-financed notes as interest and other income in connection with the termination of the seller-financed note. 2) Amounts reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale. 3) Amounts reflects other items that are considered to be infrequent and unusual in nature and/or not related to our core real estate operation. For the three months ended June 30, 2026, amount reflects certain financing costs that were not capitalizable and write-off of certain liabilities. Historical Quarterly Results (In thousands, except share and per share amounts) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Net income attributable to common stockholders $28,708 $40,665 $30,155 $30,705 $28,288 Real estate depreciation and amortization 19,572 18,799 18,584 18,538 18,639 Impairment loss on real estate 567 — — — — Loss (gain) on sale of real estate, net — (11,847) (422) 326 — FFO attributable to common stockholders 48,847 47,617 48,317 49,569 46,927 Litigation-related expense 784 1,312 1,870 585 604 Income on seller-financed notes(1) 223 223 223 223 (2,375) Deferred lease payments received on sales-type leases(2) 351 525 175 — — Transaction costs and other(3) 29 (463) — — — Normalized FFO attributable to common stockholders 50,234 49,214 50,585 50,377 45,156 Stock-based compensation 3,311 2,826 2,584 2,698 2,684 Non-cash interest expense 1,545 1,281 576 568 485 Non-cash accretion of life science investments (336) (335) (334) (333) — Above-market lease amortization 23 23 23 23 23 AFFO attributable to common stockholders $54,777 $53,009 $53,434 $53,333 $48,348 FFO per common share – diluted $1.75 $1.64 $1.70 $1.75 $1.66 Normalized FFO per common share – diluted $1.80 $1.70 $1.78 $1.78 $1.60 AFFO per common share – diluted $1.96 $1.83 $1.88 $1.88 $1.71 Weighted average common shares used for FFO, Normalized FFO and AFFO: Basic 27,356,738 28,443,143 27,991,910 27,913,384 27,912,881 Restricted stock and RSUs 604,891 529,228 475,274 390,146 390,719 Diluted 27,961,629 28,972,371 28,467,184 28,303,530 28,303,600 Historical FFO, Normalized FFO, and AFFO Reconciliation 12
Innovative Industrial Properties Historical Quarterly Results (In thousands) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Net Income $31,895 $43,852 $32,809 $31,841 $29,305 Adjustments for EBITDA: Interest expense 11,820 8,348 6,431 6,726 4,525 Taxes (including corporate tax expense in G&A) 1 66 142 1 (2) Depreciation and amortization expense 19,572 18,799 18,584 18,538 18,639 Above-market lease amortization 23 23 23 23 23 Non-cash accretion of life science investments (336) (335) (334) (333) — Corp. asset depreciation (included in G&A expense) 23 24 26 27 27 EBITDA $62,998 $70,777 $57,681 $56,823 $52,517 Adjustments for Adjusted EBITDA: Non-cash stock-based compensation expense 3,311 2,826 2,584 2,698 2,684 Impairment loss on real estate 567 — — — — Loss (gain) on sale of real estate, net — (11,847) (422) 326 — Income on seller-financed notes(1) 223 223 223 223 (2,375) Deferred lease payments received on sales-type leases(2) 351 525 175 — — Transaction costs and other(3) 29 (463) — — — Adjusted EBITDA $67,479 $62,041 $60,241 $60,070 $52,826 Historical EBITDA Reconciliation 1) Positive amounts reflect non-refundable cash payments received pursuant to seller-financed notes issued by us in connection with our disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. For the three months ended September 30, 2025, the negative amount resulted from the recognition of $2.6 million of non-refundable cash payments received on one of the seller-financed notes as interest and other income in connection with the termination of the seller-financed note. 2) Amounts reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale. 3) Amounts reflects other items that are considered to be infrequent and unusual in nature and/or not related to our core real estate operation. For the three months ended June 30, 2026, amount reflects certain financing costs that were not capitalizable and write-off of certain liabilities. 13
Innovative Industrial Properties Highlights CANNABIS 79.0% LIFE SCIENCES 20.8% $297M BASE RENT / INTEREST(1) PORTFOLIO COMPOSIT ION 90% Leased Operating Portfolio $545M Financial Investment in Life Science(3) PORTFOLIO HIGHLIGHTS 37 Tenants 10.8 Years Weighted Average Lease Length 8.4M Total Square Feet(4) 108 Properties OTHER 0.2% Note: As of September 30, 2026. Refer to “Definitions” for additional details. 1) Based on “Annualized Base Rent and Annualized Income from Loans and Securities (“Base Rent / Interest”)”. 2) Dollars in billions. Based on “Total Invested Capital”. 3) $134M relating to the IQHQ mezzanine loan commitment has not yet been funded. 4) Includes 202,000 square feet under development or redevelopment. $297M Base Rent / Interest(1) $2.9B Total Invested Capital(2) 14
Innovative Industrial Properties Geographic Concentration – Real Estate Portfolio Note: As of September 30, 2026, values in thousands except for property count, $/PSF, or otherwise noted. Refer to “Definitions” for additional details. 1) Includes 202,000 square feet under development or redevelopment. 2) Dollars in billions. Based on “Total Real Estate Invested Capital”. 3) Based on “Annualized Base Rent”. 19 States 8.4M Square Feet(1) $2.4B RE Invested Capital(2) 108 Properties 10-20% 0-5% 5-10% % ABR State % of ABR(3) IL 18.5% MA 16.2% PA 14.7% MI 11.1% FL 6.9% MD 6.3% NJ 5.5% CA 4.4% OH 4.1% MO 2.0% Other 10.3% Total 100.0% 15
Innovative Industrial Properties 58.6%25.0% 16.4% Top 10 Tenants Income from Loans and Securities Other Annualized Base Rent and Annualized Income From Loans and Securities Note: As of September 30, 2026, unless otherwise noted. 1) Dollars in thousands. Refer to “Annualized Base Rent (“ABR”)” for additional details. 2) Based on “Annualized Base Rent and Annualized Income from Loans and Securities (“Base Rent / Interest”)”. 3) Square feet in thousands. 4) These leases are in default, as disclosed in our 8-K filed on March 28, 2025. Includes one property acquired in January 2022 for $16.0 million, which did not satisfy the requirements for sale leaseback accounting, and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our consolidated balance sheet. 5) These leases are in default, as disclosed in our 8-K filed on March 28, 2025. Annualized Base Rent Income Composition(2) Annualized Base Rent and Annualized Income from Loans and Securities $297M BASE RENT / INTEREST 16 IIPR Portfolio Square # of # Tenant ABR $(1) %(2) Feet(3) Leases 1 Ascend Wellness Holdings $32,184 10.8 % 624 4 2 Green Thumb Industries 23,247 7.8 % 664 3 3 Curaleaf 23,101 7.8 % 637 8 4 Trulieve 20,492 6.9 % 740 6 5 Holistic Industries 17,789 6.0 % 298 4 6 Cresco Labs 17,428 5.9 % 380 5 7 4Front Ventures(4) 15,728 5.3 % 374 3 8 AYR Wellness 10,211 3.4 % 238 3 9 TILT Holdings(5) 7,102 2.4 % 162 2 10 Jushi 6,688 2.3 % 145 1 Other 48,548 16.4 % 4,118 48 Total $222,518 75.0 % 8,380 87 Total Principal Maturity Commitments Amount / Wtd. Avg. Wtd. Avg. Annualized As of 09/30/2026 Outstanding Maturity Interest Rate Income Annualized Income from Loans and Securities Secured Notes $80,500 $80,300 0.6 Years 15.6 % $12,493 Mezzanine 245,000 111,018 1.4 Years 15.6 % 17,286 Revolving Credit Facility 100,000 101,508 2.0 Years 13.5 % 13,704 Preferred Equity 200,000 204,373 Perpetual 15.0 % 30,656 Total / Weighted Average $625,500 $497,199 1.4 Years 14.9 % $74,138 Total Annualized Base Rent and Annualized Income from Loans and Securities $296,656
Innovative Industrial Properties $5,570 $7,750 $270,000 $275,000 Real Estate Loans and Securities Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Capital Commitments Note: Values in thousands. For real estate, capital commitments consist of purchase prices of acquisitions and commitments to fund construction and improvements at properties made during the applicable period. Excludes transaction costs and commitments related to senior secured loans. Mezzanine blended interest rate based upon the expected rate in place upon full funding of the total commitment. Two Year Capital Commitment History Third Quarter Capital Commitments 17 Total Blended Closing / Execution Commitments Interest Rate Loans and Securities Mezzanine Sep-26 $245,000 15.6 % Preferred Equity Sep-26 30,000 15.0 % Total / Wtd. Avg. $275,000 15.5 %
Innovative Industrial Properties 0% 0% 2% 1% 7% 2% 0% 1% 10% 10% 65% 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Thereafter # of Rentable Square Feet Tenant State Closing / Execution Leases # % of Total Portfolio Gramlin California Jan-26 1 204 2% Non-Cannabis Tenant California Jan-26 1 5 0% Gramlin California Mar-26 1 56 1% Grown Rogue Illinois Mar-26 1 66 1% Curaleaf Ohio Apr-26 1 58 1% North Adams, MA (Undisclosed Tenant) Massachusetts Aug-26 1 71 1% Needles CA (Undisclosed Tenant) California Aug-26 1 46 1% Needles CA (Undisclosed Tenant) California Aug-26 1 20 0% Grown Rogue New York Aug-26 1 196 2% Olympia WA (Undisclosed Tenant) Washington Aug-26 1 114 1% Vireo Ohio Sep-26 1 157 2% Total 11 993 12% Note: Rentable square feet values in thousands. 1) As a % of annualized base rent. Leasing Summary 2026 Leasing Activity as of September 30, 2026 Representing $223 Million in Annualized Base Rent Expiring Leases 2 1 3 3 6 7 0 10 10 10 35 Lease Expiration Schedule as of September 30, 2026(1) 18
Innovative Industrial Properties Square Feet Invested Capital $ Date % Under Dev. Total $ / # Tenant State City Acquired Leased In Place(1) / Redev.(2) Total Invested Committed Total $ Square Feet Operating: Cannabis - Industrial 1 4Front Ventures Illinois Matteson 8/3/2021 100.0 % 250 — 250 $71,684 $— $71,684 $287 2 4Front Ventures* Massachusetts Holliston 1/28/2022 100.0 % 57 — 57 16,000 — 16,000 281 3 Ascend Wellness Holdings Illinois Barry 12/21/2018 100.0 % 166 — 166 71,000 — 71,000 428 4 Ascend Wellness Holdings Massachusetts Athol 4/2/2020 100.0 % 199 — 199 63,900 — 63,900 321 5 Ascend Wellness Holdings New Jersey Franklin 2/10/2022 100.0 % 114 — 114 55,000 — 55,000 482 6 Ascend Wellness Holdings Michigan Lansing 7/2/2019 100.0 % 145 — 145 24,150 — 24,150 167 7 AYR Wellness Florida Ocala 6/7/2024 100.0 % 145 — 145 38,565 1,935 40,500 279 8 AYR Wellness Ohio Akron 5/14/2019 100.0 % 11 — 11 3,550 — 3,550 323 9 Barberry Place Colorado Denver 12/14/2021 — % 12 — 12 3,276 — 3,276 273 10 Berry Green Michigan Warren 10/9/2019 100.0 % 205 — 205 83,595 — 83,595 408 11 Calyx Peak Missouri Smithville 9/17/2021 100.0 % 85 — 85 28,250 — 28,250 332 12 Cresco Labs Michigan Marshall 4/22/2020 100.0 % 115 — 115 32,000 — 32,000 278 13 Cresco Labs Illinois Kankakee 10/22/2019 100.0 % 51 — 51 25,496 104 25,600 502 14 Cresco Labs Illinois Joliet 10/22/2019 100.0 % 39 — 39 20,950 — 20,950 537 15 Cresco Labs Ohio Yellow Springs 1/24/2020 100.0 % 51 — 51 13,545 — 13,545 266 16 Curaleaf Pennsylvania Chambersburg 12/20/2019 100.0 % 179 — 179 60,889 751 61,640 344 17 Curaleaf Illinois Litchfield 10/30/2019 100.0 % 127 — 127 40,000 — 40,000 315 18 Curaleaf New Jersey Blue Anchor 7/13/2020 100.0 % 123 — 123 35,000 — 35,000 285 19 Curaleaf Ohio Buckeye Lake 3/13/2019 100.0 % 58 — 58 20,000 2,000 22,000 379 20 Curaleaf Massachusetts Webster 9/1/2022 100.0 % 108 — 108 21,500 — 21,500 199 21 Curaleaf North Dakota Fargo 12/20/2019 100.0 % 33 — 33 12,190 — 12,190 369 22 Gramlin California Desert Hot Springs 10/15/2021 100.0 % 204 — 204 63,500 — 63,500 311 23 Gramlin California Palm Springs 4/16/2019 100.0 % 56 — 56 35,530 — 35,530 634 24 Green Thumb Industries Pennsylvania Danville 11/12/2019 100.0 % 300 — 300 94,600 — 94,600 315 25 Green Thumb Industries Illinois Oglesby 3/6/2020 100.0 % 266 — 266 50,000 — 50,000 188 26 Green Thumb Industries Ohio Toledo 1/31/2020 100.0 % 98 — 98 32,200 — 32,200 329 27 Grown Rogue New York Hamptonburgh 12/19/2016 100.0 % 186 10 196 130,628 — 130,628 666 28 Grown Rogue Illinois Dwight 10/30/2019 100.0 % 66 — 66 28,000 — 28,000 424 29 Hamilton Road Florida Lakeland 9/18/2020 — % 220 — 220 56,400 — 56,400 256 30 Holistic Industries Maryland Capitol Heights 5/26/2017 100.0 % 72 — 72 33,719 31 33,750 469 31 Holistic Industries Pennsylvania New Castle 6/10/2020 100.0 % 108 — 108 25,629 21 25,650 238 32 Holistic Industries Massachusetts Monson 7/12/2018 100.0 % 55 — 55 19,750 — 19,750 359 33 Horton Drive Pennsylvania Saxton 5/20/2019 — % 270 — 270 42,891 — 42,891 159 34 Jushi Pennsylvania Scranton 4/6/2018 100.0 % 145 — 145 45,800 — 45,800 316 35 Life Science Dr Pennsylvania Olyphant 8/7/2019 — % 56 — 56 28,000 — 28,000 500 36 Lume Cannabis Company Michigan Dimondale 8/2/2018 100.0 % 56 — 56 17,634 165 17,799 318 37 Maryland Cultivation Processing (MCP) Maryland Hagerstown 4/13/2022 100.0 % 87 — 87 25,000 — 25,000 287 38 Maryland Cultivation Processing (MCP) Maryland Hagerstown 10/2/2024 100.0 % 23 — 23 5,570 — 5,570 242 39 Mitten Extracts Michigan Dimondale 4/16/2021 100.0 % 201 — 201 72,079 — 72,079 359 40 N. West Blvd New Jersey Vineland 7/16/2020 — % 50 — 50 11,820 — 11,820 236 41 Needles CA (Undisclosed Tenant) California Needles 9/11/2019 100.0 % 46 — 46 10,100 — 10,100 220 42 Needles CA (Undisclosed Tenant) California Needles 9/11/2019 100.0 % 20 — 20 4,841 — 4,841 242 43 North Adams, MA (Undisclosed Tenant) Massachusetts North Adams 5/26/2021 100.0 % 71 — 71 26,800 70 26,870 378 44 North Palm Springs CA (Undisclosed Tenant) California North Palm Springs 5/12/2020 100.0 % 70 — 70 18,107 — 18,107 259 45 Olympia WA (Undisclosed Tenant) Washington Olympia 12/17/2020 100.0 % 114 — 114 17,500 — 17,500 154 46 Perpetual Brands Massachusetts Holliston 5/31/2018 100.0 % 58 — 58 31,159 23 31,183 538 47 Sacramento CA (Undisclosed Tenant) California Sacramento 2/8/2019 100.0 % 43 — 43 12,710 — 12,710 296 48 Texas Original Texas Bastrop 6/14/2022 100.0 % 75 — 75 22,000 — 22,000 293 49 The Cannabist Company Colorado Denver 10/30/2018 100.0 % 58 — 58 11,250 — 11,250 194 50 The Pharm Arizona Willcox 12/15/2017 100.0 % 358 — 358 20,000 — 20,000 56 Note: Subtotals and Totals include fractional amounts. Square footage and dollars in thousands except for $/PSF. “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space. Data as of September 30, 2026. *This property did not satisfy the requirements for sale-leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our consolidated balance sheet. 1) Existing square footage for properties where there is no active development or redevelopment. 2) Estimated square footage upon completion of development or redevelopment. Property List 19
Innovative Industrial Properties Note: Subtotals and Totals include fractional amounts. Square footage and dollars in thousands except for $/PSF. “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space. Data as of September 30, 2026. **Includes an additional two non-cannabis tenants currently occupying 79,000 sqft. 1) Existing square footage for properties where there is no active development or redevelopment. 2) Estimated square footage upon completion of development or redevelopment. Property List (Continued) 20 Square Feet Invested Capital $ Date % Under Dev. Total $ / # Tenant State City Acquired Leased In Place(1) / Redev.(2) Total Invested Committed Total $ Square Feet 51 TILT Holdings Pennsylvania White Haven 2/15/2023 100.0 % 58 — 58 $15,000 $— $15,000 $259 52 Tri-Mountain Pure** Pennsylvania Pittsburgh 5/13/2021 100.0 % 239 — 239 68,368 64 68,432 286 53 Trulieve Massachusetts Holyoke 7/26/2019 100.0 % 150 — 150 43,500 — 43,500 290 54 Trulieve Florida Alachua 1/22/2021 100.0 % 295 — 295 41,650 — 41,650 141 55 Trulieve Maryland Hancock 8/13/2021 100.0 % 115 — 115 29,515 — 29,515 257 56 Trulieve Florida Quincy 10/23/2019 100.0 % 120 — 120 17,000 — 17,000 142 57 Trulieve Arizona Cottonwood 4/27/2022 100.0 % 17 — 17 5,238 — 5,238 308 58 Trulieve Nevada Las Vegas 7/12/2019 100.0 % 43 — 43 9,600 — 9,600 223 59 Verdant California Cathedral City 3/25/2022 100.0 % 23 — 23 15,250 — 15,250 663 60 Verdant Maryland Frederick 2/21/2025 100.0 % 22 — 22 7,750 — 7,750 352 61 Vireo Ohio Columbus 3/3/2023 100.0 % 157 — 157 46,429 — 46,429 296 62 Vireo Minnesota Otsego 11/8/2017 100.0 % 89 — 89 9,710 — 9,710 109 63 Washington Street Colorado Denver 12/14/2021 — % 18 — 18 9,917 — 9,917 551 64 West Lake Drive Florida Wimauma 3/11/2020 — % 373 — 373 51,500 — 51,500 138 Operating: Cannabis - Industrial Subtotal / Wtd. Avg. 90.3 % 7,424 10 7,434 $2,104,186 $5,164 $2,109,350 $284 Operating: Cannabis - Retail 65 1804 Needles California Needles 8/29/2019 — % 6 — 6 $888 $— $888 $148 66 Bent Avenue North Colorado Las Animas 12/14/2021 — % 2 — 2 400 — 400 200 67 Curaleaf North Dakota Dickinson 12/14/2021 100.0 % 5 — 5 2,045 — 2,045 409 68 Curaleaf North Dakota Devils Lake 12/14/2021 100.0 % 4 — 4 1,614 — 1,614 404 69 Dahlia Street Colorado Commerce City 2/21/2020 — % 5 — 5 2,300 — 2,300 460 70 East 6th Avenue Colorado Ordway 12/14/2021 — % 2 — 2 400 — 400 200 71 Elm Avenue Colorado Rocky Ford 12/14/2021 — % 13 — 13 400 — 400 31 72 Green Peak (Skymint) Michigan East Lansing 10/25/2019 100.0 % 3 — 3 3,372 28 3,400 1,133 73 Green Peak (Skymint) Michigan Flint 11/4/2019 100.0 % 6 — 6 2,180 — 2,180 363 74 Main Street Pennsylvania Bradford 12/14/2021 — % 3 — 3 1,058 — 1,058 353 75 S. Federal Blvd. Colorado Englewood 12/14/2021 — % 4 — 4 1,778 — 1,778 445 76 South Cedar Street Michigan Lansing 11/4/2019 — % 14 — 14 2,225 — 2,225 159 77 South Mason Drive Michigan Newaygo 11/8/2019 — % 2 — 2 995 — 995 498 78 Southgate Place Colorado Pueblo 2/19/2020 — % 3 — 3 1,049 — 1,049 350 79 The Cannabist Company Colorado Denver 12/14/2021 100.0 % 4 — 4 7,338 — 7,338 1,834 80 The Cannabist Company Colorado Pueblo 12/14/2021 100.0 % 6 — 6 4,878 — 4,878 813 81 The Cannabist Company Colorado Aurora 12/14/2021 100.0 % 5 — 5 4,229 — 4,229 846 82 The Cannabist Company Colorado Glenwood Springs 12/14/2021 100.0 % 4 — 4 4,187 — 4,187 1,047 83 The Cannabist Company Colorado Fort Collins 12/14/2021 100.0 % 5 — 5 3,977 — 3,977 795 84 The Cannabist Company Colorado Aurora 12/14/2021 100.0 % 4 — 4 3,601 — 3,601 900 85 The Cannabist Company New Jersey Vineland 7/16/2020 100.0 % 4 — 4 2,165 — 2,165 541 86 The Cannabist Company Colorado Aurora 12/14/2021 100.0 % 5 — 5 1,991 — 1,991 398 87 The Cannabist Company Colorado Trinidad 12/14/2021 100.0 % 9 — 9 1,728 — 1,728 192 88 The Cannabist Company Colorado Edgewater 12/14/2021 100.0 % 5 — 5 1,089 — 1,089 218 89 The Cannabist Company Colorado Sheridan 12/14/2021 100.0 % 2 — 2 890 — 890 445 90 Verano Pennsylvania Harrisburg 3/23/2022 100.0 % 3 — 3 2,750 — 2,750 917 91 Vireo Colorado Aurora 12/14/2021 100.0 % 2 — 2 1,674 — 1,674 837 92 Vireo Colorado Berthoud 12/14/2021 100.0 % 6 — 6 1,406 — 1,406 234 93 Water Street Colorado Silver Plume 12/14/2021 — % 4 — 4 1,444 — 1,444 361 94 Wilder Road Michigan Bay City 11/4/2019 — % 4 — 4 1,740 — 1,740 435 Operating: Cannabis - Retail Subtotal / Wtd. Avg. 77.7 % 144 — 144 $65,790 $28 $65,817 $457
Innovative Industrial Properties Property List (Continued) Note: Subtotals and Totals include fractional amounts. Square footage and dollars in thousands except for $/PSF. “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space. Data as of September 30, 2026. 1) Existing square footage for properties where there is no active development or redevelopment. 2) Estimated square footage upon completion of development or redevelopment. 3) Represents properties that are not included in the Company's operating portfolio. 21 Square Feet Invested 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 95 4Front Ventures Massachusetts Georgetown 12/17/2020 100.0 % 67 — 67 $15,500 $— $15,500 $231 96 AYR Wellness Virginia Richmond 1/15/2020 100.0 % 82 — 82 19,750 — 19,750 241 97 Cresco Labs Massachusetts Fall River 6/30/2020 100.0 % 124 — 124 27,624 1,126 28,750 232 98 Grape Street Colorado Denver 12/14/2021 — % 33 — 33 8,206 — 8,206 249 99 Holistic Industries Michigan Madison Heights 9/1/2020 100.0 % 63 — 63 28,500 — 28,500 452 100 Kaya Cannabis Colorado Denver 12/14/2021 100.0 % 6 — 6 1,299 — 1,299 217 101 Sozo Michigan Warren 5/14/2021 100.0 % 85 — 85 17,230 — 17,230 203 102 TILT Holdings Massachusetts Taunton 5/16/2022 100.0 % 104 — 104 40,000 — 40,000 385 103 US 50 Business Colorado Pueblo 12/14/2021 — % 11 — 11 2,165 — 2,165 197 Operating: Cannabis - Industrial / Retail Subtotal / Wtd. Avg. 93.6 % 575 — 575 $160,274 $1,126 $161,400 $281 Operating: Non-Cannabis 104 2103 Broadway California Needles 8/29/2019 — % 7 — 7 $1,471 $— $1,471 $210 105 3585 and 3591 N. Del Sol Road California Palm Springs 4/16/2019 50.0 % 22 — 22 5,788 — 5,788 263 106 Gregory Street Colorado Black Hawk 12/14/2021 — % 4 — 4 1,321 — 1,321 330 107 Non-Cannabis Tenant Michigan Traverse City 11/25/2019 100.0 % 2 — 2 1,272 — 1,272 636 Operating: Non-Cannabis Subtotal / Wtd. Avg. 42.3 % 35 — 35 $9,852 $— $9,852 $281 Operating Portfolio Total / Wtd. Avg. 90.0 % 8,178 10 8,188 $2,340,101 $6,317 $2,346,419 $287 Dev. / Redev. Properties(3) 108 Inland Center Drive California San Bernardino 11/16/2020 — % — 192 192 $35,819 $— $35,819 $187 Dev. / Redev. Properties / Wtd. Avg. — % — 192 192 $35,819 $— $35,819 $187 Total Portfolio / Wtd. Avg. 88.7 % 8,178 202 8,380 $2,375,920 $6,317 $2,382,237 $284 State Subtotal / Wtd. Avg. 1 Pennsylvania 81.4 % 1,361 — 1,361 $384,984 $836 $385,821 $283 2 Illinois 100.0 % 965 — 965 $307,131 $104 $307,234 $318 3 Massachusetts 100.0 % 993 — 993 $305,734 $1,219 $306,953 $309 4 Michigan 98.3 % 901 — 901 $286,972 $193 $287,164 $319 5 Florida 47.9 % 1,153 — 1,153 $205,115 $1,935 $207,050 $180 6 California 79.9 % 497 192 689 $204,003 $— $204,003 $296 7 New York 100.0 % 186 10 196 $130,628 $— $130,628 $666 8 Ohio 100.0 % 375 — 375 $115,724 $2,000 $117,724 $314 9 New Jersey 88.6 % 291 — 291 $103,985 $— $103,985 $357 10 Maryland 100.0 % 319 — 319 $101,554 $31 $101,585 $318 11 Colorado 60.3 % 232 — 232 $82,192 $— $82,192 $354 12 Missouri 100.0 % 85 — 85 $28,250 $— $28,250 $332 13 Arizona 100.0 % 375 — 375 $25,238 $— $25,238 $67 14 Texas 100.0 % 75 — 75 $22,000 $— $22,000 $293 15 Virginia 100.0 % 82 — 82 $19,750 $— $19,750 $241 16 Washington 100.0 % 114 — 114 $17,500 $— $17,500 $154 17 North Dakota 100.0 % 42 — 42 $15,849 $— $15,849 $377 18 Minnesota 100.0 % 89 — 89 $9,710 $— $9,710 $109 19 Nevada 100.0 % 43 — 43 $9,600 $— $9,600 $223
Innovative Industrial Properties Maturity Principal Loans / Origination / Wtd. Avg. Amount Securities # Investment Loan/ Security Type Date Maturity Outstanding Commitment 1 Coachella Construction Financing Secured Notes 6/25/2021 0.3 Years $22,800 $23,000 2 Harrison Township Seller Financing(1) Secured Notes 4/25/2025 1.6 Years 8,500 8,500 3 Perth Seller Financing(2) Secured Notes 5/27/2026 0.7 Years 49,000 49,000 4 Alewife Park Mezzanine 9/28/2026 1.4 Years 111,018 245,000 5 IQHQ Revolving Credit Facility 9/30/2025 2.0 Years 101,508 100,000 6 IQHQ Preferred Equity 9/30/2025 Perpetual 204,373 200,000 Loans and Securities Portfolio Total / Wtd. Avg. 1.4 Years $497,199 $625,500 Loans and Securities Note: Loan list maturity does not include available loan extensions. Dollars in thousands. 1) Relates to the seller-financed note issued by IIPR in connection with the disposition of a property in Michigan. The transaction did not qualify for recognition as a completed sale in accordance with GAAP and therefore, we have not derecognized the assets transferred and have not recognized the seller- financed note on our consolidated balance sheet. 2) Paid in full on October 2, 2026. 22
Innovative Industrial Properties As of As of Capitalization September 30, 2026 Q3 2026 Net Debt to Annualized Adjusted EBITDA September 30, 2026 Common Shares Outstanding 27,570,861 Q3 2026 Adjusted EBITDA $67,479 Share Price $52.68 Annualized Q3 2026 Adjusted EBITDA(1) $269,916 Net Debt $569,209 Equity Market Capitalization $1,452,433 Net Debt to Annualized Adjusted EBITDA Ratio(2) 2.1x Series A Preferred Stock: Redemption price per share $25.00 Shares outstanding 5,666,082 As of Q3 2026 Gross Leverage September 30, 2026 Total Preferred Equity $141,652 Net Debt $569,209 Senior Secured Debt $309,061 Total Assets $2,650,715 Senior Unsecured Debt $402,500 Depreciation $387,234 Total Gross Assets $3,037,949 Gross Debt $711,561 Net Debt to Total Gross Assets(3) 19 % Total Market Capitalization $2,305,646 Less: Cash & Cash Equivalents $142,352 Total Enterprise Value $2,163,294 As of Total Liquidity September 30, 2026 Revolving Credit Facility Availability $— Cash & Cash Equivalents $142,352 Total Liquidity $142,352 Capital and Key Metrics Note: Dollars in thousands, except share and per share amounts. 1) Annualized Adjusted EBITDA is calculated by multiplying the Quarterly Adjusted EBITDA by 4. 2) Net Debt to EBITDA Ratio is calculated by dividing Net Debt by Annualized Adjusted EBITDA. 3) Net Debt to Total Gross Assets is calculated as Net Debt divided by Gross Assets. 23
Innovative Industrial Properties Maturity / Wtd. As of September 30, 2026 Investment Maturity Date Avg. Maturity Coupon Rate Effective Rate Commitment Principal Senior Secured Debt Revolving Credit Facility I(1) Oct-26 0.1 Years Prime + Spread 9.00 % $87,500 $87,500 Revolving Credit Facility II(2) Oct-28 2.0 Years SOFR + 2.00 % 6.10 % $100,000 $100,000 Term Loan I(3) Apr-29 2.6 Years 9.00 % 9.00 % $19,854 Term Loan II(4) May-29 2.6 Years SOFR + 5.00 % 8.75 % $49,730 Term Loan III(5) Jun-31 4.7 Years 6.67 % 6.67 % $44,692 Term Loan IV(6) Jun-31 4.7 Years 7.50 % 7.50 % $7,285 Total Senior Secured Debt 2.0 Years 7.65 % $187,500 $309,061 Senior Unsecured Debt Exchangeable Senior Notes Jun-29 2.7 Years 6.00 % 6.00 % $402,500 Total Senior Unsecured Debt 2.7 Years 6.00 % $402,500 Gross Debt 2.4 Years 6.72 % $711,561 $402.5 Million $69.6 Million $52.0 Million$87.5 Million $100.0 Million Exchangeable Senior Notes Term Loans Credit Facilities 2026 2027 2028 2029 2030 Thereafter Debt Maturity Schedule Debt Detail Note: Dollars in thousands. Debt maturities represent the principal balance as of September 30, 2026. 1) Revolving Credit Facility Rate I interest rate is the greater of: (a) the Prime Rate in effect from time to time, plus the Applicable Margin and (b) 9.00%. As of quarter end, 9.0% is the applied rate. Subsequent to the quarter end, the maturity was extended to January 2027. 2) Revolving Credit Facility Rate II interest rate is the greater of: (a) the SOFR Rate in effect from time to time, plus 200 bps and (b) 6.1%. As of quarter end, 6.1% is the applied rate. 3) Term Loan I interest rate is fixed at 9.00%, and on a 20-year amortization schedule. 4) Term Loan II interest rate bears interest at a floating rate equal to SOFR plus 500 bps, subject to a 375 bps SOFR floor, resulting in a minimum all-in rate of 8.75%. As of quarter end, 8.75% is the applied rate. IIPR has an interest rate cap agreement with a 6.25% SOFR strike on a $56.5 million notional amount through May 5, 2029. 5) Term Loan III interest rate is fixed at 6.67% and on a 25-year amortization schedule. 6) Term Loan IV interest rate is fixed at 7.50% and on a 25-year amortization schedule. 24
Innovative Industrial Properties Analyst Coverage Analyst Research Firm Contact Information Aaron Grey Alliance Global Partners Email: agrey@allianceg.com Phone: 888-543-4448 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 Rob Stevenson Huntington Capital Markets Email: robert.stevenson@huntington.com Phone: 212-845-6139 Alexander Goldfarb Piper Sandler Email: alexander.goldfarb@psc.com Phone: 212-466-7937 Bill Kirk Roth Capital Partners Email: bkirk@roth.com Phone: 203-355-3473 Simon Yarmak Stifel Email: yarmaks@stifel.com Phone: 443-224-1345 Andy Liu Wolfe Research Email: aliu@wolferesearch.com Phone: 646-582-9257 Investor Relations Email: ir@iipreit.com Phone: 858-997-3332 25
Innovative Industrial Properties Definitions Definitions listed hereafter apply throughout the Supplemental unless otherwise specifically noted. • 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 non-cash items. • Annualized Base Rent (“ABR”): ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. • Annualized Base Rent and Annualized Income from Loans and Securities (“Base Rent / Interest”): Annualized Base Rent and Annualized Income from Loans and Securities is calculated by adding ABR and Annualized Income from Loans and Securities. • Annualized Income from Loans and Securities (“Annualized Income”): Annualized Income from Loans and Securities is calculated by multiplying the principal balance as of the end of quarter, by the weighted average interest rate. • Development / Redevelopment (“Dev. / Redev.”) Properties: Defined as non-operating assets under development that are not leased and not ready for their intended use. • EBITDA and Adjusted EBITDA: EBITDA is defined as earnings (net income per income statement) before interest expense, income taxes, depreciation and amortization (including above-market lease amortization and corporate asset depreciation) and non-cash accretion of life science investments. Adjusted EBITDA is EBITDA adjusted for non-cash stock-based compensation, gain (loss) on sale of real estate, impairment loss on real estate, income on seller-financed notes, deferred lease payments received on sales-type leases, non-recurring transaction costs, and miscellaneous other non-cash expenses. Management believes EBITDA and Adjusted EBITDA are meaningful supplemental measures of a REIT’s performance because they provide additional information regarding our operating performance without giving effect to certain financing decisions, tax considerations and significant non-cash items. Adjusted EBITDA further excludes certain items that management does not consider representative of our ongoing operating performance or that may vary significantly between periods, and includes certain cash receipts not included in EBITDA. Management believes these measures facilitate comparisons of our operating performance between periods and with other REITs. In addition, EBITDA and Adjusted EBITDA are widely followed by industry analysts, lenders, investors, rating agencies, and others as a means of evaluating the operating performance of a company prior to servicing debt obligations. When considered together with Net Debt, Adjusted EBITDA also provides supplemental information regarding IIPR’s financial leverage. For these reasons, management has deemed it appropriate to disclose and discuss EBITDA and Adjusted EBITDA. We do not use Adjusted EBITDA as an alternative measure to net earnings computed under GAAP or as an alternative to cash from operating activities computed under GAAP or as an indicator of our ability to fund our cash needs. • Exchangeable Senior Notes: 6.00% Exchangeable Senior Notes due 2029. • Funds From Operations (“FFO”): FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT’s operating performance equal to net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, depreciation, amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures. Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO and FFO per share to be supplemental measures of a REIT’s performance because they provide an understanding of the operating performance of our properties without giving effect to certain significant non-cash items, primarily depreciation expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. We believe that by excluding the effect of depreciation, FFO and FFO per share can facilitate comparisons of operating performance between periods. We report FFO and FFO per share because these measures are observed by management to also be the predominant measures used by the REIT industry and by industry analysts to evaluate REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and publications about REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share. 26
Innovative Industrial Properties Definitions (Continued) For the purposes of calculating FFO, Normalized FFO and AFFO per diluted share, the dilutive impact of the Exchangeable Notes under the if-converted method are excluded as management believes the evaluation of operating performance based on actual diluted shares outstanding is more appropriate to facilitate consistent comparisons between reporting periods and reflects the actual shares that are entitled to common stock dividends each period. For the three and nine months ended September 30, 2026, the weighted-average potential shares necessary to settle the Exchangeable Notes under the if-converted method were 5,800,549 and 2,294,722, respectively and the cash interest expense relating to the Exchangeable Notes were $6.0 million and $7.0 million, respectively. For the three months ended June 30, 2026, the weighted-average potential shares necessary to settle the Exchangeable Notes under the if-converted method was 1,019,877 and the cash interest expense relating to the Exchangeable Notes was $1.0 million. • GAAP: Accounting principles generally accepted in the United States. • Gross Debt: Calculated as the sum of the principal amount outstanding under the revolving credit facilities, term loans, and exchangeable senior notes. • Gross Assets: Calculated as total assets plus accumulated depreciation. • Liquidity: Total liquidity consists of cash and cash equivalents (each as reported in IIPR’s consolidated balance sheet as of quarter end) and availability under IIPR’s revolving credit facilities. • Maturity / Weighted Average Maturity (“Wtd. Avg. Maturity”): Based on initial maturity, not inclusive of applicable extension options. • Net Debt: Calculated as Gross Debt less total cash and cash equivalents. • 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 and unusual in nature and/or not related to our core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of other companies, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. Normalized FFO is used by management in evaluating the performance of our core business operations. • Notes due 2026: 5.50% Unsecured Senior Notes due 2026 that matured in May. • Operating Portfolio: All properties that (a) are leased or (b) are not leased but ready for their intended use. • Series A Preferred: 9.00% Series A Cumulative Redeemable Preferred Stock, $0.001 par value per share. • Total Invested Capital: Includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants and sellers for completion of construction and improvements at the properties and (3) includes Loans and Securities. • Total Real Estate Invested Capital: Includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants and sellers for completion of construction and improvements at the properties and (3) excludes Loans and Securities. • Total Portfolio: All properties, including Development / Redevelopment Properties and Operating Portfolio, as of quarter end. • Total Preferred Equity: Calculated by multiplying the total Series A Preferred shares outstanding by the $25 redemption price per share. • % Leased: The weighted average leased percentage of the Operating Portfolio by Total Invested Capital. Excludes Redevelopment. Includes leases that are in default, including those disclosed in our 8-K's filed on March 28, 2025 and March 16, 2026. • Weighted Average Lease Length: Calculated by weighting each remaining lease term by the Annualized Base Rent (“ABR”). 27
Innovative Industrial Properties 1 INNOVATIVE INDUSTRIAL PROPERTIES NYSE: IIPR INNOVATIVEINDUSTRIALPROPERTIES.COM COMPANY PRESENTATION – NOVEMBER 2026
Innovative Industrial Properties 2 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, as amended) that are subject to risks and uncertainties. In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, our statements regarding anticipated growth in our funds from operations and anticipated market and regulatory conditions, our strategic direction, demographics, results of operations, plans and objectives are forward-looking statements. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: rates of default on leases for our assets; our ability to re-lease properties upon tenant defaults or lease terminations for the rent we currently receive, or at all; the extent to which Annualized Base Rent and Annualized Income from Loans and Securities are realized, including as a result of tenant defaults, prepayments or repayments of our loans, and lease terminations; concentration of our portfolio of assets and limited number of tenants and counterparties, including our significant financial exposure to IQHQ, Inc. and its affiliates through multiple investment vehicles; the estimated growth in and evolving market dynamics of the regulated cannabis market; defaults on our investments in real estate-related assets, such as the IQHQ credit facility and IQHQ preferred stock and the IQHQ Alewife Mezzanine Loan; our ability to fund our mezzanine loan commitments; our anticipated yields, returns and accretive impact of our mezzanine debt and other investments; our ability to identify, acquire or profitably operate life science properties; market dynamics in the life science sector; the demand for regulated cannabis cultivation and processing facilities; decreased economic activity due to fluctuations in trade policies, tariffs, and related government actions; inflation dynamics; the impact of pandemics on us, our business, our tenants, or the economy generally; war and other hostilities, including the conflicts in Ukraine and Iran; our business and investment strategy; our projected operating results; actions and initiatives of the U.S. or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal under federal law; availability of suitable investment opportunities in the regulated cannabis industry; our understanding of our competition and our potential tenants’ alternative financing sources; the expected medical-use or adult-use cannabis legalization in certain states; shifts in public opinion regarding regulated cannabis; the potential impact on us from litigation matters, and governmental inquiries, investigations, subpoenas, or enforcement actions, including rising liability and insurance costs; the additional risks that may be associated with certain of our tenants cultivating, processing and/or dispensing adult-use cannabis in our facilities; the state of the U.S. economy generally or in specific geographic areas; economic trends and economic recoveries; our ability to access equity or debt capital; financing rates for our target assets; our level of indebtedness, which could reduce funds available for other business purposes and reduce our operational flexibility; covenants in our debt instruments, which may limit our flexibility and adversely affect our financial condition; our ability to extend, refinance or repay our indebtedness as it matures, including our Revolving Credit Facility; our ability to maintain our investment grade credit rating; changes in the values of our assets; our expected portfolio of assets; our expected investments; interest rate mismatches between our assets and our borrowings used to fund such investments; changes in interest rates and the market value of our assets; the degree to which any interest rate or other hedging strategies may or may not protect us from interest rate volatility; the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; how and when any forward equity sales may settle; our ability to maintain our qualification as a real estate investment trust (“REIT”) for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940; availability of qualified personnel; and market trends in our industry, interest rates, real estate values, the securities markets or the general economy. The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance, including, but not limited to, those risk factors described in our Securities and Exchange Commission (“SEC”) filings, our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) under Item 1A, as supplemented by the discussion in Item 1A of Part II of our subsequent Quarterly Reports on Form 10-Q. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Any forward-looking statement made by us speaks only of the date on which we make it. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Stockholders and investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in our filings and reports. This presentation includes certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental information and should not be considered a substitute for financial information presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is set forth in the Appendix to this presentation. Market and industry data are included in this presentation. We have obtained substantially all of this information from internal studies, public filings, other independent published industry sources and market studies prepared by third parties. We believe these internal studies, public filings, other independent published industry sources and market studies prepared by third parties are reliable. However, this information may prove to be inaccurate. No representation or warranty is made as to the accuracy of such information. All amounts shown in this presentation are unaudited. This is not an offer to sell or solicitation to buy securities of Innovative Industrial Properties, Inc. Any offers to sell or solicitations to buy securities of Innovative Industrial Properties, Inc. shall be made only by means of a prospectus approved for that purpose. FORWARD LOOKING STATEMENTS
Innovative Industrial Properties 3 Note: Data as of September 30, 2026, unless otherwise noted. (1) Total Invested Capital: Includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants and sellers for completion of construction and improvements at the properties and (3) includes Loans and Securities. (2) Weighted average lease length calculated by weighting each remaining lease term by the Annualized Base Rent (“ABR”). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. (3) $134M relating to the IQHQ mezzanine loan commitment has not yet been funded. IIPR AT A GLANCE $2.9B Total Invested Capital(1) 108 Total Properties 10.8 Years Weighted Average Lease Length(2) $64.9M Q3 2026 Total Revenue $545M Financial Investment in Life Science(3) 19 U.S. States $1.2B+ Dividends Paid Since Inception in ‘16 Innovative Industrial Properties, Inc. (NYSE: IIPR) is a diversified REIT with investments across cannabis and life sciences
Innovative Industrial Properties 4 INVESTMENT HIGHLIGHTS DIVERSIFIED BUSINESS MODEL • $2.4B triple-net lease portfolio • Strong initial yields with annual escalators • $545M financial investment in life science industry(1) STRONG BALANCE SHEET • One of the lowest leveraged REITs at 2.1x net debt to adjusted EBITDA • Demonstrated access to multiple capital markets: $400M+ exchangeable notes raise and $50M+ preferred stock raise in ‘26 DIVERSIFIED PORTFOLIO • Properties across 19 U.S. states • Leased to 35+ tenants • Mix of industrial and retail properties NICHE EXPERTISE • Experience working with tenants and borrowers in heavily regulated industries • Diligent underwriting process focused on best-in-class operators • Seasoned management team with significant REIT experience STRONG TRACK RECORD • 8% CAGR in AFFO/share 2020 – Q3'26 (Ann)(4) • Total return since inception in 2016 of 416%(5) • $1.2B+ in dividends paid since inception in 2016 (1) $134M relating to the IQHQ mezzanine loan commitment has not yet been funded. (2) Whitney Economics Cannabis Market Forecast (March 2026). (3) Cushman & Wakefield Life Sciences Update (September 2026). (4) Adjusted funds from operations (“AFFO”) is a supplemental non-GAAP financial measure used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to AFFO is included in the “AFFO Reconciliation” found at the end of this presentation. (5) Per S&P Capital IQ Pro as of 9/30/2026. GROWING MARKETS • 8% CAGR projected in cannabis industry from 2025-2030E(2) • AI-enabled discovery is broadening the life sciences market opportunity, reinforcing the need for specialized lab infrastructure(3)
Innovative Industrial Properties 5 NNN Leases • Leases are generally 100% triple-net ⚬ No recurring capital expenditures during lease term ⚬ All property expenses paid by the tenant, including capital repairs, property taxes and property insurance • Typically, 15-20 year initial lease terms (vs. ~5 years for traditional industrial leases) • Leases generally subject to parent company guarantees covering operations throughout the U.S. Life Science Investments • IQHQ strategic investment announced in Q3’25 • Target investments are with assets or real estate companies in major life science markets ⚬ Attractive spread to cost of capital ⚬ Enhances scale and diversification by industry and tenant ⚬ Provides growth opportunities in a large and growing sector OUR BUSINESS MODEL & BENEFITS PORTFOLIO COMPOSITION CANNABIS 79.0% LIFE SCIENCES 20.8% $297M BASE RENT / INTEREST(1) OTHER 0.2% Shifting Revenue Mix More Towards Life Sciences Note: Data as of September 30, 2026, unless otherwise noted. (1) Annualized Base Rent and Annualized Income from Loans and Securities (“Base Rent / Interest”) is calculated by adding Annualized Base Rent (“ABR”) and Annualized Income from Loans and Securities. ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. Annualized Income from Loans and Securities is calculated by multiplying the principal balance as of the end of quarter, by the weighted average interest rate.
Innovative Industrial Properties 6 NNN PORTFOLIO OVERVIEW IIPR has a geographically diversified triple net portfolio of cannabis real estate throughout the United States Note: Data as of September 30, 2026, unless otherwise noted. (1) As a % of Annualized Base Rent (“ABR”). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. (2) “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space. Property Type(1) State Diversification(1) State ABR ($000s)(1) %(1) # of Properties Square Feet (000s) Illinois $41,261 18.5% 7 965 Massachusetts 36,107 16.2% 10 993 Pennsylvania 32,619 14.7% 10 1,361 Michigan 24,612 11.1% 13 901 Florida 15,317 6.9% 5 1,153 Maryland 14,079 6.3% 5 319 New Jersey 12,266 5.5% 4 291 California 9,854 4.4% 11 689 Ohio 9,076 4.1% 5 375 Missouri 4,457 2.0% 1 85 Total – Top 10 States $199,648 89.7% 71 7,132 10-20% No Presence0-5% 5-10% 2% Retail 88% Industrial(2) 10% Industrial / Retail
Innovative Industrial Properties 7 Note: Data as of September 30, 2026, unless otherwise noted. (1) As a % of Annualized Base Rent and Annualized Income from Loans and Securities (“Base Rent / Interest”). Annualized Base Rent and Annualized Income from Loans and Securities is calculated by adding Annualized Base Rent (“ABR”) and Annualized Income from Loans and Securities. ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. Annualized Income from Loans and Securities is calculated by multiplying the principal balance as of the end of quarter, by the weighted average interest rate. (2) Each “Tenant” represents the parent company of the tenant, for which the parent company has provided a corporate guaranty. A parent company may have multiple tenant subsidiaries across IIPR’s properties. Total Real Estate Invested Capital includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants and sellers for completion of construction and improvements at the properties and (3) excludes Loans and Securities. (3) As a % of Annualized Base Rent (“ABR”). Excludes non-cannabis tenants that comprise less than 1% of ABR in the aggregate. (4) “MSO” stands for Multi-State Operator which means the tenant (or guarantor) conducts cannabis operations in more than one state. “SSO” stands for Single-State Operator which means the tenant (or guarantor) conducts cannabis operations in a single state. (5) These leases are in default, as disclosed in our 8-K filed on March 28, 2025. Tenant ABR ($000s) (%)(1) Square Feet (000s) # of Leases $32,184 10.8% 624 4 23,247 7.8% 664 3 23,101 7.8% 637 8 20,492 6.9% 740 6 17,789 6.0% 298 4 17,428 5.9% 380 5 15,728 5.3% 374 3 10,211 3.4% 238 3 7,102 2.4% 162 2 6,688 2.3% 145 1 Total $173,970 58.6% 4,262 39 $30.0M $73.3M $167.4M $690.0M $1.3B $2.0B $2.3B $2.4B $2.5B $2.5B $2.4B 1 4 8 18 20 26 29 32 35 38 37 Invested Capital # of Tenants 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 9/30/26 NNN PORTFOLIO TOP 10 TENANTS Company Type 71% Public 29% Private Total Real Estate Invested Capital & Tenant Growth(2) Tenant Composition(3) Operator Type(4) 85% MSO 15% SSO (5) (5)
Innovative Industrial Properties 8 LIFE SCIENCES INVESTMENT • IQHQ – A Premier Life Science Real Estate Platform • $5B+ in total investments • 5 million square feet of properties in leading life science markets including Boston, San Francisco and San Diego • Strategic and Financially Accretive Transaction • In August 2025, announced a $270M total commitment, comprised of: • $100M investment in a 3-year revolving credit facility: 13.5% yield • $170M investment in preferred stock: 15.0% yield • IIPR has a right of first offer on certain future asset sales of IQHQ • Investment is fully funded as of June 2026 • Invested an additional $30M in preferred stock in September 2026 • Diversification and Life Science Expertise • Improves sector diversification beyond cannabis-related assets • IIPR’s management team has decades of combined experience in the life science real estate industry
Innovative Industrial Properties 9 ALEWIFE PARK INVESTMENT $245M mezzanine loan commitment for Alewife Park, a master-planned life science campus in Cambridge, MA comprised of 3 existing buildings totaling 392,000 SF and 2 pad-ready sites with up to 364,000 SF of development potential PREMIER CLASS A CAMPUS – High-quality, purpose-built life science campus owned by IQHQ, Inc. and situated in one of the world’s leading life science clusters with nearly $800M invested prior to IIPR’s transaction(1) – Phase I is comprised of 3 buildings, totals 392,000 SF and is 78% leased to Lila Sciences, a Cambridge, MA based AI-enabled next-generation scientific discovery company STRATEGIC & ACCRETIVE INVESTMENT – $245M mezzanine investment expected to yield an average interest rate of 15.8% over the term, subject to a floor of 14% – Maturity of Feb. ‘28 with a one-year extension option – Loan is secured by pledged equity interests in the entities that own the Alewife Park campus – $111M initial funding and $134M expected to be funded through Q4’27; potential to expand total investment to $400M at IIPR’s option on the same terms – Further improves IIPR diversification and increases life science exposure to 26% of the Company’s income(2) – Total investment is expected to be funded with cash on hand and draws on the Company’s revolving credit facilities, and is expected to be highly accretive to AFFO per share 392,000 SF PHASE I 78% LEASED Please refer to the Company’s 8K filed on October 1, 2026 for a complete description of the terms and conditions of this investment. (1) Based on IQHQ, Inc.’s management information and estimates. (2) Based on the Company’s annualized base rent and annualized income from loans and securities as of September 30, 2026, for the full deployment of the $245M investment. Actual income will depend on the timing and amount of future advances, which are subject to conditions precedent. This investment is a mezzanine debt position, and not a direct investment in life science real property.
Innovative Industrial Properties 10 Gross Debt, $711.6M Preferred Equity, $141.7M Common Equity Market Capitalization, $1.5B STRONG, LOW LEVERAGED BALANCE SHEET Debt Overview Revolving Credit Facilities: • • $187.5M total commitment, $0.0M available Term Loans: • • $121.6M total outstanding Exchangeable Senior Notes: • • $402.5M of 6.00% exchangeable senior notes, maturing June 2029 • • Exchangeable for cash, common stock, or a combination (at IIPR’s option) 19% Net Debt to Total Gross Assets(1) 2.1x Net Debt to Ann. Adj. EBITDA Ratio (2) $142M Liquidity Available (3) % $402.5M $69.6M $52.0M$87.5M $100.0M Exchangeable Senior Notes Term Loans Credit Facilities 2026 2027 2028 2029 2030 Thereafter Note: As of September 30, 2026, unless otherwise noted. Debt maturities represent the principal balance. (1) Net Debt to Total Gross Assets is calculated as Net Debt divided by Total Gross Assets. Net Debt is calculated as Gross Debt less total cash and cash equivalents. Gross Debt is calculated as the sum of the principal amount outstanding under the revolving credit facilities, term loans, and exchangeable senior notes. Total Gross Assets is calculated as total assets plus accumulated depreciation. (2) Net Debt to Annualized Adjusted EBITDA Ratio is calculated by dividing Net Debt by Annualized Quarterly Adjusted EBITDA. Annualized Quarterly Adjusted EBITDA is calculated by multiplying the most recently reported quarterly Adjusted EBITDA by four. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to Annualized Adjusted EBITDA is included in the “EBITDA Reconciliation” found at the end of this presentation. (3) Total liquidity consists of cash and cash equivalents (each as reported in IIPR’s consolidated balance sheet as of quarter end) and availability under IIPR’s revolving credit facilities. (4) Share price per S&P Capital IQ Pro as of 9/30/2026. Gross Debt is calculated as the sum of the principal amount outstanding under the revolving credit facilities, term loans, and exchangeable senior notes. Subsequent to the quarter end, the maturity was extended to January 2027 for Revolving Credit Facility I. Debt Maturity Schedule Capital Structure(4)
Innovative Industrial Properties 11 88% 310% 416% STRONG, LONG-TERM AFFO AND DIVIDEND TRACK RECORD (1) Adjusted funds from operations (“AFFO”) is a supplemental non-GAAP financial measure used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to AFFO is included in the “AFFO Reconciliation” found at the end of this presentation. (2) "CAGR" represents compound annualized growth rate for the relevant metric. (3) Per S&P Capital IQ Pro as of 9/30/2026. RMZ represents the MSCI US REIT Index. 9% CAGR(2) Total Returns Since IIPR Inception(3) 4.7x Greater Return than RMZ AFFO AND DIVIDEND TRACK RECORD $4.47 $7.60 2020 Q3'26 (Ann) Dividends Per Share 8% CAGR(2) $5.01 $7.84 2020 Q3'26 (Ann) AFFO Per Share(1) RMZ S&P 500 IIPR
Innovative Industrial Properties 12 In d ex Total Nonfarm Physical, Engineering, & Life Science R&D Biotech R&D Jul-21 Oct-2 1 Jan-22 Apr-2 2 Jul-22 Oct-2 2 Jan-23 Apr-2 3 Jul-23 Oct-2 3 Jan-24 Apr-2 4 Jul-24 Oct-2 4 Jan-25 Apr-2 5 Jul-25 Oct-2 5 Jan-26 Apr-2 6 0.95 1.00 1.05 1.10 1.15 1.20 1.25 $36B $36B $13B $29B $43B 2025 US Spirits Market 2025 US Beer Market 2025 US Wine Market Est. 2025 US Legal Cannabis Sales Projected 2030 US Legal Cannabis Sales Forecast $0B $20B $40B $60B Cannabis Market Overview SERVING TWO CORE GROWTH MARKETS Life Sciences Market Overview Cannabis Industry Revenue Comparison(1) Total U.S. & Life Sciences / Biotech Employment Growth(5) • Market Growth: U.S. legal cannabis sales market reached $29.1 billion in 2025 vs. a 2% decline for the U.S. Spirits Market to $36.4 billion in the same period(1) • Federal Rescheduling: April 2026 reclassification of medical cannabis to Schedule III may remove 280E tax burdens for qualifying operators and potentially improves cash flow, with additional industry benefits expected as rescheduling progresses • Expansion of Legalization: Approximately 79% of Americans live in a county where marijuana is legal for either recreational or medical use and 53% of Americans live in a state where the recreational use of marijuana is legal(2) Biotech R&D employment reached a new record level in Q2’26 (1) Whitney Economics Cannabis Market Forecast (March 2026), Distilled Spirits Council of the United States, MJBiz Factbook Quarterly Update (Q1 2026). (2) Pew Research Center (May 2026). (3) CBRE 2026 U.S. Life Sciences Trends (March 2026). (4) Cushman & Wakefield Life Sciences Update (September 2026). (5) U.S. Bureau of Labor Statistics (June 2026). Indexed to 1.0 in July 2021. • Stabilizing Fundamentals: Tenant demand has returned to pre-pandemic baseline levels, signaling a durable floor for leasing activity(3) • AI & Drug Discovery Expansion: Adoption of AI and increased licensing activity are accelerating innovation cycles, creating new and expanding occupier demand(4) • Limited New Supply: Limited future class A new build is expected to tighten leasing markets as companies continue to expand their U.S. operations(3)
Innovative Industrial Properties 13 Long Term Growth Outlook U.S. CANNABIS MARKET CONTINUES TO GROW Regulatory Developments & Rescheduling Industry Revenue Projection(1) Growing U.S. Legalization(4) (1) Whitney Economics Cannabis Market Forecast (March 2026). (2) 2020 US Census Data. (3) Pew Research Center (May 2026). (4) National Conference of State Legislatures (www.ncsl.org), MJBizDaily (mjbizdaily.com). Other, N/A Adult-Use Medical-Use 8% CAGR $43B Estimated Legal Cannabis Sales by 2030(1) 68% U.S. Population in States with an IIPR Presence(2) 88% U.S. adults say marijuana should be legal at some level(3) • FDA-approved cannabis products and state-licensed medical marijuana was reclassified to Schedule III in April 2026 • State-licensed medical operators may now be eligible for DEA registration, establishing federal oversight and recognition • 280E may no longer apply to qualified medical licensees, potentially driving meaningful cash flow improvement and potential retrospective tax relief • DEA will evaluate broader changes to marijuana’s federal status $29B $43B 2025 2026E 2027E 2028E 2029E 2030E
Innovative Industrial Properties 14 All U.S. Office Life Science Boston Office Life Science San Diego Office Life Science Strong Life Science Rent Premiums vs Office Rents(1) LIFE SCIENCES MARKET OPPORTUNITY Construction Pipeline Decelerating(1) U.S. Life Sciences Research Funding Stabilizes(1)(2) Drug Approvals(3) (1) Cushman & Wakefield Life Sciences Update (September 2026). (2) 2026 is an estimated full year of funding. (3) U.S. Food and Drug Administration. +37% +59% +67% M ill io ns o f S q ua re F ee t Inventory Under Construction 8% 8% 7% 7% 8% 8% 9% 9% 16% 17% 14% 12% 10% 9% 7% 6% 4% 3% 4% 3% 2% 2% Under Construction % of Total Inventory Q 1' 21 Q 2' 21 Q 3' 21 Q 4' 21 Q 1' 22 Q 2' 22 Q 3' 22 Q 4' 22 Q 1' 23 Q 2' 23 Q 3' 23 Q 4' 23 Q 1' 24 Q 2' 24 Q 3' 24 Q 4' 24 Q 1' 25 Q 2' 25 Q 3' 25 Q 4' 25 Q 1' 26 Q 2' 26 0 5 10 15 20 25 30 35 40 —% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% FDA Novel Drug Approvals H1 H2 0 5 10 15 20 25 30 35 40 45 50 55 60 65 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 YTD Fu nd in g (i n $B ill io ns ) Funding by Source U.S. VC Funding NIH Pharma R&D (Domestic) 2010 2012 2014 2016 2018 2020 2022 2024 2026* $— $50 $100 $150 $200 $250
Innovative Industrial Properties 15 UNDERWRITING & MONITORING Diligent underwriting process with a focus on best-in-class operators Review of Management • Experienced management team • Alignment of management within ownership of the business Ability to Raise Capital • Evaluation of the macro environment surrounding strategic capital raising in the tenants’ and borrowers’ prospective markets • History of successful capital raising and a cash balance on hand today Financial Underwriting • Evaluation of financial projections utilizing existing knowledge of industry dynamics • Detailed review of financial statements, strategic initiatives, and growth plans Ongoing Monitoring • Quarterly financial and operational review of all properties • Meetings with tenants to talk through operations and financials
Innovative Industrial Properties 16 Alan Gold Executive Chairman & Co-Founder Co-founder of BioMed Realty Trust (formerly NYSE: BMR); served as Chairman and CEO from inception of its predecessor in 1998 through BMR’s sale in 2016 • Owner and operator of high-quality life science real estate • Previously publicly traded investment grade REIT Co-founded Alexandria Real Estate Equities (NYSE: ARE) in 1994 and served as President and a director until 1998 • Invests in office buildings and laboratories leased to life science and technology companies Co-founder of IQHQ, Inc.; served as Executive Chairman from December 2018 until December 2024 • Privately-held life science real estate company with over $5B of total assets EXECUTIVE CHAIRMAN & CO-FOUNDER Alan Gold has experience founding and leading real estate companies focused on nuanced, regulated industries.
Innovative Industrial Properties 17 David Smith • 20+ years of finance and real estate experience • Former CFO of Aventine Property Group and New Senior Investment Group (NYSE: SNR) CFO and Treasurer • 35+ years of legal and regulatory experience • Previously co-founded Iso Nano International, LLC Paul Smithers President, CEO and Co-Founder • 20+ years of real estate and accounting experience • Former Senior Associate, Investments and Asset Management at BioMed Realty CIO Ben ReginCatherine Hastings • 25+ years of accounting and real estate experience • Former VP, Internal Audit of BioMed Realty COO EXECUTIVE MANAGEMENT TEAM Seasoned leadership team with extensive experience in real estate investment, asset management, and capital allocation.
Innovative Industrial Properties 18 WHY INVEST IN IIPR Powerful triple-net lease model with structured long-term cash flows Strong balance sheet with access to growth capital Diversified real estate portfolio across 19 states with 35+ tenants Solid capital allocation track record enabling robust earnings and dividend distributions Exposure to two above-GDP growth markets in cannabis and life sciences High-quality platform, process, and management team to drive growth 1 2 3 4 5 6
Innovative Industrial Properties 19 APPENDIX
Innovative Industrial Properties 20 Q3 2026 FY 2020 (In thousands, except share and per share amounts) Actual Annualized Actual Net income attributable to common stockholders $28,708 $114,832 $64,378 Real estate depreciation and amortization 19,572 78,288 28,025 Impairment loss on real estate 567 2,268 — FFO attributable to common stockholders $48,847 $195,388 $92,403 Financing expense — — 211 Acquisition-related expense — — 94 Litigation-related expense 784 3,136 — Income on seller-financed note(1) 223 892 — Deferred lease payments received on sales-type leases(2) 351 1,404 — Transaction costs and other(3) 29 116 — Normalized FFO attributable to common stockholders 50,234 200,936 92,708 Stock-based compensation 3,311 13,244 3,330 Non-cash interest expense 1,545 6,180 2,040 Non-cash accretion of life science investments (336) (1,344) — Above-market lease amortization 23 92 — AFFO attributable to common stockholders $54,777 $219,108 $98,078 FFO per common share – diluted $1.75 $7.00 $4.72 Normalized FFO per common share – diluted $1.80 $7.20 $4.74 AFFO per common share – diluted $1.96 $7.84 $5.01 Weighted average common shares used for FFO, Normalized FFO and AFFO: Basic 27,356,738 27,356,738 19,443,602 Restricted stock and restricted stock units ("RSUs") 604,891 604,891 114,017 Diluted 27,961,629 27,961,629 19,557,619 AFFO RECONCILIATION Note: During the year ended December 31, 2025, IIPR revised its presentation of Normalized FFO to include two adjustments related to income on seller-financed notes and deferred lease payments received on sales-type leases that were previously reflected in adjusted funds from operations (“AFFO”), which has been reflected for all periods presented. Management believes this change better aligns the Company’s presentation with its assessment of core operating performance and improves comparability with industry peers. Items included in calculating FFO that may be excluded in calculating Normalized FFO include certain transaction-related gains, losses, income or expense or other non-core amounts as they occur. (1) Amounts reflect non-refundable cash payments received pursuant to a seller-financed note issued by us in connection with our disposition of a property. As the transaction did not qualify for recognition as completed sales under GAAP, the payments received are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. (2) Amounts reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale. (3) Amounts reflects other items that are considered to be infrequent and unusual in nature and/or not related to our core real estate operations.
Innovative Industrial Properties 21 EBITDA RECONCILIATION (1) Amounts reflect non-refundable cash payments received pursuant to a seller-financed note issued by us in connection with our disposition of a property. As the transaction did not qualify for recognition as completed sales under GAAP, the payments received are recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. (2) Amounts reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability and is included in other liabilities in our consolidated balance sheets as the transaction did not qualify for recognition as a completed sale. (3) Amounts reflects other items that are considered to be infrequent and unusual in nature and/or not related to our core real estate operations. Q3 2026 (In thousands) Actual Annualized Net Income: $31,895 $127,580 Adjustments for EBITDA: Interest expense 11,820 47,280 Taxes (including corporate tax expense in G&A) 1 4 Depreciation and amortization expense 19,572 78,288 Above-market lease amortization 23 92 Non-cash accretion of life science investments (336) (1,344) Corp. asset depreciation (included in G&A expense) 23 92 EBITDA $62,998 $251,992 Adjustments for Adjusted EBITDA: Non-cash stock-based compensation expense 3,311 13,244 Impairment loss on real estate 567 2,268 Income on seller-financed notes(1) 223 892 Deferred lease payments received on sales-type leases(2) 351 1,404 Transaction costs and other(3) 29 116 Adjusted EBITDA $67,479 $269,916