Innovative Industrial commits $245M to campus loan
The expected loan yield is approximately 15.8%, subject to a 14% floor, while later advances depend on draws and funding conditions.
Sentiment and the balance of points
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Rhea-AI Filing Summary
Innovative Industrial Properties, Inc. (IIPR), through wholly owned subsidiary IIP Life Science Investments II LLC, agreed to provide a $245 million mezzanine loan commitment to IQHQ affiliates for Alewife Park, a life science campus in Cambridge, Massachusetts. At closing on September 28, 2026, the subsidiary funded approximately $111 million to repay the borrower’s $85 million bridge loan and related amounts. A further $134 million is expected to be funded through the fourth quarter of 2027 as amounts are drawn and funding conditions are satisfied.
The loan is expected to yield approximately 15.8% over its term, subject to a 14% floor, and matures February 9, 2028. A second one-year extension is available subject to conditions, including extension of the senior mortgage loan. The loan is secured by pledges of equity interests in entities owning the property, with completion, environmental and recourse guaranties from IQHQ, LP.
IIP may also purchase all or part of the other mezzanine lender’s notes, up to approximately $155 million in maximum principal amount, subject to conditions. IIP Life Science II’s right of first offer to purchase, finance or refinance the property becomes effective when total Note B funding equals or exceeds $155 million; until then, lenders’ right of first negotiation remains in effect.
Filing Explained
Under the September 28 co-lender agreement, the existing lender remains the directing lender, but IIP Life Science II must give prior written consent to specified major actions, including Note B advances; Note B funding conditions cannot be waived without its written consent.
8-K Event Classification
Key Figures
Key Terms
mezzanine construction loan facility financial
Applicable Rate financial
Term Secured Overnight Financing Rate financial
intercreditor agreement financial
right of first offer financial
nonrecourse financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How large is IIPR's Alewife Park loan commitment?
What yield and maturity does IIPR's Alewife Park loan have?
When does IIPR's right of first offer for Alewife Park take effect?
What would IIPR pay to purchase the other mezzanine lender's notes?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
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CURRENT REPORT
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Item 1.01 Entry into a Material Definitive Agreement.
Sixth Amendment to Amended and Restated Mezzanine Loan Agreement
On September 28, 2026 (the “Closing Date”), Innovative Industrial Properties, Inc. (the “Company”) through IIP Life Science Investments II LLC (“IIP Life Science II”), a wholly owned subsidiary of IIP Operating Partnership, LP, the Company’s operating partnership, entered into the Sixth Amendment (the “Sixth Amendment”) to Amended and Restated Mezzanine Loan and Security Agreement, dated as of September 30, 2025 (as previously amended, the “Loan Agreement”), by and among IQHQ-Alewife Holdings, LLC, a Delaware limited liability company (the “Borrower”), the administrative agent thereunder (the “Administrative Agent”), IIP Life Science II, as a lender, and the existing mezzanine lender party thereto, which, together with certain agreements entered into in connection therewith, collectively sets forth the terms and conditions of the transactions pursuant to which the parties have agreed to:
| · | increase the maximum principal amount of the mezzanine loan under the Loan Agreement (the “Loan”) by $267.0 million (the “Loan Increase”), bringing the total maximum principal amount of the Loan to $400.0 million, with IIP Life Science II providing up to $245.0 million under a new Mezzanine Promissory Note B (“Note B”) and the existing mezzanine lender providing up to $22.0 million under a new Mezzanine Promissory Note C (“Note C”); and |
| · | enter into related agreements, including the Co-Lender Agreement, the Right of First Offer for Purchase or Finance of Alewife Park Center (the “ROFO”), and an amendment to an intercreditor agreement. |
The Borrower is a wholly owned subsidiary of IQHQ, LP, a Delaware limited partnership, which is the operating partnership of IQHQ, Inc., a Maryland corporation (“IQHQ”).
On the Closing Date, IIP Life Science II funded an initial advance under Note B (the “September Loan Advance”) in an aggregate amount of approximately $111.0 million, the proceeds of which were used to repay in full the Borrower’s existing $85.0 million bridge loan, together with accrued interest, fees, minimum return payment and other amounts due thereunder. A portion of the Note B and Note C Loan Increase proceeds were also used to pay closing fees, costs and expenses, including origination and underwriting fees paid to each increasing lender. Note C was also used to fund the payment of an extension fee to the existing mezzanine lender to extend the maturity date of the Loan Agreement from February 2027 to February 2028. Subject to the terms and conditions of the Loan Agreement, the remaining unfunded amounts under Note B and Note C are available for debt service, and fees, costs and expenses, and the remaining unfunded amounts under Note B may, subject to satisfaction or waiver of conditions precedent set forth in the Loan Agreement, including requirements relating to construction budgets, draw requests, and the absence of defaults, be used to fund tenant improvement work, landlord work and campus amenity, outdoor and infrastructure work related to certain leases by Lila Sciences, Inc. of premises at Alewife Park, a master-planned, transit-oriented life science campus located on approximately 27 acres in West Cambridge, Massachusetts (the “Alewife Park Property”).
The Loan is secured by a pledge of the Borrower’s limited liability company interests in IQHQ-Alewife Member, LLC and a pledge by IQHQ-Alewife Member, LLC of its limited liability company interests in IQHQ-Alewife, LLC (the “Mortgage Borrower”), the fee owner of the Alewife Park Property. The Loan also receives the benefit of a completion guaranty, an environmental guaranty and a guaranty of recourse obligations by IQHQ, LP.
The Loan bears interest at a rate per annum equal to the Applicable Rate (defined below) and is calculated by multiplying the daily interest rate based on the Applicable Rate, or the default rate if applicable, by the aggregate principal amount of the Loan and the senior mortgage loan, and then subtracting the amount of interest actually paid by Borrower on the senior mortgage loan for the applicable period. The Applicable Rate is a per annum rate equal to the greater of (a) 14% per annum and (b) the applicable interest rate benchmark, which is initially the one-month Term Secured Overnight Financing Rate, plus a spread of 9.0% per annum, and which may be converted by the Administrative Agent to an alternate floating rate index or the prime rate publicly announced by JPMorgan Chase Bank, National Association, in each case plus an adjusted spread (the “Applicable Rate”), each as more fully described in the Loan Agreement.
The maturity date of the Loan has been extended to February 9, 2028, pursuant to the exercise of the first extension option under the Loan Agreement, with a second one year extension option available to the Borrower subject to the satisfaction or waiver of certain conditions set forth in the Loan Agreement, including the extension of the maturity date of the senior mortgage loan (currently February 2027, subject to extension on the terms and conditions therein).
The foregoing description of the Sixth Amendment is not complete and is qualified in its entirety by reference to the full text of the Sixth Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Amended and Restated Mezzanine Loan and Security Agreement
The following description of the Loan Agreement is provided because the Loan Agreement is the underlying agreement amended by the Sixth Amendment, and its terms are incorporated into the Sixth Amendment, to which IIP Life Science II is a party. As a result of the Sixth Amendment, IIP Life Science II’s rights and obligations as a lender with respect to the Loan are governed by the terms of the Loan Agreement, as amended by the Sixth Amendment. The Company did not enter into the Loan Agreement as a separate transaction. As originally executed, the Loan Agreement amended and restated the Mezzanine Loan and Security Agreement, dated as of January 26, 2024, pursuant to which the lenders made a loan to the Borrower in the maximum principal amount of $218.0 million. Pursuant to the Loan Agreement, that loan was bifurcated into a senior mortgage loan in the maximum principal amount of $85.0 million and the Loan, in an original maximum principal amount of $133.0 million with an initial maturity date of February 9, 2027. The Loan Agreement was subsequently amended by a First Amendment dated March 31, 2026, a Second Amendment dated April 16, 2026, a Third Amendment dated April 24, 2026, a Fourth Amendment dated May 1, 2026, and a Fifth Amendment dated May 15, 2026.
The Loan Agreement, as amended by the Sixth Amendment, provides for a mezzanine construction loan facility to fund, among other things, the construction and development of the Alewife Park Property, including certain tenant improvement work, landlord work and campus amenity, outdoor and infrastructure work related to certain leases by Lila Sciences, Inc. of premises at the Alewife Park Property. Interest is calculated on a 360-day year basis on the outstanding principal balance of the Loan plus the outstanding principal balance of the senior mortgage loan, less interest actually paid on the senior mortgage loan and is payable monthly. The Loan is nonrecourse to the Borrower, subject to customary recourse carve-outs and guaranties provided by IQHQ, LP, including a guaranty of recourse obligations, an environmental guaranty and a completion guaranty.
The Loan Agreement, as amended by the Sixth Amendment, contains customary representations, warranties, affirmative and negative covenants and events of default, including special purpose entity covenants, covenants relating to construction milestones, insurance, transfers of interests, key person requirements, and compliance with the senior mortgage loan documents. The Loan Agreement also grants the lenders a right of first negotiation with respect to new construction loan financing for the Alewife Park Property, and as a condition to the Loan Increase, IQHQ and certain of its affiliates executed and delivered the Right of First Offer Agreement described below.
The Loan Agreement is subject to an intercreditor agreement with the senior lenders under the senior mortgage loan for the Alewife Park Property (collectively, the “Senior Lenders”), which was amended in connection with the Sixth Amendment to add IIP Life Science II as a party. The intercreditor agreement, as amended, limits, among other things, the amount of additional mezzanine debt and extensions of maturity, and subordinates certain mezzanine enforcement rights to those of the Senior Lenders.
The foregoing description of the Loan Agreement is not complete and is qualified in its entirety by reference to the full text of the Loan Agreement, a copy of which is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference. The Loan Agreement is filed because its terms are incorporated into, and should be read together with, the Sixth Amendment, which is filed as Exhibit 10.1.
Co-Lender Agreement
In connection with the Sixth Amendment, on the Closing Date, the Administrative Agent, the existing mezzanine lender and IIP Life Science II entered into a Co-Lender Agreement (the “Co-Lender Agreement”) establishing the relative rights, benefits, obligations and priorities of the noteholders with respect to the Loan.
Under the Co-Lender Agreement, the existing mezzanine lender serves as the Directing Mezzanine Lender (as defined in the Co-Lender Agreement) and is authorized to act on behalf of the noteholders with respect to the Loan, subject to specified consent requirements. Certain key actions, including the purchase of the Senior Loan, the replacement of the Senior Lenders, the cure of defaults under the Senior Loan, and the making or authorization of advances under Note B, require the prior written consent of IIP Life Science II. In addition, IIP Life Science II may direct the Administrative Agent’s exercise of certain rights under the intercreditor agreement, including cure, purchase and replacement rights, as reasonably necessary to preserve the REIT mezzanine loan safe harbor or its qualification as a REIT.
Certain material actions under the Co-Lender Agreement require the unanimous consent of all noteholders, including modifications to the maturity date, releases of collateral or guarantor liability, acceleration of the Loan, exercise of remedies under the pledge agreements, amendments to the intercreditor agreement, and approval of new or modified leases. No waiver of any condition to an advance under Note B may be granted without the prior written consent of IIP Life Science II.
Under the Co-Lender Agreement governing the Loan, the Company also has the option, but not the obligation, to purchase all or a portion of the existing mezzanine lender's notes (aggregating up to approximately $155 million in maximum principal amount) at a price equal to the outstanding principal balance plus accrued interest, fees, and other amounts, including the selling noteholder’s share of certain minimum return amounts and exit fees whether or not then due and payable by the Borrower. Any such purchase would be subject to conditions set forth in the Co-Lender Agreement, including limitations necessary to preserve the Company’s qualification as a REIT.
The foregoing description of the Co-Lender Agreement is not complete and is qualified in its entirety by reference to the full text of the Co-Lender Agreement, a copy of which is filed as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.
Right of First Offer for Purchase or Finance of Alewife Park Center
As a condition to the Loan Increase, on the Closing Date, IIP Life Science II entered into the ROFO with the Mortgage Borrower, IQHQ and certain of its affiliates named therein, which grants IIP Life Science II a right of first offer to purchase, finance or refinance the Alewife Park Property.
The ROFO includes a right of first offer in favor of IIP Life Science II to purchase the Alewife Park Property or interests in it in connection with a proposed sale, and a right of first offer to provide financing or refinancing for the Alewife Park Property, in each case within a specified period.
Pursuant to the Loan Agreement, IIP Life Science II’s right of first offer does not become effective until the total amount funded under Note B equals or exceeds $155,000,000, including the payoff of the Borrower’s indebtedness at closing, advances to fund the fees, costs and expenses of IIP Life Science II and interest as it accrues (the “ROFO Effective Date”). Until then, the mezzanine lenders’ right of first negotiation for new construction loan financing for the Alewife Park Property, as granted under the Loan Agreement, remains in effect. From and after the ROFO Effective Date, that right of first negotiation in the Loan Agreement is subordinated to IIP Life Science II’s ROFO rights. Any exercise of the ROFO, and any sale, financing, refinancing or transfer of the Alewife Park Property, remains subject to any lender consent or approval required under the Loan Agreement.
The foregoing description of the ROFO is not complete and is qualified in its entirety by reference to the full text of the ROFO, a copy of which is filed as Exhibit 10.4 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On October 1, 2026, the Company issued a press release announcing the closing of its mezzanine loan investment in connection with the Sixth Amendment. A copy of the press release is furnished as Exhibit 99.1 hereto.
On October 1, 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 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibits 99.1 and 99.2 furnished herewith, 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, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, 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 | Description of Exhibit | |
| 10.1* | Sixth Amendment to Amended and Restated Mezzanine Loan and Security Agreement, dated as of September 28, 2026, by and among IQHQ-Alewife Holdings, LLC, as borrower, NREF OP IV REIT SUB, LLC, as administrative agent, IIP Life Science Investments II LLC, as a lender, and NREF OP IV SUBHOLDCO, LLC, as a lender. | |
| 10.2* | Amended and Restated Mezzanine Loan and Security Agreement, dated as of September 30, 2025, by and among IQHQ-Alewife Holdings, LLC, as borrower, NREF OP IV REIT SUB, LLC, as administrative agent, NREF OP IV SUBHOLDCO, LLC, as the initial lender, and the lenders from time to time party thereto (as amended through the Fifth Amendment to Amended and Restated Mezzanine Loan and Security Agreement, dated as of May 15, 2026). | |
| 10.3* | Co-Lender Agreement, dated as of September 28, 2026, by and among NREF OP IV REIT SUB, LLC, as administrative agent, NREF OP IV SUBHOLDCO, LLC, as the Initial A-1 Noteholder and Initial A-3 Noteholder, and IIP Life Science Investments II LLC, as the Initial A-2 Noteholder. | |
| 10.4* | Side Letter Regarding Right of First Offer for Alewife Park, dated as of September 28, 2026, by and among IIP Life Science Investments II LLC, IQHQ, LP, IQHQ, Inc., IQHQ Holdings, LP, IQHQ-Alewife, LLC, IQHQ-Alewife Member, LLC, and IQHQ-Alewife Holdings, LLC. | |
| 99.1 | Press release dated October 1, 2026. | |
| 99.2 | Innovative Industrial Properties, Inc. investor presentation, dated October 1, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the XBRL document). | |
| *Certain schedules and exhibits omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
Forward-Looking Statements
This Current Report on Form 8-K contains statements that the Company 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 report, words such as the Company “expects,” “intends,” “plans,” “estimates,” “anticipates,” “believes” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements, and they include, but are not limited to, statements regarding the expected benefits or impact of the transactions described in this report, including the Sixth Amendment, the Co-Lender Agreement, and the ROFO; the Company’s ability to fund future advances under Note B and anticipated funding sources; the anticipated use of proceeds from the Loan Increase; the Company’s ability to realize the anticipated benefits of the ROFO; and the Borrower’s ability to satisfy its obligations under the Loan. These forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to, the risk 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 SEC. Investors should not place undue reliance upon forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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: October 1, 2026 | INNOVATIVE INDUSTRIAL PROPERTIES, INC. | |
| By: | /s/ David Smith | |
| Name: | David Smith | |
| Title: | Chief Financial Officer | |
Exhibit 99.1
Innovative Industrial Properties Announces Mezzanine Loan Commitment
of $245 Million for Alewife Park
Investment Expected to Yield 15.8% and Generate Significant Earnings Accretion for IIP Shareholders
Investment Expands on IIP's Commitment to Diversify into the Life Science Sector
SAN DIEGO, CA – October 1, 2026 – Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company") announced today that it entered into definitive agreements to provide $245 million under a new mezzanine loan commitment to affiliates of IQHQ, Inc. ("IQHQ") in connection with the completion, lease-up, tenant improvements and stabilization of Phase I of Alewife Park, a master-planned life science campus in Cambridge, Massachusetts (the "Investment"). The loan is secured by pledges of equity interests in the entities that own the Alewife Park campus.
Located in Cambridge, Massachusetts, Alewife Park is a 27-acre life science campus comprised of three existing buildings totaling 392,000 square feet (Phase I) and two pad-ready sites with up to 364,000 square feet of additional development potential (Phase II). According to IQHQ, the campus has approximately $800 million invested prior to IIP’s investment and Phase I is currently 78% leased to Lila Sciences, a Cambridge, MA based AI-enabled next generation scientific discovery company.
“We are pleased to further expand our life science portfolio through this investment for Alewife Park, which we believe will provide attractive risk-adjusted returns for IIP shareholders and significant accretion to our earnings,” said Alan Gold, Executive Chairman of IIP. “This transaction reflects our disciplined approach to capital allocation by providing financing in support of a premier Class A life science campus in Cambridge that has demonstrated strong leasing momentum and further allows us to capitalize on the attractive, long-term strength of the life science industry.”
IIP funded approximately $111 million at closing, which was used to repay in full the borrower’s existing $85 million bridge loan, together with accrued interest, fees and expenses, with the remaining $134 million expected to be funded through the fourth quarter of 2027, as additional amounts are drawn and funding conditions are satisfied. 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%.
The loan matures in February 2028 and has a one-year extension option. IIP may also purchase all or a portion of the other mezzanine lender’s notes at IIP’s option, thereby increasing its investment by up to $155 million on the same terms. All items described in this paragraph are subject to certain conditions set forth in the loan agreements.
The Company expects to fund the Investment with cash on hand and borrowings under its revolving credit facilities.
About IQHQ
IQHQ, Inc. is a life science focused real estate company founded in 2019 to meet the industry's needs through the acquisition, development, redevelopment, leasing and management of life science assets.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is an internally managed real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities and financial investments in the life science industry. 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. These forward-looking statements include, but are not limited to, statements regarding the expected benefits or impact of the transactions described in this press release; the Company’s ability to fund future advances under the mezzanine loan and anticipated funding sources; the Company’s ability to realize the anticipated benefits of the right of first offer; estimated interest rates and projected yields on the Investment; and the borrower’s ability to satisfy its obligations under the loan. Such forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, changes in interest rates, including fluctuations in SOFR; the borrower’s ability to satisfy conditions to future advances; the borrower’s ability to achieve projected leasing levels; risks related to the development, construction, and lease-up of life science properties; changes in real estate market conditions; the Company’s ability to maintain its REIT qualification; and the risk factors discussed in the Company’s 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. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact
David Smith
Chief Financial Officer
Innovative Industrial Properties, Inc.
(858) 997-3332
Exhibit 99.2
Innovative Industrial Properties 1 INNOVATIVE INDUSTRIAL PROPERTIES NYSE: IIPR INNOVATIVEINDUSTRIALPROPERTIES.COM COMPANY PRESENTATION – OCTOBER 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; 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, IQHQ preferred stock and the Alewife Park 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 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 June 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. Excludes 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. IIPR AT A GLANCE $2.4B Total Invested Capital(1) 108 Total Properties 11.9 Years Weighted Average Lease Length (2) $63.3M Q2 2026 Total Revenue $270M Financial Investment in Life Science 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 • $270M financial investment in life science industry STRONG BALANCE SHEET • One of the lowest leveraged REITs at 1.7x net debt to adjusted EBITDA • Demonstrated access to multiple capital markets: $400M+ exchangeable notes raise in June 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 • 7% CAGR in AFFO/share 2020 – Q2'26 (Ann)(3) • Total return since inception in 2016 of 486%(4) • Over $1.2B+ in dividends paid since inception in 2016 (1) Whitney Economics Cannabis Market Forecast (March 2026). (2) Cushman & Wakefield Life Sciences Update (February 2026). (3) 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. (4) Per S&P Capital IQ Pro as of 6/30/2026. GROWING MARKETS • 8% CAGR projected in cannabis industry from 2025-2030E (1) • AI-enabled discovery is broadening the life sciences market opportunity, reinforcing the need for specialized lab infrastructure (2) |
| 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 87.6% LIFE SCIENCES 12.2% $325M BASE RENT / INTEREST (1) OTHER 0.2% Shifting Revenue Mix More Towards Life Sciences Note: Data as of June 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 June 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 $40,773 14.9% 7 965 Pennsylvania 36,582 13.4% 10 1,361 Massachusetts 35,619 13.1% 10 993 Florida 31,867 11.7% 5 1,153 Michigan 24,351 8.9% 13 901 New York 21,727 8.0% 1 234 Ohio 16,424 6.0% 5 374 New Jersey 13,997 5.1% 4 291 Maryland 13,955 5.1% 5 319 Colorado 7,611 2.8% 26 229 Total – Top 10 States $242,906 89.0% 86 6,820 0-5% 5-10% 10-15% No Presence 2% Retail 90% Industrial(2) 8% Industrial / Retail |
| Innovative Industrial Properties 7 Tenant ABR ($000s) (%)(1) Square Feet (000s) # of Leases $32,067 9.9% 624 4 26,574 8.2% 306 6 23,247 7.2% 664 3 22,502 6.9% 637 8 20,151 6.2% 740 6 18,335 5.6% 488 4 17,517 5.4% 298 4 17,294 5.3% 379 5 16,588 5.1% 593 2 10,173 3.1% 238 3 Total $204,448 62.9% 4,967 45 NNN PORTFOLIO TOP 10 TENANTS Note: Data as of June 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 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. 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 14, 2025. (6) These leases are in default, as disclosed in our 8-K filed on March 28, 2025. (7) These leases are in default, as disclosed in our 8-K filed on July 21, 2026. Company Type 62% Public 38% Private Total Invested Capital & Tenant Growth(2) Tenant Composition(3) Operator Type (4) 87% MSO 13% SSO (5) (6) (7) |
| 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 • In addition, potential to receive warrants in IQHQ earned upon the satisfaction of certain funding milestones • IIPR has a right of first offer on certain future asset sales of IQHQ • Investment is fully funded as of June 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 9ALEWIFE PARK INVESTMENTPlease 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 June 30, 2026, pro forma 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.392,000 SF PHASE I78% LEASED$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 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 companyPREMIER CLASS A CAMPUS$245M mezzanine investment expected to yield an average interest rate of 15.8% over the term, subject to a floor of 14%$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 termsSTRATEGIC & ACCRETIVE INVESTMENTTotal 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 shareFurther improves IIPR diversification and increases life science exposure to 22% of the Company’s income(2)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 |
| Innovative Industrial Properties 10 STRONG, LOW LEVERAGED BALANCE SHEET Debt Overview Revolving Credit Facilities: • • $187.5M total commitment, $95.0M available Term Loans: • • $128.6M 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) 14% Net Debt to Total Gross Assets(1) 1.7x LQA Net Leverage Ratio (2) $300M Liquidity Available (3) % Note: As of June 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) LQA Net Leverage 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 Adjusted EBITDA is included in the “EBITDA Reconciliation” found at the end of this presentation. (3) Total liquidity consists of cash and cash equivalents and short-term investments (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 6/30/2026. Gross Debt is calculated as the sum of the principal amount outstanding under the revolving credit facilities, term loans, and exchangeable senior notes. Debt Maturity Schedule Capital Structure(4) |
| Innovative Industrial Properties 11 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 6/30/2026. RMZ represents the MSCI US REIT Index. Total Returns Since IIPR Inception(3) 4.8x Greater Return than RMZ AFFO AND DIVIDEND TRACK RECORD Dividends Per Share AFFO Per Share(1) RMZ S&P 500 IIPR |
| Innovative Industrial Properties 12 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 54% 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 Q1’26 (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 (July 2025). (3) CBRE 2026 U.S. Life Sciences Trends (March 2026). (4) Cushman & Wakefield Life Sciences Update (February 2026). (5) U.S. Bureau of Labor Statistics (March 2026). Indexed to 1.0 in March 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 (July 2025). (4) National Conference of State Legislatures (www.ncsl.org), MJBizDaily (mjbizdaily.com). Other, N/A Adult-Use Medical-Use $43B Estimated Legal Cannabis Sales by 2030(1) 68% U.S. Population in States with an IIPR Presence(2) 87% 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 |
| Innovative Industrial Properties 14 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) Drug Approvals (2) (1) Cushman & Wakefield Life Sciences Update (February 2026). (2) U.S. Food and Drug Administration. |
| 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 Catherine Hastings Ben Regin • 25+ years of accounting and real estate experience • Former VP, Internal Audit of BioMed Realty COO Andy Bui • Former Senior Director, Financial Reporting at BioMed Realty VP, Chief Accounting Officer • 20+ years legal experience representing real estate matters • Former attorney at Foley & Lardner LLP SVP, Real Estate Counsel Tracie Hager Kelly Spicher • 30+ years of experience in property management • Former VP, Property Management at BioMed Realty SVP, Asset Management SENIOR MANAGEMENT TEAM |
| 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 123456 |
| Innovative Industrial Properties 19 APPENDIX |
| Innovative Industrial Properties 20 Q2 2026 FY 2020 Actual Annualized Actual Net income attributable to common stockholders $40,665 $162,660 $64,378 Real estate depreciation and amortization 18,799 75,196 28,025 Loss (gain) on sale of real estate, net (11,847) (47,388) — FFO attributable to common stockholders $47,617 $190,468 $92,403 Financing expense — — 211 Acquisition-related expense — — 94 Litigation-related expense 1,312 5,248 — Income on seller-financed note(1) 223 892 — Deferred lease payments received on sales-type leases(2) 525 2,100 — Transaction costs and other(3) (463) (1,852) — Normalized FFO attributable to common stockholders 49,214 196,856 92,708 Stock-based compensation 2,826 11,304 3,330 Non-cash interest expense 1,281 5,124 2,040 Non-cash accretion of life science investments (335) (1,340) — Above-market lease amortization 23 92 — AFFO attributable to common stockholders $53,009 $212,036 $98,078 FFO per common share – diluted $1.64 $6.56 $4.72 Normalized FFO per common share – diluted $1.70 $6.80 $4.74 AFFO per common share – diluted $1.83 $7.32 $5.01 Weighted average common shares used for FFO, Normalized FFO and AFFO: Basic 28,443,143 28,443,143 19,443,602 Restricted stock and restricted stock units ("RSUs") 529,228 529,228 114,017 Diluted(4) 28,972,371 28,972,371 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 represent non-refundable cash payments received pursuant to a seller-financed note issued by us in connection with our disposition of a certain property. As the transaction did not qualify for recognition as completed sales under GAAP, the payments were recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. (2) Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting on January 1, 2024, and is included in other liabilities in our consolidated balance sheet as of June 30, 2026, as the transaction did not qualify for recognition as a completed sale. (3) Amount 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. (4) For the three months ended June 30, 2026, amounts exclude 1,019,877 weighted-average shares potentially issuable upon exchange of the Exchangeable Notes under the if-converted method. |
| Innovative Industrial Properties 21 EBITDA RECONCILIATION (1) Amounts represent non-refundable cash payments received pursuant to a seller-financed note issued by us in connection with our disposition of a certain property. As the transaction did not qualify for recognition as completed sales under GAAP, the payments were recorded as a deposit liability and included in other liabilities on our consolidated balance sheet. (2) Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting on January 1, 2024, and is included in other liabilities in our consolidated balance sheet as of June 30, 2026, as the transaction did not qualify for recognition as a completed sale. (3) Amount 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. Q2 2026 (In thousands) Actual Annualized Net Income: $43,852 $175,408 Adjustments for EBITDA: Interest expense 8,348 33,392 Taxes (including corporate tax expense in G&A) 66 264 Depreciation and amortization expense 18,799 75,196 Above-market lease amortization 23 92 Non-cash accretion of life science investments (335) (1,340) Corp. asset depreciation (included in G&A expense) 24 96 EBITDA $70,777 $283,108 Adjustments for Adjusted EBITDA: Non-cash stock-based compensation expense 2,826 11,304 Loss (gain) on sale of real estate, net (11,847) (47,388) Income on seller-financed notes(1) 223 892 Deferred lease payments received on sales-type leases(2) 525 2,100 Transaction costs and other(3) (463) (1,852) Adjusted EBITDA $62,041 $248,164 |
