Innovative Industrial Properties (NYSE: IIPR) posts Q1 2026 results and maintains $1.90 dividend
Rhea-AI Filing Summary
Innovative Industrial Properties, Inc. reported first quarter 2026 revenue of $69.0 million, down 3.8% from $71.7 million a year earlier, mainly due to tenant defaults partly offset by rent escalations and new leases. Net income attributable to common stockholders was $30.2 million, or $1.02 diluted EPS, essentially flat versus $30.3 million and $1.03 a year ago.
Normalized FFO was $50.6 million ($1.78 per diluted share) and AFFO was $53.4 million ($1.88 per diluted share), both modestly lower year over year. Year-to-date, the company raised $128 million of equity and debt capital and executed leases for 389,000 square feet. The board declared a quarterly dividend of $1.90 per common share, or $7.60 annualized.
Positive
- None.
Negative
- None.
Insights
Modest revenue decline, stable earnings and active capital raising keep IIPR’s story broadly steady.
Innovative Industrial Properties posted Q1 2026 revenue of $69.0M, down 3.8%, mainly from tenant defaults. Net income attributable to common stockholders was essentially flat at $30.2M with diluted EPS of $1.02. Normalized FFO and AFFO per share dipped slightly to $1.78 and $1.88, indicating only modest pressure on underlying cash generation.
The company highlighted $128M of equity and debt capital raised year-to-date and referenced additional secured and unsecured financings of nearly $130M underway, aimed at addressing Notes due 2026 and supporting growth. The balance sheet shows total assets of $2.39B, debt (notes plus revolver) of about $366M, and stockholders’ equity of $1.89B, suggesting moderate leverage.
Dividend continuity remains central: the board declared a Q1 dividend of $1.90 per common share, or $7.60 annualized, against AFFO per share of $1.88. The Executive Chairman also emphasized executed leases for roughly 389,000 square feet year-to-date, pointing to ongoing tenant demand. Future disclosures in company filings may clarify how tenant credit trends and life science investment income shape results over the remainder of 2026.
8-K Event Classification
Key Figures
Key Terms
Funds From Operations (FFO) financial
Adjusted Funds from Operations (AFFO) financial
life science investments financial
Notes due 2026 financial
construction loan receivable financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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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 May 4, 2026, Innovative Industrial Properties, Inc. (the “Company”) issued a press release regarding its financial results for the first quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
On May 4, 2026, the Company posted on its website, www.innovativeindustrialproperties.com, certain supplemental financial information for the first quarter ended March 31, 2026, which is attached hereto as Exhibit 99.2 and is incorporated by reference herein.
| Item 7.01 | Regulation FD Disclosure. |
On May 4, 2026, the Company posted an investor presentation to its website located at http://investors.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 Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not 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 May 4, 2026. | |
| 99.2 | Supplemental Financial Information for the quarter ended March 31, 2026. | |
| 99.3 | Innovative Industrial Properties, Inc. Investor Presentation dated May 4, 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: May 4, 2026 | INNOVATIVE INDUSTRIAL PROPERTIES, INC. | |
| By: | /s/ David Smith | |
| Name: | David Smith | |
| Title: | Chief Financial Officer | |
Exhibit 99.1
Innovative Industrial Properties Reports First Quarter 2026 Results
$128 Million of Equity and Debt Capital Raised Year-To-Date
Executed Leases for 389,000 Square Feet Year-To-Date
SAN DIEGO, CA – May 4, 2026 – Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company") announced today results for the first quarter ended March 31, 2026.
Executive Chairman Remarks
“We are encouraged by the pace of leasing activity year-to-date, including nearly 400,000 square feet of executed leases, which underscores the ongoing demand for our properties," said Alan Gold, Executive Chairman of IIP. "At the same time, we have taken deliberate steps to fortify our balance sheet through equity and debt capital raising activity, and have additional secured and unsecured debt financings underway totaling nearly $130 million, to be used to address our upcoming bond maturity and position us for growth.”
First Quarter 2026 and Second Quarter to Date Highlights
Financial Results and Dividend
| • | Total revenues of $69.0 million and net income attributable to common stockholders of $30.2 million, or $1.02 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 $53.4 million, or $1.88 per share |
| • | Declared dividends to common stockholders totaling $1.90 per share. Since its inception, IIP has paid over $1.1 billion in common stock dividends to its stockholders. |
| Three Months Ended | Three Months Ended | |||||||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||||||||
| (in thousands, except per share amounts) | Amount | Per Share | Amount | Per Share | ||||||||||||
| Net income attributable to common stockholders | $ | 30,155 | $ | 1.02 | $ | 30,296 | $ | 1.03 | ||||||||
| Normalized FFO | 50,585 | 1.78 | 52,761 | 1.85 | ||||||||||||
| AFFO | 53,434 | 1.88 | 55,332 | 1.94 | ||||||||||||
__________________________________________________________________
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.
IQHQ Investment
| • | As of March 31, 2026, the Company had funded an aggregate of $150.0 million of its strategic investment in IQHQ, Inc., consisting of a fully funded $100.0 million revolving credit facility and $50.0 million of Series G preferred equity. Subsequent to quarter end, the Company funded an additional $25.0 million of Series G preferred equity. The Company remains committed to funding up to an additional $95.0 million of preferred equity, in multiple tranches through the second quarter of 2027. |
Portfolio - Leasing
| • | In January 2026, executed a 204,000 square foot full-building lease in Desert Hot Springs, California with Gramlin, a private California operator. |
| • | In March 2026, executed a 5,000 square foot lease in Palm Springs, California. |
| • | In March 2026, executed a 56,000 square foot full-building lease in Palm Springs, California with Gramlin, a private California operator. |
| • | In March 2026, executed a 66,000 square foot full-building lease in Dwight, Illinois with Grown Rogue, a public multi-state operator. |
| • | In April 2026, executed a 58,000 square foot full-building lease in Buckeye Lake, Ohio with Curaleaf, a public multi-state operator. |
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Portfolio - Tenant Updates
| • | The following table summarizes payments received from certain defaulted tenants during the periods presented and the corresponding per share impact (in thousands, except per share amounts): |
Three Months Ended December 31, 2025 | Three Months Ended March 31, 2026 | Q2'26 To Date | ||||||||||||||||||||||
| Tenant | Total Payments | Per Share(1) | Total Payments | Per Share(1) | Total Payments | Per Share(1) | ||||||||||||||||||
| Gold Flora | $ | 3,738 | $ | 0.13 | $ | 1,500 | $ | 0.05 | $ | — | $ | — | ||||||||||||
| PharmaCann | 242 | 0.01 | 3,244 | 0.11 | 850 | 0.03 | ||||||||||||||||||
| 4Front | — | — | 225 | 0.01 | 400 | 0.01 | ||||||||||||||||||
| Total | $ | 3,980 | $ | 0.14 | $ | 4,969 | $ | 0.17 | $ | 1,250 | $ | 0.04 | ||||||||||||
___________________________________________________________________
| (1) | For the three months ended December 31, 2025, the weighted-average common stock outstanding was 28,303,530 shares. For the three months ended March 31, 2026, the weighted-average common stock outstanding was 28,467,184 shares, which was also used to calculate the total payments per share for the period Q2'26 To Date. |
| • | PharmaCann |
| • | During the first quarter of 2026, the Ohio and Pennsylvania courts released $1.7 million and $1.3 million, respectively, to the Company comprised of the rent payments previously required to be escrowed with the court by PharmaCann. |
| • | As previously disclosed, the Company has resolved all pending litigation with PharmaCann with respect to PharmaCann's prior lease defaults. The settlement agreement that the Company has entered into with PharmaCann includes monetary judgments for amounts owed by PharmaCann under the leases for New York, Ohio and Pennsylvania and mandates the turnover of these properties to the Company by May 20, 2026 for the New York and Pennsylvania properties and by May 26, 2026 for the Ohio property. |
| • | As noted above in "Portfolio - Leasing", the Company has executed new leases for its properties in Ohio and Illinois that were previously leased to PharmaCann. |
| • | Gold Flora |
| • | During the first quarter of 2026, the Company received $1.5 million in settlement of all remaining unpaid administrative rents due from the receivership. |
| • | The Company has executed lease agreements for the three properties previously leased by Gold Flora, executing a lease agreement for its 70,000 Palm Springs property in November 2025, executing a lease agreement for its 204,000 square foot Desert Hot Springs property in January 2026, and executing a lease agreement for its 56,000 square foot Palm Springs property in March 2026. |
| • | 4Front |
| • | The Company has reached tentative arrangements with prospective new tenants for the four assets leased to 4Front, including a 250,000 square foot asset in Illinois, a 114,000 square foot asset in Washington, and two assets in Massachusetts totaling 124,000 square feet. Each of these arrangements is subject to customary diligence and licensing processes and are expected to go into effect at the conclusion of receivership proceedings, expected by year end 2026. |
Balance Sheet Highlights (at March 31, 2026)
| • | 13% debt to total gross assets, with $2.8 billion in total gross assets. |
| • | Total liquidity was $176.6 million, consisting of cash and cash equivalents (as reported in IIP’s consolidated balance sheet as of March 31, 2026) and availability under IIP’s revolving credit facility. |
| • | Debt service coverage ratio of 11.6x (calculated in accordance with IIP’s 5.50% Unsecured Senior Notes due 2026). |
Financing Activity
| • | Preferred Stock |
| • | In total, the Company has raised $70.9 million in net proceeds from preferred stock issuances year-to-date comprised of the following: |
| • | During the quarter ended March 31, 2026, the Company issued 2,698,523 shares its of 9.00% Series A Preferred Stock under its ATM Program for $60.3 million in net proceeds. |
| • | Subsequent to March 31, 2026, the Company issued an additional 506,628 shares of its 9.00% Series A Preferred Stock under its ATM Program for $10.6 million in net proceeds. |
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| • | Common Stock |
| • | In total, the Company has raised $34.9 million in net proceeds from common stock issuances year-to-date comprised of the following: |
| • | During the quarter ended March 31, 2026, the Company issued 178,655 shares of its common stock under its ATM Program for $9.3 million in net proceeds. |
| • | Subsequent to March 31, 2026, the Company issued an additional 514,950 shares of its common stock under its ATM Program for $25.6 million in net proceeds. |
| • | Note Repurchase |
| • | Subsequent to March 31, 2026, the Company repurchased $9.1 million of the Company’s 5.50% Unsecured Notes at a discount to par. |
| • | Secured Debt |
| • | Subsequent to March 31, 2026, the Company closed on a $20.0 million, three-year secured term loan which bears interest at a fixed rate of 9.0%. |
Financial Results
For the three months ended March 31, 2026, IIP generated total revenues of $69.0 million, compared to $71.7 million for the same period in 2025, a decrease of 3.8%. The decline was primarily driven by a $6.9 million decrease related to tenant defaults, partially offset by increases due to annual contractual rent escalations, rental revenue related to the property acquired in February 2025 and new leases executed on existing properties.
For the three months ended March 31, 2026, the Company applied $1.2 million of security deposits for payment of rent on properties leased to Battle Green and The Cannabist Company. For the three months ended March 31, 2025, we applied $5.8 million of security deposits for payment of rent on properties leased to PharmaCann, Gold Flora, TILT and Sozo.
For the three months ended March 31, 2026, interest and other income increased by $4.6 million to $6.3 million compared to $1.6 million for the three months ended March 31, 2025. The increase was primarily driven by the recognition of $5.5 million of interest and dividend income related to our financial investments in IQHQ. The increase was partially offset by lower income from interest-bearing investments as a result of lower invested balances and lower interest rates earned on those balances.
Dividend
On March 13, 2026, the Board of Directors declared a first quarter 2026 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on April 15, 2026 to stockholders of record as of March 31, 2026.
Supplemental Information
Supplemental financial information is available in the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com.
Teleconference and Webcast
Innovative Industrial Properties, Inc. will conduct a conference call and webcast at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) on Tuesday, May 5, 2026 to discuss IIP’s financial results and operations for the first quarter ended March 31, 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 1-800-715-9871 (domestic) or 1-646-307-1963 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call. The complete webcast will be archived for one year on IIP’s website. A telephone playback of the conference call will also be available from 12:00 p.m. Pacific Time on Tuesday, May 5, 2026 until 8:59 p.m. Pacific Time on Tuesday, May 12, 2026, by calling 1-800-770-2030 (domestic), or 1-609-800-9909 (international) and using access code 5072512. 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.
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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 and potential debt financings, the consummation of which remains subject to the negotiation and execution of definitive documentation, satisfaction of customary closing conditions and other contingencies, including those relating to receivership sale processes. 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 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.
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INNOVATIVE INDUSTRIAL PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
| March 31, | December 31, | |||||||
| Assets | 2026 | 2025 | ||||||
| Real estate, at cost: | ||||||||
| Land | $ | 145,104 | $ | 146,320 | ||||
| Buildings and improvements | 2,269,439 | 2,269,597 | ||||||
| Construction in progress | 40,311 | 40,593 | ||||||
| Total real estate, at cost | 2,454,854 | 2,456,510 | ||||||
| Less accumulated depreciation | (361,093 | ) | (343,062 | ) | ||||
| Net real estate held for investment | 2,093,761 | 2,113,448 | ||||||
| Life science investments | 153,980 | 152,665 | ||||||
| Construction loan receivable | 22,800 | 22,800 | ||||||
| Cash and cash equivalents | 89,117 | 47,597 | ||||||
| In-place lease intangible assets, net | 6,155 | 6,366 | ||||||
| Other assets, net | 28,167 | 27,982 | ||||||
| Total assets | $ | 2,393,980 | $ | 2,370,858 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Liabilities: | ||||||||
| Notes due 2026, net | $ | 290,981 | $ | 290,602 | ||||
| Revolving credit facilities | 75,000 | 102,500 | ||||||
| Building improvements and construction funding payable | 851 | 2,964 | ||||||
| Accounts payable and accrued expenses | 14,702 | 10,870 | ||||||
| Dividends payable | 57,100 | 54,913 | ||||||
| Rent received in advance and tenant security deposits | 50,060 | 50,307 | ||||||
| Other liabilities | 10,746 | 10,698 | ||||||
| Total liabilities | 499,440 | 522,854 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, liquidation preference of $25.00 per share, 4,718,048 and 2,019,525 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 108,081 | 47,780 | ||||||
| Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,314,520 and 28,022,975 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 28 | 28 | ||||||
| Additional paid-in capital | 2,123,710 | 2,113,184 | ||||||
| Dividends in excess of earnings | (337,279 | ) | (312,988 | ) | ||||
| Total stockholders’ equity | 1,894,540 | 1,848,004 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,393,980 | $ | 2,370,858 | ||||
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INNOVATIVE INDUSTRIAL PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
(In thousands, except share and per share amounts)
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues: | ||||||||
| Rental (including tenant reimbursements) | $ | 68,920 | $ | 71,697 | ||||
| Other | 76 | 25 | ||||||
| Total revenues | 68,996 | 71,722 | ||||||
| Expenses: | ||||||||
| Property expenses | 7,576 | 7,379 | ||||||
| General and administrative expense | 10,349 | 8,461 | ||||||
| Depreciation and amortization expense | 18,584 | 18,391 | ||||||
| Impairment loss on real estate | — | 3,527 | ||||||
| Total expenses | 36,509 | 37,758 | ||||||
| Gain (loss) on sale of real estate | 422 | — | ||||||
| Income from operations | 32,909 | 33,964 | ||||||
| Interest and other income | 6,331 | 1,613 | ||||||
| Interest expense | (6,431 | ) | (4,500 | ) | ||||
| Net income | 32,809 | 31,077 | ||||||
| Preferred stock dividends | (2,654 | ) | (781 | ) | ||||
| Net income attributable to common stockholders | $ | 30,155 | $ | 30,296 | ||||
| Net income attributable to common stockholders per share: | ||||||||
| Basic | $ | 1.04 | $ | 1.05 | ||||
| Diluted | $ | 1.02 | $ | 1.03 | ||||
| Weighted-average shares outstanding: | ||||||||
| Basic | 27,991,910 | 28,275,549 | ||||||
| Diluted | 28,467,184 | 28,588,022 | ||||||
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INNOVATIVE INDUSTRIAL PROPERTIES, INC.
FFO, NORMALIZED FFO AND AFFO
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
(In thousands, except share and per share amounts)
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net income attributable to common stockholders | $ | 30,155 | $ | 30,296 | ||||
| Real estate depreciation and amortization | 18,584 | 18,391 | ||||||
| Impairment loss on real estate | — | 3,527 | ||||||
| Loss (gain) on sale of real estate | (422 | ) | — | |||||
| FFO attributable to common stockholders (basic and diluted) | 48,317 | 52,214 | ||||||
| Litigation-related expense | 1,870 | 406 | ||||||
| Loss (gain) on partial repayment of Notes due 2026 | — | (32 | ) | |||||
| Income on seller-financed notes(1) | 223 | 153 | ||||||
| Deferred lease payments received on sales-type leases(2) | 175 | 20 | ||||||
| Normalized FFO attributable to common stockholders (diluted) | 50,585 | 52,761 | ||||||
| Stock-based compensation | 2,584 | 2,078 | ||||||
| Non-cash interest expense | 576 | 470 | ||||||
| Non-cash accretion of life science investments | (334 | ) | — | |||||
| Above-market lease amortization | 23 | 23 | ||||||
| AFFO attributable to common stockholders (diluted) | $ | 53,434 | $ | 55,332 | ||||
| FFO per common share – diluted | $ | 1.70 | $ | 1.83 | ||||
| Normalized FFO per common share – diluted | $ | 1.78 | $ | 1.85 | ||||
| AFFO per common share – diluted | $ | 1.88 | $ | 1.94 | ||||
| Weighted average common shares outstanding – basic | 27,991,910 | 28,275,549 | ||||||
| Restricted stock and RSUs | 475,274 | 312,473 | ||||||
| Weighted average common shares outstanding – diluted | 28,467,184 | 28,588,022 | ||||||
____________________________________________________________________
| (1) | Amounts reflects 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. |
| (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 sheets as of March 31, 2026 and December 31, 2025 as the transaction did not qualify for recognition as a completed sale. |
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 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. IIP also excludes from FFO any disposition-contingent lease termination fee received in connection with a property sale.
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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 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 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.
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.
Definitions
Debt: Calculated as the sum of the carrying value of the Notes due 2026 and the Revolving Credit Facilities, as presented on IIP's consolidated balance sheet as of March 31, 2026.
Gross Assets: Calculated as total assets plus accumulated depreciation, as presented on IIP's consolidated balance sheet as of March 31, 2026.
Company Contact:
David Smith
Chief Financial Officer
Innovative Industrial Properties, Inc.
(858) 997-3332
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| Exhibit 99.2 | ||
| Innovative Industrial Properties First 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 Income From Loans and Securities 16 Capital Commitments and Dispositions 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 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; concentration of our portfolio of assets and limited number of tenants; the estimated growth in and evolving market dynamics of the regulated cannabis market; anticipated funding sources for our investment in the preferred stock of IQHQ, Inc. ("IQHQ"); defaults on our investments in real estate-related assets, such as the IQHQ credit facility and IQHQ preferred stock; 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, Iran, and Israel; 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; our ability to refinance or extend our existing indebtedness; 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 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. 3 |
| Innovative Industrial Properties Senior 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 March 31, 2026, we owned 110 properties comprising an aggregate of approximately 8.9 million rentable square feet in 19 states. For additional information, please visit www.innovativeindustrialproperties.com. Board of Directors Contact Information 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 Tracie Hager Senior Vice President, Asset Management Kelly Spicher Senior Vice President, Real Estate Counsel Andy Bui Vice President, Chief Accounting Officer Alan Gold Director, Executive Chairman Paul Smithers Director, President & Chief Executive Officer Gary Kreitzer* Vice Chairman, Nominating and Corporate Governance Committee Chair Scott Shoemaker, MD* Director, Compensation Committee Chair David Boyle* Director, Audit Committee Chair Note: * Denotes independent director 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. $1.85 $1.60 $1.60 $1.78 $1.78 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $71,722 $62,891 $64,685 $66,657 $68,996 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Historical Quarterly Results Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total Revenues $68,996 $66,657 $64,685 $62,891 $71,722 General and administrative expense $10,349 $7,967 $8,681 $8,626 $8,461 General and administrative expense / total revenues 15 % 12 % 13 % 14 % 12 % Net income attributable to common stockholders $30,155 $30,705 $28,288 $25,146 $30,296 Net income attributable to common stockholders – diluted (“EPS”) $1.02 $1.06 $0.97 $0.86 $1.03 Funds from operations attributable to common stockholders – diluted (“FFO”)(1) $48,317 $49,569 $46,927 $43,646 $52,214 FFO per common share – diluted(1) $1.70 $1.75 $1.66 $1.54 $1.83 Normalized FFO attributable to common stockholders – diluted (“Normalized FFO”)(1) $50,585 $50,377 $45,156 $45,228 $52,761 Normalized FFO per common share – diluted(1) $1.78 $1.78 $1.60 $1.60 $1.85 Adjusted funds from operations attributable to common stockholders – diluted (“AFFO”)(1) $53,434 $53,333 $48,348 $48,399 $55,332 AFFO per common share – diluted(1) $1.88 $1.88 $1.71 $1.71 $1.94 Common stock dividend per share(2) $1.90 $1.90 $1.90 $1.90 $1.90 AFFO Payout Ratio(3) 101 % 101 % 111 % 111 % 98 % Total Invested Capital(4) $2.5B $2.5B $2.5B $2.5B $2.5B % Leased – Operating Portfolio 97.8 % 96.7 % 95.8 % 98.6 % 98.4 % Quarterly Performance Summary 5 $1.94 $1.71 $1.71 $1.88 $1.88 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Total Revenues Normalized FFO(1) AFFO(1) |
| Innovative Industrial Properties , March 31, December 31, (In thousands, except share and per share amounts) 2026 2025 Assets Real estate, at cost: Land $145,104 $146,320 Buildings and improvements 2,269,439 2,269,597 Construction in progress 40,311 40,593 Total real estate, at cost 2,454,854 2,456,510 Less accumulated depreciation (361,093) (343,062) Net real estate held for investment 2,093,761 2,113,448 Life science investments 153,980 152,665 Construction loan receivable 22,800 22,800 Cash and cash equivalents 89,117 47,597 In-place lease intangible assets, net 6,155 6,366 Other assets, net 28,167 27,982 Total assets $2,393,980 $2,370,858 Liabilities and stockholders’ equity Liabilities: Notes due 2026, net $290,981 $290,602 Revolving credit facilities 75,000 102,500 Building improvements and construction funding payable 851 2,964 Accounts payable and accrued expenses 14,702 10,870 Dividends payable 57,100 54,913 Rent received in advance and tenant security deposits 50,060 50,307 Other liabilities 10,746 10,698 Total liabilities 499,440 522,854 Stockholders’ equity: Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, liquidation preference of $25.00 per share, 4,718,048 and 2,019,525 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 108,081 47,780 Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,314,520 and 28,022,975 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 28 28 Additional paid-in capital 2,123,710 2,113,184 Dividends in excess of earnings (337,279) (312,988) Total stockholders’ equity 1,894,540 1,848,004 Total liabilities and stockholders’ equity $2,393,980 $2,370,858 Balance Sheet 6 |
| Innovative Industrial Properties For the Three Months Ended , March 31, (In thousands, except share and per share amounts) 2026 2025 Revenues: Rental (including tenant reimbursements) $68,920 $71,697 $68,920 $71,697 Other 76 25 76 25 Total revenues 68,996 71,722 68,996 71,722 Expenses: Property expenses 7,576 7,379 7,576 7,379 General and administrative expense 10,349 8,461 10,349 8,461 Depreciation and amortization expense 18,584 18,391 18,584 18,391 Impairment loss on real estate — 3,527 — 3,527 Total expenses 36,509 37,758 36,509 37,758 Gain (loss) on sale of real estate 422 — 422 — Income from operations 32,909 33,964 32,909 33,964 Interest and other income 6,331 1,613 6,331 1,613 Interest expense (6,431) (4,500) (6,431) (4,500) Net income 32,809 31,077 32,809 31,077 Preferred stock dividends (2,654) (781) (2,654) (781) Net income attributable to common stockholders $30,155 $30,296 $30,155 $30,296 Net income attributable to common stockholders per share: Basic $1.04 $1.05 $1.04 $1.05 Diluted $1.02 $1.03 $1.02 $1.03 Weighted-average shares outstanding: Basic 27,991,910 28,275,549 27,991,910 28,275,549 Diluted 28,467,184 28,588,022 28,467,184 28,588,022 Net Income 7 |
| Innovative Industrial Properties For the Three Months Ended March 31, (In thousands) 2026 2025 Cash flows from operating activities Net income $32,809 $31,077 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 18,584 18,391 Impairment loss on real estate — 3,527 Loss (gain) on sale of real estate (422) — Paid-in-kind dividends and interest income on life science investments (1,002) — Stock-based compensation 2,584 2,078 Amortization of debt discount and issuance costs 576 470 Other non-cash adjustments (300) (11) Changes in assets and liabilities Other assets, net (527) 906 Accounts payable, accrued expenses and other liabilities 3,976 1,577 Rent received in advance and tenant security deposits (247) (3,773) Net cash provided by (used in) operating activities 56,031 54,242 Cash flows from investing activities Investments in real estate — (7,857) Proceeds from sale of real estate asset 2,608 — Funding of draws for improvements and construction (2,949) (9,041) Purchases of short-term investments — (5,258) Maturities of short-term investments — 5,000 Net cash provided by (used in) investing activities (341) (17,156) Cash flows from financing activities Issuance of common stock, net of issuance costs 9,281 — Repurchase of common stock — (290) Issuance of preferred stock, net of issuance costs 60,301 9,186 Draws on revolving credit facilities 5,000 — Repayments on revolving credit facilities (32,500) — Principal payment on debt — (8,697) Dividends paid to common stockholders (53,777) (54,253) Dividends paid to preferred stockholders (1,136) (564) Taxes paid related to net share settlement of equity awards (1,339) (703) Net cash provided by (used in) financing activities (14,170) (55,321) Net increase (decrease) in cash and cash equivalents 41,520 (18,235) Cash and cash equivalents, beginning of period 47,597 146,245 Cash and cash equivalents, end of period $89,117 $128,010 Supplemental disclosure of cash flow information: Cash paid during the period for interest, net of interest capitalized $2,017 $81 Supplemental disclosure of non-cash investing and financing activities: Accrual for current-period additions to real estate $96 $6,093 Accrual for common and preferred stock dividends declared 57,100 55,244 Statements of Cash Flows 8 |
| Innovative Industrial Properties For the Three Months Ended , March 31, (In thousands, except share and per share amounts) 2026 2025 Net income attributable to common stockholders $30,155 $30,296 $30,155 $30,296 Real estate depreciation and amortization 18,584 18,391 18,584 18,391 Impairment loss on real estate — 3,527 — 3,527 Loss (gain) on sale of real estate asset (422) — (422) — FFO attributable to common stockholders (basic and diluted) 48,317 52,214 48,317 52,214 Litigation-related expense 1,870 406 1,870 406 Loss (gain) on partial repayment of Notes due 2026 — (32) — (32) Income on seller-financed notes(1) 223 153 223 153 Deferred lease payments received on sales-type leases(2) 175 20 175 20 Normalized FFO attributable to common stockholders (diluted) 50,585 52,761 50,585 52,761 Stock-based compensation 2,584 2,078 2,584 2,078 Non-cash interest expense 576 470 576 470 Non-cash accretion of life science investments (334) — (334) — Above-market lease amortization 23 23 23 23 AFFO attributable to common stockholders (diluted) $53,434 $55,332 $53,434 $55,332 FFO per common share – diluted $1.70 $1.83 $1.70 $1.83 Normalized FFO per common share – diluted $1.78 $1.85 $1.78 $1.85 AFFO per common share – diluted $1.88 $1.94 $1.88 $1.94 Weighted average common shares outstanding – basic 27,991,910 28,275,549 27,991,910 28,275,549 Restricted stock and restricted stock units ("RSUs") 475,274 312,473 475,274 312,473 Weighted average common shares outstanding – diluted 28,467,184 28,588,022 28,467,184 28,588,022 FFO, Normalized FFO, and AFFO Reconciliation 1) Amounts represent non-refundable cash payments received pursuant to two seller-financed notes issued by IIPR in connection with IIPR's disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments were initially recorded as a deposit liability and included in other liabilities on IIPR’s 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 sheets as of March 31, 2026 and December 31, 2025, as the transaction did not qualify for recognition as a completed sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders. 9 |
| Innovative Industrial Properties For the Three Months Ended , March 31, (In thousands) 2026 2025 Net Income: $32,809 $31,077 $32,809 $31,077 Adjustments for EBITDA: Interest expense 6,431 4,500 6,431 4,500 Taxes (including corporate tax expense in G&A) 142 121 142 121 Depreciation and amortization expense 18,584 18,391 18,584 18,391 Above-market lease amortization 23 23 23 23 Non-cash accretion of life science investments $ (334) $ — (334) — Corp. asset depreciation (included in G&A expense) $ 26 $ 31 26 31 EBITDA $57,681 $54,143 $57,681 $54,143 Adjustments for Adjusted EBITDA: Non-cash stock-based compensation expense 2,584 2,078 2,584 2,078 Impairment loss on real estate — 3,527 — 3,527 Loss (gain) on sale of real estate (422) — (422) — Income on seller-financed notes(1) 223 153 223 153 Deferred lease payments received on sales-type lease(2) 175 20 175 20 Adjusted EBITDA $60,241 $59,921 $60,241 $59,921 EBITDA Reconciliation 10 1) Amounts represent non-refundable cash payments received pursuant to two seller-financed notes issued by IIPR in connection with IIPR's disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments were initially recorded as a deposit liability and included in other liabilities on IIPR’s 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 sheets as of March 31, 2026 and December 31, 2025, as the transaction did not qualify for recognition as a completed sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders. |
| Innovative Industrial Properties Historical Quarterly Results (In thousands, except share and per share amounts) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Revenues: Rental (including tenant reimbursements) $68,920 $66,631 $64,292 $62,866 $71,697 Other 76 26 393 25 25 Total revenues 68,996 66,657 64,685 62,891 71,722 Expenses: Property expenses 7,576 7,980 7,951 6,867 7,379 General and administrative expense 10,349 7,967 8,681 8,626 8,461 Depreciation and amortization expense 18,584 18,538 18,639 18,500 18,391 Impairment loss on real estate — — — — 3,527 Total expenses 36,509 34,485 35,271 33,993 37,758 Gain (loss) on sale of real estate 422 (326) — — — Income from operations 32,909 31,846 29,414 28,898 33,964 Interest and other income 6,331 6,721 4,416 1,570 1,613 Interest expense (6,431) (6,726) (4,525) (4,444) (4,500) Net income 32,809 31,841 29,305 26,024 31,077 Preferred stock dividends (2,654) (1,136) (1,017) (878) (781) Net income attributable to common stockholders $30,155 $30,705 $28,288 $25,146 $30,296 Net income attributable to common stockholders per share: Basic $1.04 $1.07 $0.99 $0.87 $1.05 Diluted $1.02 $1.06 $0.97 $0.86 $1.03 Weighted-average shares outstanding: Basic 27,991,910 27,913,384 27,912,881 27,924,092 28,275,549 Diluted 28,467,184 28,303,530 28,303,600 28,317,693 28,588,022 Historical Net Income 11 |
| Innovative Industrial Properties 1) Amounts represent non-refundable cash payments received pursuant to two seller-financed notes issued by IIPR in connection with IIPR's disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments were initially recorded as a deposit liability and included in other liabilities on IIPR’s 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 as interest and other income in connection with the termination of one of the seller-financed notes. 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 sheets as of March 31, 2026 and December 31, 2025, as the transaction did not qualify for recognition as a completed sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders. Historical Quarterly Results (In thousands, except share and per share amounts) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Net income attributable to common stockholders $30,155 $30,705 $28,288 $25,146 $30,296 Real estate depreciation and amortization 18,584 18,538 18,639 18,500 18,391 Impairment loss on real estate — — — — 3,527 Loss (gain) on sale of real estate (422) 326 — — — FFO attributable to common stockholders (basic and diluted) 48,317 49,569 46,927 43,646 52,214 Litigation-related expense 1,870 585 604 413 406 Loss (gain) on partial repayment of Notes due 2026 — — — — (32) Income on seller-financed notes(1) 223 223 (2,375) 1,164 153 Deferred lease payments received on sales-type leases(2) 175 — — 5 20 Normalized FFO attributable to common stockholders (diluted) 50,585 50,377 45,156 45,228 52,761 Stock-based compensation 2,584 2,698 2,684 2,672 2,078 Non-cash interest expense 576 568 485 476 470 Non-cash accretion of life science investments (334) (333) — — — Above-market lease amortization 23 23 23 23 23 AFFO attributable to common stockholders (diluted) $53,434 $53,333 $48,348 $48,399 $55,332 FFO per common share – diluted $1.70 $1.75 $1.66 $1.54 $1.83 Normalized FFO per common share – diluted $1.78 $1.78 $1.60 $1.60 $1.85 AFFO per common share – diluted $1.88 $1.88 $1.71 $1.71 $1.94 Weighted average common shares outstanding – basic 27,991,910 27,913,384 27,912,881 27,924,092 28,275,549 Restricted stock and RSUs 475,274 390,146 390,719 393,601 312,473 Weighted average common shares outstanding – diluted 28,467,184 28,303,530 28,303,600 28,317,693 28,588,022 Historical FFO, Normalized FFO, and AFFO Reconciliation 12 |
| Innovative Industrial Properties Historical Quarterly Results (In thousands) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Net Income $32,809 $31,841 $29,305 $26,024 $31,077 Adjustments for EBITDA: Interest expense 6,431 6,726 4,525 4,444 4,500 Taxes (including corporate tax expense in G&A) 142 1 (2) 88 121 Depreciation and amortization expense 18,584 18,538 18,639 18,500 18,391 Above-market lease amortization 23 23 23 23 23 Non-cash accretion of life science investments (334) (333) — — — Corp. asset depreciation (included in G&A expense) $ 26 $ 27 $ 27 27 31 EBITDA $57,681 $56,823 $52,517 $49,106 $54,143 Adjustments for Adjusted EBITDA: Non-cash stock-based compensation expense 2,584 2,698 2,684 2,672 2,078 Impairment loss on real estate — — — — 3,527 Loss (gain) on sale of real estate (422) 326 — — — Income on seller-financed notes(1) 223 223 (2,375) 1,164 153 Deferred lease payments received on sales-type lease(2) 175 — — 5 20 Adjusted EBITDA $60,241 $60,070 $52,826 $52,947 $59,921 Historical EBITDA Reconciliation 1) Amounts represent non-refundable cash payments received pursuant to two seller-financed notes issued by IIPR in connection with IIPR's disposition of certain properties. As the transactions did not qualify for recognition as completed sales under GAAP, the payments were initially recorded as a deposit liability and included in other liabilities on IIPR’s 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 as interest and other income in connection with the termination of one of the seller-financed notes. 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 sheets as of March 31, 2026 and December 31, 2025, as the transaction did not qualify for recognition as a completed sale. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders. 13 |
| Innovative Industrial Properties CANNABIS 93.0% LIFE SCIENCES 6.8% $315M BASE RENT / INTEREST(1) PORTFOLIO COMPOSITION 98% Leased Operating Portfolio $270M Financial Commitment to Life Science(3) PORTFOLIO HIGHLIGHTS 38 Tenants 12.4 Years Weighted Average Lease Length 8.9M Total Square Feet(4) 110 Properties OTHER 0.2% Highlights Note: As of March 31, 2026. Refer to “Definitions” for additional details. 1) Based on “Annualized Base Rent and Income from Loans and Securities (“Base Rent / Interest”)”. 2) Dollars in billions. Based on “Total Invested Capital”. 3) $150 million of which was invested as of March 31, 2026. 4) Includes 303,000 square feet under development or redevelopment. $315M Base Rent / Interest(1) $2.5B Real Estate(2) 14 |
| Innovative Industrial Properties Geographic Concentration – Real Estate Portfolio Note: As of March 31, 2026, values in thousands except for property count, $/PSF, or otherwise noted. Refer to “Definitions” for additional details. 1) Includes 303,000 square feet under development or redevelopment. 2) Dollars in billions. Based on “Total Invested Capital”. 3) Based on “Annualized Base Rent”. 19 States 8.9M Square Feet(1) $2.5B Invested Capital(2) 110 Properties 10-15% 0-5% 5-10% % ABR State % of ABR(3) PA 15.0% IL 14.1% MA 12.0% NY 11.8% FL 11.0% MI 8.1% OH 6.3% NJ 4.9% MD 4.8% CO 2.8% Other 9.2% Total 100.0% 15 |
| Innovative Industrial Properties 67.0% 8.5% 24.5% Top 10 Tenants Income from Loans and Securities Other Annualized Base Rent and Income From Loans and Securities 1) Dollars in thousands. Refer to “Annualized Base Rent (“ABR”)” for additional details. 2) Based on “Annualized Base Rent and 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 14, 2025, though such defaults are limited to the cross-default provisions under certain retail leases in Colorado. 5) 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. Annualized Base Rent Income Composition(2) Annualized Base Rent and Income From Loans and Securities $315M BASE RENT / INTEREST 16 IIPR Portfolio Square # of # Tenant ABR $(1) %(2) Feet(3) Leases 1 Ascend Wellness Holdings $31,767 10.1 % 624 4 2 PharmaCann(4) 29,723 9.4 % 364 7 3 Green Thumb Industries 23,211 7.4 % 664 3 4 Curaleaf 21,032 6.7 % 579 7 5 Trulieve 20,151 6.4 % 740 6 6 4Front Ventures(5) 18,335 5.8 % 488 4 7 Holistic Industries 17,454 5.5 % 298 4 8 Cresco Labs 17,175 5.5 % 379 5 9 Parallel 16,515 5.2 % 593 2 10 The Cannabist Company 15,618 5.0 % 506 20 Other 77,189 24.5 % 3,631 40 Total $288,170 91.5 % 8,866 102 Total Principal Maturity Commitments Amount / Wtd. Avg. Blended Annualized As of 03/31/2026 Outstanding Maturity Interest Rate Income Annualized Income from Loans and Securities Senior Secured Notes $31,500 $31,300 1.1 Years 16.7 % $5,240 Revolving Credit Facility 100,000 100,749 2.5 Years 13.5 % 13,601 Preferred Equity 170,000 51,075 Perpetual 15.0 % 7,661 Total / Weighted Average $301,500 $183,124 2.2 Years 14.5 % $26,502 Total Annualized Base Rent and Income from Loans and Securities $314,672 |
| Innovative Industrial Properties Rentable Sale Total State Closing / Execution Square Feet Price(1) Sale / PSF Dispositions Arizona Feb - 26 2 $2,700 $1,350 Total / Wtd. Avg. 2 $2,700 $1,350 $49,100 $0 $5,570 $7,750 $270,000 Real Estate Loans and Securities Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Capital Commitments and Dispositions 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. 1) Excludes transaction costs. 2) The 2Q 2024 TI commitment for AYR Florida was reduced by $2.5 million following an amendment to the lease in Q1 2025. Two Year Capital Commitment History(2) First Quarter Dispositions 17 |
| Innovative Industrial Properties 0% 0% 1% 1% 3% 1% 0% 2% 9% 9% 73% 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% Total 4 331 4% Note: Rentable square feet values in thousands. 1) As a % of annualized base rent. Leasing Summary 2026 Leasing Activity as of March 31, 2026 Representing $288 Million in Annualized Base Rent Expiring Leases 2 1 3 3 5 6 0 14 13 13 42 Lease Expiration Schedule as of March 31, 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 3241-3247 Needles California Needles 9/11/2019 — % 46 — 46 $10,100 $— $10,100 $220 2 3253 Needles Hwy. California Needles 8/29/2019 — % 20 — 20 4,841 — 4,841 242 3 4Front Ventures Illinois Matteson 8/3/2021 100.0 % 250 — 250 71,684 — 71,684 287 4 4Front Ventures Washington Olympia 12/17/2020 100.0 % 114 — 114 17,500 — 17,500 154 5 4Front Ventures* Massachusetts Holliston 1/28/2022 100.0 % 57 — 57 16,000 — 16,000 281 6 Ascend Wellness Holdings Illinois Barry 12/21/2018 100.0 % 166 — 166 71,000 — 71,000 428 7 Ascend Wellness Holdings Massachusetts Athol 4/2/2020 100.0 % 199 — 199 63,900 — 63,900 321 8 Ascend Wellness Holdings New Jersey Franklin 2/10/2022 100.0 % 114 — 114 55,000 — 55,000 482 9 Ascend Wellness Holdings Michigan Lansing 7/2/2019 100.0 % 145 — 145 24,150 — 24,150 167 10 AYR Wellness Florida Ocala 6/7/2024 100.0 % 145 — 145 38,526 1,974 40,500 279 11 AYR Wellness Ohio Akron 5/14/2019 100.0 % 11 — 11 3,550 — 3,550 323 12 Battle Green Ohio Columbus 3/3/2023 100.0 % 157 — 157 46,429 71 46,500 296 13 Berry Green Michigan Warren 10/9/2019 100.0 % 205 — 205 83,595 — 83,595 408 14 Calyx Peak Missouri Smithville 9/17/2021 100.0 % 85 — 85 28,250 — 28,250 332 15 Cresco Labs Michigan Marshall 4/22/2020 100.0 % 115 — 115 32,000 — 32,000 278 16 Cresco Labs Illinois Kankakee 10/22/2019 100.0 % 51 — 51 25,496 104 25,600 502 17 Cresco Labs Illinois Joliet 10/22/2019 100.0 % 39 — 39 20,950 — 20,950 537 18 Cresco Labs Ohio Yellow Springs 1/24/2020 100.0 % 50 — 50 13,545 — 13,545 271 19 Curaleaf Pennsylvania Chambersburg 12/20/2019 100.0 % 179 — 179 60,889 751 61,640 344 20 Curaleaf Illinois Litchfield 10/30/2019 100.0 % 127 — 127 40,000 — 40,000 315 21 Curaleaf New Jersey Blue Anchor 7/13/2020 100.0 % 123 — 123 35,000 — 35,000 285 22 Curaleaf Massachusetts Webster 9/1/2022 100.0 % 108 — 108 21,500 — 21,500 199 23 Curaleaf North Dakota Fargo 12/20/2019 100.0 % 33 — 33 12,190 — 12,190 369 24 Curran Highway Massachusetts North Adams 5/26/2021 — % 71 — 71 26,800 — 26,800 377 25 Gramlin California Desert Hot Springs 10/15/2021 100.0 % 204 — 204 63,500 — 63,500 311 26 Gramlin California Palm Springs 4/16/2019 100.0 % 56 — 56 35,530 — 35,530 634 27 Green Thumb Industries Pennsylvania Danville 11/12/2019 100.0 % 300 — 300 94,600 — 94,600 315 28 Green Thumb Industries Illinois Oglesby 3/6/2020 100.0 % 266 — 266 50,000 — 50,000 188 29 Green Thumb Industries Ohio Toledo 1/31/2020 100.0 % 98 — 98 32,200 — 32,200 329 30 Grown Rogue Illinois Dwight 10/30/2019 100.0 % 66 — 66 28,000 — 28,000 424 31 Holistic Industries Maryland Capitol Heights 5/26/2017 100.0 % 72 — 72 33,719 31 33,750 469 32 Holistic Industries Pennsylvania New Castle 6/10/2020 100.0 % 108 — 108 25,629 21 25,650 238 33 Holistic Industries Massachusetts Monson 7/12/2018 100.0 % 55 — 55 19,750 — 19,750 359 34 Jushi Pennsylvania Scranton 4/6/2018 100.0 % 145 — 145 45,800 — 45,800 316 35 Lume Cannabis Company Michigan Dimondale 8/2/2018 100.0 % 56 — 56 17,634 165 17,799 318 36 Maryland Cultivation Processing (MCP) Maryland Hagerstown 4/13/2022 100.0 % 87 — 87 25,000 — 25,000 287 37 Maryland Cultivation Processing (MCP) Maryland Hagerstown 10/2/2024 100.0 % 23 — 23 5,570 — 5,570 242 38 Mitten Extracts Michigan Dimondale 4/16/2021 100.0 % 201 — 201 72,079 — 72,079 359 39 North Palm Springs CA (Undisclosed Tenant) California North Palm Springs 5/12/2020 100.0 % 70 — 70 18,107 — 18,107 259 40 Parallel Florida Lakeland 9/18/2020 100.0 % 220 — 220 56,400 — 56,400 256 41 Parallel Florida Wimauma 3/11/2020 100.0 % 373 — 373 51,500 — 51,500 138 42 Perpetual Brands Massachusetts Holliston 5/31/2018 100.0 % 58 — 58 31,159 23 31,183 538 43 PharmaCann New York Hamptonburgh 12/19/2016 100.0 % 186 48 234 130,628 — 130,628 558 44 PharmaCann Pennsylvania Olyphant 8/7/2019 100.0 % 56 — 56 28,000 — 28,000 500 45 PharmaCann Ohio Buckeye Lake 3/13/2019 100.0 % 58 — 58 20,000 — 20,000 345 46 Sacramento CA (Undisclosed Tenant) California Sacramento 2/8/2019 100.0 % 43 — 43 12,710 — 12,710 296 47 Texas Original Texas Bastrop 6/14/2022 100.0 % 75 — 75 22,000 — 22,000 293 48 The Cannabist Company Pennsylvania Saxton 5/20/2019 100.0 % 270 — 270 42,891 — 42,891 159 49 The Cannabist Company New Jersey Vineland 7/16/2020 100.0 % 50 — 50 11,820 — 11,820 236 50 The Cannabist Company Colorado Denver 10/30/2018 100.0 % 58 — 58 11,250 — 11,250 194 51 The Cannabist Company Colorado Denver 12/14/2021 100.0 % 18 — 18 9,917 — 9,917 551 52 The Cannabist Company Colorado Denver 12/14/2021 100.0 % 12 — 12 3,276 — 3,276 273 53 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 March 31, 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 March 31, 2026. **Includes an additional two non-cannabis tenants currently occupying 79,000 sqft. ***Harvest Health & Recreation Inc., which is a subsidiary of Trulieve Inc., executed a lease guaranty in favor of IIPR for tenant’s obligations at the property. 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 54 TILT Holdings Pennsylvania White Haven 2/15/2023 100.0 % 58 — 58 $15,000 $— $15,000 $259 55 Tri-Mountain Pure** Pennsylvania Pittsburgh 5/13/2021 100.0 % 239 — 239 68,368 64 68,432 286 56 Trulieve Massachusetts Holyoke 7/26/2019 100.0 % 150 — 150 43,500 — 43,500 290 57 Trulieve Florida Alachua 1/22/2021 100.0 % 295 — 295 41,650 — 41,650 141 58 Trulieve Maryland Hancock 8/13/2021 100.0 % 115 — 115 29,515 — 29,515 257 59 Trulieve Florida Quincy 10/23/2019 100.0 % 120 — 120 17,000 — 17,000 142 60 Trulieve Arizona Cottonwood 4/27/2022 100.0 % 17 — 17 5,238 — 5,238 308 61 Trulieve*** Nevada Las Vegas 7/12/2019 100.0 % 43 — 43 9,600 — 9,600 223 62 Verdant California Cathedral City 3/25/2022 100.0 % 23 — 23 15,250 — 15,250 663 63 Verdant Maryland Frederick 2/21/2025 100.0 % 22 — 22 7,750 — 7,750 352 64 Vireo New York Perth 10/23/2017 100.0 % 389 — 389 81,358 — 81,358 209 65 Vireo Minnesota Otsego 11/8/2017 100.0 % 89 — 89 9,710 — 9,710 109 Operating: Cannabis - Industrial Subtotal / Wtd. Avg. 98.1 % 7,812 48 7,860 $2,185,504 $3,204 $2,188,708 $278 Operating: Cannabis - Retail 66 1804 Needles California Needles 8/29/2019 — % 6 — 6 $888 $— $888 $148 67 109 Main Street Pennsylvania Bradford 12/14/2021 — % 3 — 3 1,058 — 1,058 353 68 Curaleaf North Dakota Dickinson 12/14/2021 100.0 % 5 — 5 2,045 — 2,045 409 69 Curaleaf North Dakota Devils Lake 12/14/2021 100.0 % 4 — 4 1,614 — 1,614 404 70 Green Peak (Skymint) Michigan East Lansing 10/25/2019 100.0 % 3 — 3 3,372 28 3,400 1,133 71 Green Peak (Skymint) Michigan Flint 11/4/2019 100.0 % 6 — 6 2,180 — 2,180 363 72 PharmaCann Colorado Commerce City 2/21/2020 100.0 % 5 — 5 2,300 — 2,300 460 73 PharmaCann Colorado Aurora 12/14/2021 100.0 % 2 — 2 1,674 — 1,674 837 74 PharmaCann Colorado Berthoud 12/14/2021 100.0 % 6 — 6 1,406 — 1,406 234 75 PharmaCann Colorado Pueblo 2/19/2020 100.0 % 3 — 3 1,049 — 1,049 350 76 Schwazze Colorado Ordway 12/14/2021 100.0 % 2 — 2 400 — 400 200 77 Schwazze Colorado Rocky Ford 12/14/2021 100.0 % 13 — 13 400 — 400 31 78 Schwazze Colorado Las Animas 12/14/2021 100.0 % 2 — 2 400 — 400 200 79 South Cedar Street Michigan Lansing 11/4/2019 — % 14 — 14 2,225 — 2,225 159 80 South Mason Drive Michigan Newaygo 11/8/2019 — % 2 — 2 995 — 995 498 81 The Cannabist Company Colorado Denver 12/14/2021 100.0 % 4 — 4 7,338 — 7,338 1,834 82 The Cannabist Company Colorado Pueblo 12/14/2021 100.0 % 6 — 6 4,878 — 4,878 813 83 The Cannabist Company Colorado Aurora 12/14/2021 100.0 % 5 — 5 4,229 — 4,229 846 84 The Cannabist Company Colorado Glenwood Springs 12/14/2021 100.0 % 4 — 4 4,187 — 4,187 1,047 85 The Cannabist Company Colorado Fort Collins 12/14/2021 100.0 % 5 — 5 3,977 — 3,977 795 86 The Cannabist Company Colorado Aurora 12/14/2021 100.0 % 4 — 4 3,601 — 3,601 900 87 The Cannabist Company New Jersey Vineland 7/16/2020 100.0 % 4 — 4 2,165 — 2,165 541 88 The Cannabist Company Colorado Aurora 12/14/2021 100.0 % 5 — 5 1,991 — 1,991 398 89 The Cannabist Company Colorado Englewood 12/14/2021 100.0 % 4 — 4 1,778 — 1,778 445 90 The Cannabist Company Colorado Trinidad 12/14/2021 100.0 % 9 — 9 1,728 — 1,728 192 91 The Cannabist Company Colorado Silver Plume 12/14/2021 100.0 % 4 — 4 1,444 — 1,444 361 92 The Cannabist Company Colorado Black Hawk 12/14/2021 100.0 % 4 — 4 1,321 — 1,321 330 93 The Cannabist Company Colorado Edgewater 12/14/2021 100.0 % 5 — 5 1,089 — 1,089 218 94 The Cannabist Company Colorado Sheridan 12/14/2021 100.0 % 2 — 2 890 — 890 445 95 Verano Pennsylvania Harrisburg 3/23/2022 100.0 % 3 — 3 2,750 — 2,750 917 96 Wilder Road Michigan Bay City 11/4/2019 — % 4 — 4 1,740 — 1,740 435 Operating: Cannabis - Retail Subtotal / Wtd. Avg. 89.7 % 148 — 148 $67,111 $28 $67,138 $454 |
| 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 March 31, 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 97 4Front Ventures Massachusetts Georgetown 12/17/2020 100.0 % 67 — 67 $15,500 $— $15,500 $231 98 AYR Wellness Virginia Richmond 1/15/2020 100.0 % 82 — 82 19,750 — 19,750 241 99 Cresco Labs Massachusetts Fall River 6/30/2020 100.0 % 124 — 124 27,624 1,126 28,750 232 100 Holistic Industries Michigan Madison Heights 9/1/2020 100.0 % 63 — 63 28,500 — 28,500 452 101 Kaya Cannabis Colorado Denver 12/14/2021 100.0 % 6 — 6 1,299 — 1,299 217 102 Schwazze Colorado Pueblo 12/14/2021 100.0 % 8 — 8 2,165 — 2,165 271 103 Sozo Michigan Warren 5/14/2021 100.0 % 85 — 85 17,230 — 17,230 203 104 The Cannabist Company Colorado Denver 12/14/2021 100.0 % 33 — 33 8,206 — 8,206 249 105 TILT Holdings Massachusetts Taunton 5/16/2022 100.0 % 104 — 104 40,000 — 40,000 385 Operating: Cannabis - Industrial / Retail Subtotal / Wtd. Avg. 100.0 % 572 — 572 $160,274 $1,126 $161,400 $282 Operating: Non-Cannabis 106 2103 Broadway California Needles 8/29/2019 — % 7 — 7 $1,471 $— $1,471 $210 107 Non-Cannabis Tenant Michigan Traverse City 11/25/2019 100.0 % 2 — 2 1,272 — 1,272 636 108 Non-Cannabis Tenant California Palm Springs 4/16/2019 50.0 % 22 — 22 5,788 — 5,788 263 Operating: Non-Cannabis Subtotal / Wtd. Avg. 48.8 % 31 — 31 $8,531 $— $8,531 $275 Operating Portfolio Total / Wtd. Avg. 97.8 % 8,563 48 8,611 $2,421,420 $4,357 $2,425,777 $282 Dev. / Redev. Properties(3) 109 Inland Center Drive California San Bernardino 11/16/2020 — % — 192 192 $35,819 $— $35,819 $187 110 Leah Avenue Texas San Marcos 3/10/2021 — % — 63 63 8,231 — 8,231 131 Dev. / Redev. Properties / Wtd. Avg. — % — 255 255 $44,050 $— $44,050 $173 Total Portfolio / Wtd. Avg. 96.1 % 8,563 303 8,866 $2,465,470 $4,357 $2,469,827 $279 State Subtotal / Wtd. Avg. 1 Pennsylvania 99.7 % 1,361 — 1,361 $384,984 $836 $385,821 $283 2 Illinois 100.0 % 965 — 965 $307,131 $104 $307,234 $318 3 Massachusetts 91.3 % 993 — 993 $305,734 $1,149 $306,883 $309 4 Michigan 98.3 % 901 — 901 $286,972 $193 $287,164 $319 5 New York 100.0 % 575 48 623 $211,986 $— $211,986 $340 6 Florida 100.0 % 1,153 — 1,153 $205,076 $1,974 $207,050 $180 7 California 72.5 % 497 192 689 $204,003 $— $204,003 $296 8 Ohio 100.0 % 374 — 374 $115,724 $71 $115,795 $310 9 New Jersey 100.0 % 291 — 291 $103,985 $— $103,985 $357 10 Maryland 100.0 % 319 — 319 $101,554 $31 $101,585 $318 11 Colorado 100.0 % 229 — 229 $82,192 $— $82,192 $359 12 Texas 72.8 % 75 63 138 $30,231 $— $30,231 $219 13 Missouri 100.0 % 85 — 85 $28,250 $— $28,250 $332 14 Arizona 100.0 % 375 — 375 $25,238 $— $25,238 $67 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 Senior Secured Notes 6/25/2021 0.8 Years $22,800 $23,000 2 Harris Township Seller Financing(1) Senior Secured Notes 4/25/2025 2.1 Years 8,500 8,500 3 IQHQ Revolving Credit Facility 9/30/2025 2.5 Years 100,749 100,000 4 IQHQ Preferred Equity 9/30/2025 Perpetual 51,075 170,000 Loans and Securities Portfolio Total / Wtd. Avg. 2.2 Years $183,124 $301,500 Loans and Securities Note: Loan list maturity does not include available loan extensions. Dollars in thousands. 1) Relates to the seller-financed note issued to us by the buyer in connection with our 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. 22 |
| Innovative Industrial Properties As of As of Capitalization March 31, 2026 Investment Grade Bond Covenants(1) Thresholds March 31, 2026 Common Shares Outstanding 28,314,520 Total Debt to Adjusted Total Assets 60 % 13 % Share Price $50.16 Secured Debt to Adjusted Total Assets 40 % 3 % Debt Service Coverage Ratio 1.5x 11.6x Equity Market Capitalization $1,420,256 Total Unencumbered Assets to Unsecured Debt 150 % 832 % Series A Preferred Stock: Redemption price per share $25.00 IIPR Issuer Credit Ratings Shares outstanding 4,718,048 Egan Jones: BBB+ Total Preferred Equity $117,951 Senior Secured Debt $75,000 As of Senior Unsecured Debt $291,215 Q1 2026 Net Leverage March 31, 2026 Total Debt $366,215 Q1 2026 Adjusted EBITDA $60,241 Annualized Q1 2026 Adjusted EBITDA(2) $240,964 Total Market Capitalization $1,904,423 Net Debt $277,098 Less: Cash & Cash Equivalents $89,117 LQA Net Leverage Ratio(3) 1.1x Total Enterprise Value $1,815,306 As of Total Liquidity March 31, 2026 Revolving Credit Facility Capacity $87,500 Cash & Cash Equivalents $89,117 Total Liquidity $176,617 Capital and Key Metrics Note: Dollars in thousands, except share and per share amounts. 1) Calculated in accordance with the indenture governing the Notes due 2026, included in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2021. 2) Annualized Adjusted EBITDA is calculated by multiplying the Adjusted EBITDA by 4. 3) LQA Net Leverage Ratio is calculated by dividing Net Debt by annualized Adjusted EBITDA. 23 |
| Innovative Industrial Properties Maturity / Wtd. As of March 31, 2026 Investment Maturity Date Avg. Maturity Coupon Rate Effective Rate Commitment Principal Senior Secured Debt Revolving Credit Facility I(1) Oct-26 0.6 Years Prime + Spread 9.00 % $87,500 $— Revolving Credit Facility II(2) Oct-28 2.5 Years SOFR + 2.00% 6.10 % $100,000 $75,000 Total Senior Secured Debt 2.5 Years 6.10 % $187,500 $75,000 Senior Unsecured Debt Notes due 2026 May-26 0.2 Years 5.50 % 5.50 % $291,215 Total Senior Unsecured Debt 0.2 Years 5.50 % $291,215 Gross Debt 0.6 Years 5.62 % $366,215 $291.2 Million $75.0 Million Notes Due 2026 Credit Facilities 2026 2027 2028 2029 2030 Thereafter Debt Maturity Schedule Debt Detail Note: Dollars in thousands. 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 the quarter end 9.0% is the applied rate. 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 the quarter end, 6.1% is the applied rate. As of March 31, 2026, there is no additional availability under this revolver as the Company is able to borrow up to 50% of its investment in IQHQ, which was $150 million as of the end of the first quarter. 24 |
| Innovative Industrial Properties Analyst Coverage Analyst Research Firms 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 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 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 Income from Loans and Securities (“Base Rent / Interest”): Annualized Base Rent and Income from Loans and Securities is calculated by adding ABR and 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 blended 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 deprecation) 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 and deferred lease payments received on sales-type lease. • 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 also excludes from FFO any disposition-contingent lease termination fee received in connection with a property sale. 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) • GAAP: Accounting principles generally accepted in the United States. • Gross Debt: Calculated as the sum of the principal amount outstanding of the Notes due 2026 and borrowings on the Revolving Credit Facilities. • Liquidity: Total liquidity consists of cash and cash equivalents and short-term investments (each as reported in IIP’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 total 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. 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. • Notes due 2026: 5.50% Unsecured Senior Notes due 2026. • 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. 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 14, 2025, March 28, 2025, and March 16, 2026. • Weighted Average Lease Length: Calculated by weighting the remaining lease term based by the Annualized Base Rent (“ABR”). 27 |
| Exhibit 99.3 | ||
| Innovative Industrial Properties 1 INNOVATIVE INDUSTRIAL PROPERTIES NYSE: IIPR INNOVATIVEINDUSTRIALPROPERTIES.COM COMPANY PRESENTATION – MAY 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; the estimated growth in and evolving market dynamics of the regulated cannabis market; anticipated funding sources for our investment in the preferred stock of IQHQ, Inc. ("IQHQ"); defaults on our investments in real estate-related assets, such as the IQHQ credit facility and IQHQ preferred stock; 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, Iran. and Israel; 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; our ability to refinance or extend our existing indebtedness; 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 March 31, 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 the remaining lease term based 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 $2.5B Total Invested Capital(1) 110 Total Properties 12.4 Years Weighted Average Lease Length (2) $69.0M Q1 2026 Total Revenue $270M Commitment to Life Science 19 U.S. States $1B+ 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 • $2.5B 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 • Demonstrated access to multiple capital markets • Oct’25 closed on $100M credit facility 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 – Q1'26 (Ann) • Total return since inception in 2016 of >360%(3) • Over $1B+ in dividends paid since inception in 2016 (1) Whitney Economics Cannabis Market Forecast (March 2026). (2) Cushman & Wakefield Life Sciences Update (February 2026). (3) Per S&P Capital IQ Pro as of 3/31/2026. 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 large and growing sector OUR BUSINESS MODEL & BENEFITS PORTFOLIO COMPOSITION CANNABIS 93.0% LIFE SCIENCES 6.8% $315M BASE RENT / INTEREST (1) OTHER 0.2% Shifting Revenue Mix More Towards Life Sciences Note: Data as of March 31, 2026, unless otherwise noted. (1) Annualized Base Rent and Income from Loans and Securities (“Base Rent / Interest”) is calculated by adding Annualized Base Rent (“ABR”) and 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 blended 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 March 31, 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) Pennsylvania $43,188 15.0% 10 1,361 Illinois 40,705 14.1% 7 965 Massachusetts 34,599 12.0% 10 993 New York 33,895 11.8% 2 623 Florida 31,644 11.0% 5 1,153 Michigan 23,265 8.1% 13 901 Ohio 18,285 6.3% 5 374 New Jersey 13,997 4.9% 4 291 Maryland 13,868 4.8% 5 319 Colorado 7,984 2.8% 26 229 Total – Top 10 States $261,430 90.8% 87 7,209 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 $31,767 10.1% 624 4 29,723 9.4% 364 7 23,211 7.4% 664 3 21,032 6.7% 579 7 20,151 6.4% 740 6 18,335 5.8% 488 4 17,454 5.5% 298 4 17,175 5.5% 379 5 16,515 5.2% 593 2 15,618 5.0% 506 20 Total $210,981 67.0% 5,235 62 $30.0M $73.3M $167.4M $690.0M $1.3B $2.0B $2.3B $2.4B $2.5B $2.5B $2.5B 1 4 8 18 20 26 29 32 35 38 38 Invested Capital # of Tenants 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 3/31/26 NNN PORTFOLIO TOP 10 TENANTS Note: Data as of March 31, 2026, unless otherwise noted. (1) As a % of Annualized Base Rent and Income from Loans and Securities (“Base Rent / Interest”). Annualized Base Rent and Income from Loans and Securities is calculated by adding Annualized Base Rent (“ABR”) and 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 blended 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 Annualized Base Rent 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. Company Type 65% Public 35% Private Total Invested Capital & Tenant Growth (2) Tenant Composition(3) Operator Type (4) 89% MSO 11% SSO (5) (6) |
| 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 investment, 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 • Expected to be significantly accretive to AFFO per share • 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 state industry |
| Innovative Industrial Properties 9 STRONG, LOW LEVERAGED BALANCE SHEET Debt Overview Revolving Credit Facilities: • -$187.5M total commitment, $87.5M available Unsecured Senior Notes: • -Investment grade rating BBB+ from Egan Jones, since May 2021 • -$291.2M of 5.50% unsecured senior notes due May 2026 13% Debt to Total Gross Assets(1) 11.6x Debt Service Coverage Ratio (1) $176M+ Liquidity Available (2) % $291.2M $75.0M Notes Due 2026 Credit Facilities 2026 2027 2028 2029 2030 Thereafter Note: As of March 31, 2026, unless otherwise noted. (1) Calculated in accordance with the indenture governing the Notes due 2026, included in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2021. (2) 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. (3) Share price per S&P Capital IQ Pro as of 3/31/2026. Gross debt is calculated as the sum of the principal amount outstanding of the Notes due 2026 and borrowings on the revolving credit facilities. Gross Debt, $366.2M Preferred Equity, $118.0M Common Equity Market Capitalization, $1.4B Debt Maturity Schedule Capital Structure(3) |
| Innovative Industrial Properties 10 79% 248% 360% 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 3/31/2026. RMZ represents the MSCI US REIT Index. 9% CAGR (2) Total Returns Since IIPR Inception (3) 4.5x Greater Return than RMZ AFFO AND DIVIDEND TRACK RECORD $4.47 $7.60 2020 Q1'26 (Ann) Dividends Per Share 7% CAGR (2) $5.01 $7.52 2020 Q1'26 (Ann) AFFO Per Share(1) RMZ S&P 500 IIPR |
| Innovative Industrial Properties 11 Life Sciences Employment Forecast Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25F Q2'25F Q3'25F Q4'25F 1.0 1.2 1.4 1.6 1.8 2.0 2.2 $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) Life Sciences Employment Growth Expected to Continue (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 removes 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) 94% of life sciences CEOs say they will increase headcount over the next three years 37% of the total think they will grow their workforce by 6% or more 19,000 new jobs in 2025 (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) CBRE 2025 U.S. Life Sciences Outlook (February 2025). • 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 12 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 8% CAGR $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 are now eligible for DEA registration, establishing federal oversight and recognition • 280E no longer applies to medical licensees, potentially driving meaningful cash flow improvement and potential retrospective tax relief • DEA will hold a new hearing on June 29, 2026 to evaluate broader changes to marijuana’s federal status $29B $43B 2025 2026E 2027E 2028E 2029E 2030E |
| Innovative Industrial Properties 13 All US 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) Drug Approvals (2) (1) Cushman & Wakefield Life Sciences Update (February 2026). (2) U.S. Food and Drug Administration +40% + +61% 68% Millions of Square Feet Inventory Under Contruction 9% 8% 8% 7% 9% 9% 10% 11% 16% 17% 15% 12% 10% 9% 7% 6% 4% 4% 4% 3% Under Construction % of Total Inventory Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 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 $ Billions Funding by Source Pharma R&D (Domestic) NIH U.S. VC Funding 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $— $50 $100 $150 $200 |
| Innovative Industrial Properties 14 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 15 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 16 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 17 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 18 APPENDIX |
| Innovative Industrial Properties 19 Q1 2026 FY 2020 Actual Annualized Actual Net income attributable to common stockholders $30,155 $120,620 $64,378 Real estate depreciation and amortization 18,584 74,336 28,025 Loss (gain) on sale of real estate (422) (1,688) — FFO attributable to common stockholders (basic and diluted) 48,317 193,268 92,403 Financing expense — — 211 Acquisition-related expense — — 94 Litigation-related expense 1,870 7,480 — Income on seller-financed note(1) 223 892 — Deferred lease payments received on sales-type leases(2) 175 700 — Normalized FFO attributable to common stockholders (diluted) 50,585 202,340 92,708 Stock-based compensation 2,584 10,336 3,330 Non-cash interest expense 576 2,304 2,040 Non-cash accretion of life science investments (334) (1,336) — Above-market lease amortization 23 92 — AFFO attributable to common stockholders (diluted) $53,434 $213,736 $98,078 FFO per common share – diluted $1.70 $6.80 $4.72 Normalized FFO per common share – diluted $1.78 $7.12 $4.74 AFFO per common share – diluted $1.88 $7.52 $5.01 Weighted average common shares outstanding – basic 27,991,910 27,913,384 19,443,602 Restricted stock and restricted stock units ("RSUs") 475,274 390,146 114,017 Weighted average common shares outstanding – diluted 28,467,184 28,303,530 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. |
