Marijuana REIT Innovative Industrial Properties Q2 FY23 Revenue Grows 8% YoY To $76.5M

Innovative Industrial Properties, Inc., the first and only real estate company on the New York Stock Exchange IIPR focused on the regulated U.S. cannabis industry, released results for the second quarter ended June 30, 2023, revealing total revenue of $76.5 million, an 8% increase compared to $70.5 million in the Q2 2022.

Q2 2023 Financial Highlights

• Net income attributable to common stockholders of approximately $40.9 million for the quarter, or $1.44 per diluted share, compared to $39.9 million or $1.42 per diluted share in Q2 2022.

• Adjusted fund from operations (AFFO) of approximately $64.0 million, or $2.26 per diluted share, increases of 6% and 5% from the prior year’s quarter, respectively.

• Paid a quarterly dividend of $1.80 per common share on July 14, 2023 to stockholders of record as of June 30, 2023. The common stock dividends declared for the twelve months ended June 30, 2023 of $7.20 per common share represent an increase of $0.70, or 11%, over dividends declared for the twelve months ended June 30, 2022.

Rent Collection

Rent collection for IIP’s operating portfolio (calculated as base rent and property management fees collected as a percentage of contractually due base rent and property management fees) was 97% for the three months ended June 30, 2023.

Rent collected for the quarter includes approximately $1.5 million of security deposits applied in connection with previously disclosed amendments with Holistic Industries Inc. at a California property and a Michigan property and Temescal Wellness of Massachusetts, LLC at a Massachusetts property, with pro rata payback of these security deposits to be made over twelve-month periods.

Rent not collected for the quarter totaled approximately $2.1 million, primarily relating to a previously disclosed, defaulted tenant SH Parent, Inc. (Parallel) at one of IIP’s properties in Pennsylvania.

New Lease

Executed a new lease with a tenant at IIP’s Perez Road property in Cathedral City, California, which was previously leased to Kings Garden Inc. and is currently under development.

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Photo by Mackenzie Marco on Unsplash