Page 1

IP Innovative Industrial Properties Reports Third Quarter 2021 Results INNOVATIVE Industrial Properties November 03 , 2021 Portfolio Performance of 76 Properties Comprising 7.5 Million RSF in 19 States Drives 57 % Growth in Q3 Total Revenues Y - O - Y SAN DIEGO -- ( BUSINESS WIRE ) -- Innovative Industrial Properties , Inc. ( IIP ) , the first and only real estate company on the New York Stock Exchange ( NYSE : IIPR ) focused on the regulated U.S. cannabis industry , announced today results for the quarter ended September 30 , 2021 . Third Quarter 2021 and Subsequent Events Highlights Financial Results ● ● Generated total revenues of approximately $ 53.9 million in the quarter , representing a 57 % increase from the prior year's third quarter . ● Recorded net income attributable to common stockholders of approximately $ 29.8 million for the quarter , or $ 1.20 per diluted share , and adjusted funds from operations ( AFFO ) of approximately $ 45.0 million , or $ 1.71 per diluted share ( Note : AFFO per diluted share for the period includes the dilutive impact of the assumed full exchange of IIP's $ 143.75 million of exchangeable senior notes ( the Exchangeable Senior Notes ) for shares of common stock ) . Paid a quarterly dividend of $ 1.50 per share on October 15 , 2021 to common stockholders of record as of September 30 , 2021 , representing an approximately 28 % increase over the third quarter 2020's dividend . As previously announced , going forward as a general matter , IIP's board of directors expects to evaluate adjustments to the level of IIP's quarterly common stock dividend every six months , with any adjustments expected to be declared in the first quarter and third quarter of each year . Investment Activity From July 1 , 2021 through today , made five acquisitions ( including four new properties and additional land expansion at an existing property ) for properties located in California , Illinois , Maryland , Missouri and New York , and executed four lease amendments to provide additional improvement allowances at properties located in Illinois , Maryland , Massachusetts and Michigan . ● In these transactions , established new tenant relationships with Calyx Peak , Inc. and Gold Flora , LLC , while expanding existing relationships with 4Front Ventures Corp. , Ascend Wellness Holdings , Inc. , Goodness Growth Holdings , Inc. ( f / k / a Vireo Health International , Inc. ) , Green Peak Industries LLC ( Skymint ) , Harvest Health & Recreation Inc. ( a subsidiary of Trulieve Inc. ) , Holistic Industries , Inc. ( Holistic ) and Temescal Wellness of Massachusetts , LLC . Balance Sheet Highlights ( at September 30 , 2021 ) • Approximately $ 127.3 million in cash and cash equivalents and approximately $ 554.4 million in short - term investments , totaling approximately $ 681.7 million . 20 % debt to total gross assets , with approximately $ 2.2 billion in total gross assets and no secured debt . State Portfolio Update and Investment Activity IIP acquired the following properties and made the following additional funds available to tenants for improvements at IIP's properties during the period from July 1 , 2021 through today ( dollars in thousands ) : Illinois August 3 , 2021 250,000 $ 6,500 $ 43,750 $ Maryland August 13 , 2021 112,000 16,615 12,900 Maryland August 26 , 2021 N / A 8,000 Michigan September 2 , 2021 N / A 15,000 15m Illinois September 15 , 2021 N / A Missouri September 17 , 2021 83,000 New York September 24 , 2021 324,000 California October 15 , 2021 201,000 Massachusetts November 1 , 2021 Totals Rentable Purchase Additional Total Closing Date Sq . Ft . ( 1 ) Price ( 2 ) Investment Investment N / A N / A N / A ||| 20,000 26,720 46,075 9,000 8,700 N / A N / A 970,000 $ 85,870 $ 190,145 $ 276,015 1,530 10,225 50,250 ( 3 ) 29,515 ( 4 ) 8,000 ( 5 ) 15,000 ( 6 ) 20,000 28,250 ( 8 ) 56,300 ( 9 ) ( 7 ) 60,000 ( 10 ) 8,700 ( 11 ) 51,000 ( 1 ) Includes expected rentable square feet at completion of construction for certain properties . ( 2 ) Excludes transaction costs . ( 3 ) The tenant is expected to construct a 250,000 square foot industrial facility , for which IIP agreed to provide reimbursement of up to approximately $ 43.8 million .