Innovative Industrial Properties Expands Real Estate Partnership with PharmaCann at Massachusetts Property - Seite 2

From December 2018 through May 2019, representing just the first six full months since Massachusetts launched its regulated adult-use cannabis program, aggregate adult-use cannabis sales approached $140 million, including $34 million in May sales alone, according to Marijuana Business Daily. Massachusetts regulators approved regulations earlier this week that govern cannabis cafes and delivery, providing for two additional potential drivers for continued strong growth of the industry.

As of September 25, 2019, IIP owned 31 properties located in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, Ohio and Pennsylvania, totaling approximately 2.2 million rentable square feet (including approximately 687,000 rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 15.9 years. As of September 25, 2019, IIP had invested approximately $293.1 million in the aggregate (excluding transaction costs) and had committed an additional approximately $103.4 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. IIP’s average current yield on invested capital is approximately 14.5% for these 31 properties, calculated as (a) the sum of the current base rents (after the expiration of applicable base rent abatement or deferral periods), supplemental rent (with respect to the lease with PharmaCann at one of IIP’s New York properties) and property management fees, divided by (b) IIP’s aggregate investment in these properties (excluding transaction costs and including aggregate potential development/redevelopment funding and tenant reimbursements of approximately $103.4 million). These statistics do not include up to $40.0 million that may be funded in the future pursuant to IIP’s lease with Trulieve Cannabis Corp. at one of IIP’s Massachusetts properties, the additional $4.0 million which may be requested by PharmaCann at one of IIP’s Pennsylvania properties or $2.0 million that may be funded in the future pursuant to IIP’s lease with Holistic Industries, Inc. at one of IIP’s Massachusetts properties, as the tenants at those properties may not elect to have IIP disburse those funds to them and pay IIP the corresponding base rent on those funds.