Innovative Industrial Properties Acquires Property in California and Executes Long-Term Lease with Gold Flora - Seite 2

“Teaming with IIP on this transaction strategically unlocks capital for us as we focus on our continued growth in California, and we look forward to working with the IIP team for many years to come as our go-to real estate capital provider,” said Laurie Holcomb, Chief Executive Officer of Gold Flora. “In a few short years, I am proud of what our team at Gold Flora has accomplished, with our best-in-class line of products and strategic relationships that I believe will continue to distinguish us in the California marketplace, as we look to expand our footprint and distribution throughout the state.”

California is the largest regulated cannabis market in the United States, generating approximately $4.4 billion in regulated cannabis sales in 2020, versus $2.8 billion in 2019, representing an annual growth rate well in excess of 50%, according to Marijuana Business Daily. While many cities and counties initially banned regulated cannabis businesses in their jurisdictions, that approach has shifted over time: in early 2019, about a year after the regulated adult-use market launched, only 161 of California’s 482 cities and 24 of 58 counties permitted any type of regulated cannabis business; as of July 2021, those numbers had grown to 182 cities and 31 counties. According to the California Department of Tax and Fee Administration, taxable sales of regulated cannabis products in California totaled approximately $1.4 billion in the second quarter of 2021 alone, continuing a strong growth trajectory.

As of October 18, 2021, IIP owned 76 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington, representing a total of approximately 7.5 million rentable square feet (including approximately 2.8 million rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 16.7 years. As of October 18, 2021, IIP had committed approximately $1.9 billion across its portfolio, including capital invested to date (excluding transaction costs) and additional capital commitments to fund future construction and tenant improvements at IIP’s properties, but excluding an $18.5 million loan from IIP to a developer for construction of a regulated cannabis cultivation and processing facility in California.