IIP Expands Portfolio to 108 Properties
Comprising 8.1 Million Square Feet in 19 States
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 that it
closed on the acquisition of a Maryland property comprising
approximately 84,000 square feet of industrial and greenhouse
space.
The purchase price for the property was $25.0 million (excluding
transaction costs). Concurrent with the closing of the purchase,
IIP entered into a long-term, triple-net lease agreement for the
property with a subsidiary of Maryland Cultivation and Processing,
LLC (MCP), which intends to continue to operate the property as a
regulated cannabis cultivation facility.
As the pioneering real estate investment trust (REIT) for the
regulated cannabis industry, IIP partners with experienced,
regulated cannabis operators and serves as a source of capital by
acquiring and leasing back their real estate assets, in addition to
offering other creative real estate-based capital solutions.
“We are thrilled to introduce District Cannabis to our tenant
roster, a company that has truly distinguished itself in Maryland
for its premium product quality and focus on sustainable
cultivation techniques,” said Paul Smithers, President and Chief
Executive Officer of IIP. “The Maryland medical cannabis market
continues to see healthy growth and continued program expansion,
and with the potential adoption of an adult-use cannabis program by
voters this November, we see tremendous continued opportunity and
growth in serving patients and customers throughout the state.”
MCP is one of 18 licensed cannabis cultivators in Maryland,
focused on the cultivation of premium cannabis products under the
brand District Cannabis. With the recent completion of a
48,000-square-foot greenhouse facility next to its existing
36,000-square-foot industrial building at the property, MCP is
expected to significantly enhance its production capacity over the
balance of 2022, while maintaining the consistent, premium quality
District Cannabis product that drives MCP’s success and reputation.
At the same time, MCP is a leader in sustainable cultivation
methods, utilizing closed loop hydroponic systems that use
significantly less water and fertilizer than other techniques,
energy efficient LED lighting, dehumidification technologies that
utilize significantly less energy than conventional indoor farms,
and a recently completed Dutch greenhouse expansion that
effectively utilizes the sun as a lighting source. In addition to
its license to cultivate in Maryland, District Cannabis has one of
eight cultivation licenses in Washington, D.C., and its Gelato Cake
strain was the best-selling strain in both Washington, D.C. and
Maryland in 2021.
“When Ed Weidenfeld and I started District Cannabis in 2015, we
committed to be a cultivation-driven company focused on producing
the highest quality cannabis, at scale, and investing in
state-of-the-art equipment and technology to reduce production
costs,” said Andras Kirschner, CEO and Co-Founder of MCP/District
Cannabis. “In Maryland, we built what we believe is among the most
sophisticated, state-of-the-art cultivation facilities in the
country and we appreciate that IIP recognized that in this
transaction. Although we did not need to sell, we are a cannabis
company, not a real estate company, and this sale/leaseback
transaction allows us to repay 100% of our debt and return capital
to our investors; in addition, our strong balance sheet and strong
operating cash flow will allow us to take advantage of the growth
opportunities we anticipate in the Maryland market.”
Maryland implemented its medical-use cannabis program in 2017,
with limited licenses to cultivate, process and dispense cannabis.
Qualifying medical conditions for the program include, among
others, anorexia, conditions resulting in a patient receiving
hospice or palliative care, PTSD, seizures, chronic pain, severe
nausea and severe or persistent muscle spasms, as well as other
chronic, severe medical conditions if other treatments have been
ineffective and the recommending healthcare professional believes
medical cannabis can provide some relief. According to the Maryland
Medical Cannabis Commission, there were approximately $45 million
in medical cannabis sales in the month of March 2022 alone. In
addition, according to a Goucher College poll conducted in March of
this year, 62% of Maryland residents support the legalization of
adult-use cannabis. Voter approval of the establishment of a
regulated cannabis program for adult-use is expected to be on the
ballot for Maryland residents to consider in November of this year.
Including this property, IIP owns three properties in Maryland,
comprising approximately 271,000 rentable square feet (including
square footage under redevelopment) and representing a total
investment, including commitments to fund future improvements, of
approximately $88.3 million.
As of April 13, 2022, IIP owned 108 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 8.1 million
rentable square feet (including approximately 2.4 million rentable
square feet under development / redevelopment). As of April 13,
2022, IIP had committed approximately $2.1 billion across its
portfolio, including capital invested to date (excluding
transaction costs) and additional capital commitments to fund
future construction and improvements at IIP’s properties. These
statistics do not include an $18.5 million loan from IIP to a
developer for construction of a regulated cannabis cultivation and
processing facility in California and up to $55.0 million that may
be funded between June 15, 2022 and July 31, 2022 pursuant to IIP’s
lease with a tenant at one of IIP’s Pennsylvania properties, as the
tenant at that property may not elect to have IIP disburse those
funds and pay IIP the corresponding base rent on those funds.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised
Maryland corporation focused on the acquisition, ownership and
management of specialized industrial properties leased to
experienced, state-licensed operators for their regulated cannabis
facilities. Innovative Industrial Properties, Inc. has elected to
be taxed as a real estate investment trust, commencing with the
year ended December 31, 2017. Additional information is available
at www.innovativeindustrialproperties.com.
Innovative Industrial Properties
Forward-Looking Statements
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, including, without
limitation, statements regarding the lease of the Maryland
property, MCP and the Maryland regulated cannabis market, 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. 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. Investors should not place undue reliance upon
forward-looking statements. IIP disclaims any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220413005992/en/
Catherine Hastings Chief Financial Officer Innovative Industrial
Properties, Inc. (858) 997-3332
Innovative Industrial Pr... (NYSE:IIPR)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Innovative Industrial Pr... (NYSE:IIPR)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024