• Daily Marijuana Observer Facebook
  • Daily Marijuana Observer Twitter
  • Daily Marijuana Observer StockTwits
  • Daily Marijuana Observer SA
  • Daily Marijuana Observer Instagram
  • Daily Marijuana Observer Youtube
  • Pinterest Social Icon
  • Daily Marijuana Observer Talk Market

6 Key Points From Innovative Industrial Properties' Q2'17 Earnings Release

August 9, 2017

(Image Credit - Nick Youngson)

After the close of trading on Wednesday, August 9th, 2017, Innovative Industrial Properties Inc. (NYSE:IIPR) reported the company's financial results for their second fiscal quarter ended June 30th, 2017. This is the company's second full quarter since completing their initial public offering in December 2016. 


Related: A Beginner's Guide to the Cannabis-Focused REITs


  1. IIPR generated total revenues of approximately $1.3 million in the second quarter of 2017. All of this revenue came from rents paid by PharmaCann LLC for the Company's medicinal cannabis cultivation facility in New York. Base rent for the company's Maryland property (see below) is subject to an initial rent abatement of three months, so no revenues were generated from this facility in the second quarter of 2017. 

  2. Net losses in the quarter were $(422,000), or $(0.13) per basic and diluted share. Funds from operations (FFO) (which exclude the impact of depreciation and select non-operating items in an attempt to better measure the performance of real estate investment trusts like IIPR) were ($247,000) or ($0.07) per basic and diluted share. Adjusted funds from operations (AFFO) in the quarter were $471,000, or $0.13.

  3. Innovative Industrial Properties paid its first dividend of $0.15 per share on July 14, 2017 to shareholders of record as of June 30, 2017. 

  4. In May, Innovative Industrial Properties purchased a facility in Maryland for approximately $8.2 million (including $185,000 in transaction costs) that is being developed for use as a cultivation facility for medicinal cannabis. Concurrently, the company entered into a long-term, triple net lease (a lease where in addition to rent, the tenant agrees to pay all real estate taxes, building insurance, and maintenance) with Holistic Industries LLC. 

  5. In addition to the roughly $8.2 million that IIPR purchased the Maryland property for, IIPR agreed to pay an additional $3 million payable to the seller upon completion of certain development milestones and an additional $4 million to the tenant as reimbursement for certain tenant improvements. Pursuant to the company's lease agreement with Holistic, the initial annualized base rent, after a three month rent abatement period, is subject to a rent reserve and is expected to be 15% of the sum of the initial purchase price (excluding transaction costs), the additional seller reimbursement and the reimbursed tenant improvements.  After the end of the second quarter, the seller completed the agreed-to development milestones at the property, and IIPR paid the additional reimbursement of $3 million to the seller. As a result, Holistic's initial annualized base rent increased by $450,000 (15% of the $3 million reimbursement) to $1.65 million.

  6. As of this release, IIPR was in various stages of reviewing approximately $100 million worth of additional properties to potentially acquire. 


Conference Call 


On Thursday, August 10th at 10:00 a.m. PDT (1:00 PM EDT), Innovative Industrial Properties will conduct a conference call to discuss their second quarter results and operational developments. The call will be webcast live at the Investor Relations section of the company's website at www.innovativeindustrialproperties.com and will also be available by calling 1-866-807-9684 (domestic) or 1-412-317-5415 (international) and asking for the Innovative Industrial Properties conference call. 


A recording of the conference call will be available for one week by calling 1-877-344-7529 (domestic), 1-855-669-9658 (Canada) or 1-412-317-0088 (international) and using access code 10111044. Additionally, the complete webcast will be archived for 90 days on the company's website. 




Learn more about this currently one-of-a-kind, NYSE-listed, dividend-paying cannabis REIT by checking out the company's marijuana stock profile in our marijuana-related real estate company database


Stay up to date with developments from the world of cannabis real estate by subscribing to our free cannabis real estate email newsletter!


Don't be a stranger; connect with The Daily Marijuana Observer on FacebookTwitterStockTwits and Instagram!


Now Read: Marijuana Stocks with the Highest Trading Volume






Investing in nanocap, microcap, and small cap stocks is highly speculative. The publishers of DailyMarijuanaObserver.com are not registered as Investment Advisors or Broker-Dealers in any jurisdiction whatsoever. The information contained on DailyMarijuanaObserver.com (“this site”) has been prepared solely for informational purposes. Nothing on the site is an offer or solicitation to buy or sell securities. Investors should seek financial advice regarding the appropriateness of investing in any securities mentioned from their financial advisor.

Please reload

Please reload

Please reload


© Copyright 2016-2020 Smoke Show Ventures, Inc.

RSS Feed

Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.