Financial Performance - Rental revenues for 2024 were $306,936,000, a slight decrease of 0% compared to $307,349,000 in 2023[22]. - Net income attributable to common stockholders decreased by 3% to $159,857,000 in 2024 from $164,236,000 in 2023[22]. - AFFO for 2024 was $256,144,000, remaining stable with a 0% change from $256,497,000 in 2023[22]. - Dividends per share increased by 4% to $7.52 in 2024, up from $7.22 in 2023[22]. - The total invested and committed capital amounted to $2,475,598,000, with contractual rent collected for the year being $284,695,000[71][72]. - The highest percentage of contractual rent collected came from Illinois at 12%, followed by Pennsylvania at 14%[71]. Property and Portfolio Management - As of December 31, 2024, the company owned 109 properties, with 98.3% leased and a weighted-average remaining lease term of 13.7 years[32]. - As of December 31, 2024, the company owned 109 properties across 19 states, with a total rentable square footage of 9,021,000 sq. ft.[71]. - The company continues to explore sale-leaseback and other real estate solutions as attractive capital options for state-licensed cannabis operators facing limited access to traditional financing[48]. - The company expects to continue facing significant competition in acquiring properties suitable for regulated cannabis operations, which may increase acquisition costs[85][86]. - The company’s investment strategy includes diversifying the size and location of its property portfolio to manage risk, with no single property expected to exceed 20% of total assets[81]. Market Trends and Industry Outlook - The regulated cannabis industry is projected to grow from $29.5 billion in 2023 to $45.6 billion by 2028, representing a compound annual growth rate of approximately 9.1%[40]. - 88% of Americans support legal adult-use and/or medical cannabis, indicating shifting public attitudes that may benefit the industry[43]. - In 2024, worldwide cannabis capital raises totaled less than $2.3 billion, an increase from $1.9 billion in 2023, but significantly down from $12.0 billion in 2021[55]. - The North American regulated cannabis industry saw a decline in mergers and acquisitions activity, dropping to $1.2 billion in 2024 from $1.8 billion in 2023[55]. Tenant and Operational Risks - The company reported that many tenants have limited operational histories and may continue to incur losses in 2025, impacting their ability to pay rent from operational funds[61]. - In December 2024, PharmaCann defaulted on rent obligations totaling $4.3 million for six properties, leading to lease amendments that reduced cumulative base rent from $2.8 million to $2.6 million per month[69]. - The company has experienced declines in unit pricing for regulated cannabis products, which has compressed operating margins for operators[51]. - Inflation and supply chain constraints have negatively impacted costs for labor and production inputs for regulated cannabis operators, leading to cost overruns and delays[52]. - Tenant defaults may lead to delays in re-leasing properties, which could adversely affect cash flows and distributions to stockholders[151]. Regulatory Environment - The regulated cannabis market remains subject to strict regulations and significant taxation, which may impact the growth and profitability of tenants[75]. - The uncertainty surrounding financial transactions related to cannabis may lead financial institutions to discontinue services to the cannabis industry, impacting operational capabilities[112]. - The FinCEN Memorandum outlines pathways for financial institutions to provide services to cannabis businesses, but its future applicability remains uncertain[106]. - The company is subject to regulatory risks as cannabis remains illegal under federal law, which could hinder business operations[214]. - The DOJ's rescission of the Cole Memo has implications for federal enforcement priorities regarding cannabis-related financial transactions[219]. Legal and Compliance Issues - The company may be liable for tenant actions regarding compliance with agricultural and environmental regulations, which could result in significant penalties[121]. - The company emphasizes the importance of compliance with the Americans with Disabilities Act (ADA), which may incur significant costs for property modifications[127]. - The company is currently facing multiple lawsuits, which may lead to substantial legal fees and costs, potentially impacting its financial condition and stock price volatility[175]. - Legal challenges, including securities lawsuits, may divert management's attention and adversely affect the company's financial condition[173]. Strategic Initiatives and Future Plans - The company plans to meet long-term liquidity needs through cash flow from operations and the issuance of equity and debt securities, with a focus on maintaining borrowings not exceeding 50% of tangible asset costs[77][80]. - The company intends to file an automatic shelf registration statement to facilitate future capital raising efforts as needed[78]. - The company has committed up to $23.0 million in a construction loan for a regulated cannabis cultivation and processing facility in California, reflecting increased investment in the cannabis sector[211]. - The company is evaluating alternative non-cannabis uses for properties due to changes in zoning laws, which may limit future revenue potential[170]. Employee and Workplace Environment - The company has a competitive employee compensation package, including comprehensive health insurance and a 401(k) plan with matching contributions[131]. - The company is committed to maintaining an inclusive work environment and equal employment opportunities for all employees[133].

Financial Data and Key Metrics Changes - The company generated total revenues of $308.5 million for the year, a slight decrease of less than 1% compared to $309.5 million in 2023 [27] - AFFO for the fourth quarter was $63.4 million, or $2.22 per share, reflecting a 3% decrease compared to the fourth quarter of 2023 [29] - The company maintained a strong balance sheet with $2.6 billion in total gross assets and a debt to gross assets ratio of 11% [30] Business Line Data and Key Metrics Changes - The company executed new leases at six properties representing 530,000 square feet, or 6% of the total portfolio [7] - The operating portfolio was over 98% leased as of year-end 2024 [25] Market Data and Key Metrics Changes - The regulated cannabis industry is projected to grow approximately 10% in 2025, following an estimated 9.8% growth in 2024 [19] - Cannabis sales in New York surpassed $1 billion since launching in December 2022, with projections reaching $2.4 billion by 2028 [22] Company Strategy and Development Direction - The company remains highly selective in evaluating investment opportunities, deploying over $70 million in capital to acquire two properties [6] - The company is focused on maximizing the value of each property in its portfolio while navigating challenges in the regulated cannabis industry [33] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding federal cannabis reform and the potential for rescheduling cannabis from a Schedule I to a Schedule III drug [14] - The company is monitoring tenant risks closely, especially with upcoming debt maturities in the cannabis industry [38] Other Important Information - The company announced the retirement of two independent directors and the promotion of two senior vice presidents [10] - The company has a total available liquidity exceeding $235 million, providing ample resources for strategic investments [9] Q&A Session Summary Question: How is the company thinking about tenant risks given upcoming debt maturities in the cannabis industry? - Management acknowledged the stress that early debt maturities could cause tenants but expressed confidence in the industry's ability to improve by 2026 [38] Question: Could the company assist tenants with their debt issues through sale leasebacks? - Management indicated that they are open to exploring opportunities to assist tenants while maintaining a strong balance sheet [41] Question: What is the timeline for restarting the rescheduling hearings for cannabis? - Management noted that there is no clear timeline for the hearings, and the focus is on potential guidance from the White House [44] Question: Can you provide insight into the security deposits applied for contractually due rent? - Management stated that they are addressing each tenant situation uniquely and working closely with them to resolve issues [52] Question: How does the company view the pipeline for 2025? - Management emphasized a disciplined approach to investment opportunities, leveraging their strong liquidity position [56] Question: What are the company's thoughts on the mix of cultivation versus retail assets? - Management confirmed a continued focus on cultivation assets while remaining open to retail opportunities [78] Question: How does the company assess the creditworthiness of multistate operators (MSOs)? - Management highlighted the importance of operators' ability to raise capital and their operational expertise in a challenging environment [92]

Core Viewpoint - Innovative Industrial Properties (IIPR) faced financial challenges in Q4 2024, primarily due to tenant lease defaults, impacting key performance metrics despite meeting analyst expectations for EPS and revenue [2][6][7]. Financial Performance - Adjusted diluted EPS for Q4 2024 was $1.36, matching analysts' estimates but down 6.2% from $1.45 in Q4 2023 [3][6]. - Revenue reached $76.7 million, slightly above the expected $76 million but down 3.2% from $79.2 million in the previous year [3][6]. - Adjusted funds from operations (AFFO) per share were $2.22, a decrease of 2.6% from $2.28 in Q4 2023 [3][6]. Company Overview - Innovative Industrial Properties focuses on investing in properties for cannabis cultivation, leasing them to licensed operators under long-term agreements, which helps mitigate risks and secure predictable returns [4]. - The company employs a sale and leaseback model, allowing cannabis businesses to leverage real estate for funding while continuing operations [4]. Industry Context - The cannabis industry is affected by the lack of federal legalization, which poses risks to tenant stability and increases default risks for IIP [5][7]. - Despite these challenges, the cannabis market is projected to grow significantly, with state-legal sales expected to reach $43.4 billion by 2027 [5][9]. Operational Highlights - IIP ended Q4 2024 with 109 properties across 19 states, totaling over 9 million rentable square feet [8]. - The company is addressing tenant defaults, particularly from PharmaCann, which accounted for 17% of rental revenue, through strategic transitions and renegotiations [7]. Future Outlook - Management remains optimistic about growth in the cannabis market and plans to enhance its tenant base and strategically expand its footprint [9][10]. - IIP's strategies focus on disciplined real estate investments, emphasizing tenant quality and lease expansions, supported by a strong liquidity position and effective debt management [10].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Innovative Industrial Properties, Inc. (IIPR) due to significant financial losses and misleading statements made by the company regarding its leasing operations and financial performance [2][4]. Financial Performance - IIPR reported a normalized FFO per share of $2.02 for Q3 2024, missing the consensus estimate of $2.03 and declining from $2.09 in Q3 2023 [5]. - The company reported revenue of $76.5 million for Q3 2024, missing the consensus estimate of $77.5 million and declining from $77.8 million in Q3 2023 [5]. - The year-over-year revenue decrease was attributed to a $3.0 million decline in contractual rent and property management fees, a $1.3 million decline due to re-classifications of leases, and $1.3 million of contractually due rent that was not collected [5]. Stock Price Reaction - Following the Q3 2024 financial results announcement, IIPR's stock price fell by $12.93 per share, or 10.51%, closing at $110.07 on November 7, 2024 [6]. - After the announcement of PharmaCann's default on rent obligations, IIPR's stock price dropped by $21.68 per share, or 22.73%, closing at $73.66 on December 20, 2024 [7]. Legal Proceedings - A federal securities class action has been filed against IIPR, with a deadline of March 18, 2025, for investors to seek the role of lead plaintiff [2][8]. - The complaint alleges that IIPR and its executives violated federal securities laws by making false and misleading statements regarding the company's financial health and leasing operations [4].

NEW YORK, Feb. 20, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Innovative Industrial Properties, Inc. (NYSE: IIPR).Shareholders who purchased shares of IIPR during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/innovative-industrial-properties-inc-loss-submission-form-2/?id=1305 ...

Innovative Industrial Properties (IIPR) came out with quarterly funds from operations (FFO) of $2.22 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $2.28 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post FFO of $2.29 per share when it actually produced FFO of $2.25, delivering a surprise of -1.75%.Over the last four quarters, the company has surpassed consensus FFO estimates just once.Innovative ...

Exhibit 99.1 Innovative Industrial Properties Reports Fourth Quarter and Full-Year 2024 Results 2024 Leasing Activity of 530,000 Square Feet, or 6% of Total Portfolio SAN DIEGO, CA – February 19, 2025 – Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company"), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, announced today results for the fourth quarter and year ended December 31, 2024. Fourth Quarter 2024 Financial R ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Innovative Industrial Properties To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $75,000 in Innovative Industrial Properties between February 27, 2024 and December 19, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for add ...

Industry Overview - The cannabis industry is expected to experience significant growth in 2025, with increasing investor interest in companies that prioritize sustainability and social equity [1] - As consumer awareness regarding purchasing decisions rises, cannabis companies aligning with these values may attract more investors [1] Market Dynamics - The influx of cannabis farmers may lead to a mix of quality in production, with top-tier growers distinguishing themselves from lower-quality producers [2] - This evolving landscape has prompted a shift in investment strategies, focusing on identifying promising marijuana stocks [2][3] Investment Opportunities - Investors are encouraged to consider publicly traded cannabis companies, which provide accessible investment opportunities without requiring substantial capital [3] - The volatility of the public sector necessitates a well-thought-out investment plan, patience, and due diligence to achieve profitability [3] Notable Companies - **Innovative Industrial Properties, Inc.**: A Maryland-based corporation focused on acquiring and managing specialized properties leased to licensed cannabis operators. The company is set to release its Q4 2024 earnings on February 19, 2025 [4][6] - **Chicago Atlantic Real Estate Finance, Inc.**: This commercial real estate finance company recently closed a $100 million senior secured revolving credit facility, maturing in March 2028, with an interest rate of SOFR plus 3.00% [6][10] - **NewLake Capital Partners, Inc.**: An internally managed real estate investment trust that provides capital to state-licensed cannabis operators through sale-leaseback transactions and funding for build-to-suit projects. The company will host its Q4 2024 and full-year earnings call on March 6, 2025 [12]

Innovative Industrial Properties, Inc. (IIPR) , a leading real estate investment trust (REIT) specializing in the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities, is set to announce its fourth-quarter and full-year 2024 earnings results on Feb. 19, after market close. See the Zacks Earnings Calendar to stay ahead of market-making news.In the last reported quarter, Innovative Industrial reported adjusted f ...