Innovative Industrial Properties : Investor Presentation 5-4-2026

Published: 2026-05-04 17:08:26 ET IIPR

Published on 05/04/2026 at 05:08 pm EDT

INNOVATIVE INDUSTRIAL PROPERTIES

NYSE: IIPR INNOVATIVEINDUSTRIALPROPERTIES.COM COMPANY PRESENTATION - MAY 2026

Innovative Industrial Properties, Inc. (NYSE: IIPR) is a diversified REIT with investments across cannabis and life sciences

Total Invested Capital(1)

Total Properties

U.S.

States

Weighted Average Lease Length(2)

Q1 2026

Total Revenue

Dividends Paid Since Inception in '16

Commitment to Life Science

Note: Data as of March 31, 2026, unless otherwise noted.

Total Invested Capital: Includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants and sellers for completion of construction and improvements at the properties. Excludes Loans and Securities.

Weighted average lease length calculated by weighting the remaining lease term based by the Annualized Base Rent ("ABR"). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve.

DIVERSIFIED BUSINESS MODEL

$2.5B triple-net lease portfolio

Strong initial yields with annual escalators

$270M financial investment in life science industry

NICHE EXPERTISE

Experience working with tenants and borrowers in heavily regulated industries

Diligent underwriting process focused on best-in-class operators

Seasoned management team with significant REIT experience

STRONG BALANCE SHEET

One of the lowest leveraged REITs

Demonstrated access to multiple capital markets

Oct'25 closed on $100M credit facility

GROWING MARKETS

8% CAGR projected in cannabis industry from 2025-2030E(1)

AI-enabled discovery is broadening the life sciences market opportunity, reinforcing the need for specialized lab infrastructure(2)

DIVERSIFIED PORTFOLIO

Properties across 19 U.S. states

Leased to 35+ tenants

Mix of industrial and retail properties

STRONG TRACK RECORD

7% CAGR in AFFO/share 2020 - Q1'26 (Ann)

Total return since inception in 2016 of

>360%(3)

Over $1B+ in dividends paid since inception in 2016

Whitney Economics Cannabis Market Forecast (March 2026).

Cushman & Wakefield Life Sciences Update (February 2026).

Per S&P Capital IQ Pro as of 3/31/2026.

Leases are generally 100% triple-net

No recurring capital expenditures during lease term

All property expenses paid by the tenant, including capital repairs, property taxes and property insurance

Typically, 15-20 year initial lease terms (vs. ~5 years for traditional industrial leases)

Leases generally subject to parent company guarantees

covering operations throughout the U.S.

LIFE SCIENCES 6.8%

OTHER

0.2%

IQHQ strategic investment announced in Q3'25

Target investments are with assets or real estate companies in major life science markets

Attractive spread to cost of capital

Enhances scale and diversification by industry and tenant

Provides growth opportunities in large and growing sector

Note: Data as of March 31, 2026, unless otherwise noted.

Shifting Revenue Mix More Towards Life Sciences

$315M

BASE RENT

/ INTEREST(1)

CANNABIS

93.0%

(1) Annualized Base Rent and Income from Loans and Securities ("Base Rent / Interest") is calculated by adding Annualized Base Rent ("ABR") and Income from Loans and Securities. ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. Annualized Income from Loans and Securities is calculated by multiplying the principal balance as of the end of quarter, by the blended interest rate.

IIPR has a geographically diversified triple net portfolio of cannabis real estate throughout the United States

State

ABR ($000s)(1)

%(1)

# of Properties

Square Feet (000s)

Pennsylvania

$43,188

15.0%

1,361

Illinois

40,705

14.1%

965

Massachusetts

34,599

12.0%

993

New York

33,895

11.8%

623

Florida

31,644

11.0%

1,153

Michigan

23,265

8.1%

901

Ohio

18,285

6.3%

374

New Jersey

13,997

4.9%

291

Maryland

13,868

4.8%

319

Colorado

7,984

2.8%

229

Total - Top 10 States

$261,430

90.8%

7,209

Property Type(1)

Retail

90%

Industrial(2)

Industrial

/ Retail

State Diversification(1)

0-5% 5-10% 10-15% No Presence

Note: Data as of March 31, 2026, unless otherwise noted.

As a % of Annualized Base Rent ("ABR"). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve.

"Industrial" reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space.

Tenant

ABR ($000s)

(%)(1)

Square Feet (000s)

# of Leases

$31,767

10.1%

624

29,723

9.4%

364

23,211

7.4%

664

21,032

6.7%

579

20,151

6.4%

740

(6)

18,335

5.8%

488

17,454

5.5%

298

17,175

5.5%

379

16,515

5.2%

593

15,618

5.0%

506

Total

$210,981

67.0%

5,235

Total Invested Capital & Tenant Growth(2)

$2.3B

$2.4B

$2.5B

$2.0B

$1.3B

$690.0M

$30.0M

$73.3M

$167.4M

38 38

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 3/31/26

Tenant Composition(3)

Company Type

65% Public 35% Private

Operator Type(4)

89% MSO 11% SSO

Note: Data as of March 31, 2026, unless otherwise noted.

As a % of Annualized Base Rent and Income from Loans and Securities ("Base Rent / Interest"). Annualized Base Rent and Income from Loans and Securities is calculated by adding Annualized Base Rent ("ABR") and Income from Loans and Securities. ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve. Annualized Income from Loans and Securities is calculated by multiplying the principal balance as of the end of quarter, by the blended interest rate.

Each "Tenant" represents the parent company of the tenant, for which the parent company has provided a corporate guaranty. A parent company may have multiple tenant subsidiaries across IIPR's properties. Total Invested Capital includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants and sellers for completion of construction and improvements at the properties. Excludes Loans and Securities.

As a % of Annualized Base Rent ("ABR"). Excludes non-cannabis tenants that comprise less than 1% of Annualized Base Rent in the aggregate.

"MSO" stands for Multi-State Operator which means the tenant (or guarantor) conducts cannabis operations in more than one state. "SSO" stands for Single-State Operator which means the tenant (or guarantor) conducts cannabis operations in a single state.

These leases are in default, as disclosed in our 8-K filed on March 14, 2025.

These leases are in default, as disclosed in our 8-K filed on March 28, 2025.

IQHQ - A Premier Life Science Real Estate Platform

$5B+ in total investments

5+ million square feet of properties in leading life science markets including Boston, San Francisco and San Diego

Strategic and Financially Accretive Transaction

In August 2025, announced a $270M total investment, comprised of:

$100M investment in a 3-year revolving credit facility: 13.5% yield

$170M investment in preferred stock: 15.0% yield

In addition, potential to receive warrants in IQHQ earned upon the satisfaction of certain funding milestones

IIPR has a right of first offer on certain future asset sales of IQHQ

Expected to be significantly accretive to AFFO per share

Diversification and Life Science Expertise

Improves sector diversification beyond cannabis-related assets

IIPR's management team has decades of combined experience in the life science real state industry

13%

Debt to Total Gross Assets(1)

11.6x

Debt Service Coverage Ratio (1)

$176M+

Liquidity Available (2)

Debt Overview

Revolving Credit Facilities:

-$187.5M total commitment, $87.5M available

Unsecured Senior Notes:

-Investment grade rating BBB+ from Egan Jones, since May 2021

-$291.2M of 5.50% unsecured senior notes due May 2026

Gross Debt, $366.2M

Capital Structure(3)

Preferred Equity, $118.0M

Common Equity Market Capitalization, $1.4B

Debt Maturity Schedule

$291.2M

Notes Due 2026 Credit Facilities

2026

2027

2028

2029

2030

Thereafter

$75.0M

Note: As of March 31, 2026, unless otherwise noted.

Calculated in accordance with the indenture governing the Notes due 2026, included in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2021.

Total liquidity consists of cash and cash equivalents and short-term investments (each as reported in IIPR's consolidated balance sheet as of quarter end) and availability under IIPR's revolving credit facilities.

Share price per S&P Capital IQ Pro as of 3/31/2026. Gross debt is calculated as the sum of the principal amount outstanding of the Notes due 2026 and borrowings on the revolving credit facilities.

Total Returns Since IIPR Inception(3)

360%

IIPR

Dividends Per Share AFFO Per Share(1)

$7.60

$4.47

$7.52

$5.01

9% CAGR

(2)

7% CAGR

(2)

248%

S&P 500

Greater Return than RMZ

79%

RMZ

2020 Q1'26 (Ann) 2020 Q1'26 (Ann)

Adjusted funds from operations ("AFFO") is a supplemental non-GAAP financial measure used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to AFFO is included in the "AFFO Reconciliation" found at the end of this presentation.

"CAGR" represents compound annualized growth rate for the relevant metric.

Per S&P Capital IQ Pro as of 3/31/2026. RMZ represents the MSCI US REIT Index.

Cannabis Market Overview

Life Sciences Market Overview

Market Growth: U.S. legal cannabis sales market reached $29.1 billion in 2025 vs. a 2% decline for the U.S. Spirits Market to $36.4 billion in the same period(1)

Federal Rescheduling: April 2026 reclassification of medical cannabis to Schedule III removes 280E tax burdens for qualifying operators and potentially improves cash flow, with additional industry benefits expected as rescheduling progresses

Expansion of Legalization: Approximately 79% of Americans live in a county where marijuana is legal for either recreational or medical use and 54% of Americans live in a state where the recreational use of marijuana is legal(2)

Stabilizing Fundamentals: Tenant demand has returned to pre-pandemic baseline levels, signaling a durable floor for leasing activity(3)

AI & Drug Discovery Expansion: Adoption of AI and increased licensing activity are accelerating innovation cycles, creating new and expanding occupier demand(4)

Limited New Supply: Limited future class A new build is expected to tighten leasing markets as companies continue to expand their U.S. operations(3)

Cannabis Industry Revenue Comparison(1)

Life Sciences Employment Growth Expected to Continue(5)

$60B

$40B

$20B

$0B

2025 US

Spirits Market

2025 US

Beer Market

2025 US

Wine Market

Est. 2025 US Legal Cannabis Sales

$43B

Projected 2030 US Legal Cannabis Sales Forecast

2.2

$36B

$29B

$13B

2.0

1.8

1.6

1.4

1.2

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25F Q2'25F Q3'25F Q4'25F

1.0

Life Sciences Employment Forecast

94% of life sciences CEOs say they will increase headcount over the next three years

37% of the total think they will grow their workforce by 6% or more

19,000 new

jobs in 2025

Whitney Economics Cannabis Market Forecast (March 2026), Distilled Spirits Council of the United States, MJBiz Factbook Quarterly Update (Q1 2026).

Pew Research Center (July 2025).

CBRE 2026 U.S. Life Sciences Trends (March 2026).

Cushman & Wakefield Life Sciences Update (February 2026).

CBRE 2025 U.S. Life Sciences Outlook (February 2025).

Long Term Growth Outlook

Regulatory Developments & Rescheduling

$43B

8% CAGR

Estimated Legal Cannabis Sales by 2030(1)

68%

U.S. Population in States with an IIPR Presence(2)

87%

U.S. adults say marijuana should be legal at some

level(3)

FDA-approved cannabis products and state-licensed medical marijuana was reclassified to Schedule III in April 2026

State-licensed medical operators are now eligible for DEA registration, establishing federal oversight and recognition

280E no longer applies to medical licensees, potentially driving meaningful cash flow improvement and potential retrospective tax relief

DEA will hold a new hearing on June 29, 2026 to evaluate broader changes to marijuana's federal status

Industry Revenue Projection(1)

Growing U.S. Legalization(4)

$43B

$29B

2025 2026E 2027E 2028E 2029E 2030E

Whitney Economics Cannabis Market Forecast (March 2026).

2020 US Census Data.

Pew Research Center (July 2025).

National Conference of State Legislatures (https://www.ncsl.org), MJBizDaily (mjbizdaily.com).

Adult-Use Medical-Use Other, N/A

Strong Life Science Rent Premiums vs Office Rents(1)

Construction Pipeline Decelerating(1)

+40%

All US

Office Life Science

Boston

+61%

Office Life Science

San Diego

+68%

Office Life Science

Millions of Square Feet

Q1'21

Q2'21

Q3'21

Q4'24

Q1'25

Inventory Under Contruction

16%

17%

15%

12%

10%

11%

10%

9% 9%

4% 4% 4%

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Q4'23

Q1'24

Q2'24

Q3'24

20%

18%

16%

14%

12%

10%

Q2'25

Q3'25

Q4'25

U.S Life Sciences Research Funding Stabilizes(1)

Drug Approvals(2)

$200

$ Billions

$150

$100

$50

Funding by Source

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

FDA Novel Drug Approvals

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25 30 35 40 45 50 55 60 65

Cushman & Wakefield Life Sciences Update (February 2026).

U.S. Food and Drug Administration

Diligent underwriting process with a focus on best-in-class operators

Review of

Management

Ability to

Raise Capital

Financial Underwriting

Ongoing

Monitoring

Experienced management team

Alignment of management within ownership of the business

Evaluation of the macro environment surrounding strategic capital raising in the tenants' and borrowers' prospective markets

History of successful capital raising and a cash balance on hand today

Evaluation of financial projections utilizing existing knowledge of industry dynamics

Detailed review of financial statements, strategic initiatives, and growth plans

Quarterly financial and operational review of all properties

Meetings with tenants to talk through operations and financials

Alan Gold

Executive Chairman & Co-Founder

Co-founded Alexandria Real Estate Equities (NYSE: ARE) in 1994 and served as President and a director until 1998

Invests in office buildings and laboratories leased to life science and technology companies

Co-founder of BioMed Realty Trust (formerly NYSE: BMR); served as Chairman and CEO from inception of its predecessor in 1998 through BMR's sale in 2016

Owner and operator of high-quality life science real estate

Previously publicly traded investment grade REIT

Co-founder of IQHQ, Inc.; served as Executive Chairman from December 2018 until December 2024

Privately-held life science real estate company with over $5B of total assets

Alan Gold has experience founding and leading real estate companies focused on nuanced, regulated industries.

Paul Smithers

President, CEO and Co-Founder

35+ years of legal and regulatory experience

Previously co-founded Iso Nano International, LLC

David Smith

CFO and Treasurer

20+ years of finance and real estate experience

Former CFO of Aventine Property Group and New Senior Investment Group (NYSE: SNR)

Catherine Hastings

COO

25+ years of accounting and real estate experience

Former VP, Internal Audit of BioMed Realty

Ben Regin

CIO

20+ years of real estate and accounting experience

Former Senior Associate, Investments and Asset Management at BioMed Realty

Andy Bui

VP, Chief Accounting Officer

Former Senior Director, Financial Reporting at BioMed Realty

Tracie Hager

SVP, Asset Management

30+ years of experience in property management

Former VP, Property Management at BioMed Realty

Kelly Spicher

SVP, Real Estate Counsel

20+ years legal experience representing real estate matters

Former attorney at Foley & Lardner LLP

Innovative Industrial Properties 17

Innovative Industrial Properties 18

Q1 2026

FY 2020

Actual

Annualized

Actual

Net income attributable to common stockholders

$30,155

$120,620

$64,378

Real estate depreciation and amortization

18,584

74,336

28,025

Loss (gain) on sale of real estate

(422)

(1,688)

FFO attributable to common stockholders (basic and diluted)

48,317

193,268

92,403

Financing expense

211

Acquisition-related expense

Litigation-related expense

1,870

7,480

Income on seller-financed note(1)

223

892

Deferred lease payments received on sales-type leases(2)

175

700

Normalized FFO attributable to common stockholders (diluted)

50,585

202,340

92,708

Stock-based compensation

2,584

10,336

3,330

Non-cash interest expense

576

2,304

2,040

Non-cash accretion of life science investments

(334)

(1,336)

Above-market lease amortization

AFFO attributable to common stockholders (diluted)

$53,434

$213,736

$98,078

FFO per common share - diluted

$1.70

$6.80

$4.72

Normalized FFO per common share - diluted

$1.78

$7.12

$4.74

AFFO per common share - diluted

$1.88

$7.52

$5.01

Weighted average common shares outstanding - basic

27,991,910

27,913,384

19,443,602

Restricted stock and restricted stock units ("RSUs")

475,274

390,146

114,017

Weighted average common shares outstanding - diluted

28,467,184

28,303,530

19,557,619

Note: During the year ended December 31, 2025, IIPR revised its presentation of Normalized FFO to include two adjustments related to income on seller-financed notes and deferred lease payments received on sales-type leases that were previously reflected in adjusted funds from operations ("AFFO"), which has been reflected for all periods presented. Management believes this change better aligns the Company's presentation with its assessment of core operating performance and improves comparability with industry peers. Items included in calculating FFO that may be excluded in calculating Normalized FFO include certain transaction-related gains, losses, income or expense or other non-core amounts as they occur.

(1) Amounts represent non-refundable cash payments received pursuant to a seller-financed note issued by us in connection with our disposition of a certain property. As the transaction did not qualify for recognition as completed sales under GAAP, the payments were recorded as a deposit liability and included in other liabilities on our consolidated balance sheet.

Innovative Industrial Properties

Disclaimer

IIP - Innovative Industrial Properties Inc. published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:00 UTC.