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 today
that it closed on the acquisition of a property in Quincy, Florida,
which comprises five buildings totaling approximately 120,000
square feet of industrial space, from Trulieve Cannabis Corp.
(Trulieve), a leading and top-performing cannabis company in the
United States (CSE: TRUL & OTC: TCNNF).
Concurrent with the closing of the purchase, IIP entered into a
triple-net lease agreement with a subsidiary of Trulieve, for
continued operation as a licensed medical cannabis cultivation
facility. The purchase price for the Florida property was $17.0
million (excluding transaction costs). The initial lease term is
ten years, with two options to extend the term of the lease for
five years each. The initial annualized base rent is equal to 11%
of the purchase price for the property. Earlier this year, IIP
executed a sale-leaseback transaction with Trulieve for a 150,000
square foot industrial facility in Holyoke, Massachusetts for an
initial purchase price of $3.5 million (excluding transaction
costs), pursuant to which Trulieve is expected to complete tenant
improvements for the building, for which IIP has agreed to provide
reimbursement of up to $40.0 million.
As the pioneering real estate investment trust (REIT) for the
medical-use cannabis industry, IIP partners with experienced
medical-use 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.
“By its consistent dedication to patient-centric values from day
one, Trulieve has become the preeminent operator in Florida, and we
are thrilled to partner with them again on this project as a
long-term real estate partner,” said Paul Smithers, President and
Chief Executive Officer of IIP. “Within a few short years, the
Florida medical cannabis market has witnessed remarkable growth,
and Trulieve has played an invaluable role in the market by meeting
that patient need.”
Trulieve is a publicly traded Canadian company and multi-state
cannabis operator employing approximately 2,700 people with
licenses in Florida, Massachusetts, California and Connecticut.
“It is great to team with IIP again on this transaction,
providing us the real estate capital to continue to expand our
capacity in one of the largest and most dynamic medical cannabis
markets in the United States,” said Kim Rivers, Chief Executive
Officer of Trulieve. “These newly-developed cultivation facilities
provide us with the optimal controlled environments to continue to
deliver the highest quality products to patients throughout the
state of Florida.”
Florida represents one of the largest and one of the fastest
growing medical-use cannabis markets in the United States.
Floridians overwhelmingly supported the passage of the medical-use
cannabis program in 2016 with 71% voter approval. Qualifying
medical conditions for the program include, among others, cancer,
epilepsy, PTSD, HIV/AIDS and multiple sclerosis. Smokable flower
was initially banned; however, a bill removing the prohibition was
signed into law in March 2019. According to the Florida Office of
Medical Marijuana Use (OMMU), as of October 11, 2019, there were
over 270,000 qualified patients and over 2,500 qualified physicians
in the medical-use cannabis program.
As of October 23, 2019, IIP owned 35 properties located in
Arizona, California, Colorado, Florida, Illinois, Maryland,
Massachusetts, Michigan, Minnesota, New York, Nevada, Ohio and
Pennsylvania, totaling approximately 2.6 million rentable square
feet (including approximately 832,000 rentable square feet under
development/redevelopment), which were 100% leased with a
weighted-average remaining lease term of approximately 15.6 years.
As of October 23, 2019, IIP had invested approximately $371.6
million in the aggregate (excluding transaction costs) and had
committed an additional approximately $133.0 million to reimburse
certain tenants and sellers for completion of construction and
tenant improvements at IIP’s properties. IIP’s average current
yield on invested capital is approximately 13.8% for these 35
properties, calculated as (a) the sum of the current base rents,
supplemental rent (with respect to the lease with PharmaCann LLC at
one of IIP’s New York properties) and property management fees
(after the expiration of applicable base rent abatement or deferral
periods), divided by (b) IIP’s aggregate investment in these
properties (excluding transaction costs and including aggregate
potential development/redevelopment funding and tenant
reimbursements of approximately $133.0 million). These statistics
do not include up to $40.0 million that may be funded in the future
pursuant to IIP’s lease with Trulieve at one of IIP’s Massachusetts
properties, the additional $4.0 million which may be requested by
PharmaCann LLC at one of IIP’s Pennsylvania properties or $2.0
million that may be funded in the future pursuant to IIP’s lease
with Holistic Industries, Inc. at one of IIP’s Massachusetts
properties, as the tenants at those properties may not elect to
have IIP disburse those funds to them 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
medical-use 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 Florida property,
Trulieve and the Florida regulated cannabis market, are
forward-looking statements. When used in this press release, words
such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,”
“believe” 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.
About Trulieve
Trulieve is a vertically integrated “seed-to-sale” company and
is the first and largest fully licensed medical cannabis company in
the State of Florida. Trulieve cultivates and produces all of its
products in-house and distributes those products to
Trulieve-branded stores (dispensaries) throughout the State of
Florida, as well as directly to patients via home delivery.
Trulieve also operates in California, Massachusetts and
Connecticut. Trulieve is listed on the Canadian Securities Exchange
under the symbol TRUL.
Trulieve Forward-Looking
Statements
This press release includes forward-looking information and
statements, which may include, but are not limited to, information
and statements regarding or inferring the future business,
operations, financial performance, prospects, and other plans,
intentions, expectations, estimates, and beliefs of Trulieve.
Forward-looking information and statements involve and are subject
to assumptions and known and unknown risks, uncertainties, and
other factors which may cause actual events, results, performance,
or achievements of Trulieve to be materially different from future
events, results, performance, and achievements expressed or implied
by forward-looking information and statements herein. Although
Trulieve believes that any forward-looking information and
statements herein are reasonable, in light of the use of
assumptions and the significant risks and uncertainties inherent in
such information and statements, there can be no assurance that any
such forward-looking information and statements will prove to be
accurate, and accordingly readers are advised to rely on their own
evaluation of such risks and uncertainties and should not place
undue reliance upon such forward-looking information and
statements. Any forward-looking information and statements herein
are made as of the date hereof, and except as required by
applicable laws, Trulieve assumes no obligation and disclaims any
intention to update or revise any forward-looking information and
statements herein or to update the reasons that actual events or
results could or do differ from those projected in any forward
looking information and statements herein, whether as a result of
new information, future events or results, or otherwise, except as
required by applicable laws.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or the
securities laws of any state of the United States and may not be
offered or sold within the United States (as defined in Regulation
S under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or pursuant to
an exemption from such registration requirements. To learn more
about Trulieve, visit www.Trulieve.com.
The Canadian Securities Exchange has not reviewed, approved or
disapproved the content of this news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191023005877/en/
IIP Contact: Catherine Hastings Chief Financial Officer, Chief
Accounting Officer and Treasurer Innovative Industrial Properties,
Inc. (858) 997-3332
Trulieve Contact: Lynn Ricci Director, Investor Relations
850-270-5691 IR@trulieve.com
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Apr 2023 to Apr 2024
