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 entered into an amendment of the lease with a subsidiary of
Ascend Wellness Holdings, LLC (AWH) at the property located in
Barry, Illinois, making available an additional $18 million in
funding for expansion of AWH’s regulated cannabis cultivation and
processing facilities at the property, including a new 90,000
square foot greenhouse facility and further production capacity
enhancements for the existing 75,000 square foot industrial
facility located on the property. The lease amendment also adjusted
the base rent under the lease to take into account the additional
available funding. Assuming full payment of the additional funding,
IIP’s total investment in the property will be $51 million.
In addition to this Illinois property, IIP owns and leases to
AWH two other properties in Massachusetts and Michigan, with IIP’s
total investment in properties leased to AWH, including commitments
to fund future tenant improvements, equaling approximately $119.8
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.
Illinois, the 11th state to legalize cannabis for adult-use,
commenced adult-use cannabis sales on January 1 of this year. In
July alone, Illinois adult-use cannabis dispensaries generated
nearly $61 million in sales (excluding medical cannabis sales),
according to the Illinois Department of Financial and Professional
Regulation, exhibiting consistent, strong growth month over month.
IIP owns six regulated cannabis cultivation and processing
facilities in Illinois, representing a total expected investment of
approximately $204.6 million, which includes commitments by IIP to
fund future tenant improvements and construction at certain
properties.
“We are excited to once again expand our long-term real estate
partnership with AWH,” said Paul Smithers, President and Chief
Executive Officer of IIP. “The AWH management team has done
tremendous work in positioning itself as one of the leading MSOs in
states that represent tremendous market opportunities, and has
continued to execute well on its mission throughout these uncertain
times in serving patients and customers with the highest quality
products and dedication to patient care and customer service.”
AWH is a vertically integrated cannabis company, with assets in
Illinois, Michigan, Ohio, Massachusetts and New Jersey. In
Illinois, AWH currently operates two dispensaries in Springfield
and Collinsville under the brand name Illinois Supply and
Provisions, and expects to open two additional dispensaries,
including its flagship retail location in Fairview Heights.
“We greatly value our long-term real estate partnership with
IIP, with a team that works closely with us to find optimal
solutions for our real estate capital needs, providing us with a
key capital source to allow us to grow thoughtfully and on our
timeline,” said Abner Kurtin, Chief Executive Officer and
Co-Founder of AWH. “With this additional capital at the Barry
facility, we expect to further enhance our production capacity to
meet the tremendous demand and continued growth we see in the
Illinois market today.”
As of August 20, 2020, IIP owned 61 properties located in
Arizona, California, Colorado, Florida, Illinois, Maryland,
Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada,
North Dakota, Ohio, Pennsylvania and Virginia, totaling
approximately 4.6 million rentable square feet (including
approximately 1.6 million rentable square feet under
development/redevelopment), which were 99.2% leased (based on
square footage) with a weighted-average remaining lease term of
approximately 16.0 years. As of August 20, 2020, IIP had invested
approximately $835.4 million in the aggregate (excluding
transaction costs) and had committed an additional approximately
$228.3 million to reimburse certain tenants and sellers for
completion of construction and tenant improvements at IIP’s
properties. These statistics do not include up to approximately
$14.5 million that may be funded in the future pursuant to IIP’s
lease with a tenant at one of IIP’s Massachusetts properties, as
the tenant at that property may not elect to have IIP disburse
those funds to the tenant and pay IIP the corresponding base rent
on those funds. These statistics also treat IIP’s Los Angeles,
California property as not leased, due to the tenant being in
receivership and its ongoing default in its obligation to pay rent
at that location.
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.
About AWH
AWH is a market leading, vertically integrated operator with
assets in Illinois, Michigan, Ohio, Massachusetts and New Jersey.
AWH is breaking down traditional walls in the cannabis marketplace
to provide easy and accessible products and exclusive brand
partnerships. AWH owns and operates state-of-the-art cultivation
facilities, growing award winning strains and producing curated
selection of products with effect-based categorization. AWH
operates Illinois Supply and Provisions and Ohio Provisions, and
has a strategic partnership with Michigan Supply and Provisions.
AWH produces and distributes Ozone branded products. For more
information, visit www.awholdings.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 AWH, the lease and the Illinois
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.
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Catherine Hastings Chief Financial Officer, Chief Accounting
Officer and Treasurer Innovative Industrial Properties, Inc. (858)
997-3332
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