Adam Jackson
Innovative Industrial Properties, Inc. (NYSE: IIPR) posted positive results as it continues to inject capital into the cannabis real estate landscape. The real estate trust released results for the second quarter ending June 30, 2022.
The company saw $70.5 million in total revenue this quarter, a 44% gain from $48.9 million for the same quarter last year. The increase was mostly due to the acquisition and leasing of new properties, additional improvement allowances and construction funding at existing properties resulting in adjustments to base rent as well as contractual rental escalations at certain properties.
Last quarter, the company missed expectations as it delivered total revenues of approximately $64.5 million during the period — missing Yahoo Finance Average analyst estimate for revenues of $67 million.
IIP posted net income of $39.9 million for the quarter at $1.42 per diluted share. The company also posted an AFFO of $60.1 million. IIP paid a quarterly dividend of $1.75 per common share on July 15 to stockholders — a 25% increase from last year’s second quarter dividend — equal to an annualized dividend of $7 per share.
The company made four property acquisitions in Arizona, Maryland, Massachusetts and Texas while also executing five lease amendments to provide reimbursement for additional improvements at properties in Illinois, Michigan, New York and Pennsylvania.
On the balance sheet, the company posted 12% debt to total gross assets with approximately $2.5 billion in total gross assets. This represents a total annual fixed cash interest obligation of around $16.7 million with no debt maturing until 2026.
The company said it collected 99% of rent and property management fees over the first two quarters this year.
IIP now owns 110 properties located across the country, representing approximately 8.6 million rentable square feet including 2.2 million under development. The average remaining lease term is around 16 years. The company invested around $2.1 billion across its portfolio and committed an additional $209.6 million to fund draws by certain tenants and sellers related to construction and improvement at company properties. That does not include an $18.5 million loan commitment to a developer for construction of a regulated cannabis cultivation and processing facility in California.
IIP’s stock was trading at $100.27 in pre-trading Thursday morning, a 3.19% gain from $97.17 in the previous day.
