Innovative Industrial Properties Reports Fourth Quarter and Full Year 2025 Results

Executive Chairman Remarks

“During 2025, we made significant progress executing on our strategy to diversify the Company’s portfolio, strengthen our balance sheet, and actively resolve tenant-related matters," said Alan Gold, Executive Chairman of IIP. "Our strategic investment in IQHQ and establishment of a new $100 million revolving credit facility reflect our disciplined approach to capital allocation, while our ongoing tenant resolutions and new leasing activity demonstrate the underlying value of, and demand for, our real estate portfolio.”

Full Year 2025 Highlights

• Total revenues of $266.0 million and net income attributable to common stockholders of $114.4 million, or $3.93 per diluted share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted).
• Adjusted funds from operations ("AFFO") of $205.4 million, or $7.24 per diluted share.
• Declared dividends to common stockholders totaling $7.60 per share, increasing IIP’s common stock dividends declared each year since its inception in 2016. Since its inception, IIP has paid over $1.1 billion in common stock dividends to its stockholders.
• In August, announced a strategic and diversifying investment of up to $270.0 million in IQHQ, Inc., a premier life science real estate platform ("IQHQ"), including a fully funded $100.0 million revolving credit facility and $170.0 million of preferred equity, of which $50.0 million had been funded as of year end.
• Signed new leases comprising 339,000 square feet and totaling 4% of the total portfolio’s rentable square feet.
• Issued 1,016,852 shares of Series A Preferred Stock under IIP's "at-the-market" equity offering program ("ATM Program") for $24.1 million in net proceeds.
• Closed on a new three-year, $100.0 million secured revolving credit facility with a federally regulated commercial bank that bears interest at one-month SOFR + 200 basis points.

Fourth Quarter 2025 and Recent Highlights

Financial Results and Dividend

• Total revenues of $66.7 million and net income attributable to common stockholders of $30.7 million, or $1.06 per share.
• AFFO of $53.3 million, or $1.88 per share.
• Paid a quarterly dividend of $1.90 per common share on January 15, 2026 to stockholders of record as of December 31, 2025.

IQHQ Investment

• As of December 31, 2025, the Company had funded an aggregate of $150.0 million of its strategic investment in IQHQ, Inc., consisting of a fully funded $100.0 million revolving credit facility and $50.0 million of Series G preferred equity. The Company remains committed to funding up to an additional $120.0 million of preferred equity, in multiple tranches between the second quarter of 2026 and the second quarter of 2027.

Portfolio - Leasing

• In November 2025, executed a 70,000 square foot full-building lease for IIP’s North Palm Springs, California property to a private California operator.
• In November 2025, executed a 58,000 square foot full-building lease for IIP’s Holliston, Massachusetts property to Perpetual Brands, a private Massachusetts operator.
• In January 2026, executed a 204,000 square foot full-building lease for IIP's Desert Hot Springs, California property to Gramlin, a private California operator.

Portfolio - Tenant Updates

• The following table summarizes payments received from certain defaulted tenants during the periods presented and the corresponding per share impact (in thousands, except per share amounts):

• PharmaCann
  • In December, the Company regained possession of its 66,000 square foot cultivation property in Illinois and subsequently signed an LOI with a new tenant in January.
  • In January 2026, the Ohio court released $1.3 million, or $0.05 per share, to the Company comprised of the rent payments previously required to be escrowed with the court by PharmaCann for the time period from July through December 2025.
  • The Company is actively working to regain possession of its remaining cultivation properties in Pennsylvania, Ohio and New York.
• Gold Flora
  • During the fourth quarter of 2025, the Company received $3.7 million, or $0.13 per share, to be applied toward the unpaid rent due during the receivership.
  • During the first quarter of 2026, the Company has received an additional $1.5 million, or $0.05 per share, in settlement of all remaining unpaid administrative rents due from the receivership.
• 4Front
  • The Company has an executed LOI for its 250,000 cultivation property in Illinois with a new tenant.
  • The Company agreed to terms with a tenant for its 67,000 square foot property in Georgetown, MA, subject to the close out of certain contingencies relating to the receivership sale.
  • The Company agreed to terms with a tenant for its 114,000 square foot property in Olympia, WA, subject to the close out of certain contingencies relating to the receivership sale.
  • The Company agreed to terms with a tenant for its 57,000 square foot property in Holliston, MA, subject to the close out of certain contingencies relating to the receivership sale.

Balance Sheet Highlights (at December 31, 2025)

• 14% debt to total gross assets, with $2.7 billion in total gross assets.
• Total liquidity was $107.6 million, consisting of cash and cash equivalents (as reported in IIP’s consolidated balance sheet as of December 31, 2025) and availability under IIP’s revolving credit facility.
• Debt service coverage ratio of 10.4x (calculated in accordance with IIP’s 5.50% Unsecured Senior Notes due 2026).

Financing Activity

• Preferred Stock
  • During the quarter ended December 31, 2025, the Company issued 211,843 shares its of 9.00% Series A Preferred Stock under its ATM Program for $5.0 million in net proceeds.
  • Subsequent to December 31, 2025, the Company issued an additional 1,794,323 shares of its 9.00% Series A Preferred Stock under its ATM Program for $40.4 million in net proceeds.
  • In total, the Company has raised $45.4 million in net proceeds from preferred stock issuances since the beginning of the fourth quarter of 2025.
• New Revolving Credit Facility
  • In October, closed on a new three-year, $100.0 million secured revolving credit facility (the “Life Science Credit Facility”) with a federally regulated commercial bank. The Life Science Credit Facility is secured by the Company’s IQHQ investment and had an interest rate of 6.1% as of December 31, 2025. The Life Science Credit Facility also includes a $35.0 million “accordion feature” that permits the Company to expand the borrowing capacity to a total of $135.0 million, subject to the addition of other lenders. As of December 31, 2025, outstanding borrowings under our Life Science Credit Facility were $75.0 million.

Financial Results

For the three months ended December 31, 2025, IIP generated total revenues of $66.7 million, compared to $76.7 million for the same period in 2024, a decrease of 13.1%. The decrease was primarily driven by an $8.5 million decrease in rental revenue and a $1.6 million decrease in tenant reimbursements primarily due to tenant defaults for properties leased to PharmaCann, TILT and 4Front.

For the three months ended December 31, 2025, IIP did not apply any security deposits for the payment of rent. For the three months ended December 31, 2024, IIP applied $5.7 million of security deposits for payment of rent on properties leased to five tenants.

For the three months ended December 31, 2025, interest and other income increased by $4.1 million to $6.7 million, compared to $2.6 million for the three months ended December 31, 2024. The increase was primarily driven by the recognition of $5.0 million of interest and dividend income related to our financial investments in IQHQ. The increase was partially offset by lower income from interest-bearing investments as a result of lower invested balances and lower interest rates earned on those balances.

Dividend

On December 15, 2025, the Board of Directors declared a fourth quarter 2025 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on January 15, 2026 to stockholders of record as of December 31, 2025.

Supplemental Information

Supplemental financial information is available in the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com.

Teleconference and Webcast

Innovative Industrial Properties, Inc. will conduct a conference call and webcast at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) on Tuesday, February 24, 2026 to discuss IIP’s financial results and operations for the fourth quarter and year ended December 31, 2025. The call will be open to all interested investors through a live audio webcast at the Investor Relations section of IIP’s website at www.innovativeindustrialproperties.com, or live by calling 1-800-715-9871 (domestic) or 1-646-307-1963 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call. The complete webcast will be archived for 90 days on IIP’s website. A telephone playback of the conference call will also be available from 12:00 p.m. Pacific Time on Tuesday, February 24, 2026 until 8:59 p.m. Pacific Time on Tuesday, March 3, 2026, by calling 1-800-770-2030 (domestic), or 1-609-800-9909 (international) and using access code 5072512. The website replay will be posted in the Investor Relations section of innovativeindustrialproperties.com.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

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 are forward-looking statements. When used in this press release, words such as IIP “expects,” “intends,” “plans,” “estimates,” “anticipates,” “believes” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding potential transactions, including properties subject to letters of intent or other non-binding agreements, the consummation of which remains subject to the negotiation and execution of definitive documentation, satisfaction of customary closing conditions and other contingencies, including those relating to receivership sale processes. 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. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that the Company's expectations will be realized. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws.