Innovative Industrial Properties Inc. (NYSE: IIPR) posted a profit of nearly $41 million for the first three months of 2023, an increase of 18% over the same period a year prior, the company reported Monday.
IIP appears to have resolved at least some of the tenant rent collection issues it experienced in 2022, given that its rent collection rate was 98%. Paying on time had been an issue for a few struggling tenants last year.
Overall revenues were $76.1 million for the quarter, but the company noted that included $4.2 million in “security deposits applied for payment of rent” for Green Peak in Michigan, Parallel in Texas and Pennsylvania, and Holistic Industries Inc. in California and Michigan.
The company reported $1.6 million in unpaid rent by Parallel and Green Peak.
But the company’s entire portfolio of cannabis real estate remains leased, it also reported, which includes 108 properties in 19 states, with an average lease term of just over 15 years.
IIP has also continued its expansion binge in 2023, and already this year has:
- Acquired a building in Ohio for $20.1 million with plans to lease it to marijuana operator Battle Green Holdings.
- Signed another sale-leaseback deal with TILT Holdings, this time for a facility in Pennsylvania for which IIP paid $15 million.
- Amended leases with Ascend Wellness Holdings in New Jersey, PharmaCann Inc. in New York, and Goodness Growth Holdings in New York, to provide a total of $34 million across the three for real estate improvements.
- Sold four properties in California to Medical Investor Holdings, dba Vertical, for $16.2 million.
IIP also maintained $2.6 billion in gross assets, with just a 12% debt to asset ratio and zero secured debt.
The company announced in March that Catherine Hastings was promoted to chief operating officer, Ben Regin was promoted to chief investment officer, and David Smith was hired as chief financial officer.