Maryland-based Innovative Industrial Properties Inc. (NYSE: IIPR) continued its hot streak in the most recent quarter, which ended Sept. 30, with net income of $41.3 million on revenues of $77.8 million.
Both of those key metrics were up for IIP by about 10% year-over-year and also increased sequentially from Q2, when IIP posted a $40.9 million profit on $76.5 million in revenue. Thus far in 2023, IIP has pulled in $228.7 million in revenue and $122.9 million in net income.
The company attributed the revenue increases and resulting profits to “an increase in tenant reimbursements versus the prior period,” the “acquisition and leasing of new properties, additional building infrastructure” that led to increased rents at some of its properties, and “contractual rental escalations at certain properties.”
Rent collections for the cannabis real estate investment trust remained strong at 97% across its 108 properties in 19 states, and included just $2.2 million in security deposits applied to rents due.
Marijuana tenant companies that lost their deposits to IIP included Holistic Industries Inc. at a California property and a Michigan property; Temescal Wellness at a Massachusetts property; and 4Front Ventures Corp. at an Illinois property, IIP reported. All of those are expected to pay back their deposits over the next 12 months.
The only rent not collected in the quarter was another $2.2 million from Parallel, on a property in Pennsylvania, where the company has defaulted, IIP reported. That property was not included in the recent move by creditors to foreclose on Parallel properties in several states.
IIP ended the quarter with a healthy balance sheet that boasted:
- $2.6 billion in total gross assets – including $117 million in cash – compared to $440 million total liabilities.
- Just $4.4 million in debt that matures in 2024, with the rest not due until 2026.