Innovative Industrial Reports Rising Revenue

After the market closed on Wednesday, Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) announced results for the second quarter ended June 30, 2023.

The cannabis REIT delivered total revenues of approximately $76.5 million in the quarter, representing an 8% increase from the prior year’s quarter. The company also reported net income of approximately $40.9 million for the quarter, or $1.44 per diluted share.

The company attributed the increase in revenue to activity in prior periods for the acquisition and leasing of new properties, additional building infrastructure allowances provided to tenants at certain properties that resulted in increases to base rent, tenant reimbursements and contractual rental escalations at certain properties.

The adjusted fund from operations (AFFO) of approximately $64.0 million, or $2.26 per diluted share, demonstrated increases of 6% and 5% from the prior year’s quarter, respectively.


IIP noted that rent collections for its clients were at 97%. However, the default from Parallel Cannabis represented $2.1 million in uncollected rent.

The company did manage to sign a lease on a building associated with another problem child Kings Garden. IIP said it has a new tenant at the location in Cathedral City, CA.

IIP said in a statement that rental revenues in the quarter also included approximately $1.5 million of security deposits applied for payment of rent for IIP’s leases with Holistic and Temescal. Total revenues for the quarter included approximately $5.4 million of tenant reimbursements for property insurance premiums and property taxes.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.