Key Financial Highlights

• Revenue: $76.5 million, down 1.7% from Q3 2023 due to tenant-related adjustments.
• Net Income: $39.7 million, or $1.37 per share, a 6% decrease year-over-year.
• Adjusted Funds from Operations (AFFO): $64.3 million, or $2.25 per share, down 2% from Q3 2023.
• Dividend: Distributed $1.90 per share on October 15, with an AFFO payout ratio of 84%.

Managing Rent Delays

Since June 2023, IIP has regained possession of certain properties, resulting in a $3.0 million revenue dip for Q3.

Additionally, IIP experienced a $1.3 million reduction in rent due to reclassification of two leases and $1.3 million in uncollected rent and management fees.

To mitigate these impacts, IIP applied security deposits for rent on properties leased to companies like 4Front Ventures, TILT Holdings and Emerald Growth Holdings, helping to maintain cash flow.

Additionally, several re-leased properties have rent start dates contingent upon tenants securing necessary operational approvals. In certain cases, IIP has also provided temporary rent abatements to new tenants during their transition.

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Portfolio Expansion And Financial Stability

IIP continued expanding, acquiring a 23,000-square-foot facility in Maryland and completing 104,000 square feet of cultivation space in Michigan.

The company's portfolio spans 108 properties across 19 states, with an average lease term of 14 years and a 95.7% occupancy rate.

With $2.6 billion in assets, an 11% debt ratio and $222.4 million in liquidity, IIP remains financially robust.

IIPR Stock Price Action

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