IIP Property Portfolio Now Comprises 63
Properties Totaling Five Million Square Feet in 16 States
Innovative Industrial Properties, Inc. (IIP), the first and only
real estate company on the New York Stock Exchange (NYSE: IIPR)
focused on the regulated U.S. cannabis industry, announced today
that it entered into an amendment of the lease with a subsidiary of
Green Thumb Industries Inc. (Green Thumb) (CSE: GTII; OTCQX: GTBIF)
in Toledo, Ohio, making available an additional $25.0 million in
funding for the construction of a cannabis cultivation facility,
which is in addition to the existing medical cannabis processing
facility on the property. The lease amendment also adjusted the
base rent under the lease to take into account the additional
available funding and extended the term of the lease agreement.
Assuming full payment of the additional funding, IIP’s total
investment in the property will be $32.2 million.
In addition to this facility in Toledo, Ohio, IIP owns and
leases to Green Thumb’s regulated cannabis cultivation and
processing facilities in Oglesby, Illinois and Danville,
Pennsylvania. Assuming full reimbursement of tenant improvements
under the leases, IIP’s total investment in properties leased to
Green Thumb is expected to be $121.8 million.
As the pioneering real estate investment trust (REIT) for the
medical-use cannabis industry, IIP partners with experienced
medical-use cannabis operators and serves as a source of capital by
acquiring and leasing back their real estate assets, in addition to
offering other creative real estate-based capital solutions.
Green Thumb is a leading national cannabis consumer packaged
goods company and owner of Rise™ and Essence retail stores. Green
Thumb has 13 manufacturing facilities, licenses for 96 retail
locations and operations across twelve U.S. markets. In addition to
the Toledo facility, which commenced production and distribution of
Green Thumb’s brand portfolio in early July, Green Thumb currently
operates five licensed dispensaries in Ohio.
“Green Thumb is a best-in-class operator with a dedication to
providing the highest quality cannabis products to its patients and
customers, while being an impactful contributor to the communities
where it operates,” said Paul Smithers, President and Chief
Executive Officer of IIP. “We are proud to be Green Thumb’s
long-term real estate partner, and to support them with the real
estate capital in this next phase of development of their presence
in Ohio to effectively serve the demand of medical cannabis
patients throughout the state.”
“We appreciate the continued strong support of IIP as a
long-term real estate capital partner,” said Green Thumb Founder
and CEO Ben Kovler. “The Ohio regulated cannabis industry continues
to represent a tremendous growth opportunity, and we look forward
to bringing our high quality Rythm flower to the patients in the
state.”
Medical-use cannabis dispensaries in Ohio made their first sales
in 2019. According to the Ohio Board of Pharmacy, since inception
and through August 2020, more than 130,000 patients and 14,000
caregivers have registered for the state’s medical cannabis
program, generating over $175 million in product sales.
As of October 1, 2020, IIP owned 63 properties located in
Arizona, California, Colorado, Florida, Illinois, Maryland,
Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada,
North Dakota, Ohio, Pennsylvania and Virginia, totaling
approximately 5.0 million rentable square feet (including
approximately 1.9 million rentable square feet under
development/redevelopment), which were 99.3% leased (based on
square footage) with a weighted-average remaining lease term of
approximately 16.2 years. As of October 1, 2020, IIP had invested
approximately $884.5 million in the aggregate (excluding
transaction costs) and had committed an additional approximately
$292.0 million to reimburse certain tenants and sellers for
completion of construction and tenant improvements at IIP’s
properties. These statistics do not include up to approximately
$10.0 million that may be funded in the future pursuant to IIP’s
lease with a tenant at one of IIP’s Massachusetts properties, as
the tenant at that property may not elect to have IIP disburse
those funds to the tenant and pay IIP the corresponding base rent
on those funds. These statistics also treat IIP’s Los Angeles,
California property as not leased, due to the tenant being in
receivership and its ongoing default in its obligation to pay rent
at that location.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised
Maryland corporation focused on the acquisition, ownership and
management of specialized industrial properties leased to
experienced, state-licensed operators for their regulated
medical-use cannabis facilities. Innovative Industrial Properties,
Inc. has elected to be taxed as a real estate investment trust,
commencing with the year ended December 31, 2017. Additional
information is available at
www.innovativeindustrialproperties.com.
About Green Thumb Industries
Green Thumb Industries Inc. (Green Thumb), a national cannabis
consumer packaged goods company and retailer, promotes well-being
through the power of cannabis while giving back to the communities
in which it serves. Green Thumb manufactures and distributes a
portfolio of branded cannabis products including Beboe, Dogwalkers,
Dr. Solomon’s, incredibles, Rythm and The Feel Collection. The
company also owns and operates rapidly growing national retail
cannabis stores called Rise™ and Essence. Headquartered in Chicago,
Illinois, Green Thumb has 13 manufacturing facilities, licenses for
96 retail locations and operations across 12 U.S. markets.
Established in 2014, Green Thumb employs over 1,900 people and
serves thousands of patients and customers each year. The company
was named a Best Workplace 2018 by Crain’s Chicago Business and MG
Retailer magazine in 2018 and 2019. More information is available
at www.gtigrows.com.
Innovative Industrial Properties
Forward-Looking Statements
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, including, without
limitation, statements regarding the lease of the Ohio property,
Green Thumb and the Ohio regulated cannabis market, are
forward-looking statements. When used in this press release, words
such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,”
“believe” or “should” or the negative thereof or similar
terminology are generally intended to identify forward-looking
statements. 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.
Investors should not place undue reliance upon forward-looking
statements. IIP disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Green Thumb Industries Cautionary Note
Regarding Forward-Looking Information
This press release contains statements which may constitute
“forward-looking information” within the meaning of applicable
securities laws. Forward-looking information is often identified by
the words “may,” “would,” “could,” “should,” “will,” “intend,”
“plan,” “anticipate,” “believe,” “estimate,” “expect,” or similar
expressions and include information regarding the filing of the
Documents and the timing thereof. The forward‐looking information
in this news release is based upon the expectations of future
events which management believes to be reasonable. Any
forward‐looking information speaks only as of the date on which it
is made, and, except as required by law, Green Thumb does not
undertake any obligation to update or revise any forward‐looking
information, whether as a result of new information, future events
or otherwise. The forward‐looking information in this news release
is subject to a variety of known and unknown risks, uncertainties
and other factors that could cause actual events or results to
differ from those express or implied. When considering these
forward‐looking statements, readers should keep in mind the risk
factors and other cautionary statements in Green Thumb’s public
filings with the applicable securities regulatory authorities on
the SEC’s website at www.sec.gov and on SEDAR at www.sedar.com,
including the risk factors set out in the 2nd Amendment to Green
Thumb’s Registration Statement on Form 10/A and its Form 10-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20201001006043/en/
IIP Contact: Catherine Hastings Chief Financial Officer, Chief
Accounting Officer and Treasurer Innovative Industrial Properties,
Inc. (858) 997-3332
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