IIP Property Portfolio Now Comprises 68
Properties Totaling 6.0 Million Square Feet in 18 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 Jushi Holdings Inc. (Jushi) (CSE: JUSH;
OTCMKTS: JUSHF) at its Scranton, Pennsylvania grower-processor
facility (the Facility), making available an additional $30.0
million in funding for the completion of the buildout of the
existing 89,000 square foot building and approximately 40,000
square foot expansion of the Facility, and adjusted the base rent
under the lease to take into account the additional available
funding. Assuming full payment of the additional funding and
completion of the expansion, IIP’s total investment in the
approximate 129,000 square foot Facility will be $45.8 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.
Founded in 2018, Jushi is a leading vertically integrated,
multi-state operator with a presence across six states, including
Pennsylvania, Illinois, Virginia, California, Nevada and Ohio, and
comprising 32 retail licenses (17 of which are operational), three
cultivation facilities, four extraction and processing facilities
and over 650 employees. With a seasoned management team led by Jim
Cacioppo, Jushi’s Chief Executive Officer, Chairman and Founder,
Jushi continues to deepen its footprint in Pennsylvania, through
its subsidiaries, which includes, in addition to its subsidiary’s
grower-processor facility, 11 operational dispensaries and an
additional seven dispensaries expected to open later this year.
“We are thrilled to further build on our real estate partnership
with Jushi, providing them the real estate capital for this
strategic expansion of production capacity at our Scranton
property,” said Paul Smithers, President and Chief Executive
Officer of IIP. “Jushi is a best-in-class operator and has
developed a tremendous footprint across its states of operation and
in Pennsylvania in particular, and we expect this timely expansion
to put them in an excellent position to continue to deliver at
scale their award-winning brands throughout the Commonwealth.”
“We appreciate the strong support of IIP as a long-term real
estate capital partner, teaming with us to provide strategic real
estate capital at an opportune time for our continued expansion in
Pennsylvania,” said Jim Cacioppo, Chief Executive Officer, Chairman
and Founder of Jushi. “The Pennsylvania regulated cannabis industry
continues to represent one of the strongest medical-use cannabis
markets in the country, and we expect this expansion to
dramatically increase our production capacity, while maintaining
the highly controlled cultivation and production environment that
allows us to continue to produce the consistent, high quality and
diverse set of cannabis products that our patients have come to
expect from our company.”
With first sales in 2018, the Pennsylvania medical cannabis
market continues its strong growth trajectory. According to BDSA,
2020 medical-use cannabis sales were estimated to be approximately
$545 million, and overall regulated cannabis sales are projected to
grow to over $1.3 billion by 2026. With limited licensing, the
state allows for up to 25 cultivation and processing licenses and
up to 150 dispensary licenses. Including this property, IIP owns
seven properties in Pennsylvania comprising an aggregate of
approximately 830,000 square feet, and a total investment of
approximately $224.5 million (including commitments to fund future
development, redevelopment and tenant improvements at the
properties, but excluding transaction costs).
As of April 5, 2021, IIP owned 68 properties located in Arizona,
California, Colorado, Florida, Illinois, Maryland, Massachusetts,
Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota,
Ohio, Pennsylvania, Texas, Virginia and Washington, representing a
total of approximately 6.0 million rentable square feet (including
approximately 2.2 million rentable square feet under
development/redevelopment), which were 100% leased with a
weighted-average remaining lease term of approximately 16.7 years.
As of April 5, 2021, IIP had committed approximately $1.5 billion
across its portfolio, including capital invested to date (excluding
transaction costs) and additional capital commitments to fund
future construction and tenant improvements at IIP’s
properties.
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 Jushi Holdings Inc.
Jushi is a vertically integrated cannabis company led by an
industry-leading management team. In the United States, Jushi is
focused on building a multi-state portfolio of branded
cannabis-derived assets through opportunistic acquisitions,
distressed workouts, and competitive applications. Jushi strives to
maximize shareholder value while delivering high-quality products
across all levels of the cannabis ecosystem. For more information,
please visit jushico.com, twitter.com/wearejushi and
beyond-hello.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 Pennsylvania
property, Jushi and the Pennsylvania 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.
Jushi Forward-Looking Information and
Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the United States Private Securities Litigation
Reform Act of 1995. Such forward-looking information and
forward-looking statements are not representative of historical
facts or information or current conditions but instead represent
only Jushi’s beliefs regarding future events, plans or objectives,
many of which, by their nature, involve estimates, projections,
plans, goals, forecasts and assumptions that may prove to be
inaccurate. As a result, actual results could differ materially
from those expressed by such forward-looking statements and such
statements should not be relied upon. Generally, such
forward-looking information or forward-looking statements can be
identified by the use of forward-looking terminology such as
“plans,” “expects” or “does not expect,” “is expected,” “budget,”
“scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or
“does not anticipate,” or “believes,” or variations of such words
and phrases or may contain statements that certain actions, events
or results “may,” “could,” “would,” “might” or “will be taken,”
“will continue,” “will occur” or “will be achieved”.
By identifying such information and statements in this manner,
Jushi is alerting the reader that such information and statements
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Jushi to be materially different
from those expressed or implied by such information and statements.
In addition, in connection with the forward-looking information and
forward-looking statements contained in this press release, Jushi
has certain expectations and has made certain assumptions. Among
the key factors that could cause actual results to differ
materially from those projected in the forward-looking information
and statements are the following: the ability of Jushi to
successfully achieve business objectives, including with regulatory
bodies, employees, suppliers, customers and competitors; changes in
general economic, business and political conditions, including
changes in the financial markets; changes in applicable laws; and
compliance with extensive government regulation, as well as other
risks and uncertainties which are more fully described in Jushi’s
Management, Discussion and Analysis for the nine months ended
September 30, 2020, and other filings with securities and
regulatory authorities which are available at www.sedar.com. Should
one or more of these risks, uncertainties or other factors
materialize, or should assumptions underlying the forward-looking
information or statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected.
The forward-looking information and forward-looking statements
contained in this press release are made as of the date of this
press release, and Jushi does not undertake to update any
forward-looking information and/or forward-looking statements that
are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward-looking information and statements attributable to Jushi or
persons acting on its behalf is expressly qualified in its entirety
by this notice.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210405005159/en/
IIP Contact: Catherine Hastings Chief Financial Officer
Innovative Industrial Properties, Inc. (858) 997-3332 Jushi
Contacts: Investor Relations Contact: Michael Perlman Executive
Vice President of Investor Relations and Treasury 561-281-0247
Investors@jushico.com Media Contact: Ellen Mellody MATTIO
Communications 570-209-2947 Ellen@Mattio.com
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