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 closed on the acquisition of a property in Holyoke,
Massachusetts, which comprises approximately 150,000 square feet of
industrial space, from Trulieve Cannabis Corp. (Trulieve), a
leading and top-performing cannabis company in the United States
(CSE: TRUL) (OTC: TCNNF).
Concurrent with the closing of the purchase, IIP entered into a
triple-net lease agreement with a subsidiary of Trulieve, which
intends to operate the property as a licensed cannabis cultivation
and processing facility upon completion of redevelopment. Trulieve
is expected to complete tenant improvements for the building, for
which IIP has agreed to provide reimbursement of up to $40.0
million, which funding is subject to reduction at Trulieve’s option
within the first six months of the lease term. The purchase price
for the Massachusetts property was $3.5 million (excluding
transaction costs). Assuming full reimbursement for the tenant
improvements, IIP’s total investment in the property will be
approximately $43.5 million. The initial lease term is ten years,
which may be extended for up to an additional 18 months in
accordance with the terms of the lease, with two options to extend
the term of the lease for five years each. The initial annualized
base rent is equal to 11% of the sum of the purchase price for the
property and the reimbursement for tenant improvements then funded
by IIP.
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.
“We are thrilled to add a tenant with the strength of credit and
of the caliber of Trulieve to our tenant roster,” said Paul
Smithers, President and Chief Executive Officer of IIP. “Through
its dedication to providing Florida patients with the highest
quality products in a welcoming, compassionate environment,
Trulieve has become the preeminent operator in Florida, and we look
forward to supporting Trulieve as a long-term real estate capital
partner as it continues to expand its operations in
Massachusetts.”
Trulieve is a publicly traded Canadian company and multi-state
cannabis operator employing over 2,000 people with licenses in
Florida, Massachusetts, California and Connecticut.
“The IIP team provided us with a flexible, creative transaction
structure for cash-efficient redevelopment of the property, and
moved quickly to meet our timeframe,” said Kim Rivers, Chief
Executive Officer of Trulieve. “We look forward to developing this
property and to bringing our best-in-class operations and
dedication to patient satisfaction to the residents of
Massachusetts.”
As of July 29, 2019, IIP owned 26 properties located in Arizona,
California, Colorado, Illinois, Maryland, Massachusetts, Michigan,
Minnesota, New York, Nevada, Ohio and Pennsylvania, totaling
approximately 2.0 million rentable square feet (including
approximately 631,000 rentable square feet under
development/redevelopment), which were 100% leased with a
weighted-average remaining lease term of approximately 15.6 years.
As of July 29, 2019, IIP had invested approximately $262.1 million
in the aggregate (excluding transaction costs) and had committed an
additional approximately $72.6 million to reimburse certain tenants
and sellers for completion of construction and tenant improvements
at IIP’s properties. IIP’s average current yield on invested
capital is approximately 14.6% for these 26 properties, calculated
as (a) the sum of the current base rents, supplemental rent (with
respect to the lease with PharmaCann LLC at one of IIP’s New York
properties) and property management fees (after the expiration of
applicable base rent abatement or deferral periods), divided by (b)
IIP’s aggregate investment in these properties (excluding
transaction costs and including aggregate potential
development/redevelopment funding and tenant reimbursements of
approximately $72.6 million). These statistics include IIP’s most
recent acquisitions and leases of properties with a subsidiary of
MJardin Group, Inc. in Nevada and DionyMed Brands, Inc. in
California, and do not include any amounts that may be funded in
the future pursuant to IIP’s lease with Trulieve at the
Massachusetts property.
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.
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 Massachusetts
property, Trulieve and the Massachusetts 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.
About Trulieve
Trulieve is a vertically integrated “seed-to-sale” company and
is the first and largest fully licensed medical cannabis company in
the State of Florida. Trulieve cultivates and produces all of its
products in-house and distributes those products to
Trulieve-branded stores (dispensaries) throughout the State of
Florida, as well as directly to patients via home delivery.
Trulieve also operates in California, Massachusetts and
Connecticut. Trulieve is listed on the Canadian Securities Exchange
under the symbol TRUL.
Trulieve Forward-Looking
Statements
This press release includes forward-looking information and
statements, which may include, but are not limited to, information
and statements regarding or inferring the future business,
operations, financial performance, prospects, and other plans,
intentions, expectations, estimates, and beliefs of Trulieve.
Forward-looking information and statements involve and are subject
to assumptions and known and unknown risks, uncertainties, and
other factors which may cause actual events, results, performance,
or achievements of Trulieve to be materially different from future
events, results, performance, and achievements expressed or implied
by forward-looking information and statements herein. Although
Trulieve believes that any forward-looking information and
statements herein are reasonable, in light of the use of
assumptions and the significant risks and uncertainties inherent in
such information and statements, there can be no assurance that any
such forward-looking information and statements will prove to be
accurate, and accordingly readers are advised to rely on their own
evaluation of such risks and uncertainties and should not place
undue reliance upon such forward-looking information and
statements. Any forward-looking information and statements herein
are made as of the date hereof, and except as required by
applicable laws, Trulieve assumes no obligation and disclaims any
intention to update or revise any forward-looking information and
statements herein or to update the reasons that actual events or
results could or do differ from those projected in any forward
looking information and statements herein, whether as a result of
new information, future events or results, or otherwise, except as
required by applicable laws.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or the
securities laws of any state of the United States and may not be
offered or sold within the United States (as defined in Regulation
S under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or pursuant to
an exemption from such registration requirements. To learn more
about Trulieve, visit www.Trulieve.com.
The Canadian Securities Exchange has not reviewed, approved or
disapproved the content of this news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190729005107/en/
Catherine Hastings Chief Financial Officer, Chief Accounting
Officer and Treasurer Innovative Industrial Properties, Inc. (858)
997-3332
Lynn Ricci Director, Investor Relations 850-270-5691
IR@trulieve.com
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Feb 2024 to Mar 2024
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Mar 2023 to Mar 2024