Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INNOVATIVE INDUSTRIAL PROPERTIES INC | |
Entity File Number | 001-37949 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 81-2963381 | |
Entity Address, Address Line One | 1389 Center Drive, Suite 200 | |
Entity Address, City or Town | Park City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84098 | |
City Area Code | 858 | |
Local Phone Number | 997-3332 | |
Entity Central Index Key | 0001677576 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 22,174,428 | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NYSE | |
Trading Symbol | IIPR | |
Series A Preferred Stock [Member] | ||
Title of 12(b) Security | SeriesĀ A Preferred Stock, par value $0.001 per share | |
Security Exchange Name | NYSE | |
Trading Symbol | IIPR-PA |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real estate, at cost: | ||
Land | $ 68,033 | $ 48,652 |
Buildings and improvements | 575,529 | 382,035 |
Tenant improvements | 272,934 | 87,344 |
Total real estate, at cost | 916,496 | 518,031 |
Less accumulated depreciation | (31,469) | (12,170) |
Net real estate held for investment | 885,027 | 505,861 |
Cash and cash equivalents | 161,074 | 82,244 |
Restricted cash | 35,072 | |
Short-term investments, net | 451,178 | 119,595 |
Right of use office lease asset | 1,035 | 1,202 |
Other assets, net | 1,536 | 1,883 |
Total assets | 1,499,850 | 745,857 |
Liabilities and stockholders' equity | ||
Exchangeable senior notes, net | 136,174 | 134,654 |
Tenant improvements and construction funding payable | 30,583 | 24,968 |
Accounts payable and accrued expenses | 1,336 | 3,417 |
Dividends payable | 26,325 | 12,975 |
Office lease liability | 1,113 | 1,202 |
Rent received in advance and tenant security deposits | 34,323 | 20,631 |
Total liabilities | 229,854 | 197,847 |
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, $15,000 liquidation preference ($25.00 per share), 600,000 shares issued and outstanding at September 30, 2020 and December 31, 2019 | 14,009 | 14,009 |
Common stock, par value $0.001 per share, 50,000,000 shares authorized: 22,174,428 and 12,637,043 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 22 | 13 |
Additional paid-in capital | 1,295,352 | 553,932 |
Dividends in excess of earnings | (39,387) | (19,944) |
Total stockholders' equity | 1,269,996 | 548,010 |
Total liabilities and stockholders' equity | $ 1,499,850 | $ 745,857 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 22,174,428 | 12,637,043 |
Common Stock, Shares, Outstanding | 22,174,428 | 12,637,043 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |
Preferred Stock, Dividend Rate, Percentage | 9.00% | 9.00% |
Preferred Stock, Liquidation Preference, Value | $ 15,000 | $ 15,000 |
Preferred Stock, Liquidation Preference Per Share | $ 25 | $ 25 |
Preferred Stock, Shares Issued | 600,000 | 600,000 |
Preferred Stock, Shares Outstanding | 600,000 | 600,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Rental (including tenant reimbursements) | $ 34,327 | $ 11,555 | $ 79,803 | $ 26,995 |
Total revenues | 34,327 | 11,555 | 79,803 | 26,995 |
Expenses: | ||||
Property expenses | 2,919 | 357 | 3,933 | 941 |
General and administrative expense | 3,339 | 2,156 | 9,695 | 6,667 |
Depreciation expense | 7,646 | 2,221 | 19,299 | 5,054 |
Total expenses | 13,904 | 4,734 | 32,927 | 12,662 |
Income from operations | 20,423 | 6,821 | 46,876 | 14,333 |
Interest and other income | 653 | 1,537 | 3,086 | 3,702 |
Interest expense | (1,861) | (1,838) | (5,565) | (4,462) |
Net income | 19,215 | 6,520 | 44,397 | 13,573 |
Preferred stock dividend | (338) | (338) | (1,014) | (1,014) |
Net income attributable to common stockholders | $ 18,877 | $ 6,182 | $ 43,383 | $ 12,559 |
Net income attributable to common stockholders per share (Note 8): | ||||
Basic | $ 0.87 | $ 0.56 | $ 2.35 | $ 1.22 |
Diluted | $ 0.86 | $ 0.55 | $ 2.33 | $ 1.20 |
Weighted average shares outstanding: | ||||
Basic | 21,594,637 | 10,918,477 | 18,315,231 | 10,088,036 |
Diluted | 21,708,725 | 11,057,697 | 18,429,228 | 10,225,574 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In-Capital [Member] | Dividends in Excess of Earnings [Member] | Total |
Balances at beginning of period at Dec. 31, 2018 | $ 14,009 | $ 10 | $ 260,540 | $ (10,267) | $ 264,292 |
Balances at beginning of period (in shares) at Dec. 31, 2018 | 9,775,800 | ||||
Net income | 13,573 | 13,573 | |||
Equity component of exchangeable senior notes | 5,569 | 5,569 | |||
Net proceeds from sale of common stock | $ 1 | 185,623 | 185,624 | ||
Net proceeds from sale of common stock (in shares) | 1,558,000 | ||||
Net issuance of unvested restricted stock | (939) | (939) | |||
Net issuance of unvested restricted stock (in shares) | 34,028 | ||||
Preferred stock dividend | (1,014) | (1,014) | |||
Common stock dividend | (19,163) | (19,163) | |||
Stock-based compensation | 1,841 | 1,841 | |||
Balances at end of period at Sep. 30, 2019 | 14,009 | $ 11 | 452,634 | (16,871) | 449,783 |
Balances at end of period (in shares) at Sep. 30, 2019 | 11,367,828 | ||||
Balances at beginning of period at Jun. 30, 2019 | 14,009 | $ 10 | 266,356 | (14,187) | 266,188 |
Balances at beginning of period (in shares) at Jun. 30, 2019 | 9,809,171 | ||||
Net income | 6,520 | 6,520 | |||
Net proceeds from sale of common stock | $ 1 | 185,623 | 185,624 | ||
Net proceeds from sale of common stock (in shares) | 1,558,000 | ||||
Net issuance of unvested restricted stock (in shares) | 657 | ||||
Preferred stock dividend | (338) | (338) | |||
Common stock dividend | (8,866) | (8,866) | |||
Stock-based compensation | 655 | 655 | |||
Balances at end of period at Sep. 30, 2019 | 14,009 | $ 11 | 452,634 | (16,871) | 449,783 |
Balances at end of period (in shares) at Sep. 30, 2019 | 11,367,828 | ||||
Balances at beginning of period at Dec. 31, 2019 | 14,009 | $ 13 | 553,932 | (19,944) | 548,010 |
Balances at beginning of period (in shares) at Dec. 31, 2019 | 12,637,043 | ||||
Net income | 44,397 | 44,397 | |||
Net proceeds from sale of common stock | $ 9 | 741,097 | 741,106 | ||
Net proceeds from sale of common stock (in shares) | 9,548,866 | ||||
Issuance of exchangeable senior notes | 1 | 1 | |||
Issuance of exchangeable senior notes (in shares) | 14 | ||||
Net issuance of unvested restricted stock | (2,166) | (2,166) | |||
Net issuance of unvested restricted stock (in shares) | (11,495) | ||||
Preferred stock dividend | (1,014) | (1,014) | |||
Common stock dividend | (62,826) | (62,826) | |||
Stock-based compensation | 2,488 | 2,488 | |||
Balances at end of period at Sep. 30, 2020 | 14,009 | $ 22 | 1,295,352 | (39,387) | 1,269,996 |
Balances at end of period (in shares) at Sep. 30, 2020 | 22,174,428 | ||||
Balances at beginning of period at Jun. 30, 2020 | 14,009 | $ 19 | 988,220 | (32,277) | 969,971 |
Balances at beginning of period (in shares) at Jun. 30, 2020 | 18,614,561 | ||||
Net income | 19,215 | 19,215 | |||
Net proceeds from sale of common stock | $ 3 | 306,291 | 306,294 | ||
Net proceeds from sale of common stock (in shares) | 3,559,867 | ||||
Preferred stock dividend | (338) | (338) | |||
Common stock dividend | (25,987) | (25,987) | |||
Stock-based compensation | 841 | 841 | |||
Balances at end of period at Sep. 30, 2020 | $ 14,009 | $ 22 | $ 1,295,352 | $ (39,387) | $ 1,269,996 |
Balances at end of period (in shares) at Sep. 30, 2020 | 22,174,428 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 44,397 | $ 13,573 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 19,299 | 5,054 |
Other non-cash adjustments | 139 | |
Stock-based compensation | 2,488 | 1,841 |
Amortization of discounts on short-term investments | (2,499) | (2,870) |
Amortization of debt discounts and issuance costs | 1,521 | 1,181 |
Changes in assets and liabilities | ||
Other assets, net | (364) | 46 |
Accounts payable and accrued expenses | (2,095) | (924) |
Rent received in advance and tenant security deposits | 13,692 | 7,185 |
Net cash provided by operating activities | 76,578 | 25,086 |
Cash flows from investing activities | ||
Purchases of investments in real estate | (182,086) | (107,644) |
Reimbursements of tenant improvements and construction funding | (210,114) | (43,767) |
Deposits in escrow for acquisitions | (500) | |
Purchases of short-term investments | (668,576) | (249,015) |
Maturities of short-term investments | 339,492 | 163,500 |
Net cash used in investing activities | (721,284) | (237,426) |
Cash flows from financing activities | ||
Issuance of common stock, net of offering costs | 741,120 | 185,687 |
Net proceeds from issuance of exchangeable senior notes | 0 | 138,545 |
Dividends paid to common stockholders | (49,476) | (13,718) |
Dividends paid to preferred stockholders | (1,014) | (1,014) |
Taxes paid related to net share settlement of equity awards | (2,166) | (939) |
Net cash provided by financing activities | 688,464 | 308,561 |
Net increase in cash, cash equivalents and restricted cash | 43,758 | 96,221 |
Cash, cash equivalents and restricted cash, beginning of period | 117,316 | 13,050 |
Cash, cash equivalents and restricted cash, end of period | 161,074 | 109,271 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 5,391 | 3,056 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Accrual for reimbursements of tenant improvements and construction funding | 30,583 | 12,700 |
Deposits applied for acquisitions | 650 | |
Accrual for common and preferred stock dividends declared | 26,325 | 9,204 |
Accrual for stock issuance costs | 14 | $ 62 |
Exchange of exchangeable senior notes | $ 1 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2020 | |
Organization | |
Organization | 1. Organization As used herein, the terms āweā, āusā, āourā or the āCompanyā refer to Innovative Industrial Properties, Inc., a Maryland corporation, and any of our subsidiaries, including IIP Operating Partnership, LP, a Delaware limited partnership (our āOperating Partnershipā). We are an internally-managed real estate investment trust (āREITā) focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated state-licensed cannabis facilities. We have acquired and intend to continue to acquire our properties through sale-leaseback transactions and third-party purchases. We have leased and expect to continue to lease our properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including structural repairs, maintenance, taxes and insurance. We were incorporated in Maryland on June 15, 2016. We conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT structure, in which our properties are owned by our Operating Partnership, directly or through subsidiaries. We are the sole general partner of our Operating Partnership and own, directly or through subsidiaries, 100% of the limited partnership interests in our Operating Partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | 2. Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements Basis of Presentation. This interim financial information should be read in conjunction with the audited consolidated financial statements in the Companyās Annual Report on Form 10-K for the year ended December 31, 2019. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firmās review. The Company considered the impact of COVID-19 on its assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at September 30, 2020. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. See Note 6 for further discussion. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2020. Federal Income Taxes. Use of Estimates. Reportable Segment. Acquisition of Real Estate Properties. Depreciation. We depreciate office equipment and furniture and fixtures over estimated useful lives ranging from three Provision for Impairment. Long-lived assets are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. No impairment losses were recognized during the nine months ended September 30, 2020 and 2019. Revenue Recognition. Cash and Cash Equivalents and Restricted Cash Restricted cash relates to cash held in escrow for the reimbursement of tenant improvements in accordance with various lease agreements. As of September 30, 2020, all of the cash held was released from restriction. Investments. Exchangeable Notes. Deferred Financing Costs. Stock-Based Compensation. Lease Accounting. In April 2020, in response to the coronavirus pandemic and associated severe economic disruption, we amended leases at certain of our properties to provide for temporary base rent and property management fee deferrals through June 30, 2020. The FASB has issued additional guidance for companies to account for any coronavirus related rent concessions in the form of FASB staff and board members' remarks at the April 8, 2020 public meeting and the FASB staff question-and-answer document issued on April 10, 2020. We have elected the practical expedient which allows us to not have to evaluate whether concessions provided in response to coronavirus pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. Lease amendments that are not associated with the coronavirus pandemic are evaluated to determine if the modification grants the lessee an additional right-of-use not included in the original lease and if the lease payments increase commensurate with the standalone price of the additional right-of-use, adjusted for the circumstances of the particular contract. If both conditions are present, the lease amendment is accounted for as a new lease that is separate from the original lease. One of our leases that was entered into prior to 2019 provides the lessee with a purchase option to purchase the leased property at the end of the initial lease term in September 2034, subject to the satisfaction of certain conditions. The purchase option provision allows the lessee to purchase the leased property at the greatest of (a) the fair value; (b) the value determined by dividing the then-current base rent by 8%; and (c) an amount equal to our gross investment in the property (including the purchase price at acquisition and any additional investment in the property made by us during the term of the lease), indexed to inflation. At September 30, 2020, our gross investment in the property with the purchase option was approximately $30.5 million. At September 30, 2020, the purchase option was not exercisable. Our leases generally contain options to extend the lease terms at the prevailing market rate or at the expiring rental rate at the time of expiration. Certain of our leases provide the lessee with a right of first refusal or right of first offer in the event we market the leased property for sale. Recent Accounting Pronouncements. Concentration of Credit Risk The following table sets forth the tenants in our portfolio that represented the largest percentage of our total rental revenue for each period presented, including tenant reimbursements: ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, 2020 ā September 30, 2020 ā ā ā ā ā Percentage of ā ā ā Percentage of ā ā Number of Rental Number of Rental ā Leases Revenue Leases Revenue ā PharmaCann Inc. (1) 5 16 % 5 19 % Cresco Labs Inc. (1) ā 5 ā 12 % 5 ā 10 % Ascend Wellness Holdings, LLC (1) 3 10 % 3 10 % Holistic Industries Inc. (1) ā 4 ā 6 % 4 ā 6 % Curaleaf Holdings, Inc. (1)(2) 4 6 % 4 6 % Green Thumb Industries Inc. (1) 3 6 % 3 5 % SH Parent, Inc. (Parallel) (1) 2 6 % 2 5 % ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, 2019 ā September 30, 2019 ā ā Percentage of ā Percentage of ā Number of Rental Number of Rental ā ā Leases Revenue Leases Revenue ā PharmaCann Inc. (1) 4 24 % 4 27 % Ascend Wellness Holdings, LLC (1) ā 2 ā 14 % 2 ā 12 % Vireo Health, Inc. (1) ā 4 ā 9 % 4 ā 10 % Kings Garden Inc. (1) 5 8 % 5 6 % Holistic Industries Inc. ā 1 ā 7 % 1 ā 8 % Green Peak Industries, LLC 1 7 % 1 7 % The Pharm, LLC (1) 2 6 % 2 8 % (1) Includes leases with affiliates of the entity, for which the entity has provided a corporate guaranty. (2) Curaleaf Holdings, Inc. acquired GR Companies, Inc. (āGrassrootsā) and executed corporate guaranties for our leases with Grassroots in August 2020. At September 30, 2020, one of our properties in Michigan accounted for approximately 5% of our net real estate held for investment. At December 31, 2019, one of our properties in New York accounted for approximately 6% of our net real estate held for investment. We have deposited cash with a financial institution that is insured by the Federal Deposit Insurance Corporation (āFDICā) up to $250,000. As of September 30, 2020, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Common Stock | |
Common Stock | 3. Common Stock As of September 30, 2020, the Company was authorized to issue up to 50,000,000 shares of common stock, par value $0.001 per share, and there were 22,174,428 shares of common stock issued and outstanding. In January 2020, we issued 3,412,969 shares of common stock, including the exercise in full of the underwriters' option to purchase an additional 445,170 shares, resulting in net proceeds of approximately $239.6 million. In May 2020, we issued 1,550,648 shares of common stock, including the exercise in full of the underwriterās option to purchase an additional 202,259 shares, resulting in net proceeds of approximately $114.9 million. In July 2020, we issued 3,085,867 shares of common stock, including the exercise in full of the underwriters' option to purchase an additional 402,504 shares, resulting in net proceeds of approximately $248.2 million. In September 2019, we entered into equity distribution agreements with three sales agents, pursuant to which we may offer and sell from time to time through an āat-the-marketā offering program, or ATM Program, up to $250.0 million in shares of our common stock. During the three months ended September 30, 2020, we sold 474,000 shares of our common stock for net proceeds of approximately $58.1 million under the ATM Program, which includes the payment of approximately $1.2 million to one sales agent as commission for such sales. During the nine months ended September 30, 2020, we sold 1,499,382 shares of our common stock for net proceeds of approximately $138.4 million under the ATM Program, which includes the payment of approximately $2.8 million to one sales agent as commission for such sales. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Preferred Stock | |
Preferred Stock | 4. Preferred Stock As of September 30, 2020, the Company was authorized to issue up to 50,000,000 shares of preferred stock, par value $0.001 per share, and there were issued and outstanding 600,000 shares of 9.00% Series A Cumulative Redeemable Preferred Stock, $0.001 par value per share (the āSeries A Preferred Stockā). Generally, the Company is not permitted to redeem the Series A Preferred Stock prior to October 19, 2022, except in limited circumstances relating to the Companyās ability to qualify as a REIT and in certain other circumstances related to a change of control/delisting (as defined in the articles supplementary for the Series A Preferred Stock). On or after October 19, 2022, the Company may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus all accrued and unpaid dividends on such Series A Preferred Stock up to, but excluding the redemption date. Holders of the Series A Preferred Stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. |
Dividends
Dividends | 9 Months Ended |
Sep. 30, 2020 | |
Dividends | |
Dividends | 5. Dividends The following table describes the dividends declared by the Company during the nine months ended September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amount ā Dividend Dividend Declaration Date ā Security Class ā Per Share ā Period Covered ā Paid Date ā Amount ā ā ā ā ā ā ā ā ā ā (In thousands) March 13, 2020 ā Common Stock ā $ 1.00 ā January 1, 2020 to March 31, 2020 ā April 15, 2020 ā $ 17,070 March 13, 2020 ā Series A preferred stock ā $ 0.5625 ā January 15, 2020 to April 14, 2020 ā April 15, 2020 ā $ 338 June 15, 2020 ā Common Stock ā $ 1.06 ā April 1, 2020 to June 30, 2020 ā July 15, 2020 ā $ 19,770 June 15, 2020 ā Series A preferred stock ā $ 0.5625 ā April 15, 2020 to July 14, 2020 ā July 15, 2020 ā $ 338 September 15, 2020 ā Common Stock ā $ 1.17 ā July 1, 2020 to September 30, 2020 ā October 15, 2020 ā $ 25,987 September 15, 2020 ā Series A preferred stock ā $ 0.5625 ā July 15, 2020 to October 14, 2020 ā October 15, 2020 ā $ 338 ā |
Investments in Real Estate
Investments in Real Estate | 9 Months Ended |
Sep. 30, 2020 | |
Investments in Real Estate | |
Investments in Real Estate | 6. Investments in Real Estate Acquisitions The Company acquired the following properties during the nine months ended September 30, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Rentable ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Square ā Purchase ā Transaction ā ā ā ā Property Market Closing Date Feet (1) Price Costs Total ā Green Leaf VA ā Virginia ā ā January 15, 2020 ā ā 82,000 ā $ 11,740 ā $ 73 ā $ 11,813 (2) Cresco OH ā Ohio ā ā January 24, 2020 ā ā 50,000 ā ā 10,600 ā ā 12 ā ā 10,612 (3) GTI OH ā Ohio ā ā January 31, 2020 ā ā 21,000 ā ā 2,900 ā ā 27 ā ā 2,927 (4) LivWell CO - Retail Portfolio ā Colorado ā ā Various ā ā 8,000 ā ā 3,300 ā ā 27 ā ā 3,327 (5) GTI IL ā Illinois ā ā March 6, 2020 ā ā 231,000 ā ā 9,000 ā ā 23 ā ā 9,023 (6) Parallel FL ā Florida ā ā March 11, 2020 ā ā 373,000 ā ā 35,300 ā ā 26 ā ā 35,326 (7) Ascend MA ā Massachusetts ā ā April 2, 2020 ā ā 199,000 ā ā 26,750 ā ā 20 ā ā 26,770 (8) Cresco MI ā Michigan ā ā April 22, 2020 ā ā 115,000 ā ā 5,000 ā ā 16 ā ā 5,016 (9) Kings Garden CA ā California ā ā May 12, 2020 ā ā 70,000 ā ā 17,500 ā ā 9 ā ā 17,509 ā Holistic PA ā Pennsylvania ā ā June 10, 2020 ā ā 108,000 ā ā 8,870 ā ā 12 ā ā 8,882 (10) Cresco MA ā Massachusetts ā ā June 30, 2020 ā ā 118,000 ā ā 7,750 ā ā 14 ā ā 7,764 (11) Curaleaf NJ ā New Jersey ā ā July 13, 2020 ā ā 111,000 ā ā 5,500 ā ā 59 ā ā 5,559 (12) Columbia Care NJ Cultivation ā New Jersey ā ā July 16, 2020 ā ā 50,000 ā ā 10,220 ā ā 48 ā ā 10,268 (13) Columbia Care NJ Dispensary ā New Jersey ā ā July 16, 2020 ā ā 4,000 ā ā 2,165 ā ā 7 ā ā 2,172 ā Holistic MI ā Michigan ā ā September 1, 2020 ā ā 63,000 ā ā 6,200 ā ā 11 ā ā 6,211 (14) Parallel FL Lakeland ā Florida ā ā September 18, 2020 ā ā 220,000 ā ā 19,550 ā ā 7 ā ā 19,557 (15) Total ā ā ā ā ā ā 1,823,000 ā $ 182,345 ā $ 391 ā $ 182,736 (16) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) We agreed to provide reimbursement to the tenant for development at the property of up to approximately $8.0 million, all of which we incurred and funded as of September 30, 2020. (3) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $1.9 million. In June, we amended the lease, which increased the tenant improvement allowance by $1.0 million to a total of approximately $2.9 million. Assuming full payment of the tenant improvement allowance, our total investment in the property will be approximately $13.5 million. As of September 30, 2020, we incurred approximately $148,000 of the redevelopment costs, of which none was funded. (4) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $ 4.3 million. Subsequent to September 30, 2020, on October 1, 2020, we amended this lease to increase the tenant improvement allowance by $25.0 million to a total of $29.3 million. As of September 30, 2020, we incurred approximately $4.4 million of the redevelopment costs, of which we funded approximately $4.3 million. (5) The portfolio consists of two retail properties, with one property closing on February 19, 2020 and one property closing on February 21, 2020. The tenant is expected to complete tenant improvements at one of the properties, for which we agreed to provide reimbursement of up to $850,000. As of September 30, 2020, we incurred and funded approximately $49,000 of the redevelopment costs. (6) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $41.0 million. As of September 30, 2020, we incurred approximately $19.6 million of the redevelopment costs, of which we funded approximately $18.5 million. (7) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $8.2 million. As of September 30, 2020, we incurred approximately $3.0 million of the redevelopment costs, of which we funded approximately $2.1 million. (8) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $22.3 million. As of September 30, 2020, we incurred approximately $4.4 million of the redevelopment costs, of which we funded approximately $3.0 million. (9) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $11.0 million. In June, we amended the lease, which increased the tenant improvement allowance by $16.0 million to a total of $27.0 million. As of September 30, 2020, we incurred approximately $596,000 of the redevelopment costs, of which no amount was funded. (10) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $6.4 million. As of September 30, 2020, we incurred approximately $4.0 million of the redevelopment costs, of which we funded approximately $2.7 million. (11) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $21.0 million. As of September 30, 2020, we incurred approximately $59,000 of the redevelopment costs, of which no amount was funded. (12) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $29.5 million. As of September 30, 2020, we incurred approximately $8.7 million of the redevelopment costs, of which we funded approximately $5.4 million. (13) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $1.6 million. As of September 30, 2020, we incurred approximately $648,000 of the redevelopment costs, of which no amount was funded. (14) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $18.8 million. As of September 30, 2020, we incurred approximately $628,000 of the redevelopment costs, of which no amount was funded. (15) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $36.9 million. As of September 30, 2020, we incurred approximately $57,000 of the redevelopment costs, of which no amount was funded. (16) Approximately $19.4 million was allocated to land and approximately $163.3 million was allocated to buildings and improvements. The properties acquired during the three and nine months ended September 30, 2020 generated approximately $778,000 and $15.2 million of rental revenue (including tenant reimbursements), respectively, and approximately $303,000 and $11.0 million of net operating income, respectively, after deducting property and depreciation expenses. The properties acquired during the three and nine months ended September 30, 2019 generated approximately $1.7 million and $6.6 million of rental revenue (including tenant reimbursements), respectively, and approximately $1.4 and $5.1 million of net operating income, respectively, after deducting property and depreciation expenses. Lease Amendments In January 2020, we amended our lease with Green Peak Industries, LLC (āGPIā) which, among other things, canceled the remaining tenant improvement allowance of approximately $15.2 million and adjusted the corresponding base rent. As of September 30, 2020, our total investment in the property was approximately $15.8 million. In January 2020, we amended our lease with a subsidiary of Vireo Health, Inc. ("Vireo") at one of our Pennsylvania properties, making available an additional $4.5 million in funding for tenant improvements at the property. In April 2020, we amended the lease to decrease the funding for tenant improvements at the property by $300,000. In August 2020, Vireo transferred its ownership interest in the subsidiary tenant at the property to Jushi Holdings Inc. ("Jushi"), and we amended the lease to increase the funding for tenant improvements at the property by $2.0 million. As a result, the total tenant improvement allowance for the property is approximately $10.0 million, and assuming full payment of the allowance, our total investment in the property will be $15.8 million. As of September 30, 2020, we incurred approximately $7.6 million of the redevelopment costs, of which we funded approximately $7.4 million. In January 2020, we amended our lease with a subsidiary of The Pharm, LLC at one of our Arizona properties, making available an additional $2.0 million in funding for tenant improvements at the property, and making the total tenant improvement allowance $5.0 million. As of September 30, 2020, we incurred and funded the full amount of the redevelopment costs, making our total investment in the property $20.0 million. In January 2020, we amended our lease with the tenant of our Sacramento, California property, making available an additional approximately $1.3 million in funding for tenant improvements at the property, and making the total tenant improvement allowance approximately $6.0 million. As of September 30, 2020, we funded the full amount of the redevelopment costs, and our total investment in the property was approximately $12.7 million. In February 2020, we amended our lease with a subsidiary of Maitri Medicinals, LLC ("Maitri") at one of our Pennsylvania properties, making available an additional $6.0 million in funding for tenant improvements at the property, and making the total tenant improvement allowance $16.0 million. As of September 30, 2020, we incurred approximately $14.3 million of the redevelopment costs, of which we funded approximately $13.6 million. In February 2020, we amended our lease and development agreement with a subsidiary of PharmaCann Inc. (āPharmaCannā) at one of our Massachusetts properties, making available an additional $4.0 million in construction funding at the property, with the total construction funding being $27.5 million. We also canceled the optional commitment to provide construction funding of $4.0 million for PharmaCann at one of our Pennsylvania properties. As of September 30, 2020, we funded the full amount of the construction funding, and our total investment in the Massachusetts property was $30.5 million. In March 2020, we amended our lease with a subsidiary of Holistic Industries Inc. at our Maryland property, making available a $5.5 million tenant improvement allowance at the property. Assuming full payment of the funding, our total investment in the property will be $22.4 million. As of September 30, 2020, we incurred approximately $5.2 million of the redevelopment costs, of which we funded approximately $4.4 million. In April 2020, we amended our leases with two subsidiaries of Vireo for one of our properties in New York and our property in Minnesota, making available an additional approximately $1.4 million in funding for tenant improvements at the properties in the aggregate, and making the total tenant improvement allowances approximately $10.1 million in the aggregate. Assuming full payment of the funding, our total investment in the property in New York will be approximately $6.8 million and our total investment in the property in Minnesota will be approximately $9.7 million. As of September 30, 2020, we incurred approximately $10.1 million of the tenant improvement allowance, of which we funded approximately $10.0 million. In response to the coronavirus pandemic and associated severe economic disruption, in April 2020, we amended leases at certain of our properties to provide for temporary base rent and property management fee deferrals through June 30, 2020. Each of the tenants remained responsible for the payment of all other costs under the applicable lease during the deferral period. ā We amended each of our leases with GPI in Michigan to apply a part of GPI's security deposit at each property for payment of the April 2020 base rent and property management fee, defer the base rent and property management fee for May and June 2020, and amortize the replenishment of the security deposit and payment of the base rent and property management fee deferral over an 18 month period commencing on July 1, 2020. ā We amended our lease with Maitri in Pennsylvania to apply a part of Maitri's security deposit for payment of the April 2020 base rent and property management fee, defer the base rent and property management fee for May and June 2020, and amortize the replenishment of the security deposit and the base rent and property management fee deferral over an 18 month period commencing on July 1, 2020. ā We amended each of our leases with affiliates of Medical Investor Holdings LLC ("Vertical") in southern California to apply a part of Vertical's security deposit at each property for a partial payment of the March 2020 base rent and property management fee and payment in full of the April 2020 base rent and property management fee, defer the base rent and property management fee for May and June 2020, and amortize the replenishment of the security deposit and payment of the base rent and property management fee deferral over an 18 month period commencing on July 1, 2020. Pursuant to these amendments, (1) a total of approximately $940,000 of security deposits were applied to the payment of base rent, property management fees and associated lease penalties for March and April 2020, including approximately $185,000 related to the partial payment of base rent and property management fees by Vertical for March 2020; (2) a total of approximately $743,000 in base rent and property management fees were deferred for May 2020; (3) a total of approximately $781,000 in base rent and property management fees were deferred for June 2020; and (4) a total of approximately $52,000 per month in replenishment of security deposits and approximately $85,000 per month in repayments of base rent and property management fee deferrals are required to be paid each month over an 18 month period commencing on July 1, 2020. In June 2020, we amended our lease and development agreement with a subsidiary of PharmaCann at one of our Illinois properties, making available an additional $3.0 million in construction funding at the property, and making the total available construction funding $10.0 million. As of September 30, 2020, we incurred approximately $8.8 million of the redevelopment costs, of which we funded approximately $8.5 million. In June 2020, we amended our lease with a subsidiary of Green Leaf Medical, LLC at one of our Pennsylvania properties, making available $30.0 million in funding for tenant improvements at the property. Assuming full payment of the tenant improvement allowance, our total investment in the property will be $43.0 million. As of September 30, 2020, we incurred approximately $592,000 of the tenant improvement allowances, of which none was funded. In August 2020, we amended our lease with a subsidiary of GR Companies, Inc. (āGrassrootsā) at one of our Pennsylvania properties, making available an additional approximately $1.5 million in funding for tenant improvements at the property, and making the total tenant improvement allowance approximately $12.4 million. Assuming full payment of the tenant improvement allowance, our total investment in the property will be approximately $26.6 million. As of September 30, 2020, we incurred approximately $10.7 million of the tenant improvement allowances, of which we funded approximately $10.6 million. In August 2020, we amended our lease with a subsidiary of Grassroots at one of our Illinois properties, making available an additional $844,000 in funding for tenant improvements at the property, and making the total tenant improvement allowance at the property approximately $18.6 million. Assuming full payment of the tenant improvement allowance, our total investment in the property will be approximately $29.1 million. As of September 30, 2020, we incurred approximately $11.7 million of the tenant improvement allowance, of which we funded approximately $11.2 million. In August 2020, we amended our lease with a subsidiary of Ascend Wellness Holdings, LLC at one of our Illinois properties, making available an additional $18.0 million in funding for tenant improvements at the property, and making the total tenant improvement allowance at the property $32.0 million. Assuming full payment of the additional funding, our total investment in the property will be $51.0 million. As of September 30, 2020, we incurred approximately $18.7 million of the tenant improvement allowance, of which we funded approximately $14.0 million. Including all of our properties, during the nine months ended September 30, 2020, we capitalized costs of approximately $215.7 million and funded approximately $210.1 million relating to tenant improvements and construction activities at our properties. Future contractual minimum rent (including base rent, supplemental base rent (for one of our properties in New York) and property management fees) under the operating leases as of September 30, 2020 for future periods is summarized as follows (in thousands): ā ā ā ā ā Year Contractual Minimum Rent 2020 (three months ending December 31) ā $ 35,417 2021 ā 156,817 2022 ā 159,888 2023 ā 164,653 2024 ā 169,567 Thereafter ā 2,497,606 Total ā $ 3,183,948 ā |
Exchangeable Senior Notes
Exchangeable Senior Notes | 9 Months Ended |
Sep. 30, 2020 | |
Exchangeable Senior Notes | |
Exchangeable Senior Notes | 7. Exchangeable Senior Notes In February 2019, our Operating Partnership issued $143.75 million of 3.75% Exchangeable Senior Notes due 2024 (the "Exchangeable Senior Notes") in a private offering, including the exercise in full of the initial purchasersā option to purchase additional Notes. The Exchangeable Senior Notes are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and our Operating Partnershipās subsidiaries and are exchangeable for cash, shares of our common stock, or a combination of cash and shares of our common stock, at our Operating Partnershipās option, at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. The exchange rate for the Exchangeable Senior Notes at September 30, 2020 was 14.94423 shares of our common stock per $1,000 principal amount of Notes and the exchange price at September 30, 2020 was approximately $66.916 per share of our common stock. The exchange rate and exchange price are subject to adjustment in certain circumstances. The Exchangeable Senior Notes will pay interest semiannually at a rate of 3.75% per annum and will mature on February 21, 2024, unless earlier exchanged or repurchased in accordance with their terms. Our Operating Partnership will not have the right to redeem the Exchangeable Senior Notes prior to maturity, but may be required to repurchase the Exchangeable Senior Notes from holders under certain circumstances. Upon our issuance of the Exchangeable Senior Notes, we recorded an approximately $5.8 million discount based on the implied value of the exchange option and an assumed effective interest rate of 4.65%, as well as approximately $5.2 million of initial issuance costs, of which approximately $5.0 million and $200,000 were allocated to the liability and equity components, respectively, based on their relative fair values. Issuance costs allocated to the liability component are being amortized using the effective interest method and recognized as non-cash interest expense over the expected term of the Exchangeable Senior Notes. The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended September 30, ā For the Nine Months Ended September 30, ā 2020 2019 2020 2019 Cash coupon ā $ 1,348 ā $ 1,349 ā $ 4,042 ā $ 3,281 Amortization of debt discount ā ā 275 ā ā 262 ā ā 816 ā ā 632 Amortization of issuance cost ā 238 ā ā 227 ā 707 ā ā 549 Total interest expense ā $ 1,861 ā $ 1,838 ā $ 5,565 ā $ 4,462 ā The following table details the carrying value of our Exchangeable Senior Notes on our condensed consolidated balance sheets (in thousands): ā ā ā ā ā ā ā ā ā September 30, 2020 December 31, 2019 Principal amount ā $ 143,749 ā $ 143,750 Unamortized discount (4,063) ā (4,878) Unamortized issuance costs (3,512) ā (4,218) Carrying value ā $ 136,174 ā $ 134,654 ā Accrued interest payable for the Exchangeable Senior Notes was approximately $225,000 as of September 30, 2020 and December 31, 2019, and is included in accounts payable and accrued expenses on our condensed consolidated balance sheets. In March 2020, we issued 14 shares of our common stock upon exchange by holders of $1,000 of outstanding principal amount of our Exchangeable Senior Notes. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Income Per Share | |
Net Income Per Share | 8. Net Income Per Share Grants of restricted stock of the Company and restricted stock units in share-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per share under the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a companyās capital structure includes either two or more classes of common stock or common stock and participating securities. Earnings per basic share under the two-class method is calculated based on dividends declared on common shares and other participating securities (ādistributed earningsā) and the rights of participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends accruing during the period. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding participating securities. Earnings per basic share represents the summation of the distributed and undistributed earnings per share class divided by the total number of shares. Through September 30, 2020, all of the Companyās participating securities received dividends or dividend equivalents at an equal dividend rate per share or unit. As a result, distributions to participating securities for the three and nine months ended September 30, 2020 and 2019 have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. We have considered the dilutive effect of the shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis for the three and nine months ended September 30, 2020 and 2019, and as this effect was anti-dilutive for both periods, these shares necessary to settle the Exchangeable Senior Notes were excluded from diluted earnings per share. Computations of net income per basic and diluted share (in thousands, except share data) were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, ā September 30, ā 2020 2019 2020 2019 Net income ā $ 19,215 ā $ 6,520 ā $ 44,397 ā $ 13,573 Preferred stock dividend ā (338) ā (338) ā ā (1,014) ā ā (1,014) Distribution to participating securities ā (133) ā (109) ā ā (369) ā ā (256) Net income attributable to common stockholders used to compute net income per share ā $ 18,744 ā $ 6,073 ā $ 43,014 ā $ 12,303 ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average common share outstanding: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā 21,594,637 ā 10,918,477 ā ā 18,315,231 ā ā 10,088,036 Diluted ā 21,708,725 ā 11,057,697 ā ā 18,429,228 ā ā 10,225,574 ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to common stockholders per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā $ 0.87 ā $ 0.56 ā $ 2.35 ā $ 1.22 Diluted ā $ 0.86 ā $ 0.55 ā $ 2.33 ā $ 1.20 ā |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1āObservable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2āIncludes other inputs that are directly or indirectly observable in the marketplace. Level 3āUnobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. The following table presents the carrying value in the condensed consolidated financial statements and approximate fair value of financial instruments at September 30, 2020 and December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā December 31, 2019 ā Carrying Value Fair Value Carrying Value Fair Value Short-term investments (1) ā $ 451,178 ā $ 451,369 ā $ 119,595 ā $ 119,673 Exchangeable Senior Notes (2) ā $ 136,174 ā $ 277,891 ā $ 134,654 ā $ 185,558 (1) Short-term investments consisting of obligations of the U.S. government with an original maturity at the time of purchase of greater than three months are classified as held-to-maturity and valued using Level 1 inputs. (2) The fair value is determined based upon Level 2 inputs as the Exchangeable Senior Notes were trading in the private market. At September 30, 2020, cash equivalent instruments consisted of $93.5 million in short-term money market funds that were measured using the net asset value per share that have not been classified using the fair value hierarchy. The fund invests primarily in short-term U.S. Treasury and government securities. Short-term investments consisting of certificate of deposits and obligations of the U.S. government are stated at amortized cost, which approximates their relative fair values due to the short-term maturities and market rates of interest of these instruments. The carrying amounts of financial instruments such as cash equivalents invested in certificates of deposit, obligations of the U.S. government with an original maturity at the time of purchase of less than or equal to three months, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments. |
Common Stock Incentive Plan
Common Stock Incentive Plan | 9 Months Ended |
Sep. 30, 2020 | |
Common Stock Incentive Plan | |
Common Stock Incentive Plan | 10. Common Stock Incentive Plan Our board of directors adopted our 2016 Omnibus Incentive Plan (the ā2016 Planā) to enable us to motivate, attract and retain the services of directors, employees and consultants considered essential to our long-term success. The 2016 Plan offers our directors, employees and consultants an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2016 Plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 1,000,000 shares. The 2016 Plan has a term of ten years from the date it was adopted by our board of directors. The following table summarizes our restricted stock activity under the 2016 Plan: ā ā ā ā ā ā ā ā ā Weighted- ā ā Unvested ā Average ā ā Restricted ā Date Fair ā ā Shares ā Value Balance at December 31, 2019 139,546 ā $ 37.03 Granted 15,918 ā $ 75.11 Vested (45,975) ā $ 37.01 Forfeited (1) (28,552) ā $ 19.72 Balance at March 31, 2020 80,937 ā $ 50.64 Granted ā 1,139 ā $ 87.82 Vested ā (4,675) ā $ 62.08 Balance at June 30, 2020 and September 30, 2020 ā 77,401 ā $ 50.49 (1) Shares that were forfeited to cover the employeesā tax withholding obligation upon vesting . As of September 30, 2020, the remaining unrecognized compensation cost of $2.4 million relating to restricted stock awards will be recognized over a weighted-average amortization period of approximately 1.6 years. The following table summarizes our restricted stock unit activity. Restricted stock units have the same economic rights as shares of restricted stock under the 2016 Plan: ā ā ā ā ā ā ā ā Unvested Weighted- Average ā ā Restricted ā Date Fair ā ā Stock Units ā Value Balance at December 31, 2019 ā ā ā $ ā Granted ā 33,954 ā $ 75.11 Balance at March 31, 2020 ā 33,954 ā $ 75.11 Granted ā 2,733 ā $ 87.82 Balance at June 30, 2020 and September 30, 2020 ā 36,687 ā $ 76.06 ā As of September 30, 2020, the remaining unrecognized compensation cost of $2.1 million relating to restricted stock units will be recognized over an amortization period of approximately 2.2 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Office Lease ā ā ā ā ā Year Amount 2020 (three months ending December 31) ā $ 57 2021 ā 235 2022 ā 242 2023 ā 249 2024 ā 256 Thereafter ā 88 Total future contractual lease payments ā 1,127 Effect of discounting ā (14) Office lease liability ā $ 1,113 ā Tenant Improvement Allowances Construction Funding. Environmental Matters. Litigation |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events Lease Amendments Providing for Additional Tenant Improvement Allowances In October 2020, we amended our lease with a subsidiary of Green Thumb Industries Inc. at one of our Ohio properties, making available an additional $25.0 million in funding for tenant improvements at the property, and making the total tenant improvement allowance $29.3 million. Assuming full payment of the tenant improvement allowance, our total investment in the property will be $32.2 million. As of November 5, 2020, we had funded approximately $4.4 million of this tenant improvement allowance. In October 2020, we amended our lease with GPI at one of our Michigan properties, making available an additional $525,000 in funding for tenant improvements at the property, and making the total tenant improvement allowance approximately $1.8 million. Assuming full payment of the tenant improvement allowance, our total investment in the property will be approximately $3.4 million. As of November 5, 2020, we had funded approximately $1.7 million of this tenant improvement allowance. In November 2020, we amended our lease and development with PharmaCann at one of our Pennsylvania properties, making available an additional $2.0 million in construction funding at the property, and making the total construction funding approximately $27.1 million. Assuming full payment of the construction funding, our total investment in the property will be approximately $28.0 million. As of November 5, 2020, we had funded approximately $18.2 million of this construction funding. Los Angeles, California Property Update (as of November 5, 2020) Holistic has entered into a definitive agreement to acquire the retail, distribution, cultivation and manufacturing licenses for cannabis operations from the tenant at our Los Angeles, California property, which is in receivership, and we have negotiated for a long-term, triple-net lease with Holistic for the entire property upon the closing of Holisticās acquisition of the licenses. The transaction is subject to final government approvals for the transfer of the licenses and customary closing conditions, and we can provide no assurance that the transaction, including the lease, will be completed on the terms described here, or at all. Rent Collections Update (as of November 5, 2020) We collected 100% of contractual rent due for each of the months of July, August, September and October 2020 across our total portfolio (other than the tenant at our Los Angeles, California property that is in receivership), and had not executed rent deferrals for any additional tenants, other than the three tenants described in Note 6. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | |
Basis of Presentation | Basis of Presentation. This interim financial information should be read in conjunction with the audited consolidated financial statements in the Companyās Annual Report on Form 10-K for the year ended December 31, 2019. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firmās review. The Company considered the impact of COVID-19 on its assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at September 30, 2020. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. See Note 6 for further discussion. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2020. |
Federal Income Taxes | Federal Income Taxes. |
Use of Estimates | Use of Estimates. |
Reportable Segment | Reportable Segment. |
Acquisition of Real Estate Properties | Acquisition of Real Estate Properties. |
Depreciation | Depreciation. We depreciate office equipment and furniture and fixtures over estimated useful lives ranging from three |
Provision for Impairment | Provision for Impairment. Long-lived assets are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. No impairment losses were recognized during the nine months ended September 30, 2020 and 2019. |
Revenue Recognition | Revenue Recognition. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Restricted cash relates to cash held in escrow for the reimbursement of tenant improvements in accordance with various lease agreements. As of September 30, 2020, all of the cash held was released from restriction. |
Investments | Investments. |
Exchangeable Notes | Exchangeable Notes. |
Deferred Financing Costs | Deferred Financing Costs. |
Stock-Based Compensation | Stock-Based Compensation. |
Lease Accounting | Lease Accounting. In April 2020, in response to the coronavirus pandemic and associated severe economic disruption, we amended leases at certain of our properties to provide for temporary base rent and property management fee deferrals through June 30, 2020. The FASB has issued additional guidance for companies to account for any coronavirus related rent concessions in the form of FASB staff and board members' remarks at the April 8, 2020 public meeting and the FASB staff question-and-answer document issued on April 10, 2020. We have elected the practical expedient which allows us to not have to evaluate whether concessions provided in response to coronavirus pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. Lease amendments that are not associated with the coronavirus pandemic are evaluated to determine if the modification grants the lessee an additional right-of-use not included in the original lease and if the lease payments increase commensurate with the standalone price of the additional right-of-use, adjusted for the circumstances of the particular contract. If both conditions are present, the lease amendment is accounted for as a new lease that is separate from the original lease. One of our leases that was entered into prior to 2019 provides the lessee with a purchase option to purchase the leased property at the end of the initial lease term in September 2034, subject to the satisfaction of certain conditions. The purchase option provision allows the lessee to purchase the leased property at the greatest of (a) the fair value; (b) the value determined by dividing the then-current base rent by 8%; and (c) an amount equal to our gross investment in the property (including the purchase price at acquisition and any additional investment in the property made by us during the term of the lease), indexed to inflation. At September 30, 2020, our gross investment in the property with the purchase option was approximately $30.5 million. At September 30, 2020, the purchase option was not exercisable. Our leases generally contain options to extend the lease terms at the prevailing market rate or at the expiring rental rate at the time of expiration. Certain of our leases provide the lessee with a right of first refusal or right of first offer in the event we market the leased property for sale. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. |
Concentration of Credit Risk | Concentration of Credit Risk The following table sets forth the tenants in our portfolio that represented the largest percentage of our total rental revenue for each period presented, including tenant reimbursements: ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, 2020 ā September 30, 2020 ā ā ā ā ā Percentage of ā ā ā Percentage of ā ā Number of Rental Number of Rental ā Leases Revenue Leases Revenue ā PharmaCann Inc. (1) 5 16 % 5 19 % Cresco Labs Inc. (1) ā 5 ā 12 % 5 ā 10 % Ascend Wellness Holdings, LLC (1) 3 10 % 3 10 % Holistic Industries Inc. (1) ā 4 ā 6 % 4 ā 6 % Curaleaf Holdings, Inc. (1)(2) 4 6 % 4 6 % Green Thumb Industries Inc. (1) 3 6 % 3 5 % SH Parent, Inc. (Parallel) (1) 2 6 % 2 5 % ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, 2019 ā September 30, 2019 ā ā Percentage of ā Percentage of ā Number of Rental Number of Rental ā ā Leases Revenue Leases Revenue ā PharmaCann Inc. (1) 4 24 % 4 27 % Ascend Wellness Holdings, LLC (1) ā 2 ā 14 % 2 ā 12 % Vireo Health, Inc. (1) ā 4 ā 9 % 4 ā 10 % Kings Garden Inc. (1) 5 8 % 5 6 % Holistic Industries Inc. ā 1 ā 7 % 1 ā 8 % Green Peak Industries, LLC 1 7 % 1 7 % The Pharm, LLC (1) 2 6 % 2 8 % (1) Includes leases with affiliates of the entity, for which the entity has provided a corporate guaranty. (2) Curaleaf Holdings, Inc. acquired GR Companies, Inc. (āGrassrootsā) and executed corporate guaranties for our leases with Grassroots in August 2020. At September 30, 2020, one of our properties in Michigan accounted for approximately 5% of our net real estate held for investment. At December 31, 2019, one of our properties in New York accounted for approximately 6% of our net real estate held for investment. We have deposited cash with a financial institution that is insured by the Federal Deposit Insurance Corporation (āFDICā) up to $250,000. As of September 30, 2020, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | |
Schedule of tenants in the company's portfolio that represented the largest percentage of total rental revenue for each period presented, including tenant reimbursements | The following table sets forth the tenants in our portfolio that represented the largest percentage of our total rental revenue for each period presented, including tenant reimbursements: ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, 2020 ā September 30, 2020 ā ā ā ā ā Percentage of ā ā ā Percentage of ā ā Number of Rental Number of Rental ā Leases Revenue Leases Revenue ā PharmaCann Inc. (1) 5 16 % 5 19 % Cresco Labs Inc. (1) ā 5 ā 12 % 5 ā 10 % Ascend Wellness Holdings, LLC (1) 3 10 % 3 10 % Holistic Industries Inc. (1) ā 4 ā 6 % 4 ā 6 % Curaleaf Holdings, Inc. (1)(2) 4 6 % 4 6 % Green Thumb Industries Inc. (1) 3 6 % 3 5 % SH Parent, Inc. (Parallel) (1) 2 6 % 2 5 % ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, 2019 ā September 30, 2019 ā ā Percentage of ā Percentage of ā Number of Rental Number of Rental ā ā Leases Revenue Leases Revenue ā PharmaCann Inc. (1) 4 24 % 4 27 % Ascend Wellness Holdings, LLC (1) ā 2 ā 14 % 2 ā 12 % Vireo Health, Inc. (1) ā 4 ā 9 % 4 ā 10 % Kings Garden Inc. (1) 5 8 % 5 6 % Holistic Industries Inc. ā 1 ā 7 % 1 ā 8 % Green Peak Industries, LLC 1 7 % 1 7 % The Pharm, LLC (1) 2 6 % 2 8 % (1) Includes leases with affiliates of the entity, for which the entity has provided a corporate guaranty. (2) Curaleaf Holdings, Inc. acquired GR Companies, Inc. (āGrassrootsā) and executed corporate guaranties for our leases with Grassroots in August 2020. |
Dividends (Tables)
Dividends (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Dividends | |
Schedule of dividends payable | The following table describes the dividends declared by the Company during the nine months ended September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amount ā Dividend Dividend Declaration Date ā Security Class ā Per Share ā Period Covered ā Paid Date ā Amount ā ā ā ā ā ā ā ā ā ā (In thousands) March 13, 2020 ā Common Stock ā $ 1.00 ā January 1, 2020 to March 31, 2020 ā April 15, 2020 ā $ 17,070 March 13, 2020 ā Series A preferred stock ā $ 0.5625 ā January 15, 2020 to April 14, 2020 ā April 15, 2020 ā $ 338 June 15, 2020 ā Common Stock ā $ 1.06 ā April 1, 2020 to June 30, 2020 ā July 15, 2020 ā $ 19,770 June 15, 2020 ā Series A preferred stock ā $ 0.5625 ā April 15, 2020 to July 14, 2020 ā July 15, 2020 ā $ 338 September 15, 2020 ā Common Stock ā $ 1.17 ā July 1, 2020 to September 30, 2020 ā October 15, 2020 ā $ 25,987 September 15, 2020 ā Series A preferred stock ā $ 0.5625 ā July 15, 2020 to October 14, 2020 ā October 15, 2020 ā $ 338 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments in Real Estate | |
Schedule of real estate properties | The Company acquired the following properties during the nine months ended September 30, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Rentable ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Square ā Purchase ā Transaction ā ā ā ā Property Market Closing Date Feet (1) Price Costs Total ā Green Leaf VA ā Virginia ā ā January 15, 2020 ā ā 82,000 ā $ 11,740 ā $ 73 ā $ 11,813 (2) Cresco OH ā Ohio ā ā January 24, 2020 ā ā 50,000 ā ā 10,600 ā ā 12 ā ā 10,612 (3) GTI OH ā Ohio ā ā January 31, 2020 ā ā 21,000 ā ā 2,900 ā ā 27 ā ā 2,927 (4) LivWell CO - Retail Portfolio ā Colorado ā ā Various ā ā 8,000 ā ā 3,300 ā ā 27 ā ā 3,327 (5) GTI IL ā Illinois ā ā March 6, 2020 ā ā 231,000 ā ā 9,000 ā ā 23 ā ā 9,023 (6) Parallel FL ā Florida ā ā March 11, 2020 ā ā 373,000 ā ā 35,300 ā ā 26 ā ā 35,326 (7) Ascend MA ā Massachusetts ā ā April 2, 2020 ā ā 199,000 ā ā 26,750 ā ā 20 ā ā 26,770 (8) Cresco MI ā Michigan ā ā April 22, 2020 ā ā 115,000 ā ā 5,000 ā ā 16 ā ā 5,016 (9) Kings Garden CA ā California ā ā May 12, 2020 ā ā 70,000 ā ā 17,500 ā ā 9 ā ā 17,509 ā Holistic PA ā Pennsylvania ā ā June 10, 2020 ā ā 108,000 ā ā 8,870 ā ā 12 ā ā 8,882 (10) Cresco MA ā Massachusetts ā ā June 30, 2020 ā ā 118,000 ā ā 7,750 ā ā 14 ā ā 7,764 (11) Curaleaf NJ ā New Jersey ā ā July 13, 2020 ā ā 111,000 ā ā 5,500 ā ā 59 ā ā 5,559 (12) Columbia Care NJ Cultivation ā New Jersey ā ā July 16, 2020 ā ā 50,000 ā ā 10,220 ā ā 48 ā ā 10,268 (13) Columbia Care NJ Dispensary ā New Jersey ā ā July 16, 2020 ā ā 4,000 ā ā 2,165 ā ā 7 ā ā 2,172 ā Holistic MI ā Michigan ā ā September 1, 2020 ā ā 63,000 ā ā 6,200 ā ā 11 ā ā 6,211 (14) Parallel FL Lakeland ā Florida ā ā September 18, 2020 ā ā 220,000 ā ā 19,550 ā ā 7 ā ā 19,557 (15) Total ā ā ā ā ā ā 1,823,000 ā $ 182,345 ā $ 391 ā $ 182,736 (16) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) We agreed to provide reimbursement to the tenant for development at the property of up to approximately $8.0 million, all of which we incurred and funded as of September 30, 2020. (3) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $1.9 million. In June, we amended the lease, which increased the tenant improvement allowance by $1.0 million to a total of approximately $2.9 million. Assuming full payment of the tenant improvement allowance, our total investment in the property will be approximately $13.5 million. As of September 30, 2020, we incurred approximately $148,000 of the redevelopment costs, of which none was funded. (4) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $ 4.3 million. Subsequent to September 30, 2020, on October 1, 2020, we amended this lease to increase the tenant improvement allowance by $25.0 million to a total of $29.3 million. As of September 30, 2020, we incurred approximately $4.4 million of the redevelopment costs, of which we funded approximately $4.3 million. (5) The portfolio consists of two retail properties, with one property closing on February 19, 2020 and one property closing on February 21, 2020. The tenant is expected to complete tenant improvements at one of the properties, for which we agreed to provide reimbursement of up to $850,000. As of September 30, 2020, we incurred and funded approximately $49,000 of the redevelopment costs. (6) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $41.0 million. As of September 30, 2020, we incurred approximately $19.6 million of the redevelopment costs, of which we funded approximately $18.5 million. (7) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $8.2 million. As of September 30, 2020, we incurred approximately $3.0 million of the redevelopment costs, of which we funded approximately $2.1 million. (8) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $22.3 million. As of September 30, 2020, we incurred approximately $4.4 million of the redevelopment costs, of which we funded approximately $3.0 million. (9) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $11.0 million. In June, we amended the lease, which increased the tenant improvement allowance by $16.0 million to a total of $27.0 million. As of September 30, 2020, we incurred approximately $596,000 of the redevelopment costs, of which no amount was funded. (10) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $6.4 million. As of September 30, 2020, we incurred approximately $4.0 million of the redevelopment costs, of which we funded approximately $2.7 million. (11) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $21.0 million. As of September 30, 2020, we incurred approximately $59,000 of the redevelopment costs, of which no amount was funded. (12) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $29.5 million. As of September 30, 2020, we incurred approximately $8.7 million of the redevelopment costs, of which we funded approximately $5.4 million. (13) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $1.6 million. As of September 30, 2020, we incurred approximately $648,000 of the redevelopment costs, of which no amount was funded. (14) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to $18.8 million. As of September 30, 2020, we incurred approximately $628,000 of the redevelopment costs, of which no amount was funded. (15) The tenant is expected to complete redevelopment of the property for which we agreed to provide reimbursement of up to approximately $36.9 million. As of September 30, 2020, we incurred approximately $57,000 of the redevelopment costs, of which no amount was funded. (16) Approximately $19.4 million was allocated to land and approximately $163.3 million was allocated to buildings and improvements. |
Schedule of future contractual minimum rent | Future contractual minimum rent (including base rent, supplemental base rent (for one of our properties in New York) and property management fees) under the operating leases as of September 30, 2020 for future periods is summarized as follows (in thousands): ā ā ā ā ā Year Contractual Minimum Rent 2020 (three months ending December 31) ā $ 35,417 2021 ā 156,817 2022 ā 159,888 2023 ā 164,653 2024 ā 169,567 Thereafter ā 2,497,606 Total ā $ 3,183,948 |
Exchangeable Senior Notes (Tabl
Exchangeable Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Exchangeable Senior Notes | |
Schedule of interest expense related to exchangeable senior notes | The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended September 30, ā For the Nine Months Ended September 30, ā 2020 2019 2020 2019 Cash coupon ā $ 1,348 ā $ 1,349 ā $ 4,042 ā $ 3,281 Amortization of debt discount ā ā 275 ā ā 262 ā ā 816 ā ā 632 Amortization of issuance cost ā 238 ā ā 227 ā 707 ā ā 549 Total interest expense ā $ 1,861 ā $ 1,838 ā $ 5,565 ā $ 4,462 |
Schedule of carrying value of senior exchangeable notes on condensed consolidated balance sheet | The following table details the carrying value of our Exchangeable Senior Notes on our condensed consolidated balance sheets (in thousands): ā ā ā ā ā ā ā ā ā September 30, 2020 December 31, 2019 Principal amount ā $ 143,749 ā $ 143,750 Unamortized discount (4,063) ā (4,878) Unamortized issuance costs (3,512) ā (4,218) Carrying value ā $ 136,174 ā $ 134,654 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Income Per Share | |
Schedule of earnings per share, basic and diluted | Computations of net income per basic and diluted share (in thousands, except share data) were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended ā For the Nine Months Ended ā ā September 30, ā September 30, ā 2020 2019 2020 2019 Net income ā $ 19,215 ā $ 6,520 ā $ 44,397 ā $ 13,573 Preferred stock dividend ā (338) ā (338) ā ā (1,014) ā ā (1,014) Distribution to participating securities ā (133) ā (109) ā ā (369) ā ā (256) Net income attributable to common stockholders used to compute net income per share ā $ 18,744 ā $ 6,073 ā $ 43,014 ā $ 12,303 ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average common share outstanding: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā 21,594,637 ā 10,918,477 ā ā 18,315,231 ā ā 10,088,036 Diluted ā 21,708,725 ā 11,057,697 ā ā 18,429,228 ā ā 10,225,574 ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to common stockholders per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā $ 0.87 ā $ 0.56 ā $ 2.35 ā $ 1.22 Diluted ā $ 0.86 ā $ 0.55 ā $ 2.33 ā $ 1.20 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments | |
Schedule of condensed financial statements | The following table presents the carrying value in the condensed consolidated financial statements and approximate fair value of financial instruments at September 30, 2020 and December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā December 31, 2019 ā Carrying Value Fair Value Carrying Value Fair Value Short-term investments (1) ā $ 451,178 ā $ 451,369 ā $ 119,595 ā $ 119,673 Exchangeable Senior Notes (2) ā $ 136,174 ā $ 277,891 ā $ 134,654 ā $ 185,558 (1) Short-term investments consisting of obligations of the U.S. government with an original maturity at the time of purchase of greater than three months are classified as held-to-maturity and valued using Level 1 inputs. (2) The fair value is determined based upon Level 2 inputs as the Exchangeable Senior Notes were trading in the private market. |
Common Stock Incentive Plan (Ta
Common Stock Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Common Stock Incentive Plan | |
Summary of the activity under the 2016 Plan | The following table summarizes our restricted stock activity under the 2016 Plan: ā ā ā ā ā ā ā ā ā Weighted- ā ā Unvested ā Average ā ā Restricted ā Date Fair ā ā Shares ā Value Balance at December 31, 2019 139,546 ā $ 37.03 Granted 15,918 ā $ 75.11 Vested (45,975) ā $ 37.01 Forfeited (1) (28,552) ā $ 19.72 Balance at March 31, 2020 80,937 ā $ 50.64 Granted ā 1,139 ā $ 87.82 Vested ā (4,675) ā $ 62.08 Balance at June 30, 2020 and September 30, 2020 ā 77,401 ā $ 50.49 (1) Shares that were forfeited to cover the employeesā tax withholding obligation upon vesting . The following table summarizes our restricted stock unit activity. Restricted stock units have the same economic rights as shares of restricted stock under the 2016 Plan: ā ā ā ā ā ā ā ā Unvested Weighted- Average ā ā Restricted ā Date Fair ā ā Stock Units ā Value Balance at December 31, 2019 ā ā ā $ ā Granted ā 33,954 ā $ 75.11 Balance at March 31, 2020 ā 33,954 ā $ 75.11 Granted ā 2,733 ā $ 87.82 Balance at June 30, 2020 and September 30, 2020 ā 36,687 ā $ 76.06 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Schedule of future contractual lease payments | ā ā ā ā ā Year Amount 2020 (three months ending December 31) ā $ 57 2021 ā 235 2022 ā 242 2023 ā 249 2024 ā 256 Thereafter ā 88 Total future contractual lease payments ā 1,127 Effect of discounting ā (14) Office lease liability ā $ 1,113 |
Organization (Details)
Organization (Details) | Sep. 30, 2020 |
Iip Operating Partnership Lp [Member] | |
Percentage Leased | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Concentration of Credit Risk (Details) - lease | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
PharmaCann Inc. | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 5 | 4 | 5 | 4 |
Concentration Risk, Percentage | 16.00% | 24.00% | 19.00% | 27.00% |
Ascend Wellness Holdings LLC [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 3 | 2 | 3 | 2 |
Concentration Risk, Percentage | 10.00% | 14.00% | 10.00% | 12.00% |
Holistic Industries Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 4 | 1 | 4 | 1 |
Concentration Risk, Percentage | 6.00% | 7.00% | 6.00% | 8.00% |
Cresco Labs Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 5 | 5 | ||
Concentration Risk, Percentage | 12.00% | 10.00% | ||
Curaleaf Holdings Inc. [MEMBER] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 4 | 4 | ||
Concentration Risk, Percentage | 6.00% | 6.00% | ||
Green Thumb Industries Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 3 | 3 | ||
Concentration Risk, Percentage | 6.00% | 5.00% | ||
Vireo Health, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 4 | 4 | ||
Concentration Risk, Percentage | 9.00% | 10.00% | ||
SH Parent, Inc. (Parallel) [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 2 | 2 | ||
Concentration Risk, Percentage | 6.00% | 5.00% | ||
Kings Garden Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 5 | 5 | ||
Concentration Risk, Percentage | 8.00% | 6.00% | ||
Green Peak Industries LLC [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 1 | 1 | ||
Concentration Risk, Percentage | 7.00% | 7.00% | ||
The Pharm LLC [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Leases | 2 | 2 | ||
Concentration Risk, Percentage | 6.00% | 8.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Additional Information (Details) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) |
Number of Reportable Segments | segment | 1 | |||
Impairment loss | $ 0 | $ 0 | ||
Short-term Investments | $ 451,178,000 | $ 119,595,000 | $ 451,178,000 | |
Percentage of current base rent | 8.00% | 8.00% | ||
Purchase Option Price For Real Estate For Land And Buildings | $ 30,500,000 | $ 30,500,000 | ||
Cash, FDIC Insured Amount | 250,000 | 250,000 | ||
Money Market Funds [Member] | ||||
Short-term Investments | $ 93,500,000 | $ 60,100,000 | $ 93,500,000 | |
Building [Member] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Florida, Illinois, Michigan, and Pennsylvania Property [Member] | ||||
Concentration Risk, Percentage | 5.00% | |||
New York Property [Member] | ||||
Concentration Risk, Percentage | 6.00% | |||
Minimum [Member] | Office Equipment And Furniture And Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum [Member] | Office Equipment And Furniture And Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 6 years |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2020 | May 31, 2020 | Jan. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common Stock, Shares, Outstanding | 22,174,428 | 22,174,428 | 12,637,043 | |||||
Common Stock, Shares, Issued | 22,174,428 | 22,174,428 | 12,637,043 | |||||
Proceeds from Issuance or Sale of Equity | $ 239,600 | |||||||
Net proceeds from issuance | $ 741,120 | $ 185,687 | ||||||
Common Stock [Member] | ||||||||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||
Common Stock, Shares, Outstanding | 22,174,428 | 22,174,428 | ||||||
Common Stock, Shares, Issued | 22,174,428 | 22,174,428 | ||||||
Number of shares sold | 3,085,867 | 1,550,648 | 3,412,969 | |||||
Stock Issued During Period Share Purchase Of Common Stock | 402,504 | 202,259 | 445,170 | |||||
Proceeds from Issuance or Sale of Equity | $ 248,200 | $ 114,900 | ||||||
Common Stock [Member] | ATM Program [Member] | ||||||||
Number of shares sold | 474,000 | 1,499,382 | ||||||
Net proceeds from issuance | $ 58,100 | $ 138,400 | ||||||
Payments Of Stock Issuance Commissions | $ 1,200 | $ 2,800 | ||||||
Amount of Shares Authorized | $ 250,000 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Oct. 19, 2022 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Series A Preferred Stock [Member] | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | ||
Preferred Stock, Dividend Rate, Percentage | 9.00% | 9.00% | |
Preferred Stock, Shares Issued | 600,000 | 600,000 | |
Preferred Stock, Shares Outstanding | 600,000 | 600,000 | |
Series A Preferred Stock [Member] | Forecast | |||
Preferred Stock, Redemption Price Per Share | $ 25 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Dividend Amount | $ 26,325 | $ 12,975 |
Common Stock On March 13 2020 [Member] | ||
Declaration Date | Mar. 13, 2020 | |
Dividends Declared Security Class | Common Stock | |
Amount Per Share | $ 1 | |
Dividend Paid Date | Apr. 15, 2020 | |
Dividend Amount | $ 17,070 | |
Common Stock On June 15 2020 [Member] | ||
Declaration Date | Jun. 15, 2020 | |
Dividends Declared Security Class | Common Stock | |
Amount Per Share | $ 1.06 | |
Dividend Paid Date | Jul. 15, 2020 | |
Dividend Amount | $ 19,770 | |
Common Stock on September 15, 2020 [Member] | ||
Declaration Date | Sep. 15, 2020 | |
Dividends Declared Security Class | Common Stock | |
Amount Per Share | $ 1.17 | |
Dividend Paid Date | Oct. 15, 2020 | |
Dividend Amount | $ 25,987 | |
Series A preferred stock On March 13 2020 [Member] | ||
Declaration Date | Mar. 13, 2020 | |
Dividends Declared Security Class | Series A preferred stock | |
Amount Per Share | $ 0.5625 | |
Dividend Paid Date | Apr. 15, 2020 | |
Dividend Amount | $ 338 | |
Series A preferred stock On June 15 2020 [Member] | ||
Declaration Date | Jun. 15, 2020 | |
Dividends Declared Security Class | Series A preferred stock | |
Amount Per Share | $ 0.5625 | |
Dividend Paid Date | Jul. 15, 2020 | |
Dividend Amount | $ 338 | |
Series A Preferred Stock on September 15, 2020 [Member] | ||
Declaration Date | Sep. 15, 2020 | |
Dividends Declared Security Class | Series A preferred stock | |
Amount Per Share | $ 0.5625 | |
Dividend Paid Date | Oct. 15, 2020 | |
Dividend Amount | $ 338 |
Investments in Real Estate (Det
Investments in Real Estate (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)ftĀ² | |
Rentable Square Feet | ftĀ² | 1,823,000 |
Purchase Price | $ 182,345 |
Transaction Costs | 391 |
Total | $ 182,736 |
Green Leaf VA [Member] | |
Rentable Square Feet | ftĀ² | 82,000 |
Purchase Price | $ 11,740 |
Transaction Costs | 73 |
Total | $ 11,813 |
Cresco OH [Member] | |
Rentable Square Feet | ftĀ² | 50,000 |
Purchase Price | $ 10,600 |
Transaction Costs | 12 |
Total | $ 10,612 |
GTI OH [Member] | |
Rentable Square Feet | ftĀ² | 21,000 |
Purchase Price | $ 2,900 |
Transaction Costs | 27 |
Total | $ 2,927 |
LivWell CO [Member] | |
Rentable Square Feet | ftĀ² | 8,000 |
Purchase Price | $ 3,300 |
Transaction Costs | 27 |
Total | $ 3,327 |
GTI IL [Member] | |
Rentable Square Feet | ftĀ² | 231,000 |
Purchase Price | $ 9,000 |
Transaction Costs | 23 |
Total | $ 9,023 |
Parallel FL [Member] | |
Rentable Square Feet | ftĀ² | 373,000 |
Purchase Price | $ 35,300 |
Transaction Costs | 26 |
Total | $ 35,326 |
Ascend MA [Member] | |
Rentable Square Feet | ftĀ² | 199,000 |
Purchase Price | $ 26,750 |
Transaction Costs | 20 |
Total | $ 26,770 |
Cresco MI [Member] | |
Rentable Square Feet | ftĀ² | 115,000 |
Purchase Price | $ 5,000 |
Transaction Costs | 16 |
Total | $ 5,016 |
Kings Garden CA [Member] | |
Rentable Square Feet | ftĀ² | 70,000 |
Purchase Price | $ 17,500 |
Transaction Costs | 9 |
Total | $ 17,509 |
Holistic PA [Member] | |
Rentable Square Feet | ftĀ² | 108,000 |
Purchase Price | $ 8,870 |
Transaction Costs | 12 |
Total | $ 8,882 |
Cresco MA [Member] | |
Rentable Square Feet | ftĀ² | 118,000 |
Purchase Price | $ 7,750 |
Transaction Costs | 14 |
Total | $ 7,764 |
Curaleaf NJ [Member] | |
Rentable Square Feet | ftĀ² | 111,000 |
Purchase Price | $ 5,500 |
Transaction Costs | 59 |
Total | $ 5,559 |
Columbia Care NJ Cult [Member] | |
Rentable Square Feet | ftĀ² | 50,000 |
Purchase Price | $ 10,220 |
Transaction Costs | 48 |
Total | $ 10,268 |
Columbia Care NJ Disp [Member] | |
Rentable Square Feet | ftĀ² | 4,000 |
Purchase Price | $ 2,165 |
Transaction Costs | 7 |
Total | $ 2,172 |
Holistic MI [Member] | |
Rentable Square Feet | ftĀ² | 63,000 |
Purchase Price | $ 6,200 |
Transaction Costs | 11 |
Total | $ 6,211 |
Parallel FL Lakeland [Member] | |
Rentable Square Feet | ftĀ² | 220,000 |
Purchase Price | $ 19,550 |
Transaction Costs | 7 |
Total | $ 19,557 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) - USD ($) | Nov. 05, 2020 | Jul. 01, 2020 | Nov. 30, 2020 | Jun. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Feb. 29, 2020 | Apr. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 31, 2020 | Oct. 01, 2020 | Aug. 31, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2019 |
Tenant improvements allowance | $ 272,934,000 | $ 272,934,000 | $ 87,344,000 | ||||||||||||||||
Total investment in property | 885,027,000 | 885,027,000 | $ 505,861,000 | ||||||||||||||||
Real Estate Property Cost | 215,700,000 | 215,700,000 | |||||||||||||||||
Amount funded by the entity | 210,100,000 | 210,100,000 | |||||||||||||||||
Period Deferral For Base Rent And Management Fee | 18 months | ||||||||||||||||||
Security Deposit Applied For Payment Of Rent | $ 940,000 | ||||||||||||||||||
Rent Being Deferred | $ 781,000 | $ 743,000 | |||||||||||||||||
Security Deposit To Be Replenished | $ 52,000 | ||||||||||||||||||
Repayments Of Base Rent And Property Management Fee | $ 85,000 | ||||||||||||||||||
Total Property Acquisitions | 182,736,000 | 182,736,000 | |||||||||||||||||
Rental (including tenant reimbursements) | 34,327,000 | $ 11,555,000 | 79,803,000 | $ 26,995,000 | |||||||||||||||
Operating Income (Loss) | 20,423,000 | 6,821,000 | 46,876,000 | 14,333,000 | |||||||||||||||
Land | |||||||||||||||||||
Total Property Acquisitions | 19,400,000 | 19,400,000 | |||||||||||||||||
Building and Improvements | |||||||||||||||||||
Total Property Acquisitions | 163,300,000 | 163,300,000 | |||||||||||||||||
Properties Acquired In 2020 [Member] | |||||||||||||||||||
Rental (including tenant reimbursements) | 778,000 | 15,200,000 | |||||||||||||||||
Operating Income (Loss) | 303,000 | 11,000,000 | |||||||||||||||||
Properties Acquired In 2019 [Member] | |||||||||||||||||||
Rental (including tenant reimbursements) | 1,700,000 | 6,600,000 | |||||||||||||||||
Operating Income (Loss) | $ 1,400,000 | $ 5,100,000 | |||||||||||||||||
Green Leaf VA [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 30,000,000 | $ 30,000,000 | |||||||||||||||||
Total investment in property | 43,000,000 | 43,000,000 | |||||||||||||||||
Payments for Building Improvements | 592,000,000,000 | ||||||||||||||||||
Real Estate Property Cost, Funded | 0 | ||||||||||||||||||
Total Property Acquisitions | 11,813,000 | 11,813,000 | |||||||||||||||||
Green Leaf VA [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 8,000,000 | 8,000,000 | |||||||||||||||||
Cresco OH [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 1,000,000 | 1,000,000 | |||||||||||||||||
Total investment in property | 13,500,000 | 13,500,000 | |||||||||||||||||
Real Estate Property Cost | 148,000 | 148,000 | |||||||||||||||||
Amount funded by the entity | 0 | 0 | |||||||||||||||||
Total Property Acquisitions | 10,612,000 | 10,612,000 | |||||||||||||||||
Cresco OH [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 1,900,000 | 1,900,000 | |||||||||||||||||
Tenant improvements allowance | 2,900,000 | 2,900,000 | |||||||||||||||||
GTI OH [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | $ 4,300,000 | ||||||||||||||||||
Real Estate Property Cost | 4,400,000 | 4,400,000 | |||||||||||||||||
Amount funded by the entity | 4,300,000 | 4,300,000 | |||||||||||||||||
Total Property Acquisitions | 2,927,000 | 2,927,000 | |||||||||||||||||
GTI OH [Member] | Subsequent Event [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | $ 25,000,000 | ||||||||||||||||||
Tenant improvements allowance | $ 29,300,000 | ||||||||||||||||||
GTI OH [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 4,300,000 | 4,300,000 | |||||||||||||||||
LivWell CO [Member] | |||||||||||||||||||
Real Estate Property Cost | 49,000 | 49,000 | |||||||||||||||||
Total Property Acquisitions | 3,327,000 | 3,327,000 | |||||||||||||||||
LivWell CO [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 850,000 | 850,000 | |||||||||||||||||
GTI IL [Member] | |||||||||||||||||||
Real Estate Property Cost | 19,600,000 | 19,600,000 | |||||||||||||||||
Amount funded by the entity | 18,500,000 | 18,500,000 | |||||||||||||||||
Total Property Acquisitions | 9,023,000 | 9,023,000 | |||||||||||||||||
GTI IL [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 41,000,000 | 41,000,000 | |||||||||||||||||
Parallel FL [Member] | |||||||||||||||||||
Real Estate Property Cost | 3,000,000 | 3,000,000 | |||||||||||||||||
Amount funded by the entity | 2,100,000 | 2,100,000 | |||||||||||||||||
Total Property Acquisitions | 35,326,000 | 35,326,000 | |||||||||||||||||
Parallel FL [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 8,200,000 | 8,200,000 | |||||||||||||||||
Ascend MA [Member] | |||||||||||||||||||
Real Estate Property Cost | 4,400,000 | 4,400,000 | |||||||||||||||||
Amount funded by the entity | 3,000,000 | 3,000,000 | |||||||||||||||||
Total Property Acquisitions | 26,770,000 | 26,770,000 | |||||||||||||||||
Ascend MA [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 22,300,000 | 22,300,000 | |||||||||||||||||
Cresco MI [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 16,000,000 | 16,000,000 | |||||||||||||||||
Real Estate Property Cost | 596,000 | 596,000 | |||||||||||||||||
Amount funded by the entity | 0 | 0 | |||||||||||||||||
Total Property Acquisitions | 5,016,000 | 5,016,000 | |||||||||||||||||
Cresco MI [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 11,000,000 | 11,000,000 | |||||||||||||||||
Tenant improvements allowance | 27,000,000 | 27,000,000 | |||||||||||||||||
Holistic PA [Member] | |||||||||||||||||||
Real Estate Property Cost | 4,000,000 | 4,000,000 | |||||||||||||||||
Amount funded by the entity | 2,700,000 | 2,700,000 | |||||||||||||||||
Total Property Acquisitions | 8,882,000 | 8,882,000 | |||||||||||||||||
Holistic PA [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 6,400,000 | 6,400,000 | |||||||||||||||||
Cresco MA [Member] | |||||||||||||||||||
Real Estate Property Cost | 59,000 | 59,000 | |||||||||||||||||
Amount funded by the entity | 0 | 0 | |||||||||||||||||
Total Property Acquisitions | 7,764,000 | 7,764,000 | |||||||||||||||||
Cresco MA [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 21,000,000 | 21,000,000 | |||||||||||||||||
Curaleaf NJ [Member] | |||||||||||||||||||
Real Estate Property Cost | 8,700,000 | 8,700,000 | |||||||||||||||||
Amount funded by the entity | 5,400,000 | 5,400,000 | |||||||||||||||||
Total Property Acquisitions | 5,559,000 | 5,559,000 | |||||||||||||||||
Curaleaf NJ [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 29,500,000 | 29,500,000 | |||||||||||||||||
Columbia Care NJ Cult [Member] | |||||||||||||||||||
Real Estate Property Cost | 648,000 | 648,000 | |||||||||||||||||
Amount funded by the entity | 0 | 0 | |||||||||||||||||
Total Property Acquisitions | 10,268,000 | 10,268,000 | |||||||||||||||||
Columbia Care NJ Cult [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 1,600,000 | 1,600,000 | |||||||||||||||||
Holistic MI [Member] | |||||||||||||||||||
Real Estate Property Cost | 628,000 | 628,000 | |||||||||||||||||
Amount funded by the entity | 0 | 0 | |||||||||||||||||
Total Property Acquisitions | 6,211,000 | 6,211,000 | |||||||||||||||||
Holistic MI [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 18,800,000 | 18,800,000 | |||||||||||||||||
Parallel FL Lakeland [Member] | |||||||||||||||||||
Real Estate Property Cost | 57,000 | 57,000 | |||||||||||||||||
Amount funded by the entity | 0 | 0 | |||||||||||||||||
Total Property Acquisitions | 19,557,000 | 19,557,000 | |||||||||||||||||
Parallel FL Lakeland [Member] | Maximum [Member] | |||||||||||||||||||
Agreed reimbursement for redevelopment of building | 36,900,000 | 36,900,000 | |||||||||||||||||
Green Peak Industries LLC [Member] | |||||||||||||||||||
Total investment in property | 15,800,000 | 15,800,000 | |||||||||||||||||
Inventory Real Estate Improvement Funding, Canceled | $ 15,200,000 | ||||||||||||||||||
Green Peak Industries LLC [Member] | Subsequent Event [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | $ 525,000 | ||||||||||||||||||
Tenant improvements allowance | 1,800,000 | ||||||||||||||||||
Total investment in property | $ 3,400,000 | ||||||||||||||||||
Real Estate Property Cost, Funded | $ 1,700,000 | ||||||||||||||||||
Vireo Health, Inc [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 4,500,000 | ||||||||||||||||||
Tenant improvements allowance | $ 10,000,000 | ||||||||||||||||||
Total investment in property | 15,800,000 | ||||||||||||||||||
Real Estate Property Cost | 7,600,000 | 7,600,000 | |||||||||||||||||
Amount funded by the entity | 7,400,000 | 7,400,000 | |||||||||||||||||
Decrease amount in funding for tenant improvement | 300,000 | $ 300,000 | |||||||||||||||||
Jushi Holdings Inc. [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 2,000,000 | ||||||||||||||||||
The Pharm, LLC [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 2,000,000 | ||||||||||||||||||
Tenant improvements allowance | 5,000,000 | ||||||||||||||||||
Total investment in property | 20,000,000 | 20,000,000 | |||||||||||||||||
Sacramento, California [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 1,300,000 | ||||||||||||||||||
Tenant improvements allowance | $ 6,000,000 | ||||||||||||||||||
Total investment in property | 12,700,000 | 12,700,000 | |||||||||||||||||
Maitri Medicinals, LLC [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | $ 6,000,000 | ||||||||||||||||||
Tenant improvements allowance | 16,000,000 | ||||||||||||||||||
Real Estate Property Cost | 14,300,000 | 14,300,000 | |||||||||||||||||
Amount funded by the entity | 13,600,000 | 13,600,000 | |||||||||||||||||
Pharma Cann [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | $ 3,000,000 | 4,000,000 | 3,000,000 | ||||||||||||||||
Total investment in property | 30,500,000 | 30,500,000 | |||||||||||||||||
Real Estate Property Cost | 8,800,000 | 8,800,000 | |||||||||||||||||
Amount funded by the entity | 8,500,000 | 8,500,000 | |||||||||||||||||
Inventory Real Estate Improvement Funding, Canceled | 4,000,000 | ||||||||||||||||||
Payments for Building Improvements | $ 27,500,000 | $ 10,000,000 | |||||||||||||||||
Pharma Cann [Member] | Subsequent Event [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | $ 2,000,000 | ||||||||||||||||||
Total investment in property | 28,000,000 | ||||||||||||||||||
Payments for Building Improvements | $ 27,100,000 | ||||||||||||||||||
Real Estate Property Cost, Funded | $ 18,200,000 | ||||||||||||||||||
Holistic Industries [Member] | |||||||||||||||||||
Tenant improvements allowance | 5,500,000 | ||||||||||||||||||
Total investment in property | $ 22,400,000 | ||||||||||||||||||
Real Estate Property Cost | 5,200,000 | 5,200,000 | |||||||||||||||||
Amount funded by the entity | 4,400,000 | 4,400,000 | |||||||||||||||||
Vireo MN Property [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 1,400,000 | 1,400,000 | |||||||||||||||||
Tenant improvements allowance | 10,100,000 | 10,100,000 | 10,100,000 | 10,100,000 | |||||||||||||||
Total investment in property | 9,700,000 | 9,700,000 | |||||||||||||||||
Amount funded by the entity | 10,000,000 | 10,000,000 | |||||||||||||||||
Vireo in New York Property [Member] | |||||||||||||||||||
Total investment in property | $ 6,800,000 | 6,800,000 | |||||||||||||||||
Michigan In GPI [Member] | |||||||||||||||||||
Period Deferral For Base Rent And Management Fee | 18 months | ||||||||||||||||||
Maitri In Pennsylvania [Member] | |||||||||||||||||||
Period Deferral For Base Rent And Management Fee | 18 months | ||||||||||||||||||
Medical Investor Holdings LLC [Member] | |||||||||||||||||||
Period Deferral For Base Rent And Management Fee | 18 months | ||||||||||||||||||
Repayments Of Base Rent And Property Management Fee | $ 185,000 | ||||||||||||||||||
GR Companies Inc. [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 10,600,000 | 10,600,000 | 1,500,000 | ||||||||||||||||
Tenant improvements allowance | 12,400,000 | ||||||||||||||||||
Total investment in property | 26,600,000 | ||||||||||||||||||
Real Estate Property Cost | 10,700,000 | 10,700,000 | |||||||||||||||||
GR Companies Inc.. Illinois Property [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 11,200,000 | 11,200,000 | 844,000 | ||||||||||||||||
Tenant improvements allowance | 18,600,000 | ||||||||||||||||||
Total investment in property | 29,100,000 | ||||||||||||||||||
Real Estate Property Cost | 11,700,000 | 11,700,000 | |||||||||||||||||
Ascend Wellness Holdings LLC [Member] | |||||||||||||||||||
Additional Purchase for Building Improvements Payable | 14,000,000 | 14,000,000 | 18,000,000 | ||||||||||||||||
Tenant improvements allowance | 32,000,000 | ||||||||||||||||||
Total investment in property | $ 51,000,000 | ||||||||||||||||||
Real Estate Property Cost | $ 18,700,000 | $ 18,700,000 |
Investments in Real Estate - Fu
Investments in Real Estate - Future Contractual Minimum Rent (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Contractual Minimum Rent | |
2020 (three months ending December 31) | $ 35,417 |
2021 | 156,817 |
2022 | 159,888 |
2023 | 164,653 |
2024 | 169,567 |
Thereafter | 2,497,606 |
Total | $ 3,183,948 |
Exchangeable Senior Notes - Int
Exchangeable Senior Notes - Interest expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Exchangeable Senior Notes | ||||
Cash coupon | $ 1,348 | $ 1,349 | $ 4,042 | $ 3,281 |
Amortization of debt discount | 275 | 262 | 816 | 632 |
Amortization of issuance costs | 238 | 227 | 707 | 549 |
Total interest expense | $ 1,861 | $ 1,838 | $ 5,565 | $ 4,462 |
Exchangeable Senior Notes - Car
Exchangeable Senior Notes - Carrying value (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Exchangeable Senior Notes | ||
Principal amount | $ 143,749 | $ 143,750 |
Unamortized discount | (4,063) | (4,878) |
Unamortized issuance costs | (3,512) | (4,218) |
Carrying value | $ 136,174 | $ 134,654 |
Exchangeable Senior Notes - Add
Exchangeable Senior Notes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020USD ($)shares | Sep. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Feb. 28, 2019USD ($) | |
Debt Instrument, Discount | $ 5,800,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.65% | |||
Debt Issuance Costs, Gross | $ 5,200,000 | |||
Debt Issuance Costs, Net | 5,000,000 | |||
Equity Components | 200,000 | |||
Accrued Interest Payable | $ 225,000 | $ 225,000 | ||
Senior Notes [Member] | ||||
Debt Instrument, Face Amount | $ 143,750,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | ||
Common Stock [Member] | Senior Notes [Member] | ||||
Debt Instrument, Convertible, Conversion Ratio | 14.94423 | |||
Conversion of Stock, Amount Converted | $ 1,000 | $ 1,000 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 66.916 | |||
Conversion of Stock, Shares Issued | shares | 14 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income Per Share | ||||
Net income | $ 19,215 | $ 6,520 | $ 44,397 | $ 13,573 |
Preferred stock dividend | (338) | (338) | (1,014) | (1,014) |
Distributions to participating securities | (133) | (109) | (369) | (256) |
Net income attributable to common stockholders used to compute net income per share | $ 18,744 | $ 6,073 | $ 43,014 | $ 12,303 |
Weighted average common share outstanding: | ||||
Basic | 21,594,637 | 10,918,477 | 18,315,231 | 10,088,036 |
Diluted | 21,708,725 | 11,057,697 | 18,429,228 | 10,225,574 |
Net income attributable to common stockholders per share: | ||||
Basic | $ 0.87 | $ 0.56 | $ 2.35 | $ 1.22 |
Diluted | $ 0.86 | $ 0.55 | $ 2.33 | $ 1.20 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value of Financial Instruments | ||
Short-term investments, net | $ 451,178 | $ 119,595 |
Exchangeable Senior Notes, Carrying Value | 136,174 | 134,654 |
Short-term investments, Fair Value | 451,369 | 119,673 |
Exchangeable Senior Notes, Fair Value | $ 277,891 | $ 185,558 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($) |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | |
Cash and Cash Equivalents, Fair Value Disclosure | $ 93.5 |
Common Stock Incentive Plan (De
Common Stock Incentive Plan (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Restricted Shares, Beginning Balance | 139,546 | 80,937 |
Unvested Restricted Shares, Granted | 15,918 | 1,139 |
Unvested Restricted Shares, Vested | (45,975) | (4,675) |
Unvested Restricted Shares, Forfeited | (28,552) | |
Unvested Restricted Shares, Ending Balance | 80,937 | 77,401 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 37.03 | $ 50.64 |
Weighted-Average Grant Date Fair Value, Granted | 75.11 | 87.82 |
Weighted-Average Grant Date Fair Value, Vested | 37.01 | 62.08 |
Weighted-Average Grant Date Fair Value, Forfeited | 19.72 | |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 50.64 | $ 50.49 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Restricted Shares, Beginning Balance | 0 | 33,954 |
Unvested Restricted Shares, Granted | 33,954 | 2,733 |
Unvested Restricted Shares, Ending Balance | 33,954 | 36,687 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 0 | $ 75.11 |
Weighted-Average Grant Date Fair Value, Granted | 75.11 | 87.82 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 75.11 | $ 76.06 |
Common Stock Incentive Plan - A
Common Stock Incentive Plan - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)shares |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2.4 | $ 2.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | |
Restricted stock units | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2.1 | $ 2.1 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days | |
2016 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 1,000,000 | 1,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Commitments and Contingencies -
Commitments and Contingencies - Office Lease Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies | ||
2020 (three months ending December 31) | $ 57 | |
2021 | 235 | |
2022 | 242 | |
2023 | 249 | |
2024 | 256 | |
Thereafter | 88 | |
Total future contractual lease payments | 1,127 | |
Effect of discounting | (14) | |
Office lease liability | $ 1,113 | $ 1,202 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($) |
Other Commitments [Line Items] | |
Tenant Improvement Payable | $ 232.6 |
Tenant improvement may be canceled | 10 |
Pennsylvania [Member] | |
Other Commitments [Line Items] | |
Other Commitment | $ 6.9 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 05, 2020 | Nov. 30, 2020 | Feb. 29, 2020 | Jun. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Tenant improvements | $ 272,934,000 | $ 87,344,000 | |||||
Total investment in property | 885,027,000 | $ 505,861,000 | |||||
Green Peak Industries LLC [Member] | |||||||
Total investment in property | 15,800,000 | ||||||
Pharma Cann [Member] | |||||||
Additional Purchase for Building Improvements Payable | $ 4,000,000 | $ 3,000,000 | |||||
Payments for Building Improvements | $ 27,500,000 | $ 10,000,000 | |||||
Total investment in property | $ 30,500,000 | ||||||
Subsequent Event [Member] | |||||||
Percentage of contractual rent collected (%) | 100.00% | ||||||
Subsequent Event [Member] | Green Thumb Industries Inc. [Member] | |||||||
Additional Purchase for Building Improvements Payable | $ 25,000,000 | ||||||
Tenant improvements | 29,300,000 | ||||||
Total investment in property | 32,200,000 | ||||||
Real estate property cost funded by the entity | $ 4,400,000 | ||||||
Subsequent Event [Member] | Green Peak Industries LLC [Member] | |||||||
Additional Purchase for Building Improvements Payable | 525,000 | ||||||
Tenant improvements | 1,800,000 | ||||||
Total investment in property | $ 3,400,000 | ||||||
Real estate property cost funded by the entity | 1,700,000 | ||||||
Subsequent Event [Member] | Pharma Cann [Member] | |||||||
Additional Purchase for Building Improvements Payable | $ 2,000,000 | ||||||
Payments for Building Improvements | 27,100,000 | ||||||
Total investment in property | $ 28,000,000 | ||||||
Real estate property cost funded by the entity | $ 18,200,000 |