Innovative Industrial Properties (IIPR) 10-K 29 Mar 18 2017 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Mar. 29, 2018	Jun. 30, 2017
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Entity Registrant Name	INNOVATIVE INDUSTRIAL PROPERTIES INC
Entity Central Index Key	1,677,576
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 52.5
Trading Symbol	IIPR
Entity Common Stock, Shares Outstanding		6,782,079

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Real estate, at cost:
Land	$ 11,514	$ 7,600
Buildings and improvements	51,315	22,475
Tenant improvements	5,901	0
Total real estate, at cost	68,730	30,075
Less accumulated depreciation	(942)	(27)
Net real estate held for investment	67,788	30,048
Cash and cash equivalents	11,758	33,003
Prepaid insurance and other assets, net	482	276
Total assets	80,028	63,327
Liabilities and stockholders' equity
Accounts payable and accrued expenses	1,082	70
Dividends payable	1,198	0
Offering cost liability	41	276
Rent received in advance and tenant security deposits	4,158	2,542
Total liabilities	6,479	2,888
Commitments and contingencies (Notes 7 and 10)
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 and no shares issued and outstanding at December 31, 2017 and 2016, respectively	14,009	0
Common Stock, Value, Issued	4	0
Additional paid-in-capital	64,000	64,828
Accumulated deficit	(4,464)	(4,392)
Total stockholders' equity	73,549	60,439
Total liabilities and stockholders' equity	80,028	63,327
Common Class A [Member]
Stockholders' equity
Common Stock, Value, Issued	0	3
Common Class B [Member]
Stockholders' equity
Common Stock, Value, Issued	$ 0	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
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	0	3,501,147
Common Stock, Shares, Outstanding	0	3,501,147
Common Class A [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	49,000,000	49,000,000
Common Stock, Shares, Issued	3,416,508	0
Common Stock, Shares, Outstanding	3,416,508	0
Common Class B [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,000,000	1,000,000
Common Stock, Shares, Issued	0	0
Common Stock, Shares, Outstanding	0	0
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized	600,000	600,000
Preferred Stock, Liquidation Preference, Value	$ 15,000	$ 15,000
Preferred Stock, Dividend Rate, Percentage	9.00%	9.00%
Preferred Stock, Liquidation Preference Per Share	$ 25	$ 25

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017
Revenues:
Rental	$ 180	$ 6,302
Tenant reimbursements	87	118
Total revenues	267	6,420
Expenses:
Property expenses	87	118
General and administrative expense	828	5,497
Severance	0	113
Forfeited Class B common shares	3,707	0
Organization costs	64	0
Depreciation expense	27	915
Total expenses	4,713	6,643
Loss from operations	(4,446)	(223)
Interest income	54	151
Net loss	(4,392)	(72)
Preferred stock dividend	0	323
Net loss attributable to common stockholders	$ (4,392)	$ (395)
Net loss attributable to common stockholders per share (basic and diluted) (Note 6)	$ (4.56)	$ (0.13)
Weighted average shares outstanding
Basic and diluted	962,775	3,375,284
Dividends declared per common share	$ 0	$ 0.55

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands		Total	Common Class B [Member]	Common Class A [Member]	Series A Preferred Stock [Member]	Common Stock		Common StockCommon Class B [Member]	Common StockCommon Class A [Member]	Additional Paid-in capital	Additional Paid-in capitalCommon Class B [Member]	Additional Paid-in capitalCommon Class A [Member]	Accumulated deficit	Accumulated deficitCommon Class B [Member]	Accumulated deficitCommon Class A [Member]
Balance at Jun. 14, 2016		$ 0			$ 0	$ 0				$ 0			$ 0
Balance (in Shares) at Jun. 14, 2016						0
Issuance of common stock			$ 1	$ 61,066				$ 1	$ 3		$ 0	$ 61,063		$ 0	$ 0
Issuance of common stock (in shares)								508,065	3,350,000
Redemption of Class B common stock		(1)			0	$ (1)				0			0
Redemption of Class B common stock (in shares)						(508,065)
Forfeited Class B common shares		3,707			0	$ 0				3,707			0
Net loss		(4,392)			0	0				0			(4,392)
Stock-based compensation		58			0	$ 0				58			0
Stock-based compensation (in shares)						66,508
Balance at Dec. 31, 2016		60,439			0	$ 3				64,828			(4,392)
Balance (in Shares) at Dec. 31, 2016						3,416,508
Reclassification of Class A and Class B common stock to common stock		0			0		[1]			0			0
Reclassification of Class A and Class B common stock to common stock (in shares)	[1]
Net proceeds from sale of preferred stock		14,009			14,009	$ 0				0			0
Preferred stock dividend		(323)			0	0				(323)			0
Common stock dividend		(1,925)			0	0				(1,925)			0
Net issuance of unvested restricted stock		(298)			0	$ 0				(298)			0
Net issuance of unvested restricted stock (in shares)						84,639
Net loss		(72)			0	$ 0				0			(72)
Stock-based compensation		1,719			0	$ 1				1,718			0
Stock-based compensation (in shares)						0
Balance at Dec. 31, 2017		$ 73,549			$ 14,009	$ 4				$ 64,000			$ (4,464)
Balance (in Shares) at Dec. 31, 2017						3,501,147
[1]	Effective as of January 26, 2017, each share of the Company’s outstanding Class A common stock and Class B common stock was reclassified as, and became one share of, a new single class of common stock named “common stock”. There were no shares of Class B common stock outstanding as of January 26, 2017, as all such shares were redeemed by the Company for $0.001 per share (par value) immediately prior to the Company's initial public offering in December 2016.

Consolidated Statements of Sto6

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	Dec. 31, 2017	Jan. 26, 2017	Dec. 31, 2016
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001	$ 0.001

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017
Cash flows from operating activities
Net loss	$ (4,392)	$ (72)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation	27	915
Stock-based compensation	58	1,719
Forfeited Class B common shares	3,707	0
Changes in assets and liabilities
Prepaid insurance and other assets, net	(276)	(155)
Accounts payable and accrued expenses	27	992
Rents received in advance and tenant security deposit	2,542	1,616
Net cash provided by operating activities	1,693	5,015
Cash flows from investing activities
Purchases of investments in real estate	(30,032)	(32,734)
Capital expenditures	0	(5,911)
Net cash used in investing activities	(30,032)	(38,645)
Cash flows from financing activities
Redemption of Class B common stock	(1)	0
Dividends paid to common stockholders	0	(1,050)
Issuance of Series A Preferred Stock, net of offering costs	0	14,009
Taxes paid related to net share settlement of equity awards	0	(298)
Net cash provided by financing activities	61,342	12,385
Net (decrease)/increase in cash and cash equivalents	33,003	(21,245)
Cash and cash equivalents, beginning of period	0	33,003
Cash and cash equivalents, end of period	33,003	11,758
Supplemental disclosure of non-cash investing and financing activities:
Accrual for common and preferred stock dividends declared	0	1,198
Invoices accrued for capitalized costs	43	20
Invoices accrued for offering costs	276	41
Common Class B [Member]
Cash flows from financing activities
Issuance of common stock	1	0
Common Class A [Member]
Cash flows from financing activities
Issuance of common stock	$ 61,342	$ (276)

Organization

Organization	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	As used herein, the terms "we", "us", "our" or the "Company" refer to Innovative Industrial Properties, Inc., a Maryland corporation, and any of our subsidiaries, including IIP Operating Partnership, LP, a Delaware limited partnership (our "Operating Partnership"). We acquire, own and manage specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. We have acquired and intend to continue to acquire our properties through sale-leaseback transactions and third-party purchases. We lease 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, and we intend to elect and to operate our business so as to qualify to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes, beginning with our taxable year ended December 31, 2017. 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 a subsidiary, 100 As of December 31, 2017, we owned five properties that were 100% leased to state-licensed medical-use cannabis operators and comprising an aggregate of approximately 617,000

Summary of Significant Accounti

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	2. Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements 338,000 34,000 8,000 906,000 30,000 67,000 Depreciation 35 We depreciate office equipment and furniture and fixtures over estimated useful lives ranging from three to six years. We record revenue for each of our properties on a cash basis due to the uncertainty of collectability of lease payments from each tenant due to its limited operating history. 8.9 32.7 Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02") which introduces a lessee model that brings most leases on the balance sheet. Under this new standard the large majority of operating leases are expected to remain classified as operating leases, and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. ASU 2016-02 is effective for years beginning after December 15, 2019 as a result of the Company’s election as an emerging growth company, using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are continuing to evaluate this guidance and the impact to us, as both lessor and lessee, on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation; Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). The FASB issued ASU 2016-09 to simplify several aspects of the accounting for share-based payment transactions, including classification of awards as either equity or liabilities, estimation of forfeitures, and classification on the statement of cash flows. ASU 2016-09 is effective for years beginning after December 15, 2017 as a result of the Company’s election as an emerging growth company, and early adoption is permitted. ASU 2016-09 is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. Companies will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. Companies will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This standard is effective for years beginning after December 15, 2020 as a result of the Company’s election as an emerging growth company with early adoption permitted. The Company is in the initial stage of evaluating the impact of this new standard. In February 2017, the FASB has issued ASU No. 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets ("Subtopic 610-20"). A contract may involve the transfer of both nonfinancial assets and financial assets (e.g., cash and receivables). The amendments clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments also define the term in substance nonfinancial asset. The amendments clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. A contract that includes the transfer of ownership interests in one or more consolidated subsidiaries is within the scope of Subtopic 610-20 if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets. The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. The amendments are effective at the same time Topic 606, Revenue from Contracts with Customers, In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, which clarifies or provides guidance relating to eight specific cash flow classification issues. The standard should be applied retrospectively for each period presented, as appropriate. This new standard is effective for years beginning after December 15, 2018 as a result of the Company’s election as an emerging growth company. The impact of this new guidance will depend on future transactions, though the impact will only be related to the classification of those items on the statement of cash flows and will not impact the Company's cash flows or its consolidated results of operations. Concentration of Credit Risk 82 14 43 25 22 We have deposited cash with a financial institution that is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $ 250,000

Common Stock

Common Stock	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Common Stock	3. Common Stock As of December 31, 2017, the Company was authorized to issue up to 50,000,000 0.001 In June 2016, we issued 508,065 508 0.001 In connection with the Company's issuance of its Class B Common Stock, the Company obtained a third-party valuation to determine the fair value of the shares at the June 15, 2016 grant date and at subsequent modification dates using a Monte Carlo simulation. The fair value calculation was primarily based on management's estimates of the probability of an initial public offering and the estimated proceeds of the offering at the time. The Company recognized stock compensation expense of approximately $ 3.7 0.001 Effective as of January 26, 2017, the Company amended its charter to reclassify all shares of Class A Common Stock and Class B Common Stock of the Company as a single class of common stock, par value $0.001 per share. As described above, there were no shares of Class B common stock outstanding as of January 26, 2017, as all such shares were redeemed prior to the Company's initial public offering in December 2016.

Preferred Stock

Preferred Stock	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Preferred Stock	4. Preferred Stock The Company is authorized to issue up to 50,000,000 0.001 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 Company’s 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	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Dividends	5. Dividends Declaration Date Security Class Amount Period Covered Dividend Payable Dividend (In thousands) May 30, 2017 Common stock $ 0.15 April 1, 2017 to June 30, 2017 July 14, 2017 $ 525 September 15, 2017 Common stock $ 0.15 July 1, 2017 to September 30, 2017 October 13, 2017 $ 525 December 15, 2017 Common stock $ 0.25 October 1, 2017 to December 31, 2017 January 16, 2018 $ 875 December 15, 2017 Series A preferred stock $ 0.5375 October 19, 2017 to January 14, 2018 January 16, 2018 $ 323

Net Income (Loss) Per Share

Net Income (Loss) Per Share	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	6. Net Income (Loss) Per Share Grants of restricted stock of the Company 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 company’s 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 (“distributed earnings”) 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 December 31, 2017, all of the Company’s participating securities received dividends at an equal dividend rate per share. As a result, distributions to participating securities for the year ended December 31, 2017 have been included in net loss attributable to common stockholders to calculate net loss per basic and diluted share. For the year ended December 31, 2017, the Company incurred a net loss and therefore had distributions in excess of earnings. As such, 106,839 Year Ended For the Period 2017 2016 Net loss $ (72) $ (4,392) Preferred stock dividend (323) — Distributions to participating securities (59) — Net loss attributable to common stockholders used to compute net loss per share $ (454) $ (4,392) Weighted average common shares outstanding- basic and diluted 3,375,284 962,775 Net loss per share attributable to common stockholders – basic and diluted $ (0.13) $ (4.56)

Properties

Properties	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Properties	7. Properties On December 19, 2016, we completed the acquisition of a 127,000 30.0 75,000 319,580 annual increases at a rate based on the higher of(i) 4% or (ii) 75% of the consumer price index 1.5 105,477 332,360 On May 26, 2017, we purchased an industrial property located in Maryland (the “Holistic MD Property”), which comprises approximately 72,000 8.0 185,000 3.0 The initial term of the lease is 16 years, with three options to extend the term of the lease for three additional five-year periods. 7.5 On August 1, 2017, we paid the additional $ 3.0 1.9 5.9 16.9 213,760 187,500 3.25 1.5 On October 23, 2017, we completed the acquisition of a 40,000 3.4 1.0 55,000 3.5 1.5 On November 8, 2017, we completed the acquisition of a 20,000 3.0 58,000 15 years 1.0 50,000 3.5 1.5 On December 15, 2017, we completed the acquisition of a property in Arizona (the "Pharm AZ Property") comprising approximately 358,000 15.0 27,000 3.0 The initial monthly base rent under the lease is $210,000 and is subject to annual increases of 3.25% during the lease term. The base rent on $5.0 million of the purchase price ($58,333.33 per month) will be abated until March 31, 2018 Year Contractual Minimum Rent 2018 $ 11,543 2019 12,170 2020 12,549 2021 12,898 2022 12,083 Thereafter 140,589 Total $ 201,832

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	8. 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 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. At December 31, 2017 and 2016, cash equivalent instruments consisted of $ 5.0 The carrying amounts of financial instruments such as cash equivalents invested in certificates of deposit, receivables, accounts payable, accrued expenses and other liabilities approximate their relative fair values due to the short-term maturities and market rates of interest of these instruments.

Common Stock Incentive Plan

Common Stock Incentive Plan	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Common Stock Incentive Plan	1,000,000 Unvested Weighted- Balance at June 15, 2016 — $ — Granted 66,508 17.47 Balance at December 31, 2016 66,508 17.47 Granted 115,011 18.63 Vested (44,308) 18.47 Forfeited (1) (30,372) 18.49 Balance at December 31, 2017 106,839 $ 18.01 (1) Includes 16,792 The remaining unrecognized compensation cost of $ 1.4

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Office Lease 236,000 75,000 89,000 72,000 Tenant Improvement Allowance Environmental Matters Litigation We may, from time to time, be a party to legal proceedings, which arise in the ordinary course of our business. We are not aware of any pending or threatened litigation that, if resolved against us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	11. Related Party Transactions Private Airplane Reimbursement 30,000 Founder Shares As disclosed in Note 3, in June 2016, we issued 508,065 508 0.001 Reimbursement of IGP Advisers 566,000 375,000 Offering Costs $ 338 Organizational Costs 34 Corporate Assets 52 Transaction Costs 8 Earnest Money Deposit 375 Consulting Fee 566 Total $ 1,373

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events On January 22, 2018, we issued 3,220,000 420,000 79.3 On March 15, 2018, our board of directors declared a dividend of $ 0.25 0.5625 April 16, 2018 March 29, 2018

Summary of Significant Accoun20

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation.
Reclassifications	Reclassifications
Federal Income Taxes	Federal Income Taxes.
Use of Estimates	Use of Estimates.
Acquisition of Real Estate Properties	Acquisition of Real Estate Properties.
Organization, Offering and Transaction Costs	Organization, Offering and Transaction Costs. 338,000 34,000 8,000 906,000 30,000 67,000
Depreciation	Depreciation 35 We depreciate office equipment and furniture and fixtures over estimated useful lives ranging from three to six years.
Provision for Impairment	Provision for Impairment.
Revenue Recognition	Revenue Recognition. We record revenue for each of our properties on a cash basis due to the uncertainty of collectability of lease payments from each tenant due to its limited operating history.
Cash and Cash Equivalents	Cash and Cash Equivalents 8.9 32.7
Stock-Based Compensation	Stock-Based Compensation.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements
Recent Accounting Pronouncements	Recent Accounting Pronouncements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02") which introduces a lessee model that brings most leases on the balance sheet. Under this new standard the large majority of operating leases are expected to remain classified as operating leases, and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. ASU 2016-02 is effective for years beginning after December 15, 2019 as a result of the Company’s election as an emerging growth company, using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are continuing to evaluate this guidance and the impact to us, as both lessor and lessee, on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation; Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). The FASB issued ASU 2016-09 to simplify several aspects of the accounting for share-based payment transactions, including classification of awards as either equity or liabilities, estimation of forfeitures, and classification on the statement of cash flows. ASU 2016-09 is effective for years beginning after December 15, 2017 as a result of the Company’s election as an emerging growth company, and early adoption is permitted. ASU 2016-09 is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. Companies will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. Companies will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This standard is effective for years beginning after December 15, 2020 as a result of the Company’s election as an emerging growth company with early adoption permitted. The Company is in the initial stage of evaluating the impact of this new standard. In February 2017, the FASB has issued ASU No. 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets ("Subtopic 610-20"). A contract may involve the transfer of both nonfinancial assets and financial assets (e.g., cash and receivables). The amendments clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments also define the term in substance nonfinancial asset. The amendments clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. A contract that includes the transfer of ownership interests in one or more consolidated subsidiaries is within the scope of Subtopic 610-20 if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets. The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. The amendments are effective at the same time Topic 606, Revenue from Contracts with Customers, In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, which clarifies or provides guidance relating to eight specific cash flow classification issues. The standard should be applied retrospectively for each period presented, as appropriate. This new standard is effective for years beginning after December 15, 2018 as a result of the Company’s election as an emerging growth company. The impact of this new guidance will depend on future transactions, though the impact will only be related to the classification of those items on the statement of cash flows and will not impact the Company's cash flows or its consolidated results of operations.
Concentration of Credit Risk	Concentration of Credit Risk 82 14 43 25 22 We have deposited cash with a financial institution that is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $ 250,000

Dividends (Tables)

Dividends (Tables)	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Schedule of Dividends Payable	The following table describes the dividends declared by the Company during the year ended December 31, 2017: Declaration Date Security Class Amount Period Covered Dividend Payable Dividend (In thousands) May 30, 2017 Common stock $ 0.15 April 1, 2017 to June 30, 2017 July 14, 2017 $ 525 September 15, 2017 Common stock $ 0.15 July 1, 2017 to September 30, 2017 October 13, 2017 $ 525 December 15, 2017 Common stock $ 0.25 October 1, 2017 to December 31, 2017 January 16, 2018 $ 875 December 15, 2017 Series A preferred stock $ 0.5375 October 19, 2017 to January 14, 2018 January 16, 2018 $ 323

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Computations of net loss per basic and diluted share (in thousands, except share data) were as follows: Year Ended For the Period 2017 2016 Net loss $ (72) $ (4,392) Preferred stock dividend (323) — Distributions to participating securities (59) — Net loss attributable to common stockholders used to compute net loss per share $ (454) $ (4,392) Weighted average common shares outstanding- basic and diluted 3,375,284 962,775 Net loss per share attributable to common stockholders – basic and diluted $ (0.13) $ (4.56)

Properties (Tables)

Properties (Tables)	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future contractual minimum rent (including base rent, supplemental base rent (for the PharmaCann NY Property) and property management fees) under the operating leases as of December 31, 2017 for future periods is summarized as follows (in thousands): Year Contractual Minimum Rent 2018 $ 11,543 2019 12,170 2020 12,549 2021 12,898 2022 12,083 Thereafter 140,589 Total $ 201,832

Common Stock Incentive Plan (Ta

Common Stock Incentive Plan (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	A summary of the activity under the 2016 Plan and related information for the period from June 15, 2016 (date of incorporation) through December 31, 2017 is included in the table below. Unvested Weighted- Balance at June 15, 2016 — $ — Granted 66,508 17.47 Balance at December 31, 2016 66,508 17.47 Granted 115,011 18.63 Vested (44,308) 18.47 Forfeited (1) (30,372) 18.49 Balance at December 31, 2017 106,839 $ 18.01 (1) Includes 16,792

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The amounts reimbursed to IGP Advisers were as follows (in thousands): Offering Costs $ 338 Organizational Costs 34 Corporate Assets 52 Transaction Costs 8 Earnest Money Deposit 375 Consulting Fee 566 Total $ 1,373

Organization (Details Textual)

Organization (Details Textual)	Dec. 31, 2017ft²
IIP Operating Partnership LP [Member]
Percentage Leased	100.00%
Building [Member]
Net Rentable Area	617,000

Summary of Significant Accoun27

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Details Textual) - USD ($)	7 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017
Other General Expense	$ 64,000	$ 0
Cash, FDIC Insured Amount		250,000
Money Market Funds [Member]
Short-term Investments	32,700,000	$ 8,900,000
Building [Member]
Property, Plant and Equipment, Useful Life		35 years
New York Propety [Member] | Rental Revenue, Net [Member]
Concentration Risk, Percentage		82.00%
New York Propety [Member] | Net Real Estate Held for Investment [Member]
Concentration Risk, Percentage		43.00%
Maryland Property [Member] | Rental Revenue, Net [Member]
Concentration Risk, Percentage		14.00%
Maryland Property [Member] | Net Real Estate Held for Investment [Member]
Concentration Risk, Percentage		25.00%
Arizona Property [Member] | Net Real Estate Held for Investment [Member]
Concentration Risk, Percentage		22.00%
Parent Company [Member]
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	906,000
Other General Expense	30,000
Business Acquisition, Transaction Costs	67,000
IGP Advisers LLC [Member]
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	338,000
Other General Expense	34,000
Business Acquisition, Transaction Costs	$ 8,000

Common Stock (Details Textual)

Common Stock (Details Textual) - USD ($)	1 Months Ended	7 Months Ended
	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2017	Jan. 26, 2017
Common Stock, Shares Authorized		50,000,000	50,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001	$ 0.001
Redemption Price per Share of Common Stock		$ 0.001
Allocated Share-based Compensation Expense		$ 3,700,000
Common Stock, Shares, Issued		0	3,501,147
Common Stock, Shares, Outstanding		0	3,501,147
Common Class B [Member]
Common Stock, Shares Authorized		1,000,000	1,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001
Stock Issued During Period, Shares, New Issues	508,065
Stock Issued During Period, Value, New Issues	$ 508	$ 1,000
Redemption Price per Share of Common Stock	$ 0.001
Common Stock, Shares, Issued		0	0
Common Stock, Shares, Outstanding		0	0

Preferred Stock (Details Textua

Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	7 Months Ended	12 Months Ended
	Oct. 19, 2017	Dec. 31, 2016	Dec. 31, 2017	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
Proceeds from Issuance of Preferred Stock and Preference Stock		$ 0	$ 14,009
Scenario, Forecast [Member]
Preferred Stock, Redemption Price Per Share				$ 25
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized		600,000	600,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Stock Issued During Period, Shares, New Issues	600,000
Preferred Stock, Dividend Rate, Percentage	9.00%	9.00%	9.00%
Shares Issued, Price Per Share	$ 25

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Dividend Amount	$ 1,198	$ 0
May 30, 2017 [Member]
Declaration Date	May 30, 2017
Dividends Declared, Security Class	Common stock
Amount Per share	$ 0.15
Period Covered	April 1, 2017 to June 30, 2017
Dividend Payable Date	Jul. 14, 2017
Dividend Amount	$ 525
September 15, 2017 [Member]
Declaration Date	Sep. 15, 2017
Dividends Declared, Security Class	Common stock
Amount Per share	$ 0.15
Period Covered	July 1, 2017 to September 30, 2017
Dividend Payable Date	Oct. 13, 2017
Dividend Amount	$ 525
December 15, 2017 [Member]
Declaration Date	Dec. 15, 2017
Dividends Declared, Security Class	Common stock
Amount Per share	$ 0.25
Period Covered	October 1, 2017 to December 31, 2017
Dividend Payable Date	Jan. 16, 2018
Dividend Amount	$ 875
December 15, 2017 one [Member]
Declaration Date	Dec. 15, 2017
Dividends Declared, Security Class	Series A preferred stock
Amount Per share	$ 0.5375
Period Covered	October 19, 2017 to January 14, 2018
Dividend Payable Date	Jan. 16, 2018
Dividend Amount	$ 323

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017
Net loss	$ (4,392)	$ (72)
Preferred stock dividend	0	(323)
Distributions to participating securities	0	(59)
Net loss attributable to common stockholders used to compute net loss per share	$ (4,392)	$ (454)
Weighted average common shares outstanding- basic and diluted	962,775	3,375,284
Net loss per share attributable to common stockholders - basic and diluted	$ (4.56)	$ (0.13)

Net Income (Loss) Per Share (32

Net Income (Loss) Per Share (Details Textual)	12 Months Ended
	Dec. 31, 2017shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	106,839

Properties (Details)

Properties (Details) $ in Thousands	Dec. 31, 2017USD ($)
2,018	$ 11,543
2,019	12,170
2,020	12,549
2,021	12,898
2,022	12,083
Thereafter	140,589
Total	$ 201,832

Properties (Details Textual)

Properties (Details Textual)	Dec. 15, 2017USD ($)a	Nov. 08, 2017USD ($)a	Aug. 01, 2017USD ($)	Oct. 31, 2017USD ($)	Oct. 23, 2017USD ($)a	May 26, 2017USD ($)a	Dec. 19, 2016USD ($)ft²	Dec. 31, 2017USD ($)	Sep. 25, 2017USD ($)	Dec. 31, 2016USD ($)
Sale Leaseback Transaction [Line Items]
Rent Reserve									$ 1,900,000
Tenant Improvement Payable									$ 5,900,000
Annual Escalations Rate For Initial Lease Term				3.25%
Payments to Acquire Property, Plant, and Equipment			$ 3,000,000
Real Estate Investment Property, at Cost								$ 68,730,000		$ 30,075,000
Base Rent Abatement, Description				$ 213,760
Operating Lease, Lease Income, Lease Payments				$ 187,500
PharmaCann LLC [Member]
Sale Leaseback Transaction [Line Items]
Payments to Acquire Real Estate							$ 30,000,000
Sale Leaseback Transaction, Transaction Costs, Investing Activities							$ 75,000
Sale Leaseback Transaction, Lease Terms	15 years						15 years	The lease term is 15 years, with two options to extend the term of the lease for two additional five-year periods.
Description of Operating Leases Rate								annual increases at a rate based on the higher of(i) 4% or (ii) 75% of the consumer price index
Sale Leaseback Transaction, Other Payments Required	$ 27,000
Operating Leases, Monthly Dynamic Rental Revenue							$ 319,580
Property Management Fee, Percent Fee							1.50%	1.50%
Operating Leases, Monthly Static Rental Revenue							$ 105,477
Area of Real Estate Property	358,000						127,000
Tenant Improvement Payable	$ 3,000,000
Real Estate Investment Property, at Cost	$ 15,000,000
Base Rent Abatement, Description	The initial monthly base rent under the lease is $210,000 and is subject to annual increases of 3.25% during the lease term. The base rent on $5.0 million of the purchase price ($58,333.33 per month) will be abated until March 31, 2018
Payments for Tenant Improvements	$ 3,000,000
Vireo Health, LLC [Member]
Sale Leaseback Transaction [Line Items]
Sale Leaseback Transaction, Transaction Costs, Investing Activities		$ 58,000
Sale Leaseback Transaction, Lease Terms		15 years			15 years
Property Management Fee Percentage		1.50%
Operating Leases, Monthly Dynamic Rental Revenue		$ 50,000			$ 55,000
Property Management Fee, Percent Fee					1.50%
Area of Real Estate Property | a		20,000			40,000
Tenant Improvement Payable		$ 1,000,000			$ 1,000,000
Annual Escalations Rate For Initial Lease Term		3.50%			3.50%
Real Estate Investment Property, at Cost		$ 3,000,000			$ 3,400,000
Base Rent of Lease after First Annual Increase Per Month								$ 332,360
Business Acquisition, Transaction Costs					$ 60,000
Industrial Property in Maryland [Member]
Sale Leaseback Transaction [Line Items]
Payments to Acquire Real Estate						$ 8,000,000
Sale Leaseback Transaction, Transaction Costs, Investing Activities						$ 185,000
Sale Leaseback Transaction, Lease Terms						The initial term of the lease is 16 years, with three options to extend the term of the lease for three additional five-year periods.
Industrial Properties Capitalization Rate						7.50%
Area of Real Estate Property | a						72,000
Payments to Acquire Property, Plant, and Equipment						$ 3,000,000
Real Estate Investment Property, at Cost								$ 16,900,000

Fair Value of Financial Instr35

Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and Cash Equivalents, Fair Value Disclosure	$ 5	$ 14.7

Common Stock Incentive Plan (De

Common Stock Incentive Plan (Details) - $ / shares		7 Months Ended	12 Months Ended
		Dec. 31, 2016	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Restricted Shares, Beginning Balance		0	66,508
Unvested Restricted Shares, Granted		66,508	115,011
Unvested Restricted Shares, Vested			(44,308)
Unvested Restricted Shares, Forfeited	[1]		(30,372)
Unvested Restricted Shares, Ending Balance		66,508	106,839
Weighted-Average Date Fair Value, Beginning Balance		$ 0	$ 17.47
Weighted-Average Date Fair Value, Granted		17.47	18.63
Weighted-Average Date Fair Value, Vested			18.47
Weighted-Average Date Fair Value, Forfeited	[1]		18.49
Weighted-Average Date Fair Value, Ending Balance		$ 17.47	$ 18.01
[1]	Includes 16,792 shares that were forfeited to cover the employees’ tax withholding obligation upon vesting.

Common Stock Incentive Plan (37

Common Stock Incentive Plan (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)shares
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 1.4
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years
Shares Paid for Tax Withholding for Share Based Compensation	16,792
2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	10 years

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - Office Lease [Member]	Dec. 31, 2017USD ($)
Other Commitments [Line Items]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 75,000
Operating Leases, Future Minimum Payments, Due in Two Years	89,000
Operating Leases, Future Minimum Payments, Due in Three Years	72,000
Operating Leases, Future Minimum Payments Due	$ 236,000

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Cost of Reimbursable Expense	$ 1,373
Offering Costs [Member]
Cost of Reimbursable Expense	338
Organizational Costs [Member]
Cost of Reimbursable Expense	34
Corporate Assets [Member]
Cost of Reimbursable Expense	52
Transaction Costs [Member]
Cost of Reimbursable Expense	8
Earnest Money Deposit [Member]
Cost of Reimbursable Expense	375
Consulting Fee [Member]
Cost of Reimbursable Expense	$ 566

Related Party Transactions (D40

Related Party Transactions (Details Textual) - USD ($)	1 Months Ended	7 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2017
Redemption Price per Share of Common Stock		$ 0.001
IGP Advisers LLC [Member]
Related Party Transaction, Expenses from Transactions with Related Party		$ 566,000
Repayments of Related Party Debt		375,000
Alan Gold [Member]
Payments for Other Fees			$ 30,000
Common Class B [Member]
Stock Issued During Period, Shares, New Issues	508,065
Stock Issued During Period, Value, New Issues	$ 508	$ 1,000
Redemption Price per Share of Common Stock	$ 0.001

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Mar. 15, 2018	Jan. 22, 2018	Dec. 31, 2016	Dec. 31, 2017
Common Stock, Dividends, Per Share, Declared			$ 0	$ 0.55
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues		3,220,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		420,000
Proceeds from Issuance or Sale of Equity		$ 79.3
Preferred Stock, Dividends Per Share, Declared	$ 0.5625
Common Stock, Dividends, Per Share, Declared	$ 0.25
Dividends Payable, Date to be Paid	Apr. 16, 2018
Dividends Payable, Date of Record	Mar. 29, 2018