Innovative Industrial Properties (IIPR) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 04, 2021
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37949
Entity Registrant Name	Innovative Industrial Properties, Inc.
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,928,304
Amendment Flag	false
Entity Central Index Key	0001677576
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Common Stock
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	IIPR
Security Exchange Name	NYSE
Series A Preferred Stock
Title of 12(b) Security	Series A Preferred Stock, par value $0.001 per share
Trading Symbol	IIPR-PA
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Real estate, at cost:
Land	$ 98,930	$ 75,660
Buildings and improvements	816,099	644,932
Tenant improvements	551,038	339,647
Construction in progress	4,581
Total real estate, at cost	1,470,648	1,060,239
Less accumulated depreciation	(69,766)	(40,195)
Net real estate held for investment	1,400,882	1,020,044
Construction loan	8,925
Cash and cash equivalents	127,298	126,006
Investments	554,420	619,275
Right of use office lease asset	811	980
Other assets, net	9,749	1,776
Total assets	2,102,085	1,768,081
Liabilities and stockholders' equity
Exchangeable senior notes, net	138,287	136,693
Unsecured senior notes, net	293,593
Tenant improvements and construction funding payable	61,674	36,500
Accounts payable and accrued expenses	8,449	4,641
Dividends payable	36,321	30,065
Other liabilities	1,408	1,057
Rent received in advance and tenant security deposits	51,222	34,153
Total liabilities	590,954	243,109
Commitments and contingencies (Notes 6 and 11)
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, 2021 and December 31, 2020	14,009	14,009
Common stock, par value $0.001 per share, 50,000,000 shares authorized: 23,928,304 and 23,936,928 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	24	24
Additional paid-in capital	1,562,099	1,559,059
Dividends in excess of earnings	(65,001)	(48,120)
Total stockholders' equity	1,511,131	1,524,972
Total liabilities and stockholders' equity	$ 2,102,085	$ 1,768,081

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
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	23,928,304	23,936,928
Common Stock, Shares, Outstanding	23,928,304	23,936,928
Series A Preferred Stock
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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Rental (including tenant reimbursements)	$ 53,856	$ 34,327	$ 145,608	$ 79,803
Total revenues	53,856	34,327	145,608	79,803
Expenses:
Property expenses	1,365	2,919	2,617	3,933
General and administrative expense	5,307	3,339	16,511	9,695
Depreciation expense	10,891	7,646	29,571	19,299
Total expenses	17,563	13,904	48,699	32,927
Income from operations	36,293	20,423	96,909	46,876
Interest and other income	110	653	325	3,086
Interest expense	(6,309)	(1,861)	(11,874)	(5,565)
Net income	30,094	19,215	85,360	44,397
Preferred stock dividends	(338)	(338)	(1,014)	(1,014)
Net income attributable to common stockholders	$ 29,756	$ 18,877	$ 84,346	$ 43,383
Net income attributable to common stockholders per share (Note 8):
Basic	$ 1.24	$ 0.87	$ 3.51	$ 2.35
Diluted	$ 1.20	$ 0.86	$ 3.41	$ 2.33
Weighted-average shares outstanding:
Basic	23,890,537	21,594,637	23,889,903	18,315,231
Diluted	26,260,704	21,708,725	26,257,504	18,429,228

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Series A Preferred StockPreferred Stock	Common Stock	Additional Paid-In-Capital	Dividends in Excess of Earnings	Total
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
Exchange of exchangeable senior notes			1		1
Exchange of exchangeable senior notes (in shares)		14
Issuance of unvested restricted stock, net of forfeitures			(2,166)		(2,166)
Issuance of unvested restricted stock, net of forfeitures (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
Balances at beginning of period at Dec. 31, 2020	14,009	$ 24	1,559,059	(48,120)	1,524,972
Balances at beginning of period (in shares) at Dec. 31, 2020		23,936,928
Net income				85,360	85,360
Issuance of unvested restricted stock, net of forfeitures			(3,384)		(3,384)
Issuance of unvested restricted stock, net of forfeitures (in shares)		(8,624)
Preferred stock dividend				(1,014)	(1,014)
Common stock dividend				(101,227)	(101,227)
Stock-based compensation			6,424		6,424
Balances at end of period at Sep. 30, 2021	14,009	$ 24	1,562,099	(65,001)	1,511,131
Balances at end of period (in shares) at Sep. 30, 2021		23,928,304
Balances at beginning of period at Jun. 30, 2021	14,009	$ 24	1,559,908	(58,774)	1,515,167
Balances at beginning of period (in shares) at Jun. 30, 2021		23,928,304
Net income				30,094	30,094
Preferred stock dividend				(338)	(338)
Common stock dividend				(35,983)	(35,983)
Stock-based compensation			2,191		2,191
Balances at end of period at Sep. 30, 2021	$ 14,009	$ 24	$ 1,562,099	$ (65,001)	$ 1,511,131
Balances at end of period (in shares) at Sep. 30, 2021		23,928,304

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income	$ 85,360	$ 44,397
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	29,571	19,299
Other non-cash adjustments	97	139
Stock-based compensation	6,424	2,488
Amortization of discounts on short-term investments	(283)	(2,499)
Amortization of debt discount and issuance costs	2,011	1,521
Changes in assets and liabilities
Other assets, net	(3,598)	(364)
Accounts payable, accrued expenses and other liabilities	4,308	(2,095)
Rent received in advance and tenant security deposits	17,069	13,692
Net cash provided by operating activities	140,959	76,578
Cash flows from investing activities
Purchases of investments in real estate	(130,853)	(182,086)
Reimbursements of tenant improvements and construction funding	(254,182)	(210,114)
Funding of construction loan and other investments	(12,077)
Deposits in escrow for acquisitions	(1,500)
Purchases of short-term investments	(499,862)	(668,576)
Maturities of short-term investments	565,000	339,492
Net cash used in investing activities	(333,474)	(721,284)
Cash flows from financing activities
Issuance of common stock, net of offering costs		741,120
Gross proceeds from issuance of unsecured senior notes	300,000
Payment of deferred financing costs from issuance of unsecured senior notes	(6,824)
Dividends paid to common stockholders	(94,971)	(49,476)
Dividends paid to preferred stockholders	(1,014)	(1,014)
Taxes paid related to net share settlement of equity awards	(3,384)	(2,166)
Net cash provided by financing activities	193,807	688,464
Net increase in cash and cash equivalents	1,292	43,758
Cash and cash equivalents, beginning of period	126,006	117,316
Cash and cash equivalents, end of period	127,298	161,074
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	5,391	5,391
Supplemental disclosure of non-cash investing and financing activities:
Accrual for reimbursements of tenant improvements and construction funding	61,674	30,583
Deposits applied for acquisitions	200	650
Accrual for common and preferred stock dividends declared	$ 36,321	26,325
Accrual for stock issuance costs		14
Exchange of exchangeable senior notes		$ 1

Organization

Organization	9 Months Ended
	Sep. 30, 2021
Organization
Organization	1. 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 are an internally-managed real estate investment trust (“REIT”) 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, 2021
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 Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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 firm’s 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, 2021. A prolonged outbreak or resurgence of COVID-19 could have a material adverse impact on the financial results and business operations of the Company. 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, 2021. Federal Income Taxes. Use of Estimates. Reportable Segment. Acquisition of Real Estate Properties. Cost Capitalization and Depreciation. Amounts capitalized are depreciated over estimated useful lives determined by management. We depreciate buildings and improvements and tenant improvements based on our evaluation of the estimated useful life of each specific asset, not to exceed 40 years. We depreciate office equipment and furniture and fixtures over estimated useful lives ranging from three Determining whether expenditures meet the criteria for capitalization and the assignment of depreciable lives requires management to exercise significant judgment. Project costs that are clearly associated with the acquisition and development or redevelopment of a real estate project, for which we are the accounting owner, are capitalized as a cost of that project. Expenditures that meet one or more of the following criteria generally qualify for capitalization: ● the expenditure provides benefit in future periods; and ● the expenditure extends the useful life of the asset beyond our original estimates 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, 2021 and 2020. Revenue Recognition. tenants for recoverable real estate taxes, insurance and operating expenses are included in rental revenues in the period when such costs are incurred and reimbursed by the tenants. Contractually obligated real estate taxes that are paid directly by the tenant to the tax authorities are not reflected in our condensed consolidated financial statements. Construction Loan. ​ Cash and Cash Equivalents Investments. Exchangeable Notes. Deferred Financing Costs. Stock-Based Compensation. Lease Accounting. We adopted Topic 842 effective as of January 1, 2019 using the effective date method and elected the associated lease component, and the lease component would be classified as an operating lease if accounted for separately. We also elected the lessor practical expedient, allowing us to continue to amortize previously capitalized initial direct leasing costs incurred prior to the adoption of Topic 842. As lessee, we recognized a liability to account for our future obligations related to our corporate office lease, which had a remaining lease term of approximately 3.5 years and 4.3 years as of September 30, 2021 and December 31, 2020, respectively, excluding the extension option that we are not reasonably certain to exercise, and a corresponding right-of-use asset. The lease liability is measured based on the present value of the future lease payments discounted using the estimated incremental borrowing rate of 7.25%, which is the interest rate that we estimate we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments. Subsequently, the lease liability is accreted by applying a discount rate established at the lease commencement date to the lease liability balance as of the beginning of the period and is reduced by the payments made during the period. The right-of-use asset is measured based on the corresponding lease liability. We did not incur any initial direct leasing costs and any other consideration exchanged with the landlord prior to the commencement of the lease. Subsequently, the right-of-use asset is amortized on a straight-line basis during the lease term. For the nine months ended September 30, 2021 and 2020, we recognized office lease expense of approximately $171,000 and $172,000, respectively, which are included in general and administrative expense in our condensed consolidated statements of income. For the nine months ended September 30, 2021 and 2020, amounts paid and classified as operating activities in our condensed consolidated statements of cash flows for the office lease were approximately $176,000 and $95,000, respectively. As lessor, for each of our real estate transactions involving the leaseback of the related property to the seller or affiliates of the seller, we determine whether these transactions qualify as sale and leaseback transactions under the accounting guidance. For these transactions, we consider various inputs and assumptions including, but not necessarily limited to, lease terms, renewal options, discount rates, and other rights and provisions in the purchase and sale agreement, lease and other documentation to determine whether control has been transferred to the Company or remains with the lessee. A transaction involving a sale leaseback will be treated as a purchase of a real estate property if it is considered to transfer control of the underlying asset from the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control and will be classified as a sales-type lease if control of the underlying asset is transferred to the lessee. Otherwise, the lease is treated as an operating lease. These criteria also include estimates and assumptions regarding the fair value of the leased facilities, minimum lease payments, the economic useful life of the facilities, the existence of a purchase option, and certain other terms in the lease agreements. The lease accounting guidance requires accounting for a transaction as a financing in a sale leaseback when the seller-lessee is provided an option to purchase the property from the landlord at the tenant’s option. Our leases continued to be classified as operating leases and we continue to record revenue for each of our properties on a cash basis. Our tenant reimbursable revenue and property expenses continue to be presented on a gross basis as rental revenue and as property expenses, respectively, on our condensed consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our condensed consolidated financial statements. 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 drawdowns of part of the security deposits and 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. As of September 30, 2021, approximately $2.1 million of the deferred rents, property management fees and security deposits have been repaid, with approximately $411,000 remaining to be paid. 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, 2021, our gross investment in the property with the purchase option was approximately $30.5 million. At September 30, 2021, 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 five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three months ended September 30, 2021, including tenant reimbursements; ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ September 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue SH Parent, Inc. ("Parallel") 4 ​ 12 % PharmaCann Inc. ​ 5 ​ 12 % Kings Garden Inc. 6 ​ 8 % Ascend Wellness Holdings, Inc. ​ 3 ​ 8 % Green Thumb Industries, Inc. 3 ​ 7 % ​ The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the nine months ended September 30, 2021, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. 5 ​ 13 % Parallel ​ 4 ​ 10 % Ascend Wellness Holdings, Inc. 3 ​ 9 % Cresco Labs Inc. ​ 5 ​ 8 % Kings Garden Inc. 6 ​ 7 % ​ The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and nine months ended September 30, 2020, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, 2020 ​ September 30, 2020 ​ ​ Percentage of ​ Percentage of ​ Number of Rental Number of Rental ​ ​ Leases Revenue Leases Revenue ​ PharmaCann Inc. 5 16 % 5 19 % Cresco Labs Inc. 5 12 % 5 10 % Ascend Wellness Holdings, Inc. ​ 3 ​ 10 % 3 ​ 10 % Holistic Industries, Inc. ​ 4 ​ 6 % 4 ​ 6 % Curaleaf Holdings, Inc. 4 6 % 4 6 % ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of September 30, 2021 and December 31, 2020, none of our properties individually represented more than 5% 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 (“FDIC”) up to $250,000. As of September 30, 2021, 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, 2021
Common Stock
Common Stock	3. Common Stock As of September 30, 2021, the Company was authorized to issue up to 50,000,000 shares of common stock, par value $0.001 per share, and there were 23,928,304 shares of common stock issued and outstanding.

Preferred Stock

Preferred Stock	9 Months Ended
	Sep. 30, 2021
Preferred Stock
Preferred Stock	4. Preferred Stock As of September 30, 2021, 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 “Series A Preferred Stock”). 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	9 Months Ended
	Sep. 30, 2021
Dividends
Dividends	5. Dividends The following table describes the dividends declared by the Company during the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 15, 2021 ​ Common stock ​ $ 1.32 ​ January 1, 2021 to March 31, 2021 ​ April 15, 2021 ​ $ 31,660 March 15, 2021 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2021 to April 14, 2021 ​ April 15, 2021 ​ $ 338 June 15, 2021 ​ Common stock ​ $ 1.40 ​ April 1, 2021 to June 30, 2021 ​ July 15, 2021 ​ $ 33,584 June 15, 2021 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2021 to July 14, 2021 ​ July 15, 2021 ​ $ 338 September 15, 2021 ​ Common stock ​ $ 1.50 ​ July 1, 2021 to September 30, 2021 ​ October 15, 2021 ​ $ 35,983 September 15, 2021 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2021 to October 14, 2021 ​ October 15, 2021 ​ $ 338 ​

Investments in Real Estate

Investments in Real Estate	9 Months Ended
	Sep. 30, 2021
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, 2021 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total ​ Harvest FL Florida ​ ​ January 22, 2021 ​ 295,000 ​ $ 23,800 ​ $ 16 ​ $ 23,816 (2) Kings Garden CA California ​ ​ February 5, 2021 ​ 180,000 ​ 1,350 ​ 7 ​ 1,357 (3) Parallel TX Texas ​ ​ March 10, 2021 ​ 63,000 ​ 3,400 ​ 17 ​ 3,417 (4) GPI MI Davis Hwy ​ Michigan ​ ​ April 16, 2021 ​ ​ 175,000 ​ ​ 15,550 ​ ​ 4 ​ ​ 15,554 (5) Parallel PA ​ Pennsylvania ​ ​ May 13, 2021 ​ ​ 239,000 ​ ​ 41,750 ​ ​ 11 ​ ​ 41,761 (6) Sozo MI ​ Michigan ​ ​ May 14, 2021 ​ ​ 85,000 ​ ​ 10,250 ​ ​ 9 ​ ​ 10,259 (7) Temescal MA ​ Massachusetts ​ ​ May 26, 2021 ​ ​ 70,000 ​ ​ 3,100 ​ ​ 9 ​ ​ 3,109 (8) 4Front IL ​ Illinois ​ ​ August 3, 2021 ​ ​ 250,000 ​ ​ 3,348 ​ ​ 18 ​ ​ 3,366 (9) Harvest MD ​ Maryland ​ ​ August 13, 2021 ​ ​ 112,000 ​ ​ 16,615 ​ ​ 21 ​ ​ 16,636 (10) Calyx Peak MO ​ Missouri ​ ​ September 17, 2021 ​ ​ 83,000 ​ ​ 1,530 ​ ​ 11 ​ ​ 1,541 (11) Vireo NY ​ New York ​ ​ September 24, 2021 ​ ​ 324,000 ​ ​ 10,225 ​ ​ 12 ​ ​ 10,237 (12) Total ​ ​ ​ ​ ​ ​ 1,876,000 ​ $ 130,918 ​ $ 135 ​ $ 131,053 (13) ​ (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $10.8 million. (3) The purchase price related to the acquisition of additional land adjacent to one of our existing properties. In connection with the acquisition, we entered into a lease amendment for the existing property, which provided an improvement allowance that resulted in a corresponding adjustment to the base rent for the lease at the property. The tenant is expected to complete construction of two new buildings at the property comprising approximately 180,000 square feet in the aggregate, for which we agreed to provide reimbursement of up to approximately $51.4 million. (4) The tenant is expected to construct three buildings at the property, for which we agreed to provide reimbursement of up to $24.0 million. (5) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $14.4 million. (6) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $26.0 million. (7) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $5.7 million. (8) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $15.0 million. (9) The tenant is expected to construct a 250,000 square foot industrial facility, for which we agreed to provide reimbursement of up to approximately $43.8 million. The purchase price excludes approximately $3.2 million attributable to a portion of the property that is not part of any of the planned construction and which did not satisfy the requirements for sale-leaseback accounting; therefore, this portion of the property is recognized as a notes receivable and is included in other assets, net on our condensed consolidated balance sheet. (10) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $12.9 million. (11) The tenant is expected to construct an 83,000 square foot industrial facility, for which we agreed to provide reimbursement of up to approximately $26.7 million. (12) The amounts related to the acquisition of additional land adjacent to an existing property and a lease amendment which provided an allowance to fund construction of a new building and resulted in a corresponding adjustment to the base rent for the lease at the property. The tenant is expected to construct approximately 324,000 square feet of industrial space, for which we agreed to provide reimbursement of up to approximately $46.1 million. (13) Approximately $23.3 million was allocated to land and approximately $107.8 million was allocated to building and construction in progress. ​ The properties acquired during the three and nine months ended September 30, 2021 generated approximately $639,000 and $11.9 million of rental revenues (including tenant reimbursements), respectively, and approximately $559,000 and $10.0 million of net operating income, respectively, after deducting property and depreciation expenses, during that period. 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, during that period. New Lease and Lease Amendments In January 2021, we executed a new lease at our Los Angeles, California property with a subsidiary of Holistic Industries Inc. (“Holistic”), pursuant to which we agreed to make available up to $11.0 million in funding for future improvements at the property. In February 2021, we amended our lease with a subsidiary of LivWell Holdings, Inc. at one of our Michigan properties, increasing the improvement allowance under the lease by approximately $6.9 million to a total of approximately $29.9 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In February 2021, we amended our lease with PharmaCann Inc. at one of our New York properties, increasing the improvement allowance under the lease by $2.5 million to a total of approximately $33.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In April 2021, we amended our lease with a subsidiary of Jushi Holdings, Inc. at one of our Pennsylvania properties, increasing the improvement allowance under the lease by $30.0 million to a total of approximately $40.0 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. With this additional improvement allowance, the tenant is expected to expand the facility by approximately In June 2021, we amended our lease with a subsidiary of Parallel at one of our Florida properties, increasing the improvement allowance under the lease by $8.0 million to a total of $16.2 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In June 2021, we amended our lease with a subsidiary of Harvest Health & Recreation Inc. at one of our Florida properties, increasing the improvement allowance under the lease by $7.1 million to a total of approximately $17.9 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In August 2021, we amended our lease with Holistic at one of our Maryland properties, increasing the improvement allowance under the lease by $8.0 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In September 2021, we amended our lease with Green Peak Industries, Inc. at one of our Michigan properties, increasing the improvement allowance under the lease by $15.0 million to a total of approximately $29.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In September 2021, we amended our lease with a subsidiary of Ascend Wellness Holdings, Inc. at one of our Illinois properties, increasing the improvement allowance under the lease by $20.0 million to a total of $52.0 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. Including all of our properties, during the nine months ended September 30, 2021, we capitalized costs of approximately $279.4 million and funded approximately $254.2 million relating to 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, 2021 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2021 (three months ending December 31) ​ $ 55,657 2022 ​ 241,192 2023 ​ 253,851 2024 ​ 261,359 2025 ​ 269,194 Thereafter ​ 4,143,675 Total ​ $ 5,224,928 ​

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt
Exchangeable Senior Notes	7. Debt Exchangeable Senior Notes As of September 30, 2021, our Operating Partnership had outstanding approximately $143.75 million principal amount of 3.75% Exchangeable Senior Notes due 2024 (the “Exchangeable Senior Notes”). The Exchangeable Senior Notes are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and our Operating Partnership’s 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 Partnership’s 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, 2021 was 15.25918 shares of our common stock per $1,000 principal amount of Notes and the exchange price at September 30, 2021 was approximately $65.534 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. In connection with the issuance of the Exchangeable Senior Notes in February 2019, 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended September 30, ​ For the Nine Months Ended September 30, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2021 2020 Cash coupon ​ $ 1,348 ​ $ 1,348 ​ $ 4,042 ​ $ 4,042 Amortization of debt discount ​ ​ 288 ​ ​ 275 ​ ​ 855 ​ ​ 816 Amortization of issuance cost ​ 249 ​ ​ 238 ​ 739 ​ ​ 707 Total interest expense ​ $ 1,885 ​ $ 1,861 ​ $ 5,636 ​ $ 5,565 ​ The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 December 31, 2020 Principal amount ​ $ 143,749 ​ $ 143,749 Unamortized discount (2,930) ​ (3,785) Unamortized issuance cost (2,532) ​ (3,271) Carrying value ​ $ 138,287 ​ $ 136,693 ​ Accrued interest payable for the Exchangeable Senior Notes as of September 30, 2021 and December 31, 2020 was approximately $225,000 and $1.6 million, respectively, and is included in accounts payable and accrued expenses on our condensed consolidated balance sheets. Unsecured Senior Notes On May 25, 2021, our Operating Partnership issued $300.0 million aggregate principal amount of its 5.50% Unsecured Senior Notes due 2026 (the “Unsecured Senior Notes”). The Unsecured Senior Notes are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and our Operating Partnership’s subsidiaries and rank equally in right of payment with all of the Operating Partnership’s existing and future senior unsecured indebtedness, including the Exchangeable Senior Notes. However, the Unsecured Senior Notes are effectively subordinated to any of the Company’s, the Operating Partnership’s and the Operating Partnership’s subsidiaries’ future secured indebtedness to the extent of the value of the assets securing such indebtedness. Interest at a rate of 5.50% per year is payable on May 15 and November 15 of each year, beginning on November 15, 2021, until the stated maturity date of May 25, 2026. The terms of the Unsecured Senior Notes are governed by an indenture, dated May 25, 2021, among the Operating Partnership, as issuer, the Company and the Operating Partnership’s subsidiaries, as guarantors, and GLAS Trust Company LLC, as trustee. In connection with the issuance of the Unsecured Senior Notes, we recorded approximately $6.8 million of issuance costs, which are being amortized using the effective interest method and recognized as non-cash interest expense over the term of the Unsecured Senior Notes. The following table details our interest expense related to the Unsecured Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months ​ For the Nine Months ​ Ended September 30, 2021 Ended September 30, 2021 Cash coupon ​ $ 4,125 ​ ​ 5,821 Amortization of issuance cost ​ 299 ​ ​ 417 Total interest expense ​ $ 4,424 ​ $ 6,238 ​ The following table details the carrying value of our Unsecured Senior Notes (in thousands): ​ ​ ​ ​ ​ September 30, 2021 Principal amount ​ $ 300,000 Unamortized issuance cost (6,407) Carrying value ​ $ 293,593 ​ The Operating Partnership may redeem some or all of the notes at its option at any time at the applicable redemption price. If the notes are redeemed prior to February 25, 2026, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the notes are redeemed on or after February 25, 2026, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date. The terms of the indenture for the Unsecured Senior Notes require compliance with various financial covenants, including minimum level of debt service coverage and limits on the amount of total leverage and secured debt maintained by the Operating Partnership. Management believes that it was in compliance with those covenants as of September 30, 2021. On May 25, 2021, the Company, the Operating Partnership and the subsidiaries of the Operating Partnership entered into a registration rights agreement with the representative of the initial purchasers of the Unsecured Senior Notes, pursuant to which the Company, the Operating Partnership and the subsidiaries of the Operating Partnership agreed to use commercially reasonable efforts to file with the Securities and Exchange Commission within 60 days , and cause to become effective within 180 days , a registration statement registering exchange notes with nearly identical terms to the Unsecured Senior Notes, and to cause an exchange offer to be consummated within 60 days after the registration statement is declared effective. On July 20, 2021, the Company, the Operating Partnership and the subsidiaries of the Operating Partnership filed such a registration statement on Form S-4 with the Securities and Exchange Commission (as amended), which was declared effective on September 10, 2021. On September 14, 2021, the Operating Partnership launched the exchange offer to exchange all validly tendered and outstanding Unsecured Senior Notes for an equal principal amount of a new series of notes which will be registered under the Securities Act of 1933, as amended, and substantially identical to the outstanding Unsecured Senior Notes, except for transfer restrictions and registration rights (see Note 12 for further discussion of the exchange). Accrued interest payable for the Unsecured Senior Notes as of September 30, 2021 was approximately $5.8 million, and is included in accounts payable and accrued expenses on our condensed consolidated balance sheets.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2021
Net Income Per Share
Net Income Per Share	8. Net Income Per Share Grants of restricted stock of the Company and restricted stock units (“RSUs”) 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 September 30, 2021, all of the Company’s 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, 2021 and 2020 have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. The 2,193,492 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the three and nine months ended September 30, 2021, and were included in the computation of diluted earnings per share. The 2,148,218 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were anti-dilutive for the three and nine months ended September 30, 2020, and were excluded from the computation of diluted earnings per share. For the three and nine months ended September 30, 2021, 78,582 shares issuable upon vesting of performance share units (“PSUs”) granted to certain employees in January 2021 were included in dilutive securities, as the performance thresholds for vesting of these PSUs were met as measured as of September 30, 2021 (see Note 10 for further discussion of the PSUs). Computations of net income per basic and diluted share (in thousands, except share and per share data) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2021 2020 2021 2020 Net income ​ $ 30,094 ​ $ 19,215 ​ $ 85,360 ​ $ 44,397 ​ Preferred stock dividends ​ (338) ​ (338) ​ ​ (1,014) ​ ​ (1,014) ​ Distribution to participating securities ​ (147) ​ (133) ​ ​ (410) ​ ​ (369) ​ Net income attributable to common stockholders used to compute net income per share - basic ​ ​ 29,609 ​ ​ 18,744 ​ ​ 83,936 ​ ​ 43,014 ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 1,885 ​ ​ — ​ ​ 5,636 ​ ​ — ​ Net income attributable to common stockholders used to compute net income per share - diluted ​ $ 31,494 ​ $ 18,744 ​ $ 89,572 ​ $ 43,014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 23,890,537 ​ 21,594,637 ​ ​ 23,889,903 ​ ​ 18,315,231 ​ Restricted stock, RSUs and PSUs ​ ​ 176,675 ​ ​ 114,088 ​ ​ 174,109 ​ ​ 113,997 ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 2,193,492 ​ ​ — ​ ​ 2,193,492 ​ ​ — ​ Diluted ​ 26,260,704 ​ 21,708,725 ​ ​ 26,257,504 ​ ​ 18,429,228 ​ Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.24 ​ $ 0.87 ​ $ 3.51 ​ $ 2.35 ​ Diluted ​ $ 1.20 ​ $ 0.86 ​ $ 3.41 ​ $ 2.33 ​ ​

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2021
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 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. The following table presents the carrying value and approximate fair value of financial instruments at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2021 ​ At December 31, 2020 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 554,420 ​ $ 554,410 ​ $ 619,275 ​ $ 619,270 Exchangeable Senior Notes (2) ​ $ 138,287 ​ $ 506,291 ​ $ 136,693 ​ $ 397,663 Unsecured Senior Notes (2) ​ $ 293,593 ​ $ 315,789 ​ $ — ​ $ — (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 and Unsecured Senior Notes were trading in the private market. As of September 30, 2021 and December 31, 2020, cash equivalent instruments consisted of $115.1 million and $98.3 million, respectively, 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, 2021
Common Stock Incentive Plan
Common Stock Incentive Plan	10. Common Stock Incentive Plan Our board of directors adopted our 2016 Omnibus Incentive Plan (the “2016 Plan”) 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. Any equity awards that lapse, expire, terminate, are canceled or are forfeited (including forfeitures in connection with satisfaction of tax withholdings obligations of the recipient) are re-credited to the 2016 Plan’s reserve for future issuance. The 2016 Plan automatically terminates on the date which is ten years following the effective date of the 2016 Plan. A summary of the restricted stock activity under the 2016 Plan and related information for the nine months ended September 30, 2021 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock ​ Value Balance at December 31, 2020 76,346 ​ $ 50.14 Granted 7,692 ​ $ 189.41 Vested (28,816) ​ $ 50.90 Forfeited (1) (18,303) ​ $ 31.99 Balance at March 31, 2021 36,919 ​ $ 87.57 Granted ​ 1,987 ​ $ 181.27 Vested ​ (1,139) ​ $ 87.82 Balance at June 30, 2021 and September 30, 2021 ​ 37,767 ​ $ 92.49 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting . The remaining unrecognized compensation cost of approximately $2.1 million for restricted stock awards is expected to be recognized over a weighted-average amortization period of approximately 1.6 years as of September 30, 2021. The fair value of restricted stock that vested during the nine months ended September 30, 2021 was approximately $8.8 million. The following table summarizes our RSU activity for the nine months ended September 30, 2021. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock Units ​ Value Balance at December 31, 2020 ​ 36,687 ​ $ 76.06 Granted ​ 21,873 ​ $ 189.41 Balance at March 31, 2021 ​ 58,560 ​ $ 118.40 Granted ​ 1,766 ​ $ 181.27 Balance at June 30, 2021 and September 30, 2021 ​ 60,326 ​ $ 120.24 ​ The remaining unrecognized compensation cost of approximately $4.4 million for RSU awards is expected to be recognized over an amortization period of approximately 2.0 years as of September 30, 2021. In January 2021, we issued 70,795 “target” PSUs to a select group of officers, which vest and are settled in shares of common stock (“Award Shares”) based on the Company’s total stockholder return over a period commencing on January 11, 2021 and ending on December 31, 2023 (the “Performance Period”) relative to two different comparator groups of companies. At the end of the Performance Period, a recipient of PSUs may receive as few as of the number of target PSUs in Award Shares, plus deemed dividends. PSUs will also be reduced as necessary so the total value at the vesting date does not exceed 800% of the grant date PSU price, and if the Company’s absolute total stockholder return during the Performance Period is negative, the payout of Award Shares is capped at the target number of PSUs, notwithstanding the Company’s outperformance of comparator groups. No dividends are paid to the recipient during the Performance Period. At the end of the Performance Period, if the Company’s total stockholder return is such that the recipient earns Award Shares, the recipient will receive additional shares of common stock relating to dividends deemed to have been paid and reinvested on the Award Shares. The recipient of the Award Shares may not sell, transfer or otherwise dispose of the Award Shares for a one-year period following the vesting date of the Award Shares. The grant date fair value of the PSUs granted in January 2021 was $12.0 million. The fair value was calculated using a Monte Carlo simulation pricing model based on the following assumptions: ​ ​ ​ ​ ​ ​ PSU Award ​ Fair Value Assumptions Valuation date January 6, 2021 ​ Fair value per share on valuation date ​ $169.51 ​ Expected term ​ 3 years ​ Expected price volatility 57.64% ​ Risk-free interest rate ​ 0.20% ​ Discount for post vesting restriction 12.44% ​ ​ The expected share price volatility was based on the historical volatility of our shares of common stock over a period of approximately the Performance Period. The risk-free interest rate was based on the zero-coupon risk-free interest rate derived from the Treasury Constant Maturities yield curve on the valuation date. The discount for the post vesting restriction was estimated using the Finnerty model. Stock-based compensation for market-based PSU awards is based on the grant date fair value of the equity awards and is recognized over the Performance Period. For the three and nine months ended September 30, 2021, we recognized stock-based compensation expense of $1.0 million and $3.0 million, respectively, relating to the PSU awards. As of September 30, 2021, the remaining unrecognized compensation cost of approximately $9.0 million relating to PSU awards is expected to be recognized over the remaining Performance Period of approximately 2.3 years.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Office Lease ​ ​ ​ ​ ​ Year Amount 2021 (three months ending December 31) ​ $ 60 2022 ​ 242 2023 ​ 249 2024 ​ 256 2025 ​ 88 Total future contractual lease payments ​ 895 Effect of discounting ​ (12) Office lease liability ​ $ 883 ​ Improvement Allowances Construction Loan. Environmental Matters. Litigation

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events
Subsequent Events	12. Subsequent Events Investments In October 2021, we acquired a property in California for $51.0 million and executed a lease with Gold Flora, LLC (“Gold Flora”) for the entire property. Gold Flora is expected to complete certain improvements at the property, for which we agreed to provide reimbursement of up to approximately $9.0 million. In November 2021, we amended our lease with Temescal Wellness of Massachusetts, LLC at one of our Massachusetts properties, increasing the improvement allowance under the lease by $8.7 million to a total of $23.7 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. Unsecured Senior Notes Exchange On October 19, 2021, in accordance with the registration rights agreement entered into among the Company, the Operating Partnership, the subsidiaries of the Operating Partnership and the initial purchasers of the Unsecured Senior Notes, the Operating Partnership completed its exchange offer to exchange all of the outstanding Unsecured Senior Notes for an equal principal amount of a new issuance of 5.50% Senior Notes due 2026 pursuant to an effective registration statement on Form S-4 filed with the Securities and Exchange Commission. A total of $300.0 million aggregate principal amount of the original Unsecured Senior Notes, representing 100% of the outstanding principal amount of the original Unsecured Senior Notes, was validly tendered and received prior to the expiration of the exchange offer. The terms of the new Unsecured Senior Notes are substantially identical to the original Unsecured Senior Notes, except for transfer restrictions and registration rights relating to the original Unsecured Senior Notes. ​ ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2021
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 Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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 firm’s 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, 2021. A prolonged outbreak or resurgence of COVID-19 could have a material adverse impact on the financial results and business operations of the Company. 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, 2021.
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.
Cost Capitalization and Depreciation	Cost Capitalization and Depreciation. Amounts capitalized are depreciated over estimated useful lives determined by management. We depreciate buildings and improvements and tenant improvements based on our evaluation of the estimated useful life of each specific asset, not to exceed 40 years. We depreciate office equipment and furniture and fixtures over estimated useful lives ranging from three Determining whether expenditures meet the criteria for capitalization and the assignment of depreciable lives requires management to exercise significant judgment. Project costs that are clearly associated with the acquisition and development or redevelopment of a real estate project, for which we are the accounting owner, are capitalized as a cost of that project. Expenditures that meet one or more of the following criteria generally qualify for capitalization: ● the expenditure provides benefit in future periods; and ● the expenditure extends the useful life of the asset beyond our original estimates
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, 2021 and 2020.
Revenue Recognition	Revenue Recognition. tenants for recoverable real estate taxes, insurance and operating expenses are included in rental revenues in the period when such costs are incurred and reimbursed by the tenants. Contractually obligated real estate taxes that are paid directly by the tenant to the tax authorities are not reflected in our condensed consolidated financial statements.
Construction Loan	Construction Loan.
Cash and Cash Equivalents	Cash and Cash Equivalents
Investments	Investments.
Exchangeable Notes	Exchangeable Notes.
Deferred Financing Costs	Deferred Financing Costs.
Stock-Based Compensation	Stock-Based Compensation.
Lease Accounting	Lease Accounting. We adopted Topic 842 effective as of January 1, 2019 using the effective date method and elected the associated lease component, and the lease component would be classified as an operating lease if accounted for separately. We also elected the lessor practical expedient, allowing us to continue to amortize previously capitalized initial direct leasing costs incurred prior to the adoption of Topic 842. As lessee, we recognized a liability to account for our future obligations related to our corporate office lease, which had a remaining lease term of approximately 3.5 years and 4.3 years as of September 30, 2021 and December 31, 2020, respectively, excluding the extension option that we are not reasonably certain to exercise, and a corresponding right-of-use asset. The lease liability is measured based on the present value of the future lease payments discounted using the estimated incremental borrowing rate of 7.25%, which is the interest rate that we estimate we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments. Subsequently, the lease liability is accreted by applying a discount rate established at the lease commencement date to the lease liability balance as of the beginning of the period and is reduced by the payments made during the period. The right-of-use asset is measured based on the corresponding lease liability. We did not incur any initial direct leasing costs and any other consideration exchanged with the landlord prior to the commencement of the lease. Subsequently, the right-of-use asset is amortized on a straight-line basis during the lease term. For the nine months ended September 30, 2021 and 2020, we recognized office lease expense of approximately $171,000 and $172,000, respectively, which are included in general and administrative expense in our condensed consolidated statements of income. For the nine months ended September 30, 2021 and 2020, amounts paid and classified as operating activities in our condensed consolidated statements of cash flows for the office lease were approximately $176,000 and $95,000, respectively. As lessor, for each of our real estate transactions involving the leaseback of the related property to the seller or affiliates of the seller, we determine whether these transactions qualify as sale and leaseback transactions under the accounting guidance. For these transactions, we consider various inputs and assumptions including, but not necessarily limited to, lease terms, renewal options, discount rates, and other rights and provisions in the purchase and sale agreement, lease and other documentation to determine whether control has been transferred to the Company or remains with the lessee. A transaction involving a sale leaseback will be treated as a purchase of a real estate property if it is considered to transfer control of the underlying asset from the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control and will be classified as a sales-type lease if control of the underlying asset is transferred to the lessee. Otherwise, the lease is treated as an operating lease. These criteria also include estimates and assumptions regarding the fair value of the leased facilities, minimum lease payments, the economic useful life of the facilities, the existence of a purchase option, and certain other terms in the lease agreements. The lease accounting guidance requires accounting for a transaction as a financing in a sale leaseback when the seller-lessee is provided an option to purchase the property from the landlord at the tenant’s option. Our leases continued to be classified as operating leases and we continue to record revenue for each of our properties on a cash basis. Our tenant reimbursable revenue and property expenses continue to be presented on a gross basis as rental revenue and as property expenses, respectively, on our condensed consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our condensed consolidated financial statements. 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 drawdowns of part of the security deposits and 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. As of September 30, 2021, approximately $2.1 million of the deferred rents, property management fees and security deposits have been repaid, with approximately $411,000 remaining to be paid. 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, 2021, our gross investment in the property with the purchase option was approximately $30.5 million. At September 30, 2021, 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 five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three months ended September 30, 2021, including tenant reimbursements; ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ September 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue SH Parent, Inc. ("Parallel") 4 ​ 12 % PharmaCann Inc. ​ 5 ​ 12 % Kings Garden Inc. 6 ​ 8 % Ascend Wellness Holdings, Inc. ​ 3 ​ 8 % Green Thumb Industries, Inc. 3 ​ 7 % ​ The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the nine months ended September 30, 2021, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. 5 ​ 13 % Parallel ​ 4 ​ 10 % Ascend Wellness Holdings, Inc. 3 ​ 9 % Cresco Labs Inc. ​ 5 ​ 8 % Kings Garden Inc. 6 ​ 7 % ​ The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and nine months ended September 30, 2020, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, 2020 ​ September 30, 2020 ​ ​ Percentage of ​ Percentage of ​ Number of Rental Number of Rental ​ ​ Leases Revenue Leases Revenue ​ PharmaCann Inc. 5 16 % 5 19 % Cresco Labs Inc. 5 12 % 5 10 % Ascend Wellness Holdings, Inc. ​ 3 ​ 10 % 3 ​ 10 % Holistic Industries, Inc. ​ 4 ​ 6 % 4 ​ 6 % Curaleaf Holdings, Inc. 4 6 % 4 6 % ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of September 30, 2021 and December 31, 2020, none of our properties individually represented more than 5% 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 (“FDIC”) up to $250,000. As of September 30, 2021, 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, 2021
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 five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three months ended September 30, 2021, including tenant reimbursements; ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ September 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue SH Parent, Inc. ("Parallel") 4 ​ 12 % PharmaCann Inc. ​ 5 ​ 12 % Kings Garden Inc. 6 ​ 8 % Ascend Wellness Holdings, Inc. ​ 3 ​ 8 % Green Thumb Industries, Inc. 3 ​ 7 % ​ The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the nine months ended September 30, 2021, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. 5 ​ 13 % Parallel ​ 4 ​ 10 % Ascend Wellness Holdings, Inc. 3 ​ 9 % Cresco Labs Inc. ​ 5 ​ 8 % Kings Garden Inc. 6 ​ 7 % ​ The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and nine months ended September 30, 2020, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, 2020 ​ September 30, 2020 ​ ​ Percentage of ​ Percentage of ​ Number of Rental Number of Rental ​ ​ Leases Revenue Leases Revenue ​ PharmaCann Inc. 5 16 % 5 19 % Cresco Labs Inc. 5 12 % 5 10 % Ascend Wellness Holdings, Inc. ​ 3 ​ 10 % 3 ​ 10 % Holistic Industries, Inc. ​ 4 ​ 6 % 4 ​ 6 % Curaleaf Holdings, Inc. 4 6 % 4 6 % ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty.

Dividends (Tables)

Dividends (Tables)	9 Months Ended
	Sep. 30, 2021
Dividends
Schedule of dividends payable	The following table describes the dividends declared by the Company during the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 15, 2021 ​ Common stock ​ $ 1.32 ​ January 1, 2021 to March 31, 2021 ​ April 15, 2021 ​ $ 31,660 March 15, 2021 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2021 to April 14, 2021 ​ April 15, 2021 ​ $ 338 June 15, 2021 ​ Common stock ​ $ 1.40 ​ April 1, 2021 to June 30, 2021 ​ July 15, 2021 ​ $ 33,584 June 15, 2021 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2021 to July 14, 2021 ​ July 15, 2021 ​ $ 338 September 15, 2021 ​ Common stock ​ $ 1.50 ​ July 1, 2021 to September 30, 2021 ​ October 15, 2021 ​ $ 35,983 September 15, 2021 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2021 to October 14, 2021 ​ October 15, 2021 ​ $ 338

Investments in Real Estate (Tab

Investments in Real Estate (Tables)	9 Months Ended
	Sep. 30, 2021
Investments in Real Estate
Schedule of real estate properties	The Company acquired the following properties during the nine months ended September 30, 2021 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total ​ Harvest FL Florida ​ ​ January 22, 2021 ​ 295,000 ​ $ 23,800 ​ $ 16 ​ $ 23,816 (2) Kings Garden CA California ​ ​ February 5, 2021 ​ 180,000 ​ 1,350 ​ 7 ​ 1,357 (3) Parallel TX Texas ​ ​ March 10, 2021 ​ 63,000 ​ 3,400 ​ 17 ​ 3,417 (4) GPI MI Davis Hwy ​ Michigan ​ ​ April 16, 2021 ​ ​ 175,000 ​ ​ 15,550 ​ ​ 4 ​ ​ 15,554 (5) Parallel PA ​ Pennsylvania ​ ​ May 13, 2021 ​ ​ 239,000 ​ ​ 41,750 ​ ​ 11 ​ ​ 41,761 (6) Sozo MI ​ Michigan ​ ​ May 14, 2021 ​ ​ 85,000 ​ ​ 10,250 ​ ​ 9 ​ ​ 10,259 (7) Temescal MA ​ Massachusetts ​ ​ May 26, 2021 ​ ​ 70,000 ​ ​ 3,100 ​ ​ 9 ​ ​ 3,109 (8) 4Front IL ​ Illinois ​ ​ August 3, 2021 ​ ​ 250,000 ​ ​ 3,348 ​ ​ 18 ​ ​ 3,366 (9) Harvest MD ​ Maryland ​ ​ August 13, 2021 ​ ​ 112,000 ​ ​ 16,615 ​ ​ 21 ​ ​ 16,636 (10) Calyx Peak MO ​ Missouri ​ ​ September 17, 2021 ​ ​ 83,000 ​ ​ 1,530 ​ ​ 11 ​ ​ 1,541 (11) Vireo NY ​ New York ​ ​ September 24, 2021 ​ ​ 324,000 ​ ​ 10,225 ​ ​ 12 ​ ​ 10,237 (12) Total ​ ​ ​ ​ ​ ​ 1,876,000 ​ $ 130,918 ​ $ 135 ​ $ 131,053 (13) ​ (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $10.8 million. (3) The purchase price related to the acquisition of additional land adjacent to one of our existing properties. In connection with the acquisition, we entered into a lease amendment for the existing property, which provided an improvement allowance that resulted in a corresponding adjustment to the base rent for the lease at the property. The tenant is expected to complete construction of two new buildings at the property comprising approximately 180,000 square feet in the aggregate, for which we agreed to provide reimbursement of up to approximately $51.4 million. (4) The tenant is expected to construct three buildings at the property, for which we agreed to provide reimbursement of up to $24.0 million. (5) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $14.4 million. (6) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $26.0 million. (7) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $5.7 million. (8) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $15.0 million. (9) The tenant is expected to construct a 250,000 square foot industrial facility, for which we agreed to provide reimbursement of up to approximately $43.8 million. The purchase price excludes approximately $3.2 million attributable to a portion of the property that is not part of any of the planned construction and which did not satisfy the requirements for sale-leaseback accounting; therefore, this portion of the property is recognized as a notes receivable and is included in other assets, net on our condensed consolidated balance sheet. (10) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $12.9 million. (11) The tenant is expected to construct an 83,000 square foot industrial facility, for which we agreed to provide reimbursement of up to approximately $26.7 million. (12) The amounts related to the acquisition of additional land adjacent to an existing property and a lease amendment which provided an allowance to fund construction of a new building and resulted in a corresponding adjustment to the base rent for the lease at the property. The tenant is expected to construct approximately 324,000 square feet of industrial space, for which we agreed to provide reimbursement of up to approximately $46.1 million. (13) Approximately $23.3 million was allocated to land and approximately $107.8 million was allocated to building and construction in progress. ​
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, 2021 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2021 (three months ending December 31) ​ $ 55,657 2022 ​ 241,192 2023 ​ 253,851 2024 ​ 261,359 2025 ​ 269,194 Thereafter ​ 4,143,675 Total ​ $ 5,224,928

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2021
Exchangeable Senior Notes
Schedule of interest expense	The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended September 30, ​ For the Nine Months Ended September 30, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2021 2020 Cash coupon ​ $ 1,348 ​ $ 1,348 ​ $ 4,042 ​ $ 4,042 Amortization of debt discount ​ ​ 288 ​ ​ 275 ​ ​ 855 ​ ​ 816 Amortization of issuance cost ​ 249 ​ ​ 238 ​ 739 ​ ​ 707 Total interest expense ​ $ 1,885 ​ $ 1,861 ​ $ 5,636 ​ $ 5,565
Schedule of carrying value	The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 December 31, 2020 Principal amount ​ $ 143,749 ​ $ 143,749 Unamortized discount (2,930) ​ (3,785) Unamortized issuance cost (2,532) ​ (3,271) Carrying value ​ $ 138,287 ​ $ 136,693
Unsecured Senior Notes
Schedule of interest expense	The following table details our interest expense related to the Unsecured Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months ​ For the Nine Months ​ Ended September 30, 2021 Ended September 30, 2021 Cash coupon ​ $ 4,125 ​ ​ 5,821 Amortization of issuance cost ​ 299 ​ ​ 417 Total interest expense ​ $ 4,424 ​ $ 6,238
Schedule of carrying value	The following table details the carrying value of our Unsecured Senior Notes (in thousands): ​ ​ ​ ​ ​ September 30, 2021 Principal amount ​ $ 300,000 Unamortized issuance cost (6,407) Carrying value ​ $ 293,593

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
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 and per share data) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2021 2020 2021 2020 Net income ​ $ 30,094 ​ $ 19,215 ​ $ 85,360 ​ $ 44,397 ​ Preferred stock dividends ​ (338) ​ (338) ​ ​ (1,014) ​ ​ (1,014) ​ Distribution to participating securities ​ (147) ​ (133) ​ ​ (410) ​ ​ (369) ​ Net income attributable to common stockholders used to compute net income per share - basic ​ ​ 29,609 ​ ​ 18,744 ​ ​ 83,936 ​ ​ 43,014 ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 1,885 ​ ​ — ​ ​ 5,636 ​ ​ — ​ Net income attributable to common stockholders used to compute net income per share - diluted ​ $ 31,494 ​ $ 18,744 ​ $ 89,572 ​ $ 43,014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 23,890,537 ​ 21,594,637 ​ ​ 23,889,903 ​ ​ 18,315,231 ​ Restricted stock, RSUs and PSUs ​ ​ 176,675 ​ ​ 114,088 ​ ​ 174,109 ​ ​ 113,997 ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 2,193,492 ​ ​ — ​ ​ 2,193,492 ​ ​ — ​ Diluted ​ 26,260,704 ​ 21,708,725 ​ ​ 26,257,504 ​ ​ 18,429,228 ​ Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.24 ​ $ 0.87 ​ $ 3.51 ​ $ 2.35 ​ Diluted ​ $ 1.20 ​ $ 0.86 ​ $ 3.41 ​ $ 2.33 ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value of Financial Instruments
Schedule of condensed financial statements	The following table presents the carrying value and approximate fair value of financial instruments at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2021 ​ At December 31, 2020 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 554,420 ​ $ 554,410 ​ $ 619,275 ​ $ 619,270 Exchangeable Senior Notes (2) ​ $ 138,287 ​ $ 506,291 ​ $ 136,693 ​ $ 397,663 Unsecured Senior Notes (2) ​ $ 293,593 ​ $ 315,789 ​ $ — ​ $ — (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 and Unsecured Senior Notes were trading in the private market.

Common Stock Incentive Plan (Ta

Common Stock Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of fair value assumptions	The grant date fair value of the PSUs granted in January 2021 was $12.0 million. The fair value was calculated using a Monte Carlo simulation pricing model based on the following assumptions: ​ ​ ​ ​ ​ ​ PSU Award ​ Fair Value Assumptions Valuation date January 6, 2021 ​ Fair value per share on valuation date ​ $169.51 ​ Expected term ​ 3 years ​ Expected price volatility 57.64% ​ Risk-free interest rate ​ 0.20% ​ Discount for post vesting restriction 12.44% ​
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of the activity	A summary of the restricted stock activity under the 2016 Plan and related information for the nine months ended September 30, 2021 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock ​ Value Balance at December 31, 2020 76,346 ​ $ 50.14 Granted 7,692 ​ $ 189.41 Vested (28,816) ​ $ 50.90 Forfeited (1) (18,303) ​ $ 31.99 Balance at March 31, 2021 36,919 ​ $ 87.57 Granted ​ 1,987 ​ $ 181.27 Vested ​ (1,139) ​ $ 87.82 Balance at June 30, 2021 and September 30, 2021 ​ 37,767 ​ $ 92.49 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting .
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of the activity	The following table summarizes our RSU activity for the nine months ended September 30, 2021. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock Units ​ Value Balance at December 31, 2020 ​ 36,687 ​ $ 76.06 Granted ​ 21,873 ​ $ 189.41 Balance at March 31, 2021 ​ 58,560 ​ $ 118.40 Granted ​ 1,766 ​ $ 181.27 Balance at June 30, 2021 and September 30, 2021 ​ 60,326 ​ $ 120.24 ​

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies
Schedule of future contractual lease payments	Office Lease ​ ​ ​ ​ ​ Year Amount 2021 (three months ending December 31) ​ $ 60 2022 ​ 242 2023 ​ 249 2024 ​ 256 2025 ​ 88 Total future contractual lease payments ​ 895 Effect of discounting ​ (12) Office lease liability ​ $ 883

Organization (Details)

Organization (Details)	Sep. 30, 2021
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 - Additional Information (Details)	Jan. 01, 2019	Sep. 30, 2021USD ($)propertysegmentleasetenant	Sep. 30, 2020USD ($)tenant	Dec. 31, 2020USD ($)	Jun. 30, 2021USD ($)
Number of Reportable Segments | segment		1
Impairment loss		$ 0	$ 0
Cash equivalents		$ 115,100,000		$ 98,300,000
Lease, Practical Expedients, Package [true false]	true
Remaining lease term (in years)		3 years 6 months		4 years 3 months 18 days
Incremental borrowing rate		7.25%	7.25%
Amounts paid and classified as operating activities for the office lease		$ 176,000	$ 95,000
Deferred rents, property management fees and security deposits repaid		2,100,000
Remaining balance of deferred rents, property management fees and security deposits		$ 411,000
Number of Leases, with Purchase Option | lease		1
Percentage of current base rent		8.00%
Gross investment in the property with the purchase option		$ 30,500,000
Number of Properties | property		75
Construction loan funded		$ 8,925,000
Customer concentration | Rental revenues (including tenant reimbursements)
Number of Tenants | tenant		5	5
Geographic concentration | Net real estate held for investment
Concentration Risk, Threshold Percentage		5.00%		5.00%
General and administrative expense
Office lease expense		$ 171,000	$ 172,000
Maximum
Cash, FDIC Insured Amount		$ 250,000
Building and Improvements
Property, Plant and Equipment, Useful Life		40 years
Office equipment and furniture and fixtures | Minimum
Property, Plant and Equipment, Useful Life		3 years
Office equipment and furniture and fixtures | Maximum
Property, Plant and Equipment, Useful Life		6 years
Construction Loan
Construction loan agreement to development					$ 18,500,000
Construction loan funded		$ 8,900,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Concentration of Credit Risk (Details) - Rental revenues (including tenant reimbursements) - Customer concentration - lease	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
SH Parent, Inc. (Parallel)
Concentration Risk [Line Items]
Number of Leases	4
Percentage of Rental Revenue	12.00%
PharmaCann Inc.
Concentration Risk [Line Items]
Number of Leases	5	5	5	5
Percentage of Rental Revenue	12.00%	16.00%	13.00%	19.00%
Parallel
Concentration Risk [Line Items]
Number of Leases			4
Percentage of Rental Revenue			10.00%
Ascend Wellness Holdings, Inc.
Concentration Risk [Line Items]
Number of Leases	3	3	3	3
Percentage of Rental Revenue	8.00%	10.00%	9.00%	10.00%
Cresco Labs Inc.
Concentration Risk [Line Items]
Number of Leases		5	5	5
Percentage of Rental Revenue		12.00%	8.00%	10.00%
Kings Garden Inc.
Concentration Risk [Line Items]
Number of Leases	6		6
Percentage of Rental Revenue	8.00%		7.00%
Curaleaf Holdings Inc.
Concentration Risk [Line Items]
Number of Leases		4		4
Percentage of Rental Revenue		6.00%		6.00%
Green Thumb Industries Inc.
Concentration Risk [Line Items]
Number of Leases	3
Percentage of Rental Revenue	7.00%
Holistic Industries Inc.
Concentration Risk [Line Items]
Number of Leases		4		4
Percentage of Rental Revenue		6.00%		6.00%

Common Stock (Details)

Common Stock (Details) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Common Stock
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	23,928,304	23,936,928
Common Stock, Shares, Issued	23,928,304	23,936,928

Preferred Stock (Details)

Preferred Stock (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	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
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Preferred Stock, Shares Issued	600,000	600,000
Preferred Stock, Shares Outstanding	600,000	600,000
Preferred Stock, Dividend Rate, Percentage	9.00%	9.00%
Preferred Stock, Voting Rights	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.
Series A Preferred Stock | Forecast
Preferred Stock, Redemption Price Per Share			$ 25

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Dividend Amount	$ 36,321	$ 30,065
Common Stock on September 15, 2021 [Member]
Declaration Date	Sep. 15, 2021
Dividends Declared Security Class	Common stock
Amount Per Share	$ 1.50
Period Covered	July 1, 2021 to September 30, 2021
Dividend Paid Date	Oct. 15, 2021
Dividend Amount	$ 35,983
Common Stock On March 15 2021
Declaration Date	Mar. 15, 2021
Dividends Declared Security Class	Common stock
Amount Per Share	$ 1.32
Period Covered	January 1, 2021 to March 31, 2021
Dividend Paid Date	Apr. 15, 2021
Dividend Amount	$ 31,660
Common Stock On June 15 2021
Declaration Date	Jun. 15, 2021
Dividends Declared Security Class	Common stock
Amount Per Share	$ 1.40
Period Covered	April 1, 2021 to June 30, 2021
Dividend Paid Date	Jul. 15, 2021
Dividend Amount	$ 33,584
Series A Preferred Stock on September 15, 2021 [Member]
Declaration Date	Sep. 15, 2021
Dividends Declared Security Class	Series A preferred stock
Amount Per Share	$ 0.5625
Period Covered	July 15, 2021 to October 14, 2021
Dividend Paid Date	Oct. 15, 2021
Dividend Amount	$ 338
Series A Preferred Stock On March 15 2021
Declaration Date	Mar. 15, 2021
Dividends Declared Security Class	Series A preferred stock
Amount Per Share	$ 0.5625
Period Covered	January 15, 2021 to April 14, 2021
Dividend Paid Date	Apr. 15, 2021
Dividend Amount	$ 338
Series Preferred Stock On June 15 2021
Declaration Date	Jun. 15, 2021
Dividends Declared Security Class	Series A preferred stock
Amount Per Share	$ 0.5625
Period Covered	April 15, 2021 to July 14, 2021
Dividend Paid Date	Jul. 15, 2021
Dividend Amount	$ 338

Investments in Real Estate (Det

Investments in Real Estate (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)ft²
Rentable Square Feet | ft²	1,876,000
Purchase Price	$ 130,918
Transaction Costs	135
Total	$ 131,053
Harvest FL
Rentable Square Feet | ft²	295,000
Purchase Price	$ 23,800
Transaction Costs	16
Total	$ 23,816
Kings Garden CA
Rentable Square Feet | ft²	180,000
Purchase Price	$ 1,350
Transaction Costs	7
Total	$ 1,357
Parallel TX
Rentable Square Feet | ft²	63,000
Purchase Price	$ 3,400
Transaction Costs	17
Total	$ 3,417
GPI MI Davis Hwy
Rentable Square Feet | ft²	175,000
Purchase Price	$ 15,550
Transaction Costs	4
Total	$ 15,554
Parallel PA
Rentable Square Feet | ft²	239,000
Purchase Price	$ 41,750
Transaction Costs	11
Total	$ 41,761
Sozo MI
Rentable Square Feet | ft²	85,000
Purchase Price	$ 10,250
Transaction Costs	9
Total	$ 10,259
Temescal MA
Rentable Square Feet | ft²	70,000
Purchase Price	$ 3,100
Transaction Costs	9
Total	$ 3,109
4Front IL [Member]
Rentable Square Feet | ft²	250,000
Purchase Price	$ 3,348
Transaction Costs	18
Total	$ 3,366
Harvest MD [Member]
Rentable Square Feet | ft²	112,000
Purchase Price	$ 16,615
Transaction Costs	21
Total	$ 16,636
Calyx Peak MO [Member]
Rentable Square Feet | ft²	83,000
Purchase Price	$ 1,530
Transaction Costs	11
Total	$ 1,541
Vireo NY [Member]
Rentable Square Feet | ft²	324,000
Purchase Price	$ 10,225
Transaction Costs	12
Total	$ 10,237

Investments in Real Estate - Ad

Investments in Real Estate - Additional Information (Details)	1 Months Ended					3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)ft²	Aug. 31, 2021USD ($)	Jun. 30, 2021USD ($)	Apr. 30, 2021USD ($)ft²	Feb. 28, 2021USD ($)	Sep. 30, 2021USD ($)ft²	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)ft²building	Sep. 30, 2020USD ($)	Oct. 31, 2021USD ($)	Jan. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Rentable Square Feet | ft²	1,876,000					1,876,000		1,876,000
Total Property Acquisitions	$ 131,053,000					$ 131,053,000		$ 131,053,000
Rental (including tenant reimbursements)						53,856,000	$ 34,327,000	145,608,000	$ 79,803,000
Operating Income (Loss)						36,293,000	20,423,000	96,909,000	46,876,000
Increase amount of tenant improvement allowance	20,000,000
Tenant improvements allowance	551,038,000					551,038,000		551,038,000				$ 339,647,000
Real Estate Property Cost	279,400,000					279,400,000		279,400,000
Tenant improvements and construction activities funded	254,200,000					254,200,000		254,200,000
Michigan Properties
Increase amount of tenant improvement allowance	15,000,000				$ 6,900,000
Tenant improvements allowance	29,500,000				29,900,000	29,500,000		29,500,000
New York Properties
Increase amount of tenant improvement allowance					2,500,000
Tenant improvements allowance					$ 33,500,000
Pennsylvania properties
Rentable Square Feet | ft²				89,000
Increase amount of tenant improvement allowance				$ 30,000,000
Tenant improvements allowance				$ 40,000,000
Expected expansion of facility area upon tenant improvement allowance | ft²				40,000
Florida properties[Member]
Increase amount of tenant improvement allowance			$ 8,000,000
Tenant improvements allowance			16,200,000
Subsidiary Of Harvest Health & Recreation Inc. At Florida properties [Member]
Increase amount of tenant improvement allowance			7,100,000
Tenant improvements allowance			$ 17,900,000
Maryland properties [Member]
Increase amount of tenant improvement allowance		$ 8,000,000
Illinois properties [Member]
Tenant improvements allowance	52,000,000					52,000,000		52,000,000
Subsequent Event | California Property
Agreed reimbursement for redevelopment of building										$ 9,000,000
Maximum | California Property
Funding for future tenant improvements											$ 11,000,000
Land
Total Property Acquisitions	23,300,000					23,300,000		23,300,000
Building and Improvements
Total Property Acquisitions	$ 107,800,000					107,800,000		107,800,000
Properties Acquired In 2021
Rental (including tenant reimbursements)						639,000		11,900,000
Operating Income (Loss)						$ 559,000		$ 10,000,000
Properties Acquired In 2020
Rental (including tenant reimbursements)							778,000		15,200,000
Operating Income (Loss)							$ 303,000		$ 11,000,000
Harvest FL
Rentable Square Feet | ft²	295,000					295,000		295,000
Total Property Acquisitions	$ 23,816,000					$ 23,816,000		$ 23,816,000
Harvest FL | Maximum
Agreed reimbursement for redevelopment of building	$ 10,800,000					$ 10,800,000		$ 10,800,000
Kings Garden CA
Number of building expected to be constructed | building								2
Rentable Square Feet | ft²	180,000					180,000		180,000
Total Property Acquisitions	$ 1,357,000					$ 1,357,000		$ 1,357,000
Kings Garden CA | Maximum
Agreed reimbursement for redevelopment of building	$ 51,400,000					$ 51,400,000		$ 51,400,000
Parallel TX
Number of building expected to be constructed | building								3
Rentable Square Feet | ft²	63,000					63,000		63,000
Total Property Acquisitions	$ 3,417,000					$ 3,417,000		$ 3,417,000
Parallel TX | Maximum
Agreed reimbursement for redevelopment of building	$ 24,000,000					$ 24,000,000		$ 24,000,000
GPI MI Davis Hwy
Rentable Square Feet | ft²	175,000					175,000		175,000
Total Property Acquisitions	$ 15,554,000					$ 15,554,000		$ 15,554,000
GPI MI Davis Hwy | Maximum
Agreed reimbursement for redevelopment of building	$ 14,400,000					$ 14,400,000		$ 14,400,000
Parallel PA
Rentable Square Feet | ft²	239,000					239,000		239,000
Total Property Acquisitions	$ 41,761,000					$ 41,761,000		$ 41,761,000
Parallel PA | Maximum
Agreed reimbursement for redevelopment of building	$ 26,000,000					$ 26,000,000		$ 26,000,000
Sozo MI
Rentable Square Feet | ft²	85,000					85,000		85,000
Total Property Acquisitions	$ 10,259,000					$ 10,259,000		$ 10,259,000
Sozo MI | Maximum
Agreed reimbursement for redevelopment of building	$ 5,700,000					$ 5,700,000		$ 5,700,000
Temescal MA
Rentable Square Feet | ft²	70,000					70,000		70,000
Total Property Acquisitions	$ 3,109,000					$ 3,109,000		$ 3,109,000
Temescal MA | Maximum
Agreed reimbursement for redevelopment of building	$ 15,000,000					$ 15,000,000		$ 15,000,000
4Front IL [Member]
Rentable Square Feet | ft²	250,000					250,000		250,000
Total Property Acquisitions	$ 3,366,000					$ 3,366,000		$ 3,366,000
4Front IL [Member] | Other assets, net
Notes receivable	3,200,000					3,200,000		3,200,000
4Front IL [Member] | Maximum
Agreed reimbursement for redevelopment of building	$ 43,800,000					$ 43,800,000		$ 43,800,000
Harvest MD [Member]
Rentable Square Feet | ft²	112,000					112,000		112,000
Total Property Acquisitions	$ 16,636,000					$ 16,636,000		$ 16,636,000
Harvest MD [Member] | Maximum
Agreed reimbursement for redevelopment of building	$ 12,900,000					$ 12,900,000		$ 12,900,000
Calyx Peak MO [Member]
Rentable Square Feet | ft²	83,000					83,000		83,000
Total Property Acquisitions	$ 1,541,000					$ 1,541,000		$ 1,541,000
Calyx Peak MO [Member] | Maximum
Agreed reimbursement for redevelopment of building	$ 26,700,000					$ 26,700,000		$ 26,700,000
Vireo NY [Member]
Rentable Square Feet | ft²	324,000					324,000		324,000
Total Property Acquisitions	$ 10,237,000					$ 10,237,000		$ 10,237,000
Vireo NY [Member] | Maximum
Agreed reimbursement for redevelopment of building	$ 46,100,000					$ 46,100,000		$ 46,100,000

Investments in Real Estate - Fu

Investments in Real Estate - Future Contractual Minimum Rent (Details) $ in Thousands	Sep. 30, 2021USD ($)
Contractual Minimum Rent
2021 (three months ending December 31)	$ 55,657
2022	241,192
2023	253,851
2024	261,359
2025	269,194
Thereafter	4,143,675
Total	$ 5,224,928

Debt - Exchangeable Senior Note

Debt - Exchangeable Senior Notes - Additional Information (Details) - Exchangeable Senior Notes	9 Months Ended
	Sep. 30, 2021USD ($)$ / shares	Dec. 31, 2020USD ($)	Feb. 28, 2019USD ($)
Debt Instrument, Face Amount	$ 143,749,000	$ 143,749,000
Debt Instrument, Interest Rate, Stated Percentage	3.75%
Debt Instrument, Discount			$ 5,800,000
Debt Instrument, Interest Rate, Effective Percentage			4.65%
Issuance costs			$ 5,200,000
Initial issuance costs - equity components			200,000
Initial issuance costs - liability components			$ 5,000,000
Accounts payable and accrued expenses
Accrued interest payable	$ 225,000	$ 1,600,000
Common Stock
Debt Instrument, Convertible, Conversion Ratio	15.25918
Conversion of Stock, Amount Converted	$ 1,000
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 65.534

Debt - Exchangeable Senior No_2

Debt - Exchangeable Senior Notes - Interest expense (Details) - Exchangeable Senior Notes - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash coupon	$ 1,348	$ 1,348	$ 4,042	$ 4,042
Amortization of debt discount	288	275	855	816
Amortization of issuance cost	249	238	739	707
Total interest expense	$ 1,885	$ 1,861	$ 5,636	$ 5,565

Debt - Exchangeable Senior No_3

Debt - Exchangeable Senior Notes - Carrying value (Details) - Exchangeable Senior Notes - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Principal amount	$ 143,749	$ 143,749
Unamortized discount	(2,930)	(3,785)
Unamortized issuance cost	(2,532)	(3,271)
Carrying value	$ 138,287	$ 136,693

Debt - Unsecured Senior Notes (

Debt - Unsecured Senior Notes (Details) - Unsecured Senior Notes - USD ($) $ in Thousands	May 25, 2021	Sep. 30, 2021	May 05, 2021
Principal amount	$ 300,000	$ 300,000
Interest rate	5.50%		5.50%
Issuance costs	$ 6,800
Unsecured Senior Notes, Filing Term	60 days
Unsecured Senior Notes, Effective Term	180 days
Unsecured Senior Notes, Consummation Term	60 days
Redeemed Prior To February 25, 2026
Redemption price, percentage of principal amount redeemed		100.00%
Redeemed On Or After February 25, 2026 [Member]
Redemption price, percentage of principal amount redeemed		100.00%
Accounts payable and accrued expenses
Accrued interest payable		$ 5,800

Debt - Unsecured Senior Notes -

Debt - Unsecured Senior Notes - Interest expense (Details) - Unsecured Senior Notes - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Cash coupon	$ 4,125	$ 5,821
Amortization of issuance cost	299	417
Total interest expense	$ 4,424	$ 6,238

Debt - Unsecured Senior Notes_2

Debt - Unsecured Senior Notes - Carrying value (Details) - Unsecured Senior Notes - USD ($) $ in Thousands	Sep. 30, 2021	May 25, 2021
Principal amount	$ 300,000	$ 300,000
Unamortized issuance cost	(6,407)
Carrying value	$ 293,593

Net Income Per Share - Addition

Net Income Per Share - Additional information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Dilutive effect of Exchangeable Senior Notes	2,193,492		2,193,492
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		2,148,218		2,148,218
PSUs | Employees
Shares issuable	78,582		78,582

Net Income Per Share - Computat

Net Income Per Share - Computations of net income per basic and diluted share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net Income Per Share
Net income	$ 30,094	$ 19,215	$ 85,360	$ 44,397
Preferred stock dividends	(338)	(338)	(1,014)	(1,014)
Distribution to participating securities	(147)	(133)	(410)	(369)
Net income attributable to common stockholders used to compute net income per share - basic	29,609	18,744	83,936	43,014
Dilutive effect of Exchangeable Senior Notes	1,885		5,636
Net income attributable to common stockholders used to compute net income per share - diluted	$ 31,494	$ 18,744	$ 89,572	$ 43,014
Weighted average common shares outstanding:
Basic	23,890,537	21,594,637	23,889,903	18,315,231
Restricted stock, RSUs and PSUs	176,675	114,088	174,109	113,997
Dilutive effect of Exchangeable Senior Notes	2,193,492		2,193,492
Diluted	26,260,704	21,708,725	26,257,504	18,429,228
Net income attributable to common stockholders per share:
Basic	$ 1.24	$ 0.87	$ 3.51	$ 2.35
Diluted	$ 1.20	$ 0.86	$ 3.41	$ 2.33

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value of Financial Instruments
Short-term Investments	$ 554,420	$ 619,275
Exchangeable Senior Notes, Carrying Value	138,287	136,693
Unsecured Debt, Carrying Value	293,593
Investments, Fair Value	554,410	619,270
Exchangeable Senior Notes, Fair Value	506,291	$ 397,663
Unsecured Debt, Fair Value	$ 315,789

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Money market funds
Cash and Cash Equivalents, Fair Value Disclosure	$ 115.1	$ 98.3

Common Stock Incentive Plan - A

Common Stock Incentive Plan - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended
	Jan. 31, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2021
Restricted Shares
Unrecognized compensation cost			$ 2,100,000	$ 2,100,000
Amortization period				1 year 7 months 6 days
Fair value of restricted stock				$ 8,800,000
Granted		7,692	1,987
RSUs
Unrecognized compensation cost			$ 4,400,000	$ 4,400,000
Amortization period				2 years
Granted		21,873	1,766
PSUs
Amortization period				2 years 3 months 18 days
Granted	70,795
Maximum total value at the at the vesting date as a percentage of the grant date price	800.00%
Dividends	$ 0
Minimum Term of Holding of Vested Shares	1 year
Granted date fair value	$ 12,000,000
PSUs | Minimum
Percentage of Number of Target Awards and Deemed Dividend	0.00%
PSUs | Maximum
Percentage of Number of Target Awards and Deemed Dividend	150.00%
2016 Plan
Expiration term				10 years
2016 Plan | Maximum
Number of shares authorized			1,000,000	1,000,000

Common Stock Incentive Plan -_2

Common Stock Incentive Plan - Activity (Details) - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Sep. 30, 2021
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Beginning Balance	76,346	36,919
Granted	7,692	1,987
Vested	(28,816)	(1,139)
Forfeited	(18,303)
Shares, Ending Balance	36,919	37,767
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 50.14	$ 87.57
Weighted-Average Grant Date Fair Value, Granted	189.41	181.27
Weighted-Average Grant Date Fair Value, Vested	50.90	87.82
Weighted-Average Grant Date Fair Value, Forfeited	31.99
Weighted-Average Grant Date Fair Value, Ending Balance	$ 87.57	$ 92.49
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Beginning Balance	36,687	58,560
Granted	21,873	1,766
Shares, Ending Balance	58,560	60,326
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 76.06	$ 118.40
Weighted-Average Grant Date Fair Value, Granted	189.41	181.27
Weighted-Average Grant Date Fair Value, Ending Balance	$ 118.40	$ 120.24

Common Stock Incentive Plan - S

Common Stock Incentive Plan - Summary of Fair Value Assumption (Details) - PSUs - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2021	Sep. 30, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per share on valuation date	$ 169.51
Expected term	3 years
Expected price volatility	57.64%
Risk-free interest rate	0.20%
Discount for post vesting restriction	12.44%
Stock-based compensation expense		$ 1	$ 3
Unrecognized compensation cost		$ 9	$ 9
Remaining Performance Period			2 years 3 months 18 days

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2021USD ($)
Commitments and Contingencies
2021 (three months ending December 31)	$ 60
2022	242
2023	249
2024	256
2025	88
Total future contractual lease payments	895
Effect of discounting	(12)
Office lease liability	$ 883

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	Sep. 30, 2021USD ($)
Commitments related to tenant improvement allowances
Other Commitments [Line Items]
Commitments	$ 355.9
Commitments related to construction loan
Other Commitments [Line Items]
Commitments	$ 9.6

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	1 Months Ended
	Nov. 30, 2021	Oct. 31, 2021	Sep. 30, 2021	Oct. 19, 2021	Dec. 31, 2020
Increase amount of tenant improvement allowance			$ 20,000
Tenant improvements allowance			$ 551,038		$ 339,647
Subsequent Event | 5.50% Senior Notes Due 2026
Interest rate				5.50%
Debt Instrument, Face Amount				$ 300,000
Percentage of outstanding principal amount				100.00%
Subsequent Event | California Property
Payments to acquire property		$ 51,000
Agreed reimbursement for redevelopment of building		$ 9,000
Subsequent Event | Massachusetts properties
Increase amount of tenant improvement allowance	$ 8,700
Tenant improvements allowance	$ 23,700