Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 24, 2022 | Jun. 30, 2021 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 25,624,772 | ||
Entity Public Float | $ 4.5 | ||
Auditor Name | BDO USA, LLP | ||
Auditor Firm ID | 243 | ||
Auditor Location | San Diego, California | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001677576 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 $0.001 per share | ||
Trading Symbol | IIPR-PA | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Real estate, at cost: | ||
Land | $ 122,386 | $ 75,660 |
Buildings and improvements | 979,417 | 644,932 |
Tenant improvements | 620,301 | 339,647 |
Total real estate, at cost | 1,722,104 | 1,060,239 |
Less accumulated depreciation | (81,938) | (40,195) |
Net real estate held for investment | 1,640,166 | 1,020,044 |
Construction loan receivable | 12,916 | 0 |
Cash and cash equivalents | 81,096 | 126,006 |
Restricted cash | 5,323 | 0 |
Investments | 324,889 | 619,275 |
Right of use office lease asset | 1,068 | 980 |
In-place lease intangible assets, net | 9,148 | 0 |
Other assets, net | 9,996 | 1,776 |
Total assets | 2,084,602 | 1,768,081 |
Liabilities and stockholders' equity | ||
Exchangeable senior notes, net | 32,232 | 136,693 |
Notes due 2026, net | 293,860 | 0 |
Tenant improvements and construction funding payable | 46,274 | 36,500 |
Accounts payable and accrued expenses | 7,718 | 4,641 |
Dividends payable | 38,847 | 30,065 |
Other liabilities | 1,167 | 1,057 |
Rent received in advance and tenant security deposits | 52,805 | 34,153 |
Total liabilities | 472,903 | 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 December 31, 2021 and December 31, 2020 | 14,009 | 14,009 |
Common stock, par value $0.001 per share, 50,000,000 shares authorized: 25,612,541 and 23,936,928 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 26 | 24 |
Additional paid-in capital | 1,672,882 | 1,559,059 |
Dividends in excess of earnings | (75,218) | (48,120) |
Total stockholders' equity | 1,611,699 | 1,524,972 |
Total liabilities and stockholders' equity | $ 2,084,602 | $ 1,768,081 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | 25,612,541 | 23,936,928 |
Common Stock, Shares, Outstanding | 25,612,541 | 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 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Rental (including tenant reimbursements) | $ 204,551 | $ 116,896 | $ 44,667 |
Total revenues | 204,551 | 116,896 | 44,667 |
Expenses: | |||
Property expenses | 4,443 | 4,952 | 1,315 |
General and administrative expense | 22,961 | 14,182 | 9,818 |
Depreciation and amortization expense | 41,776 | 28,025 | 8,599 |
Total expenses | 69,180 | 47,159 | 19,732 |
Income from operations | 135,371 | 69,737 | 24,935 |
Interest and other income | 397 | 3,424 | 4,846 |
Interest expense | (18,086) | (7,431) | (6,306) |
Loss on induced exchange of exchangeable senior notes | (3,692) | 0 | 0 |
Net income | 113,990 | 65,730 | 23,475 |
Preferred stock dividends | (1,352) | (1,352) | (1,352) |
Net income attributable to common stockholders | $ 112,638 | $ 64,378 | $ 22,123 |
Net income attributable to common stockholders per share (Note 8): | |||
Basic | $ 4.69 | $ 3.28 | $ 2.06 |
Diluted | $ 4.55 | $ 3.27 | $ 2.03 |
Weighted-average shares outstanding: | |||
Basic | 23,903,017 | 19,443,602 | 10,546,016 |
Diluted | 26,261,155 | 19,557,619 | 10,684,068 |
Consolidated Statements of Stoc
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, 2018 | $ 14,009 | $ 10 | $ 260,540 | $ (10,267) | $ 264,292 |
Balances at beginning of period (in shares) at Dec. 31, 2018 | 9,775,800 | ||||
Net income | 23,475 | 23,475 | |||
Equity component of exchangeable senior notes | 5,569 | 5,569 | |||
Net proceeds from sale of common stock | $ 3 | 286,267 | 286,270 | ||
Net proceeds from sale of common stock (in shares) | 2,825,500 | ||||
Issuance of unvested restricted stock, net of forfeitures | (939) | (939) | |||
Issuance of unvested restricted stock, net of forfeitures (in shares) | 35,743 | ||||
Preferred stock dividend | (1,352) | (1,352) | |||
Common stock dividend | (31,800) | (31,800) | |||
Stock-based compensation | 2,495 | 2,495 | |||
Balances at end of period at Dec. 31, 2019 | 14,009 | $ 13 | 553,932 | (19,944) | 548,010 |
Balances at end of period (in shares) at Dec. 31, 2019 | 12,637,043 | ||||
Net income | 65,730 | 65,730 | |||
Net proceeds from sale of common stock | $ 11 | 1,003,962 | 1,003,973 | ||
Net proceeds from sale of common stock (in shares) | 11,311,366 | ||||
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 | (1,352) | (1,352) | |||
Common stock dividend | (92,554) | (92,554) | |||
Stock-based compensation | 3,330 | 3,330 | |||
Balances at end of period at Dec. 31, 2020 | 14,009 | $ 24 | 1,559,059 | (48,120) | 1,524,972 |
Balances at end of period (in shares) at Dec. 31, 2020 | 23,936,928 | ||||
Net income | 113,990 | 113,990 | |||
Exchange of exchangeable senior notes | $ 2 | 108,591 | 108,593 | ||
Exchange of exchangeable senior notes (in shares) | 1,684,237 | ||||
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 | (1,352) | (1,352) | |||
Common stock dividend | (139,736) | (139,736) | |||
Stock-based compensation | 8,616 | 8,616 | |||
Balances at end of period at Dec. 31, 2021 | $ 14,009 | $ 26 | $ 1,672,882 | $ (75,218) | $ 1,611,699 |
Balances at end of period (in shares) at Dec. 31, 2021 | 25,612,541 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 113,990 | $ 65,730 | $ 23,475 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation expense | 41,776 | 28,025 | 8,599 |
Loss on induced exchange of exchangeable senior notes | 3,692 | 0 | 0 |
Other non-cash adjustments | 95 | 162 | 0 |
Stock-based compensation | 8,616 | 3,330 | 2,495 |
Amortization of discounts on short-term investments | (340) | (2,791) | (3,738) |
Amortization of debt discount and issuance costs | 2,851 | 2,040 | 1,678 |
Changes in assets and liabilities | |||
Other assets, net | (3,687) | (428) | (619) |
Accounts payable, accrued expenses and other liabilities | 3,102 | 1,224 | 1,427 |
Rent received in advance and tenant security deposits | 18,652 | 13,522 | 11,617 |
Net cash provided by operating activities | 188,747 | 110,814 | 44,934 |
Cash flows from investing activities | |||
Purchases of investments in real estate | (287,585) | (240,509) | (259,889) |
Reimbursements of tenant improvements and construction funding | (374,541) | (289,517) | (84,677) |
Funding of construction loan and other investments | (16,068) | 0 | |
Deposits in escrow for acquisitions | (625) | (200) | (650) |
Purchases of short-term investments | (569,772) | (1,077,867) | (255,664) |
Maturities of short-term investments | 864,498 | 580,978 | 260,250 |
Net cash used in investing activities | (384,093) | (1,027,115) | (340,630) |
Cash flows from financing activities | |||
Issuance of common stock, net of offering costs | 1,003,973 | 286,292 | |
Net proceeds from issuance of exchangeable senior notes | 138,545 | ||
Gross proceeds from issuance of notes due 2026 | 300,000 | 0 | |
Payment of deferred financing costs from issuance of notes due 2026 | (6,855) | 0 | |
Payment of inducement and transaction costs relating to inducement of the exchangeable senior notes | (1,696) | 0 | |
Dividends paid to common stockholders | (130,954) | (75,464) | (22,584) |
Dividends paid to preferred stockholders | (1,352) | (1,352) | (1,352) |
Taxes paid related to net share settlement of equity awards | (3,384) | (2,166) | (939) |
Net cash provided by financing activities | 155,759 | 924,991 | 399,962 |
Net (decrease) increase in cash and cash equivalents | (39,587) | 8,690 | 104,266 |
Cash, cash equivalents and restricted cash, beginning of year | 126,006 | 117,316 | 13,050 |
Cash, cash equivalents and restricted cash, end of year | 86,419 | 126,006 | 117,316 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for interest | 14,381 | 5,391 | 3,055 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accrual for reimbursements of improvements and construction funding | 46,274 | 36,500 | 24,968 |
Deposits applied for acquisitions | 200 | 650 | 0 |
Accrual for common and preferred stock dividends declared | 38,847 | $ 30,065 | 12,975 |
Accrual for stock issuance costs | 22 | ||
Exchange of exchangeable senior notes | 109,040 | 1 | |
Operating lease liability for obtaining right of use asset | $ 192 | $ 1,211 |
Organization
Organization | 12 Months Ended |
Dec. 31, 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 industrial properties leased to experienced, state-licensed operators for their regulated 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, real estate 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. Information with respect to rentable square footage is unaudited. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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. 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 for the years ended December 31, 2021 and 2020 and financial position at December 31, 2021 and 2020. A prolonged outbreak or resurgence of COVID-19 could have a material adverse impact on the financial results and business operations of the Company. Federal Income Taxes. Use of Estimates. Reportable Segment Acquisition of Real Estate Properties. In December 2021, we acquired a portfolio of properties that included in-place leases. The fair value of acquired in-place leases is derived based on our assessment of estimated lost revenue and costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased. The amounts recorded for acquired in-place leases are reflected as in-place lease intangible assets, net on the balance sheet and are amortized on a straight-line basis as a component of depreciation and amortization expense over the remaining term of the applicable leases. The fair value of the above-market component of an acquired in-place operating lease is based upon the present value (calculated using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining non-cancellable lease term and (ii) our estimate of the rents that would be paid using fair market rental rates and rent escalations at the date of acquisition measured over the remaining non-cancellable term of the lease. The amount recorded for one above-market operating lease is included in other assets, net on the balance sheet and is amortized on a straight-line basis as a reduction of rental income over the remaining term of the applicable lease. 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. For the years ended December 31, 2021, 2020 and 2019, we recognized depreciation expense of approximately $41.7 million, $28.0 million and $8.6 million, respectively, which are included in depreciation and amortization expense in our consolidated statements of income. 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 years ended December 31, 2021, 2020 and 2019. Revenue Recognition. Construction Loan. Cash and Cash Equivalents Restricted Cash. Investments Exchangeable Notes. Deferred Financing Costs. These costs are amortized as non-cash interest expense using the effective interest method over the life of the related obligations. Stock-Based Compensation. Lease Accounting. We adopted Topic 842 effective as of January 1, 2019 using the effective date method and elected the package of practical expedients that allows an entity not to reassess upon adoption (i) whether an expired or existing contract contains a lease, (ii) whether a lease classification related to expired or existing lease arrangements, and (iii) whether costs incurred on expired or existing leases qualify as initial direct costs, and as a lessor, the practical expedient not to separate certain non-lease components, such as common area maintenance, from the lease component if the timing and pattern of transfer are the same for the non-lease component and 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 and a corresponding right-of-use asset related to our corporate office lease. The lease liability was initially measured based on the present value of the future lease payments discounted using the estimated incremental borrowing rate of 7.25%, which was 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. In November 2021, we amended the lease to extend the term from April 2025 to January 2027 in connection with an expansion of the leased space which did not commence until February 2022. As a result of the lease modification on the existing leased space, we re-measured the lease liability based on the present value of the future lease payments (excluding the extension option that we are not reasonably certain to exercise), discounted using the estimated incremental borrowing rate of 5.5%, which was 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 years ended December 31, 2021, 2020 and 2019, we recognized office lease expense of approximately $231,000, $229,000 and $82,000, respectively, which are included in general and administrative expense in our consolidated statements of income. For the years ended December 31, 2021, 2020 and 2019, amounts paid and classified as operating activities in our consolidated statements of cash flows for the office lease were approximately $234,000, $172,000 and $87,000, 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 consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our consolidated financial statements. In 2020, we undertook in-depth discussions with each of our tenants as they navigated the COVID-19 pandemic and associated severe economic disruption. In light of those discussions, in 2020, we granted temporary base rent and property management fee deferrals to three affected tenants. In connection with these deferrals, we entered into lease amendments with the three affected tenants to apply a portion of the security deposits that we hold under the leases to pay a portion of the March 2020 rent (for one tenant), pay April 2020 rent in full, defer rent for May and June 2020 in full, and provide for the pro rata repayment of the security deposit and deferred rent over an 18 month time period starting July 1, 2020. Pursuant to these amendments, a total of approximately $940,000 of security deposits were applied to the payment of base rent, property management fees and associated lease penalties for March and April 2020, including approximately $185,000 related to the partial payment of the March 2020 base rent and property management fees for one of the tenants; and a total of approximately $1.5 million in rent was deferred for May and June 2020. As of December 31, 2021, we have not executed deferrals for any other tenants, other than the deferrals for the three tenants discussed above. The FASB issued additional guidance for companies to account for any COVID-19 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 COVID-19 pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. Lease amendments that are not associated with the COVID-19 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. 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 Two of our tenants, PharmaCann Inc. (“PharmaCann”) (at five of our properties) and SH Parent Inc. (“Parallel”) (at four of our properties), represented approximately 12% and 10%, respectively, of our rental revenue (including tenant reimbursements) for the year ended December 31, 2021. Three of our tenants, PharmaCann (at five of our properties), Ascend Wellness Holdings, Inc. (“Ascend”) (at three of our properties), and Cresco Labs Inc. (“Cresco”) (at five of our properties), represented approximately 18%, 10%, and 10%, respectively, of our rental revenues (including tenant reimbursements) for the year ended December 31, 2020. Two of our tenants, PharmaCann (at five of our properties) and Ascend (at two of our properties), represented approximately 26% and 12%, respectively, of our rental revenues (including tenant reimbursements) for the year ended December 31, 2019. At December 31, 2021 and 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 December 31, 2021, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Common Stock. | |
Common Stock | 3. Common Stock As of December 31, 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 25,612,541 shares of common stock issued and outstanding. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2021 | |
Preferred Stock. | |
Preferred Stock | 4. Preferred Stock As of December 31, 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 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2021 | |
Dividends | |
Dividends | 5. Dividends The following table describes the dividends declared by the Company during the years ended December 31, 2021, 2020 and 2019: Amount Dividend Dividend Declaration Date Security Class Per Share Period Covered Paid Date Amount (In thousands) March 12, 2019 Common stock $ 0.45 January 1, 2019 to March 31, 2019 April 15, 2019 $ 4,412 March 12, 2019 Series A preferred stock $ 0.5625 January 15, 2019 to April 14, 2019 April 15, 2019 $ 338 June 14, 2019 Common stock $ 0.60 April 1, 2019 to June 30, 2019 July 15, 2019 $ 5,885 June 14, 2019 Series A preferred stock $ 0.5625 April 15, 2019 to July 14, 2019 July 15, 2019 $ 338 September 13, 2019 Common stock $ 0.78 July 1, 2019 to September 30, 2019 October 15, 2019 $ 8,866 September 13, 2019 Series A preferred stock $ 0.5625 July 15, 2019 to October 14, 2019 October 15, 2019 $ 338 December 10, 2019 Common stock $ 1.00 October 1, 2019 to December 31, 2019 January 15, 2020 $ 12,637 December 10, 2019 Series A preferred stock $ 0.5625 October 15, 2019 to January 14, 2020 January 15, 2020 $ 338 March 13, 2020 Common stock $ 1.00 January 1, 2020 to March 31, 2020 April 15, 2020 $ 17,070 March 13, 2020 Series A preferred stock $ 0.5625 January 15, 2020 to April 14, 2020 April 15, 2020 $ 338 June 15, 2020 Common stock $ 1.06 April 1, 2020 to June 30, 2020 July 15, 2020 $ 19,770 June 15, 2020 Series A preferred stock $ 0.5625 April 15, 2020 to July 14, 2020 July 15, 2020 $ 338 September 15, 2020 Common stock $ 1.17 July 1, 2020 to September 30, 2020 October 15, 2020 $ 25,987 September 15, 2020 Series A preferred stock $ 0.5625 July 15, 2020 to October 14, 2020 October 15, 2020 $ 338 December 14, 2020 Common stock $ 1.24 October 1, 2020 to December 31, 2020 January 15, 2021 $ 29,727 December 14, 2020 Series A preferred stock $ 0.5625 October 15, 2020 to January 14, 2021 January 15, 2021 $ 338 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 December 15, 2021 Common stock $ 1.50 October 1, 2021 to December 31, 2021 January 14, 2022 $ 38,509 December 15, 2021 Series A preferred stock $ 0.5625 October 15, 2021 to January 14, 2022 January 14, 2022 $ 338 |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Real Estate | |
Investments in Real Estate | 6. Investments in Real Estate Acquisitions The Company made the following acquisitions during the year ended December 31, 2021 (dollars in thousands): Rentable Initial Square Purchase Transaction Property Market Closing Date Feet (1)(17) Price Costs Total Trulieve FL Florida January 22, 2021 295,000 $ 23,800 $ 16 $ 23,816 (2) King's 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 71,000 3,100 9 3,109 (8) 4Front IL Illinois August 3, 2021 250,000 3,348 18 3,366 (9) Trulieve MD Maryland August 13, 2021 112,000 16,615 21 16,636 (10) Calyx 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) Gold Flora CA California October 15, 2021 201,000 51,000 13 51,013 (13) LivWell MI Michigan December 9, 2021 15,000 34,150 8 34,158 (14) CO/PA/ND Portfolio Various December 14, 2021 179,000 71,585 143 71,728 (15) Total 2,272,000 $ 287,653 $ 299 $ 287,952 (16) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) Trulieve acquired Harvest in 2021. The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $10.8 million. In June 2021, we amended the lease, which increased the improvement allowance by $7.1 million to a total of approximately $17.9 million, which also resulted in a corresponding adjustment to base rent for the lease at the property. (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 $14.5 million. In September 2021, we amended the lease, which increased the improvement allowance 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. (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. In November 2021, we amended the lease, which increased the improvement allowance by $8.7 million to total of $23.7 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. (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 consolidated balance sheet. (10) Trulieve acquired Harvest in 2021. 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) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $9.0 million. (14) We acquired the central utility plant facilities from the tenant at the property, which increased the total rentable square feet at the property to 205,000 square feet, provided reimbursements to the tenant for certain other improvements made at the property, and amended the lease to increase the improvement allowance for future improvements by $550,000 , all of which resulted in a corresponding adjustment to the base rent for the property. (15) We acquired a portfolio of 27 properties leased to multiple tenants with 24 properties located in Colorado, two properties located in North Dakota, and one property located in Pennsylvania . The tenants at three of the properties are expected to complete improvements at the properties for which we are obligated to provide reimbursement of up to a total of approximately $1.1 million. (16) Approximately $46.7 million was allocated to land, approximately $231.0 million was allocated to building and improvements, approximately $9.1 million was allocated to in-place leases and approximately $1.1 million was allocated to one above-market lease. (17) Excludes an additional approximately 110,000 rentable square feet relating to expansions at properties acquired prior to 2021. Acquired In-Place Lease Intangible Assets In-place lease intangible assets and related accumulated amortization as of December 31, 2021 is as follows (in thousands): At December 31, 2021 In-place lease intangible assets $ 9,181 Accumulated amortization (33) In-place lease intangible assets, net $ 9,148 Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our consolidated statements of income was approximately $33,000 for the year ended December 31, 2021. The weighted-average amortization period of the value of acquired in-place leases was approximately 11.7 years, and the estimated annual amortization of the value of the acquired in-place leases as of December 31, 2021 is as follows (in thousands): Year Amount 2022 $ 786 2023 786 2024 786 2025 786 2026 786 Thereafter 5,218 Total $ 9,148 Above-Market Lease At December 31, 2021, we had one above-market lease acquired on December 14, 2021 with an initial value of approximately $1.1 million and an amortization period of approximately 11.5 years. 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 $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 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 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 year ended December 31, 2021, we capitalized costs of approximately $384.1 million and funded approximately $374.5 million relating to improvements and construction activities at our properties. The properties acquired during the year ended December 31, 2021 generated approximately $19.2 million of rental revenue (including tenant reimbursements) and approximately $15.5 million of net operating income after deducting property and depreciation expenses, during that period. The properties acquired during the year ended December 31, 2020 generated approximately $27.2 million of rental revenue (including tenant reimbursements) and approximately $20.7 million net operating income after deducting property and depreciation expenses, during that period. Future contractual minimum rent (including base rent and property management fees) under the operating leases as of December 31, 2021 for future periods is summarized as follows (in thousands): Year Contractual Minimum Rent 2022 $ 258,705 2023 272,576 2024 280,595 2025 288,955 2026 297,597 Thereafter 4,237,164 Total $ 5,635,592 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt | |
Debt | 7. Debt Exchangeable Senior Notes As of December 31, 2021 and 2020, our Operating Partnership had outstanding approximately $33.4 million and $143.7 million, respectively, 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 December 31, 2021 was 15.32648 shares of our common stock per $1,000 principal amount of the Exchangeable Senior Notes and the exchange price at December 31, 2021 was approximately $65.25 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. At December 31, 2021, the if-exchanged value of the Exchangeable Senior Notes exceeded the principal amount by approximately $101.1 million. 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 as well as the debt discount, are being amortized using the effective interest method and recognized as non-cash interest expense over the expected term of the Exchangeable Senior Notes. In December 2021, our Operating Partnership entered into separate privately-negotiated exchange agreements with certain holders of the Exchangeable Senior Notes, pursuant to which the Operating Partnership delivered and paid an aggregate of (a) 1,684,237 shares of the Company’s common stock and (b) approximately $2.3 million in cash (consisting of approximately $1.2 million in accrued interest and approximately $1.1 million in inducement), collectively, in exchange for approximately $110.4 million principal amount of the Exchangeable Senior Notes (the “Exchange Transactions”). The issuance of the shares pursuant to the Exchange Transactions resulted in a non-cash increase to our additional paid-in capital account of approximately $109.0 million, primarily driven by the fair value of the shares issued, partially offset by the amount allocated to the repurchase of the exchange option. Following the closing of the Exchange Transactions, approximately $33.4 million in aggregate principal amount of the Exchangeable Senior Notes remain outstanding with terms unchanged. In connection with the Exchange Transactions, we recognized a million. The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): Year Ended December 31, 2021 2020 2019 Cash coupon $ 5,380 $ 5,391 $ 4,628 Amortization of debt discount 1,146 1,093 898 Amortization of issuance cost 991 947 780 Total interest expense $ 7,517 $ 7,431 $ 6,306 The following table details the carrying value of our Exchangeable Senior Notes (in thousands): At December 31, 2021 At December 31, 2020 Principal amount $ 33,373 $ 143,749 Unamortized discount (612) (3,785) Unamortized issuance cost (529) (3,271) Carrying value $ 32,232 $ 136,693 Accrued interest payable for the Exchangeable Senior Notes was approximately $365,000 and $1.6 million as of December 31, 2021 and 2020, respectively, and is included in accounts payable and accrued expenses on our consolidated balance sheets. Notes due 2026 On May 25, 2021, our Operating Partnership issued $300.0 million aggregate principal amount of its 5.50% Senior Notes due 2026 (the “Notes due 2026”). The Notes due 2026 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 Notes due 2026 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 Notes due 2026 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, TMI Trust Company, as trustee (as successor-in-interest to GLAS Trust Company LLC), and Securities Transfer Corporation, as registrar (as successor-in-interest to GLAS Trust Company LLC). The terms of the indenture provide that if the debt rating on the Notes due 2026 is downgraded or withdrawn entirely, interest on the Notes due 2026 will increase to a range of 6.0% to 6.5% based on such debt rating. In connection with the issuance of the Notes due 2026, 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 Notes due 2026. The following table details our interest expense related to the Notes due 2026 (in thousands): Year Ended December 31, 2021 Cash coupon $ 9,854 Amortization of issuance cost 715 Total interest expense $ 10,569 The following table details the carrying value of our Notes due 2026 (in thousands): At December 31, 2021 Principal amount $ 300,000 Unamortized issuance cost (6,140) Carrying value $ 293,860 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 Notes due 2026 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 December 31, 2021. 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 Notes due 2026, the Operating Partnership completed its exchange offer to exchange all of the outstanding Notes due 2026 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 Notes due 2026, representing 100% of the outstanding principal amount of the original Notes due 2026, was validly tendered and received prior to the expiration of the exchange offer. The terms of the new Notes due 2026 are substantially identical to the original Notes due 2026, except for transfer restrictions and registration rights relating to the original Notes due 2026. Accrued interest payable for the Notes due 2026 as of December 31, 2021 was approximately $2.1 million, and is included in accounts payable and accrued expenses on our condensed consolidated balance sheets. The following table summarizes the principal payments on our outstanding indebtedness as of December 31, 2021 (in thousands): Payments Due by Year Amount 2022 $ — 2023 — 2024 33,373 2025 — 2026 300,000 Thereafter — Total $ 333,373 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Net Income Per Share | |
Net Income Per Share | 8. Net Income Per Share Grants of restricted stock and restricted stock units (“RSUs”) of the Company in share-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per share under the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. Earnings per basic share under the two-class method is calculated based on dividends declared on common shares and other participating securities (“distributed earnings”) and the rights of participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends and dividend equivalents accruing during the period. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding participating securities. Earnings per basic share represents the summation of the distributed and undistributed earnings per share class divided by the total number of shares. Through December 31, 2021, all of the Company’s participating securities received dividends or dividend equivalents at an equal dividend rate per share. As a result, distributions to participating securities have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. The 2,180,550 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the year ended December 31, 2021, and were included in the computation of diluted earnings per share. The 2,158,837 and 2,100,307 potentially issuable shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were anti-dilutive for the years ended December 31, 2020 and 2019, respectively, and were excluded from the computation of diluted earnings per share. For the year ended December 31, 2021, 81,414 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 December 31, 2021 (see Note 10 for further discussion of the PSUs). Computations of net income per basic and diluted share were as follows (in thousands, except share and per share data): Years Ended December 31, 2021 2020 2019 Net income $ 113,990 $ 65,730 $ 23,475 Preferred stock dividends (1,352) (1,352) (1,352) Distribution to participating securities (557) (509) (396) Net income attributable to common stockholders used to compute net income per share - basic 112,081 63,869 21,727 Dilutive effect of Exchangeable Senior Notes 7,517 — — Net income attributable to common stockholders used to compute net income per share - diluted $ 119,598 $ 63,869 $ 21,727 Weighted-average common shares outstanding: Basic 23,903,017 19,443,602 10,546,016 Restricted stock and RSUs 96,174 114,017 138,052 PSUs 81,414 — — Dilutive effect of Exchangeable Senior Notes 2,180,550 — — Diluted 26,261,155 19,557,619 10,684,068 Net income attributable to common stockholders per share: Basic $ 4.69 $ 3.28 $ 2.06 Diluted $ 4.55 $ 3.27 $ 2.03 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and 2020 (in thousands): At December 31, 2021 At December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Investments (1) $ 324,889 $ 324,772 $ 619,275 $ 619,270 Exchangeable Senior Notes (2) $ 32,232 $ 134,270 $ 136,693 $ 397,663 Notes due 2026 (2) $ 293,860 $ 318,486 $ — $ — (1) 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 Notes due 2026 were trading in the private market. As of December 31, 2021 and 2020, cash equivalent instruments consisted of approximately $72.0 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 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, construction loan receivable, accounts payable, accrued expenses and other liabilities approximate their relative fair values due to the short-term maturities and market rates of interest of these instruments. |
Common Stock Incentive Plan
Common Stock Incentive Plan | 12 Months Ended |
Dec. 31, 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 withholding 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 years ended December 31, 2021, 2020 and 2019 is included in the table below: Weighted- Restricted Average Grant Date Shares Fair Value Nonvested balance at December 31, 2018 147,359 $ 23.98 Granted 56,460 $ 55.82 Vested (43,556) $ 25.82 Forfeited (1) (20,717) $ 18.98 Nonvested balance at December 31, 2019 139,546 $ 37.03 Granted 17,057 $ 75.96 Vested (51,705) $ 40.07 Forfeited (1) (28,552) $ 19.72 Nonvested balance at December 31, 2020 76,346 $ 50.14 Granted 9,679 $ 187.74 Vested (29,955) $ 52.31 Forfeited (1) (18,303) $ 31.99 Nonvested balance at December 31, 2021 37,767 $ 92.49 (1) All of these shares were forfeited to cover the employees’ tax withholding obligation upon vesting. The remaining unrecognized compensation cost of approximately $1.5 million for restricted stock awards is expected to be recognized over a weighted-average amortization period of approximately 1.6 years as of December 31, 2021. The fair value of restricted stock that vested in 2021, 2020 and 2019 was approximately $8.8 million, $6.0 million and $3.2 million, respectively. The following table summarizes our RSU activity for the years ended December 31, 2021 and 2020. There was no RSU activity for the year ended December 31, 2019. 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- Unvested Average Grant Date RSUs Fair Value Balance at December 31, 2019 — $ — Granted 36,687 $ 76.06 Balance at December 31, 2020 36,687 $ 76.06 Granted 23,639 $ 188.80 Balance at December 31, 2021 60,326 $ 120.24 The remaining unrecognized compensation cost of approximately $3.7 million for RSU awards is expected to be recognized over an amortization period of approximately 1.7 years as of December 31, 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 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 year ended December 31, 2021, we recognized stock-based compensation expense of $4.0 million relating to the PSU awards. As of December 31, 2021, the remaining unrecognized compensation cost of approximately $8.0 million relating to PSU awards is expected to be recognized over the remaining Performance Period of approximately 2.0 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Office Lease. Year Amount 2022 $ 241 2023 249 2024 256 2025 264 2026 295 Total future contractual lease payments 1,305 Effect of discounting (163) Office lease liability $ 1,142 Improvement Allowances. Construction Loan. Environmental Matters Litigation Deferred Compensation Plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events Investments Subsequent to December 31, 2021, we acquired the following properties, including commitments to fund improvements and construction, and made the following additional funds available to tenants for improvements at our existing properties (dollars in thousands): Rentable Square Purchase Improvement Property Market Closing Date Feet (1) Price Commitments Total (2) 4Front MA Massachusetts January 28, 2022 57,000 $ 16,000 $ — $ 16,000 GPI MI Michigan February 4, 2022 — — 18,000 18,000 (3) Ascend NJ New Jersey February 10, 2022 114,000 35,400 4,600 40,000 (4) Total 171,000 $ 51,400 $ 22,600 $ 74,000 (1) Includes expected rentable square feet at completion of construction. (2) Excludes transaction costs. (3) The amount relates to a lease amendment which increased the improvement allowance under a lease at one of our Michigan properties by $18.0 million to a total of approximately $47.5 million, and also resulted in a corresponding adjustment to base rent for the lease at the property. (4) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $4.6 million. In addition, we acquired additional land adjacent to one of our existing properties in Pennsylvania on February 2, 2022. In connection with the acquisition, we amended the lease for the existing property to incorporate this land into the leased area and reduced the existing improvement allowance under the lease by an amount equal to the purchase price for the land, which was approximately $3.3 million. |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | INNOVATIVE INDUSTRIAL PROPERTIES, INC. SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION As of December 31, 2021 (In thousands) Initial Costs Total Costs Costs Capitalized Year Building and Subsequent to Building and Accumulated Net Cost Property State Built/Renovated Land Improvements Acquisition Land Improvements Total Depreciation Basis Year Acquired Pharm AZ Arizona 1995/2017 $ 398 $ 14,629 $ 5,003 $ 398 $ 19,632 $ 20,030 $ (2,862) $ 17,168 2017 Pharm AZ Retail Arizona 2019 1,216 811 501 1,216 1,312 2,528 (122) 2,406 2019 Sacramento CA California 1990/2019 1,376 5,321 6,033 1,376 11,354 12,730 (976) 11,754 2019 Kings Garden CA Portfolio California Various (1)(11) 10,351 61,062 11,475 10,351 72,537 82,888 (3,336) 79,552 2019/2020/2021 Holistic CA California 1926/1976 1,713 11,307 1,077 1,713 12,384 14,097 (726) 13,371 2019 Vertical CA Portfolio California Various (2) 3,393 13,939 — 3,393 13,939 17,332 (892) 16,440 2019 Gold Flora CA California 2021/2021 5,930 45,081 5,243 5,930 50,324 56,254 (254) 56,000 2021 Columbia Care CO Colorado 1967/1978/2018 2,101 9,176 — 2,101 9,176 11,277 (1,029) 10,248 2018 LivWell CO Retail Portfolio Colorado Various (3) 546 2,781 72 546 2,853 3,399 (135) 3,264 2020 Trulieve FL Portfolio Florida Various (4)(11) 1,027 39,793 17,793 1,027 57,586 58,613 (2,016) 56,597 2019/2021 Parallel FL Portfolio Florida Various (5) 3,258 51,625 52,336 3,258 103,961 107,219 (3,388) 103,831 2020 Ascend IL Illinois 2015/2020 563 18,457 50,267 563 68,724 69,287 (4,365) 64,922 2018 Cresco IL Portfolio Illinois Various (6) 3,215 29,602 13,635 3,215 43,237 46,452 (3,265) 43,187 2019 PharmaCann IL Illinois 1992/2020 201 17,807 10,008 201 27,815 28,016 (2,024) 25,992 2019 Curaleaf IL Illinois 1984/2020 350 10,191 18,514 350 28,705 29,055 (2,276) 26,779 2019 GTI IL Illinois 2015/2020 739 8,284 40,997 739 49,281 50,020 (2,392) 47,628 2020 4Front IL Illinois (11) 3,366 — 5,804 3,366 5,804 9,170 (10) 9,160 2021 Holistic MD Maryland 2017 2,785 8,410 19,309 2,785 27,719 30,504 (3,148) 27,356 2017 Trulieve MD Maryland 1980/2021 1,861 14,775 8,206 1,861 22,981 24,842 (260) 24,582 2021 PharmaCann MA Massachusetts 2020 3,030 — 27,512 3,030 27,512 30,542 (1,824) 28,718 2018 Holistic MA Massachusetts 1980/2018 1,059 11,717 4,967 1,059 16,684 17,743 (1,398) 16,345 2018 Trulieve MA Massachusetts 1890/2021 694 2,831 40,035 694 42,866 43,560 (3,737) 39,823 2019 Ascend MA Massachusetts 1938/2021 2,202 24,568 22,059 2,202 46,627 48,829 (1,989) 46,840 2020 Cresco MA Massachusetts 1880/2021 650 7,119 15,840 650 22,959 23,609 (748) 22,861 2020 4Front MA Massachusetts 1987/2019 2,316 13,194 — 2,316 13,194 15,510 (389) 15,121 2020 Temescal MA Massachusetts 1978/2021 2,082 1,026 6,158 2,082 7,184 9,266 (77) 9,189 2021 Green Peak MI Michigan Various (7)(11) 3,840 17,206 18,228 3,840 35,434 39,274 (1,855) 37,419 2018/2021 Emerald Growth MI Michigan 1960/2020 389 6,489 3,139 389 9,628 10,017 (811) 9,206 2019 Ascend MI Michigan 1929/2021 409 4,360 14,894 409 19,254 19,663 (1,173) 18,490 2019 LivWell MI Michigan 1940/2020/2021 1,237 17,791 64,482 1,237 82,273 83,510 (3,340) 80,170 2019 Green Peak MI Retail Portfolio Michigan Various (8) 2,562 7,512 1,755 2,562 9,267 11,829 (762) 11,067 2019 Cresco MI Michigan 1930/1972/2021 1,385 3,631 26,754 1,385 30,385 31,770 (1,021) 30,749 2020 Holistic MI Michigan 2021 6,211 — 18,789 6,211 18,789 25,000 (428) 24,572 2020 Sozo MI Michigan 1951/2021 700 9,557 5,599 700 15,156 15,856 (247) 15,609 2021 Vireo MN Minnesota 2015/2017/2019 427 2,644 6,618 427 9,262 9,689 (1,072) 8,617 2017 Calyx MO Missouri (11) 753 787 8,491 753 9,278 10,031 (46) 9,985 2021 Las Vegas NV Nevada 1984/2020 1,088 2,768 5,771 1,088 8,539 9,627 (755) 8,872 2019 Curaleaf NJ New Jersey 1995/2020 702 4,857 29,511 702 34,368 35,070 (1,699) 33,371 2020 Columbia Care NJ Portfolio New Jersey Various (8) 466 11,974 1,580 466 13,554 14,020 (576) 13,444 2020 PharmaCann NY New York 2016/2021 7,600 22,475 9,765 7,600 32,240 39,840 (3,144) 36,696 2016 Vireo NY New York 1970/2021 1,593 3,157 27,566 1,593 30,723 32,316 (1,073) 31,243 2017 Curaleaf ND North Dakota 2018/2020 191 9,743 2,271 191 12,014 12,205 (805) 11,400 2019 PharmaCann OH Ohio 2019 712 — 19,310 712 19,310 20,022 (1,173) 18,849 2019 AYR OH Ohio 1954/1986/2020 22 1,014 2,501 22 3,515 3,537 (401) 3,136 2019 Cresco OH Ohio 2018/2020 235 10,377 1,981 235 12,358 12,593 (601) 11,992 2020 GTI OH Ohio 1937/2020 239 2,688 27,741 239 30,429 30,668 (1,070) 29,598 2020 Jushi PA Pennsylvania 1959/2020 275 5,603 34,013 275 39,616 39,891 (2,009) 37,882 2018 Maitri PA Pennsylvania 1970/2019 233 6,249 15,884 233 22,133 22,366 (1,762) 20,604 2019 Columbia Care PA Pennsylvania 1988/2020 1,353 11,854 29,745 1,353 41,599 42,952 (1,391) 41,561 2019 PharmaCann PA Pennsylvania 2021 954 — 27,070 954 27,070 28,024 (1,027) 26,997 2019 GTI PA Pennsylvania 1927/2017 1,435 19,098 19,304 1,435 38,402 39,837 (3,775) 36,062 2019 Curaleaf PA Pennsylvania 1980/2019 1,228 13,080 12,423 1,228 25,503 26,731 (2,243) 24,488 2019 Holistic PA Pennsylvania 1930/2020 941 7,941 10,265 941 18,206 19,147 (840) 18,307 2020 Parallel PA Pennsylvania 1976/2021 6,979 34,781 25,890 6,979 60,671 67,650 (1,050) 66,600 2021 Parallel TX Texas (11) 2,222 1,195 3,861 2,222 5,056 7,278 (14) 7,264 2021 CO/PA/ND Portfolio Various (11) Various (11) 17,526 44,134 — 17,526 44,134 61,660 (52) 61,608 2021 Columbia Care VA Virginia 2019/2020 231 11,582 7,936 231 19,518 19,749 (1,570) 18,179 2020 4Front WA Washington 1997/2015 1,826 15,684 — 1,826 15,684 17,510 (515) 16,995 2020 Total $ 122,386 $ 733,737 $ 865,981 $ 122,386 $ 1,599,718 $ 1,722,104 $ (81,938) $ 1,640,166 (1) Portfolio consists of eight properties constructed and renovated between 1969 and 2019. (2) Portfolio consists of four properties constructed and renovated between 1964 and 2020. (3) Portfolio consists of two properties constructed in 1998 and 2019. (4) Portfolio consists of two properties constructed in 1981 and 2019. One of the properties was renovated in 2020. (5) Portfolio consists of two properties originally constructed in 1982 and 2014. Both properties were renovated and expanded in 2020 and 2021. (6) Portfolio consists of two properties constructed in 2015 and 2016. Both properties were renovated in 2019. (7) Portfolio consists of two properties constructed in 1999 and 2018. (8) Portfolio consists of six properties constructed and renovated between 1957 and 2019. (9) Portfolio consists of two properties constructed between 1962 and 1974. Both properties were renovated in 2020. (10) Portfolio consists of 27 properties with 24 properties located in Colorado, two properties located in North Dakota, and one property located in Pennsylvania, which were constructed and renovated between 1870 and 2020. (11) As of December 31, 2021, all or a portion of the property was under active development or redevelopment. A reconciliation of historical cost and related accumulated depreciation is as follows (in thousands): Years Ended December 31, 2021 2020 2019 Investment in real estate, at cost: Balance at beginning of year $ 1,060,239 $ 518,031 $ 150,930 Purchases of investments in real estate 277,717 241,159 259,889 Additions and improvements 384,148 301,049 107,212 Balance at end of year $ 1,722,104 $ 1,060,239 $ 518,031 Accumulated Depreciation: Balance at beginning of year $ (40,195) $ (12,170) $ (3,571) Depreciation expense (41,743) (28,025) (8,599) Balance at end of year $ (81,938) $ (40,195) $ (12,170) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | |
Basis of Presentation | Basis of Presentation. 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 for the years ended December 31, 2021 and 2020 and financial position at December 31, 2021 and 2020. A prolonged outbreak or resurgence of COVID-19 could have a material adverse impact on the financial results and business operations of the Company. |
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. In December 2021, we acquired a portfolio of properties that included in-place leases. The fair value of acquired in-place leases is derived based on our assessment of estimated lost revenue and costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased. The amounts recorded for acquired in-place leases are reflected as in-place lease intangible assets, net on the balance sheet and are amortized on a straight-line basis as a component of depreciation and amortization expense over the remaining term of the applicable leases. The fair value of the above-market component of an acquired in-place operating lease is based upon the present value (calculated using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining non-cancellable lease term and (ii) our estimate of the rents that would be paid using fair market rental rates and rent escalations at the date of acquisition measured over the remaining non-cancellable term of the lease. The amount recorded for one above-market operating lease is included in other assets, net on the balance sheet and is amortized on a straight-line basis as a reduction of rental income over the remaining term of the applicable lease. |
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. For the years ended December 31, 2021, 2020 and 2019, we recognized depreciation expense of approximately $41.7 million, $28.0 million and $8.6 million, respectively, which are included in depreciation and amortization expense in our consolidated statements of income. 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 years ended December 31, 2021, 2020 and 2019. |
Revenue Recognition | Revenue Recognition. |
Construction Loan | Construction Loan. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash. |
Investments | Investments |
Exchangeable Notes | Exchangeable Notes. |
Deferred Financing Costs | Deferred Financing Costs. These costs are amortized as non-cash interest expense using the effective interest method over the life of the related obligations. |
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 package of practical expedients that allows an entity not to reassess upon adoption (i) whether an expired or existing contract contains a lease, (ii) whether a lease classification related to expired or existing lease arrangements, and (iii) whether costs incurred on expired or existing leases qualify as initial direct costs, and as a lessor, the practical expedient not to separate certain non-lease components, such as common area maintenance, from the lease component if the timing and pattern of transfer are the same for the non-lease component and 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 and a corresponding right-of-use asset related to our corporate office lease. The lease liability was initially measured based on the present value of the future lease payments discounted using the estimated incremental borrowing rate of 7.25%, which was 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. In November 2021, we amended the lease to extend the term from April 2025 to January 2027 in connection with an expansion of the leased space which did not commence until February 2022. As a result of the lease modification on the existing leased space, we re-measured the lease liability based on the present value of the future lease payments (excluding the extension option that we are not reasonably certain to exercise), discounted using the estimated incremental borrowing rate of 5.5%, which was 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 years ended December 31, 2021, 2020 and 2019, we recognized office lease expense of approximately $231,000, $229,000 and $82,000, respectively, which are included in general and administrative expense in our consolidated statements of income. For the years ended December 31, 2021, 2020 and 2019, amounts paid and classified as operating activities in our consolidated statements of cash flows for the office lease were approximately $234,000, $172,000 and $87,000, 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 consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our consolidated financial statements. In 2020, we undertook in-depth discussions with each of our tenants as they navigated the COVID-19 pandemic and associated severe economic disruption. In light of those discussions, in 2020, we granted temporary base rent and property management fee deferrals to three affected tenants. In connection with these deferrals, we entered into lease amendments with the three affected tenants to apply a portion of the security deposits that we hold under the leases to pay a portion of the March 2020 rent (for one tenant), pay April 2020 rent in full, defer rent for May and June 2020 in full, and provide for the pro rata repayment of the security deposit and deferred rent over an 18 month time period starting July 1, 2020. Pursuant to these amendments, a total of approximately $940,000 of security deposits were applied to the payment of base rent, property management fees and associated lease penalties for March and April 2020, including approximately $185,000 related to the partial payment of the March 2020 base rent and property management fees for one of the tenants; and a total of approximately $1.5 million in rent was deferred for May and June 2020. As of December 31, 2021, we have not executed deferrals for any other tenants, other than the deferrals for the three tenants discussed above. The FASB issued additional guidance for companies to account for any COVID-19 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 COVID-19 pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. Lease amendments that are not associated with the COVID-19 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. 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 Two of our tenants, PharmaCann Inc. (“PharmaCann”) (at five of our properties) and SH Parent Inc. (“Parallel”) (at four of our properties), represented approximately 12% and 10%, respectively, of our rental revenue (including tenant reimbursements) for the year ended December 31, 2021. Three of our tenants, PharmaCann (at five of our properties), Ascend Wellness Holdings, Inc. (“Ascend”) (at three of our properties), and Cresco Labs Inc. (“Cresco”) (at five of our properties), represented approximately 18%, 10%, and 10%, respectively, of our rental revenues (including tenant reimbursements) for the year ended December 31, 2020. Two of our tenants, PharmaCann (at five of our properties) and Ascend (at two of our properties), represented approximately 26% and 12%, respectively, of our rental revenues (including tenant reimbursements) for the year ended December 31, 2019. At December 31, 2021 and 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 December 31, 2021, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts. |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Dividends | |
Schedule of dividends declared | Amount Dividend Dividend Declaration Date Security Class Per Share Period Covered Paid Date Amount (In thousands) March 12, 2019 Common stock $ 0.45 January 1, 2019 to March 31, 2019 April 15, 2019 $ 4,412 March 12, 2019 Series A preferred stock $ 0.5625 January 15, 2019 to April 14, 2019 April 15, 2019 $ 338 June 14, 2019 Common stock $ 0.60 April 1, 2019 to June 30, 2019 July 15, 2019 $ 5,885 June 14, 2019 Series A preferred stock $ 0.5625 April 15, 2019 to July 14, 2019 July 15, 2019 $ 338 September 13, 2019 Common stock $ 0.78 July 1, 2019 to September 30, 2019 October 15, 2019 $ 8,866 September 13, 2019 Series A preferred stock $ 0.5625 July 15, 2019 to October 14, 2019 October 15, 2019 $ 338 December 10, 2019 Common stock $ 1.00 October 1, 2019 to December 31, 2019 January 15, 2020 $ 12,637 December 10, 2019 Series A preferred stock $ 0.5625 October 15, 2019 to January 14, 2020 January 15, 2020 $ 338 March 13, 2020 Common stock $ 1.00 January 1, 2020 to March 31, 2020 April 15, 2020 $ 17,070 March 13, 2020 Series A preferred stock $ 0.5625 January 15, 2020 to April 14, 2020 April 15, 2020 $ 338 June 15, 2020 Common stock $ 1.06 April 1, 2020 to June 30, 2020 July 15, 2020 $ 19,770 June 15, 2020 Series A preferred stock $ 0.5625 April 15, 2020 to July 14, 2020 July 15, 2020 $ 338 September 15, 2020 Common stock $ 1.17 July 1, 2020 to September 30, 2020 October 15, 2020 $ 25,987 September 15, 2020 Series A preferred stock $ 0.5625 July 15, 2020 to October 14, 2020 October 15, 2020 $ 338 December 14, 2020 Common stock $ 1.24 October 1, 2020 to December 31, 2020 January 15, 2021 $ 29,727 December 14, 2020 Series A preferred stock $ 0.5625 October 15, 2020 to January 14, 2021 January 15, 2021 $ 338 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 December 15, 2021 Common stock $ 1.50 October 1, 2021 to December 31, 2021 January 14, 2022 $ 38,509 December 15, 2021 Series A preferred stock $ 0.5625 October 15, 2021 to January 14, 2022 January 14, 2022 $ 338 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Real Estate | |
Schedule of real estate properties | The Company made the following acquisitions during the year ended December 31, 2021 (dollars in thousands): Rentable Initial Square Purchase Transaction Property Market Closing Date Feet (1)(17) Price Costs Total Trulieve FL Florida January 22, 2021 295,000 $ 23,800 $ 16 $ 23,816 (2) King's 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 71,000 3,100 9 3,109 (8) 4Front IL Illinois August 3, 2021 250,000 3,348 18 3,366 (9) Trulieve MD Maryland August 13, 2021 112,000 16,615 21 16,636 (10) Calyx 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) Gold Flora CA California October 15, 2021 201,000 51,000 13 51,013 (13) LivWell MI Michigan December 9, 2021 15,000 34,150 8 34,158 (14) CO/PA/ND Portfolio Various December 14, 2021 179,000 71,585 143 71,728 (15) Total 2,272,000 $ 287,653 $ 299 $ 287,952 (16) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) Trulieve acquired Harvest in 2021. The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to approximately $10.8 million. In June 2021, we amended the lease, which increased the improvement allowance by $7.1 million to a total of approximately $17.9 million, which also resulted in a corresponding adjustment to base rent for the lease at the property. (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 $14.5 million. In September 2021, we amended the lease, which increased the improvement allowance 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. (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. In November 2021, we amended the lease, which increased the improvement allowance by $8.7 million to total of $23.7 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. (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 consolidated balance sheet. (10) Trulieve acquired Harvest in 2021. 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) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $9.0 million. (14) We acquired the central utility plant facilities from the tenant at the property, which increased the total rentable square feet at the property to 205,000 square feet, provided reimbursements to the tenant for certain other improvements made at the property, and amended the lease to increase the improvement allowance for future improvements by $550,000 , all of which resulted in a corresponding adjustment to the base rent for the property. (15) We acquired a portfolio of 27 properties leased to multiple tenants with 24 properties located in Colorado, two properties located in North Dakota, and one property located in Pennsylvania . The tenants at three of the properties are expected to complete improvements at the properties for which we are obligated to provide reimbursement of up to a total of approximately $1.1 million. (16) Approximately $46.7 million was allocated to land, approximately $231.0 million was allocated to building and improvements, approximately $9.1 million was allocated to in-place leases and approximately $1.1 million was allocated to one above-market lease. (17) Excludes an additional approximately 110,000 rentable square feet relating to expansions at properties acquired prior to 2021. |
Schedule of in-place lease intangible assets and related accumulated amortization | At December 31, 2021 In-place lease intangible assets $ 9,181 Accumulated amortization (33) In-place lease intangible assets, net $ 9,148 |
Schedule of estimated annual amortization of acquired in-place leases | Year Amount 2022 $ 786 2023 786 2024 786 2025 786 2026 786 Thereafter 5,218 Total $ 9,148 |
Schedule of future contractual minimum rent | Future contractual minimum rent (including base rent and property management fees) under the operating leases as of December 31, 2021 for future periods is summarized as follows (in thousands): Year Contractual Minimum Rent 2022 $ 258,705 2023 272,576 2024 280,595 2025 288,955 2026 297,597 Thereafter 4,237,164 Total $ 5,635,592 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of principal payments on outstanding indebtedness | Payments Due by Year Amount 2022 $ — 2023 — 2024 33,373 2025 — 2026 300,000 Thereafter — Total $ 333,373 |
Exchangeable Senior Notes | |
Schedule of interest expense | The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): Year Ended December 31, 2021 2020 2019 Cash coupon $ 5,380 $ 5,391 $ 4,628 Amortization of debt discount 1,146 1,093 898 Amortization of issuance cost 991 947 780 Total interest expense $ 7,517 $ 7,431 $ 6,306 |
Schedule of carrying value | The following table details the carrying value of our Exchangeable Senior Notes (in thousands): At December 31, 2021 At December 31, 2020 Principal amount $ 33,373 $ 143,749 Unamortized discount (612) (3,785) Unamortized issuance cost (529) (3,271) Carrying value $ 32,232 $ 136,693 |
Notes due 2026 | |
Schedule of interest expense | The following table details our interest expense related to the Notes due 2026 (in thousands): Year Ended December 31, 2021 Cash coupon $ 9,854 Amortization of issuance cost 715 Total interest expense $ 10,569 |
Schedule of carrying value | The following table details the carrying value of our Notes due 2026 (in thousands): At December 31, 2021 Principal amount $ 300,000 Unamortized issuance cost (6,140) Carrying value $ 293,860 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Income Per Share | |
Schedule of earnings per share, basic and diluted | Computations of net income per basic and diluted share were as follows (in thousands, except share and per share data): Years Ended December 31, 2021 2020 2019 Net income $ 113,990 $ 65,730 $ 23,475 Preferred stock dividends (1,352) (1,352) (1,352) Distribution to participating securities (557) (509) (396) Net income attributable to common stockholders used to compute net income per share - basic 112,081 63,869 21,727 Dilutive effect of Exchangeable Senior Notes 7,517 — — Net income attributable to common stockholders used to compute net income per share - diluted $ 119,598 $ 63,869 $ 21,727 Weighted-average common shares outstanding: Basic 23,903,017 19,443,602 10,546,016 Restricted stock and RSUs 96,174 114,017 138,052 PSUs 81,414 — — Dilutive effect of Exchangeable Senior Notes 2,180,550 — — Diluted 26,261,155 19,557,619 10,684,068 Net income attributable to common stockholders per share: Basic $ 4.69 $ 3.28 $ 2.06 Diluted $ 4.55 $ 3.27 $ 2.03 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and 2020 (in thousands): At December 31, 2021 At December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Investments (1) $ 324,889 $ 324,772 $ 619,275 $ 619,270 Exchangeable Senior Notes (2) $ 32,232 $ 134,270 $ 136,693 $ 397,663 Notes due 2026 (2) $ 293,860 $ 318,486 $ — $ — (1) 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 Notes due 2026 were trading in the private market. |
Common Stock Incentive Plan (Ta
Common Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 years ended December 31, 2021, 2020 and 2019 is included in the table below: Weighted- Restricted Average Grant Date Shares Fair Value Nonvested balance at December 31, 2018 147,359 $ 23.98 Granted 56,460 $ 55.82 Vested (43,556) $ 25.82 Forfeited (1) (20,717) $ 18.98 Nonvested balance at December 31, 2019 139,546 $ 37.03 Granted 17,057 $ 75.96 Vested (51,705) $ 40.07 Forfeited (1) (28,552) $ 19.72 Nonvested balance at December 31, 2020 76,346 $ 50.14 Granted 9,679 $ 187.74 Vested (29,955) $ 52.31 Forfeited (1) (18,303) $ 31.99 Nonvested balance at December 31, 2021 37,767 $ 92.49 (1) All of these shares 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 years ended December 31, 2021 and 2020. There was no RSU activity for the year ended December 31, 2019. 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- Unvested Average Grant Date RSUs Fair Value Balance at December 31, 2019 — $ — Granted 36,687 $ 76.06 Balance at December 31, 2020 36,687 $ 76.06 Granted 23,639 $ 188.80 Balance at December 31, 2021 60,326 $ 120.24 |
PSUs | |
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% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Schedule of future contractual lease payments | Year Amount 2022 $ 241 2023 249 2024 256 2025 264 2026 295 Total future contractual lease payments 1,305 Effect of discounting (163) Office lease liability $ 1,142 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Schedule of commitments to fund tenant improvements and construction | Subsequent to December 31, 2021, we acquired the following properties, including commitments to fund improvements and construction, and made the following additional funds available to tenants for improvements at our existing properties (dollars in thousands): Rentable Square Purchase Improvement Property Market Closing Date Feet (1) Price Commitments Total (2) 4Front MA Massachusetts January 28, 2022 57,000 $ 16,000 $ — $ 16,000 GPI MI Michigan February 4, 2022 — — 18,000 18,000 (3) Ascend NJ New Jersey February 10, 2022 114,000 35,400 4,600 40,000 (4) Total 171,000 $ 51,400 $ 22,600 $ 74,000 (1) Includes expected rentable square feet at completion of construction. (2) Excludes transaction costs. (3) The amount relates to a lease amendment which increased the improvement allowance under a lease at one of our Michigan properties by $18.0 million to a total of approximately $47.5 million, and also resulted in a corresponding adjustment to base rent for the lease at the property. (4) The tenant is expected to complete improvements at the property, for which we agreed to provide reimbursement of up to $4.6 million. |
Organization (Details)
Organization (Details) | Dec. 31, 2021 |
Iip Operating Partnership Lp [Member] | |
Percentage Leased | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Additional Information (Details) | Jul. 01, 2020 | Jan. 01, 2019 | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($)tenant | Dec. 31, 2019USD ($) | Nov. 30, 2021 | Jun. 30, 2021USD ($) | Dec. 31, 2018 |
Number of Reportable Segments | segment | 1 | ||||||||||
Depreciation expense | $ 41,700,000 | $ 28,000,000 | $ 8,600,000 | ||||||||
Impairment loss | 0 | 0 | 0 | ||||||||
Maximum construction loan agreed to lend | $ 18,500,000 | ||||||||||
Construction loan funded | 12,916,000 | 0 | |||||||||
Cash equivalents | 72,000,000 | $ 98,300,000 | |||||||||
Lease, Practical Expedients, Package [true false] | true | ||||||||||
Incremental borrowing rate | 5.50% | 7.25% | |||||||||
Number of affected tenants | tenant | 3 | ||||||||||
Number of tenants for whom security deposits were applied | tenant | 1 | ||||||||||
Repayment period | 18 months | ||||||||||
Security deposits | $ 940,000 | ||||||||||
Repayments of base rent and property management fee | $ 185,000 | ||||||||||
Deferred rent | $ 1,500,000 | ||||||||||
Amounts paid and classified as operating activities for the office lease | 234,000 | $ 172,000 | 87,000 | ||||||||
Adjustment | Accounting Standards Update 2020-06 | |||||||||||
Accumulated deficit | $ 728,000 | ||||||||||
Geographic Concentration Risk [Member] | Net real estate held for investment | |||||||||||
Concentration Risk, Threshold Percentage | 5.00% | 5.00% | |||||||||
General and administrative expense | |||||||||||
Office lease expense | $ 231,000 | $ 229,000 | $ 82,000 | ||||||||
Maximum | |||||||||||
Cash, FDIC Insured Amount | $ 250,000 | ||||||||||
Buildings and improvements and tenant improvements | Maximum | |||||||||||
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 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2021propertytenant | Dec. 31, 2020tenantproperty | Dec. 31, 2019propertytenant | |
Concentration Risk [Line Items] | |||
Number of Properties | 103 | ||
Rental revenues (including tenant reimbursements) | Customer concentration | |||
Concentration Risk [Line Items] | |||
Number of Tenants | tenant | 2 | 3 | 2 |
Rental revenues (including tenant reimbursements) | Customer concentration | PharmaCann Inc. | |||
Concentration Risk [Line Items] | |||
Number of Properties | 5 | 5 | 5 |
Percentage of Rental Revenue | 12.00% | 18.00% | 26.00% |
Rental revenues (including tenant reimbursements) | Customer concentration | SH Parent, Inc. (Parallel) | |||
Concentration Risk [Line Items] | |||
Number of Properties | 4 | ||
Percentage of Rental Revenue | 10.00% | ||
Rental revenues (including tenant reimbursements) | Customer concentration | Ascend Wellness Holdings, Inc [Member] | |||
Concentration Risk [Line Items] | |||
Number of Properties | 3 | 2 | |
Percentage of Rental Revenue | 10.00% | 12.00% | |
Rental revenues (including tenant reimbursements) | Customer concentration | Cresco Labs, Inc [Member] | |||
Concentration Risk [Line Items] | |||
Number of Properties | 5 | ||
Percentage of Rental Revenue | 10.00% |
Common Stock (Details)
Common Stock (Details) - $ / shares | Dec. 31, 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, Issued | 25,612,541 | 23,936,928 |
Common Stock, Shares, Outstanding | 25,612,541 | 23,936,928 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 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 | Jan. 14, 2022 | Dec. 15, 2021 | Oct. 15, 2021 | Sep. 15, 2021 | Jul. 15, 2021 | Jun. 15, 2021 | Apr. 15, 2021 | Mar. 15, 2021 | Jan. 15, 2021 | Dec. 14, 2020 | Oct. 15, 2020 | Sep. 15, 2020 | Jul. 15, 2020 | Jun. 15, 2020 | Apr. 15, 2020 | Mar. 13, 2020 | Jan. 15, 2020 | Dec. 10, 2019 | Oct. 15, 2019 | Sep. 13, 2019 | Jul. 15, 2019 | Jun. 14, 2019 | Apr. 15, 2019 | Mar. 12, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred Stock. | |||||||||||||||||||||||||||
Dividends declared per common share | $ 1.50 | $ 1.50 | $ 1.40 | $ 1.32 | $ 1.24 | $ 1.17 | $ 1.06 | $ 1 | $ 1 | $ 0.78 | $ 0.60 | $ 0.45 | |||||||||||||||
Dividends declared per Series A preferred stock | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | |||||||||||||||
Dividend amount - Common stock | $ 38,509 | $ 35,983 | $ 33,584 | $ 31,660 | $ 29,727 | $ 25,987 | $ 19,770 | $ 17,070 | $ 12,637 | $ 8,866 | $ 5,885 | $ 4,412 | $ 130,954 | $ 75,464 | $ 22,584 | ||||||||||||
Dividend amount - Series A preferred stock | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 1,352 | $ 1,352 | $ 1,352 |
Investments in Real Estate (Det
Investments in Real Estate (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)ft² | |
Rentable Square Feet | ft² | 2,272,000 |
Initial Purchase Price | $ 287,653 |
Transaction Costs | 299 |
Total | 287,952 |
In-place lease intangible assets | |
Total | 9,100 |
Above Market Leases | |
Total | $ 1,100 |
Trulieve FL [Member] | |
Rentable Square Feet | ft² | 295,000 |
Initial Purchase Price | $ 23,800 |
Transaction Costs | 16 |
Total | $ 23,816 |
Kings Garden CA | |
Rentable Square Feet | ft² | 180,000 |
Initial Purchase Price | $ 1,350 |
Transaction Costs | 7 |
Total | $ 1,357 |
Parallel TX | |
Rentable Square Feet | ft² | 63,000 |
Initial Purchase Price | $ 3,400 |
Transaction Costs | 17 |
Total | $ 3,417 |
GPI MI Davis Hwy | |
Rentable Square Feet | ft² | 175,000 |
Initial Purchase Price | $ 15,550 |
Transaction Costs | 4 |
Total | $ 15,554 |
Parallel PA | |
Rentable Square Feet | ft² | 239,000 |
Initial Purchase Price | $ 41,750 |
Transaction Costs | 11 |
Total | $ 41,761 |
Sozo MI | |
Rentable Square Feet | ft² | 85,000 |
Initial Purchase Price | $ 10,250 |
Transaction Costs | 9 |
Total | $ 10,259 |
Temescal MA | |
Rentable Square Feet | ft² | 71,000 |
Initial Purchase Price | $ 3,100 |
Transaction Costs | 9 |
Total | $ 3,109 |
4Front IL | |
Rentable Square Feet | ft² | 250,000 |
Initial Purchase Price | $ 3,348 |
Transaction Costs | 18 |
Total | $ 3,366 |
Trulieve MD | |
Rentable Square Feet | ft² | 112,000 |
Initial Purchase Price | $ 16,615 |
Transaction Costs | 21 |
Total | $ 16,636 |
Calyx MO | |
Rentable Square Feet | ft² | 83,000 |
Initial Purchase Price | $ 1,530 |
Transaction Costs | 11 |
Total | $ 1,541 |
Vireo NY | |
Rentable Square Feet | ft² | 324,000 |
Initial Purchase Price | $ 10,225 |
Transaction Costs | 12 |
Total | $ 10,237 |
Gold Flora CA | |
Rentable Square Feet | ft² | 201,000 |
Initial Purchase Price | $ 51,000 |
Transaction Costs | 13 |
Total | $ 51,013 |
LivWell MI | |
Rentable Square Feet | ft² | 15,000 |
Initial Purchase Price | $ 34,150 |
Transaction Costs | 8 |
Total | $ 34,158 |
CO/PA/ND Portfolio | |
Rentable Square Feet | ft² | 179,000 |
Initial Purchase Price | $ 71,585 |
Transaction Costs | 143 |
Total | $ 71,728 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Aug. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Apr. 30, 2021USD ($)ft² | Feb. 28, 2021USD ($) | Dec. 31, 2021USD ($)ft²buildingpropertylease | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 10, 2022USD ($)ft² | Jan. 31, 2021USD ($) | |
Rentable Square Feet | ft² | 2,272,000 | ||||||||||
Total Property Acquisitions | $ 287,952,000 | ||||||||||
Rental (including tenant reimbursements) | 204,551,000 | $ 116,896,000 | $ 44,667,000 | ||||||||
Operating Income (Loss) | 135,371,000 | 69,737,000 | $ 24,935,000 | ||||||||
Real Estate Property Cost | 384,100,000 | ||||||||||
Total investment in property | 1,640,166,000 | 1,020,044,000 | |||||||||
Tenant improvements and construction activities funded | $ 374,500,000 | ||||||||||
Rentable Area Excluded | ft² | 110,000 | ||||||||||
Amortization expense | $ 33,000 | ||||||||||
Weighted-average amortization period (in years) | 11 years 8 months 12 days | ||||||||||
Michigan Properties | |||||||||||
Increase amount of tenant improvement allowance | $ 6,900,000 | ||||||||||
Tenant improvement allowance | 29,900,000 | ||||||||||
New York Properties | |||||||||||
Increase amount of tenant improvement allowance | 2,500,000 | ||||||||||
Tenant improvement allowance | $ 33,500,000 | ||||||||||
Pennsylvania properties | |||||||||||
Rentable Square Feet | ft² | 89,000 | ||||||||||
Increase amount of tenant improvement allowance | $ 30,000,000 | ||||||||||
Tenant improvement 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 improvement allowance | 16,200,000 | ||||||||||
Maryland properties [Member] | |||||||||||
Increase amount of tenant improvement allowance | $ 8,000,000 | ||||||||||
Illinois properties [Member] | |||||||||||
Increase amount of tenant improvement allowance | $ 20,000,000 | ||||||||||
Tenant improvement allowance | 52,000,000 | ||||||||||
Subsequent Event | |||||||||||
Agreed reimbursement for redevelopment of building | $ 22,600,000 | ||||||||||
Rentable Square Feet | ft² | 171,000 | ||||||||||
Total Property Acquisitions | $ 74,000,000 | ||||||||||
Maximum | California Property | |||||||||||
Funding for future tenant improvements | $ 11,000,000 | ||||||||||
Above Market Leases | |||||||||||
Total Property Acquisitions | $ 1,100,000 | ||||||||||
Number of lease acquired | lease | 1 | ||||||||||
Initial value | $ 1,100,000 | ||||||||||
Amortization period (in years) | 11 years 6 months | ||||||||||
Land | |||||||||||
Total Property Acquisitions | $ 46,700,000 | ||||||||||
Building and Improvements | |||||||||||
Total Property Acquisitions | 231,000,000 | ||||||||||
Properties Acquired In 2021 | |||||||||||
Rental (including tenant reimbursements) | 19,200,000 | ||||||||||
Operating Income (Loss) | $ 15,500,000 | ||||||||||
Properties Acquired In 2020 | |||||||||||
Rental (including tenant reimbursements) | 27,200,000 | ||||||||||
Operating Income (Loss) | $ 20,700,000 | ||||||||||
Trulieve FL [Member] | |||||||||||
Rentable Square Feet | ft² | 295,000 | ||||||||||
Total Property Acquisitions | $ 23,816,000 | ||||||||||
Increase amount of tenant improvement allowance | 7,100,000 | ||||||||||
Tenant improvement allowance | $ 17,900,000 | ||||||||||
Trulieve FL [Member] | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 10,800,000 | ||||||||||
Kings Garden CA | |||||||||||
Number of building expected to be constructed | building | 2 | ||||||||||
Rentable Square Feet | ft² | 180,000 | ||||||||||
Total Property Acquisitions | $ 1,357,000 | ||||||||||
Kings Garden CA | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 51,400,000 | ||||||||||
Parallel TX | |||||||||||
Number of building expected to be constructed | building | 3 | ||||||||||
Rentable Square Feet | ft² | 63,000 | ||||||||||
Total Property Acquisitions | $ 3,417,000 | ||||||||||
Parallel TX | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 24,000,000 | ||||||||||
GPI MI Davis Hwy | |||||||||||
Rentable Square Feet | ft² | 175,000 | ||||||||||
Total Property Acquisitions | $ 15,554,000 | ||||||||||
Increase amount of tenant improvement allowance | 15,000,000 | ||||||||||
Tenant improvement allowance | $ 29,500,000 | ||||||||||
GPI MI Davis Hwy | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 14,500,000 | ||||||||||
Parallel PA | |||||||||||
Rentable Square Feet | ft² | 239,000 | ||||||||||
Total Property Acquisitions | $ 41,761,000 | ||||||||||
Parallel PA | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 26,000,000 | ||||||||||
Sozo MI | |||||||||||
Rentable Square Feet | ft² | 85,000 | ||||||||||
Total Property Acquisitions | $ 10,259,000 | ||||||||||
Sozo MI | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 5,700,000 | ||||||||||
Temescal MA | |||||||||||
Rentable Square Feet | ft² | 71,000 | ||||||||||
Total Property Acquisitions | $ 3,109,000 | ||||||||||
Increase amount of tenant improvement allowance | $ 8,700,000 | ||||||||||
Tenant improvement allowance | $ 23,700,000 | ||||||||||
Temescal MA | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 15,000,000 | ||||||||||
4Front IL | |||||||||||
Rentable Square Feet | ft² | 250,000 | ||||||||||
Total Property Acquisitions | $ 3,366,000 | ||||||||||
4Front IL | Other assets, net | |||||||||||
Notes receivable | 3,200,000 | ||||||||||
4Front IL | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 43,800,000 | ||||||||||
Trulieve MD | |||||||||||
Rentable Square Feet | ft² | 112,000 | ||||||||||
Total Property Acquisitions | $ 16,636,000 | ||||||||||
Trulieve MD | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 12,900,000 | ||||||||||
Calyx MO | |||||||||||
Rentable Square Feet | ft² | 83,000 | ||||||||||
Total Property Acquisitions | $ 1,541,000 | ||||||||||
Calyx MO | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 26,700,000 | ||||||||||
Vireo NY | |||||||||||
Rentable Square Feet | ft² | 324,000 | ||||||||||
Total Property Acquisitions | $ 10,237,000 | ||||||||||
Vireo NY | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 46,100,000 | ||||||||||
Gold Flora CA | |||||||||||
Rentable Square Feet | ft² | 201,000 | ||||||||||
Total Property Acquisitions | $ 51,013,000 | ||||||||||
Gold Flora CA | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 9,000,000 | ||||||||||
LivWell MI | |||||||||||
Rentable Square Feet | ft² | 15,000 | ||||||||||
Total Property Acquisitions | $ 34,158,000 | ||||||||||
Total net rentable area for properties owned after acquisition | ft² | 205,000 | ||||||||||
Increase amount of tenant improvement allowance | $ 550,000 | ||||||||||
CO PA ND Portfolio | |||||||||||
Rentable Square Feet | ft² | 179,000 | ||||||||||
Total Property Acquisitions | $ 71,728,000 | ||||||||||
Number of properties included in the portfolio | property | 27 | ||||||||||
Number of Properties, Tenant to Complete Improvements | property | 3 | ||||||||||
CO PA ND Portfolio | Colorado | |||||||||||
Number of properties included in the portfolio | property | 24 | ||||||||||
CO PA ND Portfolio | North Dakota | |||||||||||
Number of properties included in the portfolio | property | 2 | ||||||||||
CO PA ND Portfolio | Pennsylvania | |||||||||||
Number of properties included in the portfolio | property | 1 | ||||||||||
CO PA ND Portfolio | Maximum | |||||||||||
Agreed reimbursement for redevelopment of building | $ 1,100,000 |
Investments in Real Estate - In
Investments in Real Estate - Intangible assets and related accumulated amortization (Details) - In-place lease intangible assets $ in Thousands | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
In-place lease intangible assets | $ 9,181 |
Accumulated amortization | (33) |
In-place lease intangible assets, net | $ 9,148 |
Investments in Real Estate - Es
Investments in Real Estate - Estimated annual amortization (Details) - In-place lease intangible assets $ in Thousands | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2022 | $ 786 |
2023 | 786 |
2024 | 786 |
2025 | 786 |
2026 | 786 |
Thereafter | 5,218 |
In-place lease intangible assets, net | $ 9,148 |
Investments in Real Estate - Fu
Investments in Real Estate - Future Contractual Minimum Rent (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Contractual Minimum Rent | |
2022 | $ 258,705 |
2023 | 272,576 |
2024 | 280,595 |
2025 | 288,955 |
2025 | 297,597 |
Thereafter | 4,237,164 |
Total | $ 5,635,592 |
Debt - Exchangeable Senior Note
Debt - Exchangeable Senior Notes - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 28, 2019USD ($) | |
Loss on induced exchange of exchangeable senior notes | $ 3,700,000 | $ 3,692,000 | $ 0 | $ 0 | |
Exchangeable Senior Notes | |||||
Outstanding principal amount | $ 33,400,000 | $ 33,400,000 | 143,700,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | |||
If-converted value in excess of principal amount | $ 101,100,000 | ||||
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 | ||||
Number of shares issued upon conversion | shares | 1,684,237 | ||||
Cash paid | $ 2,300,000 | ||||
Accrued interest paid | 1,200,000 | ||||
Inducement | 1,100,000 | ||||
Principal amount of Notes | 110,400,000 | ||||
Non-cash increase to APIC | 109,000,000 | ||||
Exchangeable Senior Notes | Accounts payable and accrued expenses | |||||
Accrued interest payable | $ 365,000 | $ 365,000 | $ 1,600,000 | ||
Exchangeable Senior Notes | Common Stock | |||||
Debt Instrument, Convertible, Conversion Ratio | 0.01532648 | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 65.25 | $ 65.25 |
Debt - Exchangeable Senior No_2
Debt - Exchangeable Senior Notes - Interest expense (Details) - Exchangeable Senior Notes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash coupon | $ 5,380 | $ 5,391 | $ 4,628 |
Amortization of debt discount | 1,146 | 1,093 | 898 |
Amortization of issuance cost | 991 | 947 | 780 |
Total interest expense | $ 7,517 | $ 7,431 | $ 6,306 |
Debt - Exchangeable Senior No_3
Debt - Exchangeable Senior Notes - Carrying value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Principal amount | $ 333,373 | |
Exchangeable Senior Notes | ||
Principal amount | 33,373 | $ 143,749 |
Unamortized discount | (612) | (3,785) |
Unamortized issuance cost | (529) | (3,271) |
Carrying value | $ 32,232 | $ 136,693 |
Debt - Notes due 2026 (Details)
Debt - Notes due 2026 (Details) - USD ($) $ in Thousands | May 25, 2021 | Dec. 31, 2021 | Oct. 19, 2021 |
Principal amount | $ 333,373 | ||
Notes due 2026 | |||
Principal amount | $ 300,000 | $ 300,000 | |
Interest rate | 5.50% | ||
Issuance costs | $ 6,800 | ||
Notes due 2026 | Minimum | |||
Debt instrument change in debt rating interest rate | 6.00% | ||
Notes due 2026 | Maximum | |||
Debt instrument change in debt rating interest rate | 6.50% | ||
Notes due 2026 | Redeemed Prior To February 25, 2026 | |||
Redemption price percentage | 100.00% | ||
Notes due 2026 | Redeemed On Or After February 25, 2026 [Member] | |||
Redemption price percentage | 100.00% | ||
Notes due 2026 | Accounts payable and accrued expenses | |||
Accrued interest payable | $ 2,100 | ||
5.50% Senior Notes Due 2026 | |||
Principal amount | $ 300,000 | ||
Interest rate | 5.50% | ||
Percentage of outstanding principal amount | 100.00% |
Debt - Notes due 2026 - Interes
Debt - Notes due 2026 - Interest expense (Details) - Notes due 2026 $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Cash coupon | $ 9,854 |
Amortization of issuance cost | 715 |
Total interest expense | $ 10,569 |
Debt - Notes due 2026 - Carryin
Debt - Notes due 2026 - Carrying value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | May 25, 2021 |
Principal amount | $ 333,373 | |
Notes due 2026 | ||
Principal amount | 300,000 | $ 300,000 |
Unamortized issuance cost | (6,140) | |
Carrying value | $ 293,860 |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt | |
2024 | $ 33,373 |
2026 | 300,000 |
Total | $ 333,373 |
Net Income Per Share - Addition
Net Income Per Share - Additional information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Dilutive effect of Exchangeable Senior Notes | 2,180,550 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,158,837 | 2,100,307 | |
PSUs | |||
Dilutive effect of PSUs | 81,414 | ||
PSUs | Employees | |||
Dilutive effect of PSUs | 81,414 |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 113,990 | $ 65,730 | $ 23,475 |
Preferred stock dividends | (1,352) | (1,352) | (1,352) |
Distribution to participating securities | (557) | (509) | (396) |
Net income attributable to common stockholders used to compute net income per share - basic | 112,081 | 63,869 | 21,727 |
Dilutive effect of Exchangeable Senior Notes | 7,517 | ||
Net income attributable to common stockholders used to compute net income per share - diluted | $ 119,598 | $ 63,869 | $ 21,727 |
Weighted average common shares outstanding: | |||
Basic | 23,903,017 | 19,443,602 | 10,546,016 |
Dilutive effect of Exchangeable Senior Notes | 2,180,550 | ||
Diluted | 26,261,155 | 19,557,619 | 10,684,068 |
Net income attributable to common stockholders per share: | |||
Basic | $ 4.69 | $ 3.28 | $ 2.06 |
Diluted | $ 4.55 | $ 3.27 | $ 2.03 |
Restricted stock and RSUs | |||
Weighted average common shares outstanding: | |||
Restricted stock, RSUs and PSUs | 96,174,000 | 114,017,000 | 138,052,000 |
PSUs | |||
Weighted average common shares outstanding: | |||
Restricted stock, RSUs and PSUs | 81,414 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value of Financial Instruments | ||
Investments, Carrying Value | $ 324,889 | $ 619,275 |
Exchangeable Senior Notes, Carrying Value | 32,232 | 136,693 |
Notes due 2026, Carrying Value | 293,860 | 0 |
Investments, Fair Value | 324,772 | 619,270 |
Exchangeable Senior Notes, Fair Value | 134,270 | $ 397,663 |
Notes due 2026, Fair Value | $ 318,486 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 1 [Member] | Money market funds | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 72 | $ 98.3 |
Common Stock Incentive Plan - A
Common Stock Incentive Plan - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021USD ($)itemshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Restricted Shares | ||||
Unrecognized compensation cost | $ 1,500,000 | |||
Amortization period | 1 year 7 months 6 days | |||
Fair value of restricted stock | $ 8,800,000 | $ 6,000,000 | $ 3,200,000 | |
Granted | shares | 9,679 | 17,057 | 56,460 | |
RSUs | ||||
Unrecognized compensation cost | $ 3,700,000 | |||
Amortization period | 1 year 8 months 12 days | |||
Granted | shares | 23,639 | 36,687 | ||
PSUs | ||||
Amortization period | 2 years | |||
Granted | shares | 70,795 | |||
Number of comparator groups | item | 2 | |||
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 | shares | 1,000,000 |
Common Stock Incentive Plan -_2
Common Stock Incentive Plan - Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Beginning Balance | 76,346 | 139,546 | 147,359 |
Granted | 9,679 | 17,057 | 56,460 |
Vested | (29,955) | (51,705) | (43,556) |
Forfeited | (18,303) | (28,552) | (20,717) |
Shares, Ending Balance | 37,767 | 76,346 | 139,546 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 50.14 | $ 37.03 | $ 23.98 |
Weighted-Average Grant Date Fair Value, Granted | 187.74 | 75.96 | 55.82 |
Weighted-Average Grant Date Fair Value, Vested | 52.31 | 40.07 | 25.82 |
Weighted-Average Grant Date Fair Value, Forfeited | 31.99 | 19.72 | 18.98 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 92.49 | $ 50.14 | $ 37.03 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Beginning Balance | 36,687 | 0 | |
Granted | 23,639 | 36,687 | |
Shares, Ending Balance | 60,326 | 36,687 | 0 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 76.06 | $ 0 | |
Weighted-Average Grant Date Fair Value, Granted | 188.80 | 76.06 | |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 120.24 | $ 76.06 | $ 0 |
Common Stock Incentive Plan - S
Common Stock Incentive Plan - Summary of Fair Value Assumption (Details) - PSUs - USD ($) $ / shares in Units, $ in Millions | Jan. 06, 2021 | Dec. 31, 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 | $ 4 | |
Unrecognized compensation cost | $ 8 | |
Remaining Performance Period | 2 years |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies | |
2022 | $ 241 |
2023 | 249 |
2024 | 256 |
2025 | 264 |
2026 | 295 |
Total future contractual lease payments | 1,305 |
Effect of discounting | (163) |
Office lease liability | $ 1,142 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments related to improvement allowances | |
Other Commitments [Line Items] | |
Other Commitment | $ 269.8 |
Commitments related to construction loan | |
Other Commitments [Line Items] | |
Other Commitment | $ 5.6 |
Commitments and Contingencies_3
Commitments and Contingencies - Deferred Compensation Plan (Details) | Nov. 30, 2019 |
Deferred Base Salary | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 80.00% |
Deferred Bonus | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 100.00% |
Deferred Director Fees | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 100.00% |
Deferred Restricted Equity Awards | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 100.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Feb. 10, 2022USD ($)ft² | Feb. 04, 2022USD ($) | Feb. 02, 2022USD ($) | Jan. 28, 2022USD ($)ft² | Dec. 31, 2021USD ($)ft² |
Rentable Square Feet | ft² | 2,272,000 | ||||
Purchase Price | $ 287,653 | ||||
Total | $ 287,952 | ||||
Subsequent Event | |||||
Rentable Square Feet | ft² | 171,000 | ||||
Purchase Price | $ 51,400 | $ 3,300 | |||
Total | $ 74,000 | ||||
Subsequent Event | 4Front MA | |||||
Rentable Square Feet | ft² | 57,000 | ||||
Purchase Price | $ 16,000 | ||||
Total | $ 16,000 | ||||
Subsequent Event | GPI MI | |||||
Improvement Commitments | $ 18,000 | ||||
Total | $ 18,000 | ||||
Subsequent Event | Ascend NJ | |||||
Rentable Square Feet | ft² | 114,000 | ||||
Purchase Price | $ 35,400 | ||||
Improvement Commitments | 4,600 | ||||
Total | $ 40,000 |
Subsequent Events - Additional
Subsequent Events - Additional information (Details) - USD ($) $ in Thousands | Feb. 04, 2022 | Feb. 10, 2022 | Feb. 02, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||||
Initial Purchase Price | $ 287,653 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Agreed to provide reimbursement | $ 22,600 | |||
Initial Purchase Price | 51,400 | $ 3,300 | ||
Subsequent Event | GPI MI | ||||
Subsequent Event [Line Items] | ||||
Tenant Improvement Allowance, Increase | $ 18,000 | |||
Tenant improvement allowance | $ 47,500 | |||
Subsequent Event | Ascend NJ | ||||
Subsequent Event [Line Items] | ||||
Initial Purchase Price | 35,400 | |||
Subsequent Event | Ascend NJ | Maximum | ||||
Subsequent Event [Line Items] | ||||
Agreed to provide reimbursement | $ 4,600 |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)propertyitem | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 122,386 | |||
Building and Improvement, Initial Cost | 733,737 | |||
Costs Capitalized Subsequent to Acquisition | 865,981 | |||
Land, Total Costs | 122,386 | |||
Building and Improvements, Total Costs | 1,599,718 | |||
Total Costs | 1,722,104 | $ 1,060,239 | $ 518,031 | $ 150,930 |
Accumulated Depreciation | (81,938) | $ (40,195) | $ (12,170) | $ (3,571) |
Net Cost Basis | 1,640,166 | |||
Pharm AZ [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 398 | |||
Building and Improvement, Initial Cost | 14,629 | |||
Costs Capitalized Subsequent to Acquisition | 5,003 | |||
Land, Total Costs | 398 | |||
Building and Improvements, Total Costs | 19,632 | |||
Total Costs | 20,030 | |||
Accumulated Depreciation | (2,862) | |||
Net Cost Basis | 17,168 | |||
Pharm AZ - Retail [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,216 | |||
Building and Improvement, Initial Cost | 811 | |||
Costs Capitalized Subsequent to Acquisition | 501 | |||
Land, Total Costs | 1,216 | |||
Building and Improvements, Total Costs | 1,312 | |||
Total Costs | 2,528 | |||
Accumulated Depreciation | (122) | |||
Net Cost Basis | 2,406 | |||
Sacramento CA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,376 | |||
Building and Improvement, Initial Cost | 5,321 | |||
Costs Capitalized Subsequent to Acquisition | 6,033 | |||
Land, Total Costs | 1,376 | |||
Building and Improvements, Total Costs | 11,354 | |||
Total Costs | 12,730 | |||
Accumulated Depreciation | (976) | |||
Net Cost Basis | 11,754 | |||
Kings Garden CA Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 10,351 | |||
Building and Improvement, Initial Cost | 61,062 | |||
Costs Capitalized Subsequent to Acquisition | 11,475 | |||
Land, Total Costs | 10,351 | |||
Building and Improvements, Total Costs | 72,537 | |||
Total Costs | 82,888 | |||
Accumulated Depreciation | (3,336) | |||
Net Cost Basis | $ 79,552 | |||
Number of Properties | item | 8 | |||
Holistic CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 1,713 | |||
Building and Improvement, Initial Cost | 11,307 | |||
Costs Capitalized Subsequent to Acquisition | 1,077 | |||
Land, Total Costs | 1,713 | |||
Building and Improvements, Total Costs | 12,384 | |||
Total Costs | 14,097 | |||
Accumulated Depreciation | (726) | |||
Net Cost Basis | 13,371 | |||
Vertical CA Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 3,393 | |||
Building and Improvement, Initial Cost | 13,939 | |||
Land, Total Costs | 3,393 | |||
Building and Improvements, Total Costs | 13,939 | |||
Total Costs | 17,332 | |||
Accumulated Depreciation | (892) | |||
Net Cost Basis | $ 16,440 | |||
Number of Properties | item | 4 | |||
Gold Flora CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 5,930 | |||
Building and Improvement, Initial Cost | 45,081 | |||
Costs Capitalized Subsequent to Acquisition | 5,243 | |||
Land, Total Costs | 5,930 | |||
Building and Improvements, Total Costs | 50,324 | |||
Total Costs | 56,254 | |||
Accumulated Depreciation | (254) | |||
Net Cost Basis | 56,000 | |||
Columbia Care CO [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,101 | |||
Building and Improvement, Initial Cost | 9,176 | |||
Land, Total Costs | 2,101 | |||
Building and Improvements, Total Costs | 9,176 | |||
Total Costs | 11,277 | |||
Accumulated Depreciation | (1,029) | |||
Net Cost Basis | 10,248 | |||
LivWell CO Retail Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 546 | |||
Building and Improvement, Initial Cost | 2,781 | |||
Costs Capitalized Subsequent to Acquisition | 72 | |||
Land, Total Costs | 546 | |||
Building and Improvements, Total Costs | 2,853 | |||
Total Costs | 3,399 | |||
Accumulated Depreciation | (135) | |||
Net Cost Basis | 3,264 | |||
Trulieve FL Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,027 | |||
Building and Improvement, Initial Cost | 39,793 | |||
Costs Capitalized Subsequent to Acquisition | 17,793 | |||
Land, Total Costs | 1,027 | |||
Building and Improvements, Total Costs | 57,586 | |||
Total Costs | 58,613 | |||
Accumulated Depreciation | (2,016) | |||
Net Cost Basis | $ 56,597 | |||
Number of Properties | property | 2 | |||
Number of properties renovated | property | 1 | |||
Parallel FL Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 3,258 | |||
Building and Improvement, Initial Cost | 51,625 | |||
Costs Capitalized Subsequent to Acquisition | 52,336 | |||
Land, Total Costs | 3,258 | |||
Building and Improvements, Total Costs | 103,961 | |||
Total Costs | 107,219 | |||
Accumulated Depreciation | (3,388) | |||
Net Cost Basis | $ 103,831 | |||
Number of Properties | property | 2 | |||
Ascend IL [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 563 | |||
Building and Improvement, Initial Cost | 18,457 | |||
Costs Capitalized Subsequent to Acquisition | 50,267 | |||
Land, Total Costs | 563 | |||
Building and Improvements, Total Costs | 68,724 | |||
Total Costs | 69,287 | |||
Accumulated Depreciation | (4,365) | |||
Net Cost Basis | 64,922 | |||
Cresco IL Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 3,215 | |||
Building and Improvement, Initial Cost | 29,602 | |||
Costs Capitalized Subsequent to Acquisition | 13,635 | |||
Land, Total Costs | 3,215 | |||
Building and Improvements, Total Costs | 43,237 | |||
Total Costs | 46,452 | |||
Accumulated Depreciation | (3,265) | |||
Net Cost Basis | $ 43,187 | |||
Number of Properties | property | 2 | |||
PharmaCann IL [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 201 | |||
Building and Improvement, Initial Cost | 17,807 | |||
Costs Capitalized Subsequent to Acquisition | 10,008 | |||
Land, Total Costs | 201 | |||
Building and Improvements, Total Costs | 27,815 | |||
Total Costs | 28,016 | |||
Accumulated Depreciation | (2,024) | |||
Net Cost Basis | 25,992 | |||
Curaleaf IL [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 350 | |||
Building and Improvement, Initial Cost | 10,191 | |||
Costs Capitalized Subsequent to Acquisition | 18,514 | |||
Land, Total Costs | 350 | |||
Building and Improvements, Total Costs | 28,705 | |||
Total Costs | 29,055 | |||
Accumulated Depreciation | (2,276) | |||
Net Cost Basis | 26,779 | |||
GTI IL [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 739 | |||
Building and Improvement, Initial Cost | 8,284 | |||
Costs Capitalized Subsequent to Acquisition | 40,997 | |||
Land, Total Costs | 739 | |||
Building and Improvements, Total Costs | 49,281 | |||
Total Costs | 50,020 | |||
Accumulated Depreciation | (2,392) | |||
Net Cost Basis | 47,628 | |||
4Front IL | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 3,366 | |||
Costs Capitalized Subsequent to Acquisition | 5,804 | |||
Land, Total Costs | 3,366 | |||
Building and Improvements, Total Costs | 5,804 | |||
Total Costs | 9,170 | |||
Accumulated Depreciation | (10) | |||
Net Cost Basis | 9,160 | |||
Holistic MD | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,785 | |||
Building and Improvement, Initial Cost | 8,410 | |||
Costs Capitalized Subsequent to Acquisition | 19,309 | |||
Land, Total Costs | 2,785 | |||
Building and Improvements, Total Costs | 27,719 | |||
Total Costs | 30,504 | |||
Accumulated Depreciation | (3,148) | |||
Net Cost Basis | 27,356 | |||
Trulieve MD | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,861 | |||
Building and Improvement, Initial Cost | 14,775 | |||
Costs Capitalized Subsequent to Acquisition | 8,206 | |||
Land, Total Costs | 1,861 | |||
Building and Improvements, Total Costs | 22,981 | |||
Total Costs | 24,842 | |||
Accumulated Depreciation | (260) | |||
Net Cost Basis | 24,582 | |||
PharmaCann MA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 3,030 | |||
Costs Capitalized Subsequent to Acquisition | 27,512 | |||
Land, Total Costs | 3,030 | |||
Building and Improvements, Total Costs | 27,512 | |||
Total Costs | 30,542 | |||
Accumulated Depreciation | (1,824) | |||
Net Cost Basis | 28,718 | |||
Holistic MA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,059 | |||
Building and Improvement, Initial Cost | 11,717 | |||
Costs Capitalized Subsequent to Acquisition | 4,967 | |||
Land, Total Costs | 1,059 | |||
Building and Improvements, Total Costs | 16,684 | |||
Total Costs | 17,743 | |||
Accumulated Depreciation | (1,398) | |||
Net Cost Basis | 16,345 | |||
Trulieve MA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 694 | |||
Building and Improvement, Initial Cost | 2,831 | |||
Costs Capitalized Subsequent to Acquisition | 40,035 | |||
Land, Total Costs | 694 | |||
Building and Improvements, Total Costs | 42,866 | |||
Total Costs | 43,560 | |||
Accumulated Depreciation | (3,737) | |||
Net Cost Basis | 39,823 | |||
Ascend MA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,202 | |||
Building and Improvement, Initial Cost | 24,568 | |||
Costs Capitalized Subsequent to Acquisition | 22,059 | |||
Land, Total Costs | 2,202 | |||
Building and Improvements, Total Costs | 46,627 | |||
Total Costs | 48,829 | |||
Accumulated Depreciation | (1,989) | |||
Net Cost Basis | 46,840 | |||
Cresco MA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 650 | |||
Building and Improvement, Initial Cost | 7,119 | |||
Costs Capitalized Subsequent to Acquisition | 15,840 | |||
Land, Total Costs | 650 | |||
Building and Improvements, Total Costs | 22,959 | |||
Total Costs | 23,609 | |||
Accumulated Depreciation | (748) | |||
Net Cost Basis | 22,861 | |||
4Front MA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,316 | |||
Building and Improvement, Initial Cost | 13,194 | |||
Land, Total Costs | 2,316 | |||
Building and Improvements, Total Costs | 13,194 | |||
Total Costs | 15,510 | |||
Accumulated Depreciation | (389) | |||
Net Cost Basis | 15,121 | |||
Temescal MA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,082 | |||
Building and Improvement, Initial Cost | 1,026 | |||
Costs Capitalized Subsequent to Acquisition | 6,158 | |||
Land, Total Costs | 2,082 | |||
Building and Improvements, Total Costs | 7,184 | |||
Total Costs | 9,266 | |||
Accumulated Depreciation | (77) | |||
Net Cost Basis | 9,189 | |||
Green Peak MI [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 3,840 | |||
Building and Improvement, Initial Cost | 17,206 | |||
Costs Capitalized Subsequent to Acquisition | 18,228 | |||
Land, Total Costs | 3,840 | |||
Building and Improvements, Total Costs | 35,434 | |||
Total Costs | 39,274 | |||
Accumulated Depreciation | (1,855) | |||
Net Cost Basis | $ 37,419 | |||
Number of Properties | property | 2 | |||
Emerald Growth MI [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | $ 389 | |||
Building and Improvement, Initial Cost | 6,489 | |||
Costs Capitalized Subsequent to Acquisition | 3,139 | |||
Land, Total Costs | 389 | |||
Building and Improvements, Total Costs | 9,628 | |||
Total Costs | 10,017 | |||
Accumulated Depreciation | (811) | |||
Net Cost Basis | 9,206 | |||
Ascend MI [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 409 | |||
Building and Improvement, Initial Cost | 4,360 | |||
Costs Capitalized Subsequent to Acquisition | 14,894 | |||
Land, Total Costs | 409 | |||
Building and Improvements, Total Costs | 19,254 | |||
Total Costs | 19,663 | |||
Accumulated Depreciation | (1,173) | |||
Net Cost Basis | 18,490 | |||
LivWell MI | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,237 | |||
Building and Improvement, Initial Cost | 17,791 | |||
Costs Capitalized Subsequent to Acquisition | 64,482 | |||
Land, Total Costs | 1,237 | |||
Building and Improvements, Total Costs | 82,273 | |||
Total Costs | 83,510 | |||
Accumulated Depreciation | (3,340) | |||
Net Cost Basis | 80,170 | |||
Green Peak MI - Retail Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,562 | |||
Building and Improvement, Initial Cost | 7,512 | |||
Costs Capitalized Subsequent to Acquisition | 1,755 | |||
Land, Total Costs | 2,562 | |||
Building and Improvements, Total Costs | 9,267 | |||
Total Costs | 11,829 | |||
Accumulated Depreciation | (762) | |||
Net Cost Basis | 11,067 | |||
Cresco MI [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,385 | |||
Building and Improvement, Initial Cost | 3,631 | |||
Costs Capitalized Subsequent to Acquisition | 26,754 | |||
Land, Total Costs | 1,385 | |||
Building and Improvements, Total Costs | 30,385 | |||
Total Costs | 31,770 | |||
Accumulated Depreciation | (1,021) | |||
Net Cost Basis | 30,749 | |||
Holistic MI [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 6,211 | |||
Costs Capitalized Subsequent to Acquisition | 18,789 | |||
Land, Total Costs | 6,211 | |||
Building and Improvements, Total Costs | 18,789 | |||
Total Costs | 25,000 | |||
Accumulated Depreciation | (428) | |||
Net Cost Basis | 24,572 | |||
Sozo MI | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 700 | |||
Building and Improvement, Initial Cost | 9,557 | |||
Costs Capitalized Subsequent to Acquisition | 5,599 | |||
Land, Total Costs | 700 | |||
Building and Improvements, Total Costs | 15,156 | |||
Total Costs | 15,856 | |||
Accumulated Depreciation | (247) | |||
Net Cost Basis | 15,609 | |||
Vireo MN [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 427 | |||
Building and Improvement, Initial Cost | 2,644 | |||
Costs Capitalized Subsequent to Acquisition | 6,618 | |||
Land, Total Costs | 427 | |||
Building and Improvements, Total Costs | 9,262 | |||
Total Costs | 9,689 | |||
Accumulated Depreciation | (1,072) | |||
Net Cost Basis | 8,617 | |||
Calyx MO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 753 | |||
Building and Improvement, Initial Cost | 787 | |||
Costs Capitalized Subsequent to Acquisition | 8,491 | |||
Land, Total Costs | 753 | |||
Building and Improvements, Total Costs | 9,278 | |||
Total Costs | 10,031 | |||
Accumulated Depreciation | (46) | |||
Net Cost Basis | 9,985 | |||
Las Vegas NV [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,088 | |||
Building and Improvement, Initial Cost | 2,768 | |||
Costs Capitalized Subsequent to Acquisition | 5,771 | |||
Land, Total Costs | 1,088 | |||
Building and Improvements, Total Costs | 8,539 | |||
Total Costs | 9,627 | |||
Accumulated Depreciation | (755) | |||
Net Cost Basis | 8,872 | |||
Curaleaf NJ [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 702 | |||
Building and Improvement, Initial Cost | 4,857 | |||
Costs Capitalized Subsequent to Acquisition | 29,511 | |||
Land, Total Costs | 702 | |||
Building and Improvements, Total Costs | 34,368 | |||
Total Costs | 35,070 | |||
Accumulated Depreciation | (1,699) | |||
Net Cost Basis | 33,371 | |||
Columbia Care NJ Portfolio [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 466 | |||
Building and Improvement, Initial Cost | 11,974 | |||
Costs Capitalized Subsequent to Acquisition | 1,580 | |||
Land, Total Costs | 466 | |||
Building and Improvements, Total Costs | 13,554 | |||
Total Costs | 14,020 | |||
Accumulated Depreciation | (576) | |||
Net Cost Basis | 13,444 | |||
PharmaCann NY [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 7,600 | |||
Building and Improvement, Initial Cost | 22,475 | |||
Costs Capitalized Subsequent to Acquisition | 9,765 | |||
Land, Total Costs | 7,600 | |||
Building and Improvements, Total Costs | 32,240 | |||
Total Costs | 39,840 | |||
Accumulated Depreciation | (3,144) | |||
Net Cost Basis | 36,696 | |||
Vireo NY [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,593 | |||
Building and Improvement, Initial Cost | 3,157 | |||
Costs Capitalized Subsequent to Acquisition | 27,566 | |||
Land, Total Costs | 1,593 | |||
Building and Improvements, Total Costs | 30,723 | |||
Total Costs | 32,316 | |||
Accumulated Depreciation | (1,073) | |||
Net Cost Basis | 31,243 | |||
Curaleaf ND [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 191 | |||
Building and Improvement, Initial Cost | 9,743 | |||
Costs Capitalized Subsequent to Acquisition | 2,271 | |||
Land, Total Costs | 191 | |||
Building and Improvements, Total Costs | 12,014 | |||
Total Costs | 12,205 | |||
Accumulated Depreciation | (805) | |||
Net Cost Basis | 11,400 | |||
PharmaCann OH [member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 712 | |||
Costs Capitalized Subsequent to Acquisition | 19,310 | |||
Land, Total Costs | 712 | |||
Building and Improvements, Total Costs | 19,310 | |||
Total Costs | 20,022 | |||
Accumulated Depreciation | (1,173) | |||
Net Cost Basis | 18,849 | |||
AYR OH | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 22 | |||
Building and Improvement, Initial Cost | 1,014 | |||
Costs Capitalized Subsequent to Acquisition | 2,501 | |||
Land, Total Costs | 22 | |||
Building and Improvements, Total Costs | 3,515 | |||
Total Costs | 3,537 | |||
Accumulated Depreciation | (401) | |||
Net Cost Basis | 3,136 | |||
Cresco OH [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 235 | |||
Building and Improvement, Initial Cost | 10,377 | |||
Costs Capitalized Subsequent to Acquisition | 1,981 | |||
Land, Total Costs | 235 | |||
Building and Improvements, Total Costs | 12,358 | |||
Total Costs | 12,593 | |||
Accumulated Depreciation | (601) | |||
Net Cost Basis | 11,992 | |||
GTI OH [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 239 | |||
Building and Improvement, Initial Cost | 2,688 | |||
Costs Capitalized Subsequent to Acquisition | 27,741 | |||
Land, Total Costs | 239 | |||
Building and Improvements, Total Costs | 30,429 | |||
Total Costs | 30,668 | |||
Accumulated Depreciation | (1,070) | |||
Net Cost Basis | 29,598 | |||
Jushi PA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 275 | |||
Building and Improvement, Initial Cost | 5,603 | |||
Costs Capitalized Subsequent to Acquisition | 34,013 | |||
Land, Total Costs | 275 | |||
Building and Improvements, Total Costs | 39,616 | |||
Total Costs | 39,891 | |||
Accumulated Depreciation | (2,009) | |||
Net Cost Basis | 37,882 | |||
Maitri PA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 233 | |||
Building and Improvement, Initial Cost | 6,249 | |||
Costs Capitalized Subsequent to Acquisition | 15,884 | |||
Land, Total Costs | 233 | |||
Building and Improvements, Total Costs | 22,133 | |||
Total Costs | 22,366 | |||
Accumulated Depreciation | (1,762) | |||
Net Cost Basis | 20,604 | |||
Columbia Care PA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,353 | |||
Building and Improvement, Initial Cost | 11,854 | |||
Costs Capitalized Subsequent to Acquisition | 29,745 | |||
Land, Total Costs | 1,353 | |||
Building and Improvements, Total Costs | 41,599 | |||
Total Costs | 42,952 | |||
Accumulated Depreciation | (1,391) | |||
Net Cost Basis | 41,561 | |||
PharmaCann PA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 954 | |||
Costs Capitalized Subsequent to Acquisition | 27,070 | |||
Land, Total Costs | 954 | |||
Building and Improvements, Total Costs | 27,070 | |||
Total Costs | 28,024 | |||
Accumulated Depreciation | (1,027) | |||
Net Cost Basis | 26,997 | |||
GTI PA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,435 | |||
Building and Improvement, Initial Cost | 19,098 | |||
Costs Capitalized Subsequent to Acquisition | 19,304 | |||
Land, Total Costs | 1,435 | |||
Building and Improvements, Total Costs | 38,402 | |||
Total Costs | 39,837 | |||
Accumulated Depreciation | (3,775) | |||
Net Cost Basis | 36,062 | |||
Curaleaf PA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,228 | |||
Building and Improvement, Initial Cost | 13,080 | |||
Costs Capitalized Subsequent to Acquisition | 12,423 | |||
Land, Total Costs | 1,228 | |||
Building and Improvements, Total Costs | 25,503 | |||
Total Costs | 26,731 | |||
Accumulated Depreciation | (2,243) | |||
Net Cost Basis | 24,488 | |||
Holistic PA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 941 | |||
Building and Improvement, Initial Cost | 7,941 | |||
Costs Capitalized Subsequent to Acquisition | 10,265 | |||
Land, Total Costs | 941 | |||
Building and Improvements, Total Costs | 18,206 | |||
Total Costs | 19,147 | |||
Accumulated Depreciation | (840) | |||
Net Cost Basis | 18,307 | |||
Parallel PA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 6,979 | |||
Building and Improvement, Initial Cost | 34,781 | |||
Costs Capitalized Subsequent to Acquisition | 25,890 | |||
Land, Total Costs | 6,979 | |||
Building and Improvements, Total Costs | 60,671 | |||
Total Costs | 67,650 | |||
Accumulated Depreciation | (1,050) | |||
Net Cost Basis | 66,600 | |||
Parallel TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 2,222 | |||
Building and Improvement, Initial Cost | 1,195 | |||
Costs Capitalized Subsequent to Acquisition | 3,861 | |||
Land, Total Costs | 2,222 | |||
Building and Improvements, Total Costs | 5,056 | |||
Total Costs | 7,278 | |||
Accumulated Depreciation | (14) | |||
Net Cost Basis | 7,264 | |||
CO PA ND Portfolio | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 17,526 | |||
Building and Improvement, Initial Cost | 44,134 | |||
Land, Total Costs | 17,526 | |||
Building and Improvements, Total Costs | 44,134 | |||
Total Costs | 61,660 | |||
Accumulated Depreciation | (52) | |||
Net Cost Basis | 61,608 | |||
Columbia Care VA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 231 | |||
Building and Improvement, Initial Cost | 11,582 | |||
Costs Capitalized Subsequent to Acquisition | 7,936 | |||
Land, Total Costs | 231 | |||
Building and Improvements, Total Costs | 19,518 | |||
Total Costs | 19,749 | |||
Accumulated Depreciation | (1,570) | |||
Net Cost Basis | 18,179 | |||
4Front WA [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Land, Initial Cost | 1,826 | |||
Building and Improvement, Initial Cost | 15,684 | |||
Land, Total Costs | 1,826 | |||
Building and Improvements, Total Costs | 15,684 | |||
Total Costs | 17,510 | |||
Accumulated Depreciation | (515) | |||
Net Cost Basis | $ 16,995 | |||
LivWell CO [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | property | 2 | |||
Green Peak MI - Retail | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | item | 6 | |||
Columbia Care NJ [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | property | 2 | |||
Properties in Colorado, North Dakota, and Pennsylvania | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | property | 27 | |||
Properties in Colorado, North Dakota, and Pennsylvania | Colorado | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | property | 24 | |||
Properties in Colorado, North Dakota, and Pennsylvania | North Dakota | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | property | 2 | |||
Properties in Colorado, North Dakota, and Pennsylvania | Pennsylvania | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Properties | property | 1 |
SCHEDULE III - REAL ESTATE AN_3
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment in real estate, at cost: | |||
Balance at beginning of year | $ 1,060,239 | $ 518,031 | $ 150,930 |
Purchases of investments in real estate | 277,717 | 241,159 | 259,889 |
Additions and improvements | 384,148 | 301,049 | 107,212 |
Balance at end of year | 1,722,104 | 1,060,239 | 518,031 |
Accumulated Depreciation: | |||
Balance at beginning of year | (40,195) | (12,170) | (3,571) |
Depreciation expense | (41,743) | (28,025) | (8,599) |
Balance at end of year | $ (81,938) | $ (40,195) | $ (12,170) |