Innovative Industrial Properties (IIPR) 10-Q 4 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 04, 2022
Document Type	10-Q
Document Period End Date	Jun. 30, 2022
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37949
Entity Registrant Name	Innovative Industrial Properties, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	81-2963381
Entity Address, Address Line One	1389 Center Drive, Suite 200
Entity Address, City or Town	Park City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84098
City Area Code	858
Local Phone Number	997-3332
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,973,429
Amendment Flag	false
Entity Central Index Key	0001677576
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Common Stock
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	IIPR
Security Exchange Name	NYSE
Series A Preferred Stock
Title of 12(b) Security	Series A Preferred Stock, par value $0.001 per share
Trading Symbol	IIPR-PA
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Real estate, at cost:
Land	$ 136,123	$ 122,386
Buildings and improvements	1,220,821	979,417
Tenant improvements	699,856	620,301
Construction in progress	68,909
Total real estate, at cost	2,125,709	1,722,104
Less accumulated depreciation	(109,100)	(81,938)
Net real estate held for investment	2,016,609	1,640,166
Construction loan receivable	17,698	12,916
Cash and cash equivalents	45,432	81,096
Restricted cash	530	5,323
Investments	309,442	324,889
Right of use office lease asset	1,921	1,068
In-place lease intangible assets, net	9,535	9,148
Other assets, net	24,515	9,996
Total assets	2,425,682	2,084,602
Liabilities and stockholders' equity
Exchangeable Senior Notes, net	6,374	32,232
Notes due 2026, net	294,478	293,860
Tenant improvements and construction funding payable	31,210	46,274
Accounts payable and accrued expenses	6,428	7,718
Dividends payable	49,439	38,847
Rent received in advance and tenant security deposits	59,899	52,805
Other liabilities	2,082	1,167
Total liabilities	449,910	472,903
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 June 30, 2022 and December 31, 2021	14,009	14,009
Common stock, par value $0.001 per share, 50,000,000 shares authorized: 27,973,429 and 25,612,541 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	28	26
Additional paid-in capital	2,056,568	1,672,882
Dividends in excess of earnings	(94,833)	(75,218)
Total stockholders' equity	1,975,772	1,611,699
Total liabilities and stockholders' equity	$ 2,425,682	$ 2,084,602

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
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	27,973,429	25,612,541
Common Stock, Shares Outstanding	27,973,429	25,612,541
Series A Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Preferred Stock, Dividend Rate, Percentage	9%	9%
Preferred Stock, Liquidation Preference, Value	$ 15,000	$ 15,000
Preferred Stock, Liquidation Preference Per Share	$ 25	$ 25
Preferred Stock, Shares Issued	600,000	600,000
Preferred Stock, Shares Outstanding	600,000	600,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Rental (including tenant reimbursements)	$ 69,995,000	$ 48,867,000	$ 134,109,000	$ 91,752,000
Other	516,000		906,000
Total revenues	70,511,000	48,867,000	135,015,000	91,752,000
Expenses:
Property expenses	2,427,000	482,000	4,409,000	1,252,000
General and administrative expense	8,707,000	5,604,000	17,484,000	11,204,000
Depreciation and amortization expense	15,233,000	9,841,000	29,101,000	18,680,000
Total expenses	26,367,000	15,927,000	50,994,000	31,136,000
Income from operations	44,144,000	32,940,000	84,021,000	60,616,000
Interest and other income	581,000	91,000	638,000	215,000
Interest expense	(4,504,000)	(3,692,000)	(9,270,000)	(5,565,000)
Loss on exchange of Exchangeable Senior Notes	(7,000)		(125,000)
Net income	40,214,000	29,339,000	75,264,000	55,266,000
Preferred stock dividends	(338,000)	(338,000)	(676,000)	(676,000)
Net income attributable to common stockholders	$ 39,876,000	$ 29,001,000	$ 74,588,000	$ 54,590,000
Net income attributable to common stockholders per share (Note 8):
Basic	$ 1.42	$ 1.21	$ 2.77	$ 2.27
Diluted	$ 1.42	$ 1.17	$ 2.75	$ 2.22
Weighted-average shares outstanding:
Basic	27,850,561	23,889,761	26,741,568	23,889,580
Diluted	28,036,690	26,168,682	27,159,774	26,166,494

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Series A Preferred Stock Preferred Stock	Common Stock	Additional Paid-In-Capital Adjustment	Additional Paid-In-Capital	Dividends in Excess of Earnings Adjustment	Dividends in Excess of Earnings	Adjustment	Total
Balances at beginning of period at Dec. 31, 2020	$ 14,009	$ 24		$ 1,559,059		$ (48,120)		$ 1,524,972
Balances at beginning of period (in shares) at Dec. 31, 2020		23,936,928
Net income						55,266		55,266
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						(676)		(676)
Common stock dividend						(65,244)		(65,244)
Stock-based compensation				4,233				4,233
Balances at end of period at Jun. 30, 2021	14,009	$ 24		1,559,908		(58,774)		1,515,167
Balances at end of period (in shares) at Jun. 30, 2021		23,928,304
Balances at beginning of period at Mar. 31, 2021	14,009	$ 24		1,557,776		(54,191)		1,517,618
Balances at beginning of period (in shares) at Mar. 31, 2021		23,926,317
Net income						29,339		29,339
Issuance of unvested restricted stock, net of forfeitures (in shares)		1,987
Preferred stock dividend						(338)		(338)
Common stock dividend						(33,584)		(33,584)
Stock-based compensation				2,132				2,132
Balances at end of period at Jun. 30, 2021	14,009	$ 24		1,559,908		(58,774)		1,515,167
Balances at end of period (in shares) at Jun. 30, 2021		23,928,304
Balances at beginning of period at Dec. 31, 2021	14,009	$ 26	$ (1,340)	1,672,882	$ 728	(75,218)	$ (612)	1,611,699
Balances at beginning of period (in shares) at Dec. 31, 2021		25,612,541
Net income						75,264		75,264
Issuance of unvested restricted stock, net of forfeitures				(2,441)				(2,441)
Issuance of unvested restricted stock, net of forfeitures (in shares)		15,174
Exchange of Exchangeable Senior Notes				26,665				26,665
Exchange of Exchangeable Senior Notes (in shares)		412,901
Net proceeds from sale of common stock		$ 2		351,986				351,988
Net proceeds from sale of common stock (in shares)		1,932,813
Preferred stock dividend						(676)		(676)
Common stock dividend						(94,931)		(94,931)
Stock-based compensation				8,816				8,816
Balances at end of period at Jun. 30, 2022	14,009	$ 28		2,056,568		(94,833)		1,975,772
Balances at end of period (in shares) at Jun. 30, 2022		27,973,429
Balances at beginning of period at Mar. 31, 2022	14,009	$ 26		1,718,234		(85,608)		1,646,661
Balances at beginning of period (in shares) at Mar. 31, 2022		26,107,769
Net income						40,214		40,214
Issuance of unvested restricted stock, net of forfeitures (in shares)		2,811
Exchange of Exchangeable Senior Notes				3,014				3,014
Exchange of Exchangeable Senior Notes (in shares)		47,059
Net proceeds from sale of common stock		$ 2		330,883				330,885
Net proceeds from sale of common stock (in shares)		1,815,790
Preferred stock dividend						(338)		(338)
Common stock dividend						(49,101)		(49,101)
Stock-based compensation				4,437				4,437
Balances at end of period at Jun. 30, 2022	$ 14,009	$ 28		$ 2,056,568		$ (94,833)		$ 1,975,772
Balances at end of period (in shares) at Jun. 30, 2022		27,973,429

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income	$ 75,264,000	$ 55,266,000
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	29,101,000	18,680,000
Loss on exchange of Exchangeable Senior Notes	125,000
Other non-cash adjustments	127,000	47,000
Stock-based compensation	8,816,000	4,233,000
Amortization of discounts on short-term investments	(513,000)	(199,000)
Amortization of debt discount and issuance costs	689,000	1,174,000
Changes in assets and liabilities
Other assets, net	2,568,000	220,000
Accounts payable, accrued expenses and other liabilities	(1,290,000)	2,278,000
Rent received in advance and tenant security deposits	7,094,000	7,693,000
Net cash provided by operating activities	121,981,000	89,392,000
Cash flows from investing activities
Purchases of investments in real estate	(129,562,000)	(99,073,000)
Funding of draws for tenant improvements and construction	(291,408,000)	(152,052,000)
Funding of construction loan and other investments	(21,360,000)	(6,000,000)
Deposits in escrow for acquisitions	(600,000)	(150,000)
Purchases of short-term investments	(219,040,000)	(439,878,000)
Maturities of short-term investments	235,000,000	410,000,000
Net cash used in investing activities	(426,970,000)	(287,153,000)
Cash flows from financing activities
Issuance of common stock, net of offering costs	351,988,000
Gross proceeds from issuance of Notes due 2026		300,000,000
Payment of deferred financing costs from issuance of Notes due 2026		(6,484,000)
Dividends paid to common stockholders	(84,339,000)	(61,387,000)
Dividends paid to preferred stockholders	(676,000)	(676,000)
Taxes paid related to net share settlement of equity awards	(2,441,000)	(3,384,000)
Net cash provided by financing activities	264,532,000	228,069,000
Net (decrease) increase in cash, cash equivalents and restricted cash	(40,457,000)	30,308,000
Cash, cash equivalents and restricted cash, beginning of period	86,419,000	126,006,000
Cash, cash equivalents and restricted cash, end of period	45,962,000	156,314,000
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	8,876,000	2,696,000
Supplemental disclosure of non-cash investing and financing activities:
Accrual for draws for tenant improvements and construction funding	31,210,000	60,670,000
Deposits applied for acquisitions	25,000	200,000
Accrual for common and preferred stock dividends declared	49,439,000	33,922,000
Accrual for deferred financing costs		$ 196,000
Exchange of Exchangeable Senior Notes for common stock	26,665,000
Operating lease liability for obtaining right of use asset	$ 1,017,000

Organization

Organization	6 Months Ended
	Jun. 30, 2022
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.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	2. Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements Basis of Presentation. This interim financial information should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2022. Variable Interest Entities. Federal Income Taxes. represent amounts paid for city and state income and franchise taxes and are included in general and administrative expenses in the accompanying the condensed consolidated statements of income. Use of Estimates. Reportable Segment. Acquisition of Real Estate Properties. 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 our condensed consolidated balance sheets 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 our condensed consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental revenue 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 three months ended June 30, 2022 and 2021, we recognized depreciation expense of approximately $15.0 million and $9.8 million, respectively, which is included in depreciation and amortization expense in our condensed consolidated statements of income. For the six months ended June 30, 2022 and 2021, we recognized depreciation expense of approximately $28.7 million and $18.7 million, respectively, which are included in depreciation and amortization expense in our condensed 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 six months ended June 30, 2022 and 2021. Revenue Recognition. Construction Loan. ​ Cash and Cash Equivalents Restricted Cash Investments. Exchangeable Notes. in capital on our condensed consolidated balance sheets, and the resulting debt discount was amortized over the period during which the Exchangeable Senior Notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models, and convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. We adopted ASU 2020-06 on January 1, 2022 and recognized a cumulative-effect adjustment of approximately $728,000 to the opening balance of retained earnings and derecognized approximately $1.3 million of the remaining equity component relating to the outstanding principal balance of our Exchangeable Senior Notes at the date of adoption. Deferred Financing Costs. Stock-Based Compensation. Lease Accounting. 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 amendment, we re-measured the lease liability relating to the existing leased space and measured the lease liability relating to the expansion space based on the present value of the respective 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 three months ended June 30, 2022 and 2021, we recognized office lease expense of approximately $122,000 and $57,000, respectively, which are included in general and administrative expense in our condensed consolidated statements of income. For the six months ended June 30, 2022 and 2021, we recognized office lease expense of approximately $223,000 and $114,000, respectively, which are included in general and administrative expense in our condensed consolidated statements of income. For the six months ended June 30, 2022 and 2021, amounts paid and classified as operating activities in our condensed consolidated statements of cash flows for the office lease were approximately $161,000 and $117,000, 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. Substantially all of our leases continued to be classified as operating leases and we continue to record revenue for each of our properties on a cash basis. Our tenant reimbursable revenue and property expenses continue to be presented on a gross basis as rental revenue and as property expenses, respectively, on our condensed consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our condensed consolidated financial statements. Lease amendments 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. Concentration of Credit Risk The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and six months ended June 30, 2022 and 2021, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, 2022 ​ June 30, 2022 ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Percentage of ​ ​ Number of Rental Number of Rental ​ Leases Revenue Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 13 % 11 ​ 14 % SH Parent, Inc. ("Parallel") ​ 4 ​ 10 % 4 ​ 10 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 10 % 4 ​ 9 % Kings Garden Inc. ​ 6 ​ 8 % 6 ​ 8 % Trulieve Cannabis Corp. ("Trulieve") 6 ​ 6 % 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ June 30, 2021 ​ ​ ​ Percentage of ​ Number of Rental ​ Leases Revenue PharmaCann 5 ​ 13 % Parallel 4 ​ 10 % Ascend ​ 3 ​ 9 % Cresco Labs Inc. ​ 5 ​ 8 % Kings Garden Inc. 5 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ June 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 5 ​ 13 % Ascend ​ 3 ​ 9 % Parallel 4 ​ 8 % Cresco Labs Inc. ​ 5 ​ 8 % Curaleaf Holdings, Inc. 4 ​ 7 % ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. On July 13, 2022, Kings Garden defaulted on its obligations to pay rent at all of the properties it leases with us. See Note 12 “Subsequent Events” to our condensed consolidated financial statements included in this report for more information. As of June 30, 2022 and December 31, 2021, 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 June 30, 2022, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2022
Common Stock.
Common Stock	3. Common Stock As of June 30, 2022, the Company was authorized to issue up to 50,000,000 shares of common stock, par value $0.001 per share, and there were 27,973,429 shares of common stock issued ​ In April 2022, we issued 1,815,790 shares of common stock in an underwritten public offering, including the exercise in full of the underwriters’ option to purchase an additional 236,842 shares, resulting in net proceeds of approximately $330.9 million. ​ We are party to equity distribution agreements with certain sales agents, pursuant to which we may offer and sell from time to time through an “at-the-market” offering program (the “ATM Program”) up to $500.0 million in shares of our common stock. During the six months ended June 30, 2022, we sold 117,023 shares of our common stock for net proceeds of approximately $21.1 million under the ATM Program, which includes the payment of approximately $434,000 to one sales agent as commission for such sales. ​ During the three and six months ended June 30, 2022, we issued 47,059 and 412,901 shares, respectively, of our common stock upon exchange by holders of approximately $3.1 million and $26.9 million, respectively, of outstanding principal amount of our Exchangeable Senior Notes.

Preferred Stock

Preferred Stock	6 Months Ended
	Jun. 30, 2022
Preferred Stock.
Preferred Stock	4. Preferred Stock As of June 30, 2022, 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	6 Months Ended
	Jun. 30, 2022
Dividends
Dividends	5. Dividends The following table describes the dividends declared by the Company during the six months ended June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 14, 2022 ​ Common stock ​ $ 1.75 ​ January 1, 2022 to March 31, 2022 ​ April 14, 2022 ​ $ 45,830 March 14, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2022 to April 14, 2022 ​ April 14, 2022 ​ $ 338 June 15, 2022 ​ Common stock ​ $ 1.75 ​ March 1, 2022 to June 30, 2022 ​ July 15, 2022 ​ $ 49,101 June 15, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2022 to July 14, 2022 ​ July 15, 2022 ​ $ 338 ​

Investments in Real Estate

Investments in Real Estate	6 Months Ended
	Jun. 30, 2022
Investments in Real Estate
Investments in Real Estate	6. Investments in Real Estate Acquisitions The Company acquired the following properties during the six months ended June 30, 2022 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total ​ 4Front MA Massachusetts ​ ​ January 28, 2022 ​ 57,000 ​ $ 16,000 ​ $ 20 ​ $ 16,020 (2) Ascend NJ New Jersey ​ ​ February 10, 2022 ​ 114,000 ​ 35,400 ​ 8 ​ 35,408 (3) Verano PA Pennsylvania ​ ​ March 23, 2022 ​ 3,000 ​ 2,750 ​ 68 ​ 2,818 ​ Kings Garden CA ​ California ​ ​ March 25, 2022 ​ ​ 23,000 ​ ​ 8,158 ​ ​ 11 ​ ​ 8,169 (4) MCP MD ​ Maryland ​ ​ April 13, 2022 ​ ​ 84,000 ​ ​ 25,000 ​ ​ 290 ​ ​ 25,290 (5) Harvest AZ ​ Arizona ​ ​ April 27, 2022 ​ ​ 17,000 ​ ​ 5,238 ​ ​ 11 ​ ​ 5,249 (5) TILT MA ​ Massachusetts ​ ​ May 16, 2022 ​ ​ 104,000 ​ ​ 40,000 ​ ​ 32 ​ ​ 40,032 (5) Texas Original TX ​ Texas ​ ​ June 14, 2022 ​ ​ 85,000 ​ ​ 12,040 ​ ​ 23 ​ ​ 12,063 (5)(6) Total ​ ​ ​ ​ ​ ​ 487,000 ​ $ 144,586 ​ $ 463 ​ $ 145,049 (7) ​ (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The acquisition of the property did not satisfy the requirements for sale-leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our condensed consolidated balance sheet. (3) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $4.6 million. (4) The purchase price includes $1.8 million holdback held in an escrow account, which is subject to distribution to the seller upon seller’s completion of certain improvements at the property. As of June 30, 2022, we have distributed approximately $1.4 million of the holdback. The remaining approximately $400,000 is included in restricted cash on our condensed consolidated balance sheet. (5) The acquisitions of the MCP MD, Harvest AZ, TILT MA and Texas Original TX properties were made through consolidated VIEs utilizing Reverse 1031 Exchanges that were entered into at the time each of the properties was acquired. See Note 2 “Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements – Variable Interest Entities” for more information regarding the Company’s Reverse 1031 Exchanges and consolidation of VIEs. (6) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to approximately $10.0 million. The purchase price includes approximately $908,000 attributable to the property which did not satisfy the requirements for sale-leaseback accounting; therefore, this amount is recognized as a note receivable and is included in other assets, net on our condensed consolidated balance sheet. (7) Approximately $16.9 million was included in other assets; $1.8 million was included in restricted cash; approximately $10.5 million was allocated to land; approximately $115.1 million was allocated to building and improvements; and approximately $798,000 was allocated to in-place leases. ​ The properties acquired during the three and six months ended June 30, 2022 generated approximately $1.3 million and $3.0 million of rental revenues (including tenant reimbursements), respectively, and approximately $954,000 and $2.2 million of net operating income after deducting property and depreciation expenses, respectively. The properties acquired during the three and six months ended June 30, 2021 generated approximately $1.8 million and $4.8 million of rental revenue (including tenant reimbursements), respectively, and approximately $1.5 million and $4.0 million of net operating income after deducting property and depreciation expenses, respectively. During the three and six months ended June 30, 2022, the acquisition of the properties which did not satisfy the requirements for sale-leaseback accounting generated approximately $516,000 and $906,000 of interest revenue, respectively, which is included in other revenue on our condensed consolidated statements of income. 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. Acquired In-Place Lease Intangible Assets In-place lease intangible assets and related accumulated amortization as of June 30, 2022 and December 31, 2021 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 In-place lease intangible assets ​ $ 9,979 ​ $ 9,181 Accumulated amortization (444) ​ (33) In-place lease intangible assets, net ​ $ 9,535 ​ $ 9,148 ​ Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our condensed consolidated statements of income was approximately $213,000 and $411,000 for the three and six months ended June 30, 2022, respectively. The remaining weighted-average amortization period of the value of acquired in-place leases was approximately 11.2 years, and the estimated annual amortization of the value of the acquired in-place leases as of June 30, 2022 is as follows (in thousands): ​ ​ ​ ​ ​ Year Amount 2022 (six months ending December 31) ​ $ 430 2023 ​ 860 2024 ​ 860 2025 ​ 860 2026 ​ 860 Thereafter ​ 5,665 Total ​ $ 9,535 ​ Above-Market Lease The above-market lease and related accumulated amortization included in other assets, net on our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Above-market lease ​ $ 1,054 ​ $ 1,054 Accumulated amortization (50) ​ (4) Above-market lease, net ​ $ 1,004 ​ $ 1,050 ​ The above-market lease is amortized on a straight-line basis as a reduction to rental revenue over the remaining lease term of approximately 10.9 years. For the three and six months ended June 30, 2022, the amortization of the above-market lease was approximately $23,000 and $46,000, respectively. Lease Amendments In February 2022, we amended our lease with Green Peak Industries, Inc. at one of our Michigan properties, increasing the improvement allowance under the lease by $18.0 million to a total of approximately $47.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In March 2022, we amended our lease with Holistic Industries Inc. at one of our Michigan properties, increasing the improvement allowance under the lease by $3.5 million to a total of $22.3 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In March 2022, we amended our lease with a subsidiary of Ascend at one of our Michigan properties, increasing the improvement allowance under the lease by $4.4 million to a total of $19.4 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In March 2022, we amended our lease with a subsidiary of Ascend at one of our Massachusetts properties, increasing the improvement allowance under the lease by $14.9 million to a total of approximately $37.2 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In April 2022, we amended our lease and development agreement with PharmaCann at one of our New York properties, increasing the construction fund by $45.0 million to a total of approximately $78.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In June 2022, we amended our lease with a subsidiary of Curaleaf Holdings, Inc. (“Curaleaf”) at one of our Illinois properties, increasing the improvement allowance under the lease by approximately $10.9 million to a total of $29.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In June 2022, we amended our lease with Sozo Health, Inc. at one of our Michigan properties, increasing the improvement allowance by approximately $1.2 million to a total of approximately $7.0 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In June 2022, we amended our lease with a subsidiary of Curaleaf at one of our Pennsylvania properties, increasing the improvement allowance by $35.0 million to a total of approximately $47.4 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In June 2022, we amended our lease with a subsidiary of Green Thumb Industries Inc. at one of our Pennsylvania properties, increasing the improvement allowance by $55.0 million to a total $74.3 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 six months ended June 30, 2022, we capitalized costs of approximately $276.3 million and funded approximately $291.4 million relating to improvements and construction activities at our properties. Future contractual minimum rent (including base rent and property management fees) under the operating leases as of June 30, 2022 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2022 (six months ending December 31) ​ $ 148,023 2023 ​ 307,933 2024 ​ 316,846 2025 ​ 326,222 2026 ​ 335,909 Thereafter ​ 4,810,212 Total ​ $ 6,245,145 ​

Debt

Debt	6 Months Ended
	Jun. 30, 2022
Debt
Debt	7. Debt Exchangeable Senior Notes As of June 30, 2022, our Operating Partnership had outstanding approximately $6.5 million principal amount of 3.75% Exchangeable Senior Notes due 2024 (the “Exchangeable Senior Notes”). The Exchangeable Senior Notes are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and our Operating Partnership’s subsidiaries and are exchangeable for cash, shares of our common stock, or a combination of cash and shares of our common stock, at our Operating Partnership’s option, at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. The exchange rate for the Exchangeable Senior Notes at June 30, 2022 was 15.62234 shares of our common stock per $1,000 principal amount of Notes and the exchange price at June 30, 2022 was approximately $64.01 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 on March 15 and September 15 of each year 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 June 30, 2022, the if-exchanged value of the Exchangeable Senior Notes exceeded the principal amount by approximately $4.6 million. During the three and six months ended June 30, 2022, we issued 47,059 and 412,901 shares, respectively, of our common stock upon exchanges by holders of approximately $3.1 million and $26.9 million, respectively, of outstanding principal amount of our Exchangeable Senior Notes and recognized a loss on the exchanges totaling approximately $7,000 and $125,000 for the three and six months ended June 30, 2022, respectively, resulting from the difference between the fair value and carrying value of the debt as of the date of the exchange. The issuance of the shares pursuant to the exchanges resulted in a non-cash increase to our additional paid-in capital account of approximately $3.0 million and $26.7 million for the three and six months ended June 30, 2022, respectively. The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2022 2021 2022 2021 Cash coupon $ 55 $ 1,348 $ 331 $ 2,696 Amortization of debt discount ​ — ​ 284 ​ — ​ 566 Amortization of issuance cost ​ 13 ​ 247 ​ 71 ​ 490 Total interest expense $ 68 $ 1,879 $ 402 $ 3,752 ​ The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Principal amount $ 6,453 $ 33,373 Unamortized discount — ​ (612) Unamortized issuance cost (79) ​ (529) Carrying value $ 6,374 $ 32,232 ​ Accrued interest payable for the Exchangeable Senior Notes as of June 30, 2022 and December 31, 2021 was approximately $71,000 and $365,000, respectively, and is included in accounts payable and accrued expenses on our condensed 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2022 ​ 2021 2022 ​ 2021 Cash coupon ​ $ 4,125 ​ $ 1,695 ​ $ 8,250 ​ $ 1,695 Amortization of issuance cost ​ 311 ​ ​ 118 ​ ​ 618 ​ ​ 118 Total interest expense ​ $ 4,436 ​ $ 1,813 ​ $ 8,868 ​ $ 1,813 ​ The following table details the carrying value of our Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost (5,522) ​ (6,140) Carrying value $ 294,478 $ 293,860 ​ The Operating Partnership may redeem some or all of the Notes due 2026 at its option at any time at the applicable redemption price. If the Notes due 2026 are redeemed prior to February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the Notes due 2026 are redeemed on or after February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 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 June 30, 2022. Accrued interest payable for the Notes due 2026 as of June 30, 2022 and 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 June 30, 2022 (in thousands): ​ ​ ​ ​ Payments Due ​ ​ by Year Amount 2022 (six months ended December 31) ​ $ — 2023 ​ ​ — 2024 ​ ​ 6,453 2025 ​ ​ — 2026 ​ ​ 300,000 Thereafter ​ ​ — Total ​ $ 306,453 ​

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2022
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 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 June 30, 2022, all of the Company’s participating securities received dividends or dividend equivalents at an equal dividend rate per share or unit. As a result, distributions to participating securities for the three and six months ended June 30, 2022 and 2021 have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. The 103,742 and 304,348 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the three and six months ended June 30, 2022, respectively, and were included in the computation of diluted earnings per share. The 2,182,691 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the three and six months ended June 30, 2021, and were included in the computation of diluted earnings per share. For the three and six months ended June 30, 2022 and 2021, as the performance thresholds for vesting of the performance share units (“PSUs”) were not met as measured as of the respective dates, they were excluded from the calculation of weighted average common shares outstanding – diluted for all periods presented (see Note 10 for further discussion of PSUs). Computations of net income per basic and diluted share (in thousands, except share and per share data) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ ​ 2022 2021 2022 2021 Net income ​ $ 40,214 ​ $ 29,339 ​ $ 75,264 ​ $ 55,266 ​ Preferred stock dividends ​ (338) ​ (338) ​ ​ (676) ​ ​ (676) ​ Distribution to participating securities ​ (207) ​ (137) ​ ​ (409) ​ ​ (263) ​ Net income attributable to common stockholders used to compute net income per share - basic ​ ​ 39,669 ​ ​ 28,864 ​ ​ 74,179 ​ ​ 54,327 ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 68 ​ ​ 1,879 ​ ​ 402 ​ ​ 3,752 ​ Net income attributable to common stockholders used to compute net income per share - diluted ​ $ 39,737 ​ $ 30,743 ​ $ 74,581 ​ $ 58,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 27,850,561 ​ 23,889,761 ​ ​ 26,741,568 ​ ​ 23,889,580 ​ Restricted stock and RSUs ​ ​ 82,387 ​ ​ 96,230 ​ ​ 113,858 ​ ​ 94,223 ​ PSUs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 103,742 ​ ​ 2,182,691 ​ ​ 304,348 ​ ​ 2,182,691 ​ Diluted ​ 28,036,690 ​ 26,168,682 ​ ​ 27,159,774 ​ ​ 26,166,494 ​ Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.42 ​ $ 1.21 ​ $ 2.77 ​ $ 2.27 ​ Diluted ​ $ 1.42 ​ $ 1.17 ​ $ 2.75 ​ $ 2.22 ​ ​

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2022 ​ At December 31, 2021 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 309,442 ​ $ 308,489 ​ $ 324,889 ​ $ 324,772 Exchangeable Senior Notes (2) ​ $ 6,374 ​ $ 10,877 ​ $ 32,232 ​ $ 134,270 Notes due 2026 (2) ​ $ 294,478 ​ $ 272,379 ​ $ 293,860 ​ $ 318,486 (1) Short-term investments consisting of obligations of the U.S. government with an original maturity at the time of purchase of greater than three months are classified as held-to-maturity and valued using Level 1 inputs. (2) The fair value is determined based upon Level 2 inputs as the Exchangeable Senior Notes and Notes due 2026 were trading in the private market. As of June 30, 2022 and December 31, 2021, cash equivalent instruments consisted of $32.6 million and $72.0 million, respectively, in short-term money market funds that were measured using the net asset value per share that have not been classified using the fair value hierarchy. The fund invests primarily in short-term U.S. Treasury and government securities. Short-term investments consisting of certificate of deposits and obligations of the U.S. government are stated at amortized cost, which approximates their relative fair values due to the short-term maturities and market rates of interest of these instruments. The carrying amounts of financial instruments such as cash equivalents invested in certificates of deposit, obligations of the U.S. government with an original maturity at the time of purchase of less than or equal to three months, construction loan receivable, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments.

Common Stock Incentive Plan

Common Stock Incentive Plan	6 Months Ended
	Jun. 30, 2022
Common Stock Incentive Plan
Common Stock Incentive Plan	10. Common Stock Incentive Plan Our board of directors adopted our 2016 Omnibus Incentive Plan (the “2016 Plan”) to enable us to motivate, attract and retain the services of directors, employees and consultants considered essential to our long-term success. The 2016 Plan offers our directors, employees and consultants an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2016 Plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 1,000,000 shares. Any equity awards that lapse, expire, terminate, are canceled or are forfeited (including forfeitures in connection with satisfaction of tax withholdings obligations of the recipient) are re-credited to the 2016 Plan’s reserve for future issuance. The 2016 Plan automatically terminates on the date which is ten years following the effective date of the 2016 Plan. A summary of the restricted stock activity under the 2016 Plan and related information for the six months ended June 30, 2022 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock ​ Value Balance at December 31, 2021 37,767 ​ $ 92.49 Granted 21,645 ​ $ 215.69 Vested (16,064) ​ $ 80.47 Forfeited (1) (9,282) ​ $ 56.94 Balance at March 31, 2022 34,066 ​ $ 186.12 Granted ​ 2,811 ​ $ 128.11 Vested ​ (1,987) ​ $ 181.27 Balance at June 30, 2022 ​ 34,890 ​ $ 181.72 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting . The remaining unrecognized compensation cost of approximately $5.1 million for restricted stock awards is expected to be recognized over a weighted-average amortization period of approximately 2.2 years as of June 30, 2022. The fair value of restricted stock that vested during the six months ended June 30, 2022 was approximately $6.9 million. The following table summarizes our RSU activity for the six months ended June 30, 2022. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock Units ​ Value Balance at December 31, 2021 ​ 60,326 ​ $ 120.24 Granted ​ 20,853 ​ $ 215.84 Balance at March 31, 2022 ​ 81,179 ​ $ 144.79 Granted ​ 2,498 ​ $ 128.11 Balance at June 30, 2022 ​ 83,677 ​ $ 144.30 ​ The remaining unrecognized compensation cost of approximately $6.5 million for RSU awards is expected to be recognized over an amortization period of approximately 2.1 years as of June 30, 2022. 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 (“2021 PSU 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 “2021 PSU Performance Period”) relative to two different comparator groups of companies. In January 2022, we issued 102,641 “target” PSUs to a select group of officers, which vest and are settled in shares of common stock (referred to herein together with the 2021 PSU Award Shares as the “Award Shares”) based on the Company’s total stockholder return over a period commencing on January 11, 2022 and ending on December 31, 2024 (referred to herein together with the 2021 PSU Performance Period as the “Performance Periods”) relative to two different comparator groups of companies. ​ At the end of the applicable Performance Periods, a recipient of PSUs may receive as few as zero Award Shares or as many as 150% 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 applicable Performance Periods 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 applicable Performance Periods. At the end of the applicable Performance Periods, 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 values of the PSUs granted in January 2021 and January 2022 were $12.0 million and $20.0 million, respectively. The fair values were calculated using a Monte Carlo simulation pricing model based on the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 PSU Award ​ 2022 PSU Award ​ Fair Value Assumptions ​ Fair Value Assumptions Valuation date January 6, 2021 ​ ​ January 7, 2022 ​ Fair value per share on valuation date ​ $169.51 ​ ​ ​ $194.86 ​ Expected term ​ 3 years ​ ​ ​ 3 years ​ Expected price volatility 57.64% ​ ​ 55.99% ​ Risk-free interest rate ​ 0.20% ​ ​ ​ 1.17% ​ Discount for post vesting restriction 12.44% ​ ​ 12.22% ​ ​ The expected share price volatility was based on the historical volatility of our shares of common stock over a period of approximately the applicable Performance Periods. 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 applicable 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 applicable Performance Period. For the three and six months ended June 30, 2022, we recognized stock-based compensation expense of approximately $2.7 million and $5.3 million, respectively, relating to PSU awards. For the three and six months ended June 30, 2021, we recognized stock-based compensation expense of approximately $1.0 million and $2.0 million, respectively, relating to PSU awards. As of June 30, 2022, the remaining unrecognized compensation cost of approximately $22.7 million relating to PSU awards is expected to be recognized over the remaining Performance Period of approximately 2.3 years.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Office Lease ​ ​ ​ ​ ​ Year Amount 2022 (six months ending December 31) ​ $ 241 2023 ​ 496 2024 ​ 511 2025 ​ 526 2026 ​ 543 Thereafter ​ 45 Total future contractual lease payments ​ 2,362 Effect of discounting ​ (305) Office lease liability ​ $ 2,057 ​ Improvement Allowances Construction Loan. Environmental Matters. Litigation Class Action Lawsuit On April 25, 2022, a federal securities class action lawsuit was filed against the Company and certain of its officers. The case was named Michael V. Malozzi, individually and on behalf of others similarly situated v. Innovative Industrial Properties, Inc., Paul Smithers, Catherine Hastings and Andy Bui, Case No. 2-22-cv-02359, and alleges that we and certain of our officers made false or misleading statements regarding our business in violation of Section 10(b) of the Securities Exchange Act of 1934, as (the “Exchange Act”), SEC Rule 10b-5, and Section 20(a) of the Exchange Act. According to the filed complaint, the p Derivative Action Lawsuit On July 26, 2022, a derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named John Rice, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Andy Bui, Alan Gold, Gary Kreitzer, Mary Curran, Scott Shoemaker, David Stecher, and Innovative Industrial Properties, Inc., Kings Garden Lawsuit On July 13, 2022, one of our tenants, Kings Garden Inc. (“Kings Garden”), defaulted on its obligations to pay base rent and property management fees for the month of July under each of its six leases with our indirect, wholly owned subsidiary, IIP-CA 2 LP, and defaulted on its obligations to reimburse us for certain insurance premiums at the properties incurred by us that are payable by Kings Garden as operating expenses under such leases. Kings Garden’s monetary default under its leases with us was approximately $2.2 million in the aggregate, consisting of approximately $1.8 million of base rent and property management fees for the month of July and approximately $382,000 of insurance premiums, but excluding applicable late charges and default interest. We applied a portion of the security deposits under the leases, totaling approximately $2.3 million, as payment for these amounts, as well as applicable late charges and default interest through July 13, 2022. Of the six properties leased to Kings Garden, four were operational, with an expansion project at one of those properties, and the other two properties were in development or redevelopment as of June 30, 2022. On July 25, 2022, IIP-CA 2 LP filed a lawsuit against Kings Garden. The case was named IIP-CA 2 LP, a Delaware limited partnership v. Kings Garden Inc., a Nevada corporation, CK Endeavors, Inc., a California corporation, and JM Endeavors, Inc., a California corporation IIP-CA 2 LP, a Delaware limited partnership v. Kings Garden Inc., a Nevada corporation, CK Endeavors, Inc., a California corporation, JM Endeavors, Inc., a California corporation, Michael King, an individual, Gary LaSalle, an individual, Charles Kieley, an individual, and Laurie Kibby, an individual monetary damages, interest, attorneys’ fees, and declaratory and injunctive relief. We may, from time to time, be a party to other legal proceedings, which arise in the ordinary course of our business. Although the results of these proceedings, claims, inquiries, and investigations cannot be predicted with certainty, we do not believe that the final outcome of these matters is reasonably likely to have a material adverse effect on our business, financial condition, or results of operations. Regardless of final outcomes, however, any such proceedings, claims, inquiries, and investigations may nonetheless impose a significant burden on management and employees and may come with significant defense costs or unfavorable preliminary and interim rulings.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events
Subsequent Events	12. Subsequent Events Tenant Default We previously entered into leases (collectively, the “Kings Garden Leases”) with Kings Garden, as tenant, for six properties located in southern California. On July 13, 2022, Kings Garden defaulted on its obligations to pay base rent and property management fees for the month of July under each of the Kings Garden Leases, and defaulted on its obligations to reimburse us for certain insurance premiums at the properties incurred by us that are payable by Kings Garden as operating expenses under the Kings Garden Leases. Kings Garden’s monetary default under all of the Kings Garden Leases was approximately of insurance premiums, but excluding applicable late charges and default interest. We applied a portion of the security deposits under the Kings Garden Leases, totaling approximately million, as payment for these amounts, as well as applicable late charges and default interest through July 13, 2022. As of August 4, 2022, we had not received any additional payments from Kings Garden under any of the Kings Garden Leases, and have approximately Tenant Rent Abatement On July 1, 2022, we amended our lease with Calyx Peak, Inc. at our Missouri property, abating the base rent for the period from July 1, 2022 through December 31, 2022. As of August 4, 2022, the property was under construction and not yet operational, and construction has been delayed in part due to delays in procurement of construction materials. On July 29, 2022, we amended our lease with Green Peak Industries, Inc. at one of our Michigan properties, abating the base rent and property management fee for the period from August 1, 2022 through October 31, 2022. As of August 4, 2022, the property was under construction and not yet operational, and construction has been delayed in part due to delays in procurement of construction materials. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Basis of Presentation	Basis of Presentation. This interim financial information should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2022.
Variable Interest Entities	Variable Interest Entities.
Federal Income Taxes	Federal Income Taxes. represent amounts paid for city and state income and franchise taxes and are included in general and administrative expenses in the accompanying the condensed consolidated statements of income.
Use of Estimates	Use of Estimates.
Reportable Segment	Reportable Segment.
Acquisition of Real Estate Properties	Acquisition of Real Estate Properties. 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 our condensed consolidated balance sheets 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 our condensed consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental revenue 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 three months ended June 30, 2022 and 2021, we recognized depreciation expense of approximately $15.0 million and $9.8 million, respectively, which is included in depreciation and amortization expense in our condensed consolidated statements of income. For the six months ended June 30, 2022 and 2021, we recognized depreciation expense of approximately $28.7 million and $18.7 million, respectively, which are included in depreciation and amortization expense in our condensed 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 six months ended June 30, 2022 and 2021.
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. in capital on our condensed consolidated balance sheets, and the resulting debt discount was amortized over the period during which the Exchangeable Senior Notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models, and convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. We adopted ASU 2020-06 on January 1, 2022 and recognized a cumulative-effect adjustment of approximately $728,000 to the opening balance of retained earnings and derecognized approximately $1.3 million of the remaining equity component relating to the outstanding principal balance of our Exchangeable Senior Notes at the date of adoption.
Deferred Financing Costs	Deferred Financing Costs.
Stock-Based Compensation	Stock-Based Compensation.
Lease Accounting	Lease Accounting. 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 amendment, we re-measured the lease liability relating to the existing leased space and measured the lease liability relating to the expansion space based on the present value of the respective 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 three months ended June 30, 2022 and 2021, we recognized office lease expense of approximately $122,000 and $57,000, respectively, which are included in general and administrative expense in our condensed consolidated statements of income. For the six months ended June 30, 2022 and 2021, we recognized office lease expense of approximately $223,000 and $114,000, respectively, which are included in general and administrative expense in our condensed consolidated statements of income. For the six months ended June 30, 2022 and 2021, amounts paid and classified as operating activities in our condensed consolidated statements of cash flows for the office lease were approximately $161,000 and $117,000, 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. Substantially all of our leases continued to be classified as operating leases and we continue to record revenue for each of our properties on a cash basis. Our tenant reimbursable revenue and property expenses continue to be presented on a gross basis as rental revenue and as property expenses, respectively, on our condensed consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our condensed consolidated financial statements. Lease amendments 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.
Concentration of Credit Risk	Concentration of Credit Risk The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and six months ended June 30, 2022 and 2021, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, 2022 ​ June 30, 2022 ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Percentage of ​ ​ Number of Rental Number of Rental ​ Leases Revenue Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 13 % 11 ​ 14 % SH Parent, Inc. ("Parallel") ​ 4 ​ 10 % 4 ​ 10 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 10 % 4 ​ 9 % Kings Garden Inc. ​ 6 ​ 8 % 6 ​ 8 % Trulieve Cannabis Corp. ("Trulieve") 6 ​ 6 % 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ June 30, 2021 ​ ​ ​ Percentage of ​ Number of Rental ​ Leases Revenue PharmaCann 5 ​ 13 % Parallel 4 ​ 10 % Ascend ​ 3 ​ 9 % Cresco Labs Inc. ​ 5 ​ 8 % Kings Garden Inc. 5 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ June 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 5 ​ 13 % Ascend ​ 3 ​ 9 % Parallel 4 ​ 8 % Cresco Labs Inc. ​ 5 ​ 8 % Curaleaf Holdings, Inc. 4 ​ 7 % ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. On July 13, 2022, Kings Garden defaulted on its obligations to pay rent at all of the properties it leases with us. See Note 12 “Subsequent Events” to our condensed consolidated financial statements included in this report for more information. As of June 30, 2022 and December 31, 2021, 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 June 30, 2022, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Tables)	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Schedule of tenants in the company's portfolio that represented the largest percentage of total rental revenue for each period presented, including tenant reimbursements	The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and six months ended June 30, 2022 and 2021, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, 2022 ​ June 30, 2022 ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Percentage of ​ ​ Number of Rental Number of Rental ​ Leases Revenue Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 13 % 11 ​ 14 % SH Parent, Inc. ("Parallel") ​ 4 ​ 10 % 4 ​ 10 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 10 % 4 ​ 9 % Kings Garden Inc. ​ 6 ​ 8 % 6 ​ 8 % Trulieve Cannabis Corp. ("Trulieve") 6 ​ 6 % 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ June 30, 2021 ​ ​ ​ Percentage of ​ Number of Rental ​ Leases Revenue PharmaCann 5 ​ 13 % Parallel 4 ​ 10 % Ascend ​ 3 ​ 9 % Cresco Labs Inc. ​ 5 ​ 8 % Kings Garden Inc. 5 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ June 30, 2021 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 5 ​ 13 % Ascend ​ 3 ​ 9 % Parallel 4 ​ 8 % Cresco Labs Inc. ​ 5 ​ 8 % Curaleaf Holdings, Inc. 4 ​ 7 % ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty.

Dividends (Tables)

Dividends (Tables)	6 Months Ended
	Jun. 30, 2022
Dividends
Schedule of dividends declared	The following table describes the dividends declared by the Company during the six months ended June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 14, 2022 ​ Common stock ​ $ 1.75 ​ January 1, 2022 to March 31, 2022 ​ April 14, 2022 ​ $ 45,830 March 14, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2022 to April 14, 2022 ​ April 14, 2022 ​ $ 338 June 15, 2022 ​ Common stock ​ $ 1.75 ​ March 1, 2022 to June 30, 2022 ​ July 15, 2022 ​ $ 49,101 June 15, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2022 to July 14, 2022 ​ July 15, 2022 ​ $ 338

Investments in Real Estate (Tab

Investments in Real Estate (Tables)	6 Months Ended
	Jun. 30, 2022
Schedule of real estate properties	The Company acquired the following properties during the six months ended June 30, 2022 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total ​ 4Front MA Massachusetts ​ ​ January 28, 2022 ​ 57,000 ​ $ 16,000 ​ $ 20 ​ $ 16,020 (2) Ascend NJ New Jersey ​ ​ February 10, 2022 ​ 114,000 ​ 35,400 ​ 8 ​ 35,408 (3) Verano PA Pennsylvania ​ ​ March 23, 2022 ​ 3,000 ​ 2,750 ​ 68 ​ 2,818 ​ Kings Garden CA ​ California ​ ​ March 25, 2022 ​ ​ 23,000 ​ ​ 8,158 ​ ​ 11 ​ ​ 8,169 (4) MCP MD ​ Maryland ​ ​ April 13, 2022 ​ ​ 84,000 ​ ​ 25,000 ​ ​ 290 ​ ​ 25,290 (5) Harvest AZ ​ Arizona ​ ​ April 27, 2022 ​ ​ 17,000 ​ ​ 5,238 ​ ​ 11 ​ ​ 5,249 (5) TILT MA ​ Massachusetts ​ ​ May 16, 2022 ​ ​ 104,000 ​ ​ 40,000 ​ ​ 32 ​ ​ 40,032 (5) Texas Original TX ​ Texas ​ ​ June 14, 2022 ​ ​ 85,000 ​ ​ 12,040 ​ ​ 23 ​ ​ 12,063 (5)(6) Total ​ ​ ​ ​ ​ ​ 487,000 ​ $ 144,586 ​ $ 463 ​ $ 145,049 (7) ​ (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The acquisition of the property did not satisfy the requirements for sale-leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our condensed consolidated balance sheet. (3) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $4.6 million. (4) The purchase price includes $1.8 million holdback held in an escrow account, which is subject to distribution to the seller upon seller’s completion of certain improvements at the property. As of June 30, 2022, we have distributed approximately $1.4 million of the holdback. The remaining approximately $400,000 is included in restricted cash on our condensed consolidated balance sheet. (5) The acquisitions of the MCP MD, Harvest AZ, TILT MA and Texas Original TX properties were made through consolidated VIEs utilizing Reverse 1031 Exchanges that were entered into at the time each of the properties was acquired. See Note 2 “Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements – Variable Interest Entities” for more information regarding the Company’s Reverse 1031 Exchanges and consolidation of VIEs. (6) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to approximately $10.0 million. The purchase price includes approximately $908,000 attributable to the property which did not satisfy the requirements for sale-leaseback accounting; therefore, this amount is recognized as a note receivable and is included in other assets, net on our condensed consolidated balance sheet. (7) Approximately $16.9 million was included in other assets; $1.8 million was included in restricted cash; approximately $10.5 million was allocated to land; approximately $115.1 million was allocated to building and improvements; and approximately $798,000 was allocated to in-place leases. ​
Schedule of future contractual minimum rent	Future contractual minimum rent (including base rent and property management fees) under the operating leases as of June 30, 2022 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2022 (six months ending December 31) ​ $ 148,023 2023 ​ 307,933 2024 ​ 316,846 2025 ​ 326,222 2026 ​ 335,909 Thereafter ​ 4,810,212 Total ​ $ 6,245,145
Acquired In-Place Lease Intangible Assets
Schedule of intangible assets and related accumulated amortization	In-place lease intangible assets and related accumulated amortization as of June 30, 2022 and December 31, 2021 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 In-place lease intangible assets ​ $ 9,979 ​ $ 9,181 Accumulated amortization (444) ​ (33) In-place lease intangible assets, net ​ $ 9,535 ​ $ 9,148
Schedule of estimated annual amortization	​ ​ ​ ​ ​ Year Amount 2022 (six months ending December 31) ​ $ 430 2023 ​ 860 2024 ​ 860 2025 ​ 860 2026 ​ 860 Thereafter ​ 5,665 Total ​ $ 9,535
Above-Market Lease
Schedule of intangible assets and related accumulated amortization	The above-market lease and related accumulated amortization included in other assets, net on our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Above-market lease ​ $ 1,054 ​ $ 1,054 Accumulated amortization (50) ​ (4) Above-market lease, net ​ $ 1,004 ​ $ 1,050

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2022
Summary of principal payments on outstanding indebtedness	The following table summarizes the principal payments on our outstanding indebtedness as of June 30, 2022 (in thousands): ​ ​ ​ ​ Payments Due ​ ​ by Year Amount 2022 (six months ended December 31) ​ $ — 2023 ​ ​ — 2024 ​ ​ 6,453 2025 ​ ​ — 2026 ​ ​ 300,000 Thereafter ​ ​ — Total ​ $ 306,453
Exchangeable Senior Notes
Schedule of interest expense	The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2022 2021 2022 2021 Cash coupon $ 55 $ 1,348 $ 331 $ 2,696 Amortization of debt discount ​ — ​ 284 ​ — ​ 566 Amortization of issuance cost ​ 13 ​ 247 ​ 71 ​ 490 Total interest expense $ 68 $ 1,879 $ 402 $ 3,752
Schedule of carrying value	The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Principal amount $ 6,453 $ 33,373 Unamortized discount — ​ (612) Unamortized issuance cost (79) ​ (529) Carrying value $ 6,374 $ 32,232
Notes due 2026
Schedule of interest expense	The following table details our interest expense related to the Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2022 ​ 2021 2022 ​ 2021 Cash coupon ​ $ 4,125 ​ $ 1,695 ​ $ 8,250 ​ $ 1,695 Amortization of issuance cost ​ 311 ​ ​ 118 ​ ​ 618 ​ ​ 118 Total interest expense ​ $ 4,436 ​ $ 1,813 ​ $ 8,868 ​ $ 1,813
Schedule of carrying value	The following table details the carrying value of our Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost (5,522) ​ (6,140) Carrying value $ 294,478 $ 293,860

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Net Income Per Share
Schedule of earnings per share, basic and diluted	Computations of net income per basic and diluted share (in thousands, except share and per share data) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ ​ 2022 2021 2022 2021 Net income ​ $ 40,214 ​ $ 29,339 ​ $ 75,264 ​ $ 55,266 ​ Preferred stock dividends ​ (338) ​ (338) ​ ​ (676) ​ ​ (676) ​ Distribution to participating securities ​ (207) ​ (137) ​ ​ (409) ​ ​ (263) ​ Net income attributable to common stockholders used to compute net income per share - basic ​ ​ 39,669 ​ ​ 28,864 ​ ​ 74,179 ​ ​ 54,327 ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 68 ​ ​ 1,879 ​ ​ 402 ​ ​ 3,752 ​ Net income attributable to common stockholders used to compute net income per share - diluted ​ $ 39,737 ​ $ 30,743 ​ $ 74,581 ​ $ 58,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 27,850,561 ​ 23,889,761 ​ ​ 26,741,568 ​ ​ 23,889,580 ​ Restricted stock and RSUs ​ ​ 82,387 ​ ​ 96,230 ​ ​ 113,858 ​ ​ 94,223 ​ PSUs ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Dilutive effect of Exchangeable Senior Notes ​ ​ 103,742 ​ ​ 2,182,691 ​ ​ 304,348 ​ ​ 2,182,691 ​ Diluted ​ 28,036,690 ​ 26,168,682 ​ ​ 27,159,774 ​ ​ 26,166,494 ​ Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.42 ​ $ 1.21 ​ $ 2.77 ​ $ 2.27 ​ Diluted ​ $ 1.42 ​ $ 1.17 ​ $ 2.75 ​ $ 2.22 ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2022 ​ At December 31, 2021 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 309,442 ​ $ 308,489 ​ $ 324,889 ​ $ 324,772 Exchangeable Senior Notes (2) ​ $ 6,374 ​ $ 10,877 ​ $ 32,232 ​ $ 134,270 Notes due 2026 (2) ​ $ 294,478 ​ $ 272,379 ​ $ 293,860 ​ $ 318,486 (1) Short-term investments consisting of obligations of the U.S. government with an original maturity at the time of purchase of greater than three months are classified as held-to-maturity and valued using Level 1 inputs. (2) The fair value is determined based upon Level 2 inputs as the Exchangeable Senior Notes and Notes due 2026 were trading in the private market.

Common Stock Incentive Plan (Ta

Common Stock Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2022
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 six months ended June 30, 2022 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock ​ Value Balance at December 31, 2021 37,767 ​ $ 92.49 Granted 21,645 ​ $ 215.69 Vested (16,064) ​ $ 80.47 Forfeited (1) (9,282) ​ $ 56.94 Balance at March 31, 2022 34,066 ​ $ 186.12 Granted ​ 2,811 ​ $ 128.11 Vested ​ (1,987) ​ $ 181.27 Balance at June 30, 2022 ​ 34,890 ​ $ 181.72 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting .
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of the activity	The following table summarizes our RSU activity for the six months ended June 30, 2022. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock Units ​ Value Balance at December 31, 2021 ​ 60,326 ​ $ 120.24 Granted ​ 20,853 ​ $ 215.84 Balance at March 31, 2022 ​ 81,179 ​ $ 144.79 Granted ​ 2,498 ​ $ 128.11 Balance at June 30, 2022 ​ 83,677 ​ $ 144.30 ​
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of fair value assumptions	The grant date fair values of the PSUs granted in January 2021 and January 2022 were $12.0 million and $20.0 million, respectively. The fair values were calculated using a Monte Carlo simulation pricing model based on the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 PSU Award ​ 2022 PSU Award ​ Fair Value Assumptions ​ Fair Value Assumptions Valuation date January 6, 2021 ​ ​ January 7, 2022 ​ Fair value per share on valuation date ​ $169.51 ​ ​ ​ $194.86 ​ Expected term ​ 3 years ​ ​ ​ 3 years ​ Expected price volatility 57.64% ​ ​ 55.99% ​ Risk-free interest rate ​ 0.20% ​ ​ ​ 1.17% ​ Discount for post vesting restriction 12.44% ​ ​ 12.22% ​

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies
Schedule of future contractual lease payments	Office Lease ​ ​ ​ ​ ​ Year Amount 2022 (six months ending December 31) ​ $ 241 2023 ​ 496 2024 ​ 511 2025 ​ 526 2026 ​ 543 Thereafter ​ 45 Total future contractual lease payments ​ 2,362 Effect of discounting ​ (305) Office lease liability ​ $ 2,057

Organization (Details)

Organization (Details)	Jun. 30, 2022
Iip Operating Partnership Lp [Member]
Percentage Leased	100%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Variable Interest Entities (Details) $ in Thousands	Jun. 30, 2022 USD ($) entity property	Feb. 02, 2022 USD ($)
Purchase Price	$ 144,586	$ 3,300
Variable Interest Entities
Number of properties acquired | property	4
Purchase Price	$ 82,300
Number of VIEs | entity	4

Summary of Significant Accoun_5

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Additional Information (Details)		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2019	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Nov. 30, 2021	Dec. 31, 2018
Number of Reportable Segments | segment				1
Depreciation expense		$ 15,000,000	$ 9,800,000	$ 28,700,000	$ 18,700,000
Impairment loss				0	0
Maximum construction loan agreed to lend			18,500,000		18,500,000
Construction loan funded		17,698,000		17,698,000		$ 12,916,000
Cash equivalents		32,600,000		32,600,000		72,000,000
Lease, Practical Expedients, Package [true false]	true
Incremental borrowing rate							5.50%	7.25%
Amounts paid and classified as operating activities for the office lease				$ 161,000	117,000
Adjustment | Accounting Standards Update 2020-06
Accumulated deficit						728,000
Equity Components						$ 1,300,000
Geographic Concentration Risk [Member] | Net real estate held for investment
Concentration Risk, Threshold Percentage				5%		5%
General and administrative expense
Office lease expense		122,000	$ 57,000	$ 223,000	$ 114,000
Maximum
Cash, FDIC Insured Amount		$ 250,000		$ 250,000
Building and Improvements
Property, Plant and Equipment, Useful Life				40 years
Office equipment and furniture and fixtures | Minimum
Property, Plant and Equipment, Useful Life				3 years
Office equipment and furniture and fixtures | Maximum
Property, Plant and Equipment, Useful Life				7 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Concentration of Credit Risk (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 lease tenant property	Jun. 30, 2021 lease	Jun. 30, 2022 lease tenant property	Jun. 30, 2021 lease
Concentration Risk [Line Items]
Number of Properties | property	110		110
Rental revenues (including tenant reimbursements) | Customer concentration
Concentration Risk [Line Items]
Number of Tenants | tenant	5		5
Rental revenues (including tenant reimbursements) | Customer concentration | PharmaCann
Concentration Risk [Line Items]
Number of Leases	11	5	11	5
Percentage of Rental Revenue	13%	13%	14%	13%
Rental revenues (including tenant reimbursements) | Customer concentration | Parallel
Concentration Risk [Line Items]
Number of Leases	4	4	4	4
Percentage of Rental Revenue	10%	10%	10%	8%
Rental revenues (including tenant reimbursements) | Customer concentration | Ascend
Concentration Risk [Line Items]
Number of Leases	4	3	4	3
Percentage of Rental Revenue	10%	9%	9%	9%
Rental revenues (including tenant reimbursements) | Customer concentration | Cresco Labs Inc.
Concentration Risk [Line Items]
Number of Leases		5		5
Percentage of Rental Revenue		8%		8%
Rental revenues (including tenant reimbursements) | Customer concentration | Kings Garden Inc.
Concentration Risk [Line Items]
Number of Leases	6	5	6
Percentage of Rental Revenue	8%	7%	8%
Rental revenues (including tenant reimbursements) | Customer concentration | Trulieve
Concentration Risk [Line Items]
Number of Leases	6		6
Percentage of Rental Revenue	6%		7%
Rental revenues (including tenant reimbursements) | Customer concentration | Curaleaf Holdings Inc.
Concentration Risk [Line Items]
Number of Leases				4
Percentage of Rental Revenue				7%

Common Stock (Details)

Common Stock (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Apr. 30, 2022	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Common Stock, Shares Authorized		50,000,000	50,000,000	50,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001	$ 0.001
Common Stock, Shares Issued		27,973,429	27,973,429	25,612,541
Common Stock, Shares Outstanding		27,973,429	27,973,429	25,612,541
Number of shares issued	1,815,790
Issuance of common stock, net of offering costs	$ 330,900,000		$ 351,988,000
Number of shares issued upon conversion		47,059	412,901
Outstanding principal amount		$ 3,100,000	$ 26,900,000
At The Market Offerings
Maximum number of common stock issuable		500,000,000	500,000,000
Number of shares issued			117,023
Issuance of common stock, net of offering costs			$ 21,100,000
Payment of stock offering costs			$ 434,000
Over-Allotment Option
Number of shares issued	236,842

Preferred Stock (Details)

Preferred Stock (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	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%	9%
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					6 Months Ended
	Jul. 15, 2022	Jun. 15, 2022	Apr. 14, 2022	Mar. 14, 2022	Jun. 30, 2022	Jun. 30, 2021
Preferred Stock.
Dividends declared per common share		$ 1.75		$ 1.75
Dividends declared per Series A preferred stock		$ 0.5625		$ 0.5625
Dividend amount - Common stock	$ 49,101		$ 45,830		$ 84,339	$ 61,387
Dividend amount - Series A preferred stock	$ 338		$ 338		$ 676	$ 676

Investments in Real Estate (Det

Investments in Real Estate (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) ft²	Feb. 02, 2022 USD ($)
Rentable Square Feet | ft²	487,000
Initial Purchase Price	$ 144,586	$ 3,300
Transaction Costs	463
Total	$ 145,049
4Front MA
Rentable Square Feet | ft²	57,000
Initial Purchase Price	$ 16,000
Transaction Costs	20
Total	$ 16,020
Ascend NJ
Rentable Square Feet | ft²	114,000
Initial Purchase Price	$ 35,400
Transaction Costs	8
Total	$ 35,408
Verano PA
Rentable Square Feet | ft²	3,000
Initial Purchase Price	$ 2,750
Transaction Costs	68
Total	$ 2,818
Kings Garden CA
Rentable Square Feet | ft²	23,000
Initial Purchase Price	$ 8,158
Transaction Costs	11
Total	$ 8,169
MCP MD
Rentable Square Feet | ft²	84,000
Initial Purchase Price	$ 25,000
Transaction Costs	290
Total	$ 25,290
Harvest AZ
Rentable Square Feet | ft²	17,000
Initial Purchase Price	$ 5,238
Transaction Costs	11
Total	$ 5,249
TILT MA
Rentable Square Feet | ft²	104,000
Initial Purchase Price	$ 40,000
Transaction Costs	32
Total	$ 40,032
Texas Original TX
Rentable Square Feet | ft²	85,000
Initial Purchase Price	$ 12,040
Transaction Costs	23
Total	$ 12,063

Investments in Real Estate - Ad

Investments in Real Estate - Additional Information (Details) - USD ($)	1 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2022	Apr. 30, 2022	Mar. 31, 2022	Feb. 28, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Feb. 02, 2022	Dec. 31, 2021
Rental (including tenant reimbursements)					$ 69,995,000	$ 48,867,000	$ 134,109,000	$ 91,752,000
Operating Income (Loss)					44,144,000	32,940,000	84,021,000	60,616,000
Total investment in property	$ 2,016,609,000				2,016,609,000		2,016,609,000			$ 1,640,166,000
Tenant Improvements	699,856,000				699,856,000		699,856,000			620,301,000
Purchase Price	144,586,000				144,586,000		144,586,000		$ 3,300,000
Real estate property cost	276,300,000				276,300,000		276,300,000
Tenant improvements and construction activities funded	291,400,000				291,400,000		291,400,000
Total Property Acquisitions	145,049,000				145,049,000		145,049,000
Other Revenue
Interest revenue					516,000		906,000
Other assets
Total Property Acquisitions	16,900,000				16,900,000		16,900,000
Restricted Cash.
Total Property Acquisitions	1,800,000				1,800,000		1,800,000
Acquired In-Place Lease Intangible Assets
Initial value	9,535,000				9,535,000		9,535,000			9,148,000
Amortization expense					213,000		$ 411,000
Weighted-average amortization period (in years)							11 years 2 months 12 days
Total Property Acquisitions	798,000				798,000		$ 798,000
Above-Market Lease
Initial value	1,004,000				1,004,000		$ 1,004,000			$ 1,050,000
Amortization period (in years)							10 years 10 months 24 days
Amortization expense					23,000		$ 46,000
Land
Total Property Acquisitions	10,500,000				10,500,000		10,500,000
Building and Improvements
Total Property Acquisitions	115,100,000				115,100,000		115,100,000
Properties Acquired In 2022
Rental (including tenant reimbursements)					1,300,000		3,000,000
Operating Income (Loss)					954,000		2,200,000
Properties Acquired In 2021
Rental (including tenant reimbursements)						1,800,000		4,800,000
Operating Income (Loss)						$ 1,500,000		$ 4,000,000
PharmaCann | New York Properties
Increase amount of tenant improvement allowance		$ 45,000,000
Tenant improvement allowance		$ 78,500,000
Curaleaf Holdings Inc. | Pennsylvania properties
Increase amount of tenant improvement allowance	35,000,000
Tenant improvement allowance	47,400,000				47,400,000		47,400,000
Curaleaf Holdings Inc. | Illinois properties [Member]
Increase amount of tenant improvement allowance	10,900,000
Tenant improvement allowance	29,500,000				29,500,000		29,500,000
Ascend | Michigan Properties
Increase amount of tenant improvement allowance			$ 4,400,000
Tenant improvement allowance			19,400,000
Ascend | Massachusetts properties
Increase amount of tenant improvement allowance			14,900,000
Tenant improvement allowance			37,200,000
Green Thumb Industries Inc. | Pennsylvania properties
Increase amount of tenant improvement allowance	55,000,000
Tenant improvement allowance	74,300,000				74,300,000		74,300,000
Holistic At Massachusetts [Member] | Michigan Properties
Increase amount of tenant improvement allowance			3,500,000
Tenant improvement allowance			$ 22,300,000
Green Peak Industries LLC [Member] | Michigan Properties
Increase amount of tenant improvement allowance				$ 18,000,000
Tenant improvement allowance				$ 47,500,000
Kings Garden CA
Purchase price holdback	1,400,000				1,400,000		1,400,000
Purchase price holdback held in escrow account	1,800,000				1,800,000		1,800,000
Purchase Price	8,158,000				8,158,000		8,158,000
Total Property Acquisitions	8,169,000				8,169,000		8,169,000
Kings Garden CA | Restricted Cash.
Investment purchase price holdback	400,000				400,000		400,000
Texas Original TX
Agreed funding for redevelopment of building	10,000,000				10,000,000		10,000,000
Purchase Price	12,040,000				12,040,000		12,040,000
Total Property Acquisitions	12,063,000				12,063,000		12,063,000
Texas Original TX | Other assets
Investment purchase price, not part of construction	908,000				908,000		908,000
Sozo Health, Inc. [Member] | Michigan Properties
Increase amount of tenant improvement allowance	1,200,000
Tenant improvement allowance	7,000,000				7,000,000		7,000,000
4Front MA
Purchase Price	16,000,000				16,000,000		16,000,000
Total Property Acquisitions	16,020,000				16,020,000		16,020,000
4Front MA | Maximum
Agreed funding for redevelopment of building	$ 4,600,000				$ 4,600,000		$ 4,600,000

Investments in Real Estate - In

Investments in Real Estate - Intangible assets and related accumulated amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Acquired In-Place Lease Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Gross	$ 9,979	$ 9,181
Accumulated amortization	(444)	(33)
Net	9,535	9,148
Above-Market Lease
Finite-Lived Intangible Assets [Line Items]
Gross	1,054	1,054
Accumulated amortization	(50)	(4)
Net	$ 1,004	$ 1,050

Investments in Real Estate - Es

Investments in Real Estate - Estimated annual amortization (Details) - Acquired In-Place Lease Intangible Assets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022 (six months ending December 31)	$ 430
2023	860
2024	860
2025	860
2026	860
Thereafter	5,665
Net	$ 9,535	$ 9,148

Investments in Real Estate - Fu

Investments in Real Estate - Future Contractual Minimum Rent (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Contractual Minimum Rent
2022 (six months ending December 31)	$ 148,023
2023	307,933
2024	316,846
2025	326,222
2026	335,909
Thereafter	4,810,212
Total	$ 6,245,145

Debt - Exchangeable Senior Note

Debt - Exchangeable Senior Notes - Additional Information (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)
Number of shares issued upon conversion | shares	47,059	412,901
Loss on exchange of Exchangeable Senior Notes	$ 7,000	$ 125,000
Threshold Limit of Convertible Debt for Issue of Shares	4,600,000	4,600,000
Outstanding principal amount	3,100,000	26,900,000
Exchange of Exchangeable Senior Notes	3,014,000	26,665,000
Additional Paid-In-Capital
Exchange of Exchangeable Senior Notes	$ 3,014,000	$ 26,665,000
Exchangeable Senior Notes
Interest rate	3.75%	3.75%
Exchangeable Senior Notes | Accounts payable and accrued expenses
Accrued interest payable	$ 71,000	$ 71,000	$ 365,000
Exchangeable Senior Notes | Common Stock
Debt Instrument, Convertible, Conversion Ratio		15.62234
Conversion of Stock, Amount Converted		$ 1,000
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 64.01	$ 64.01

Debt - Exchangeable Senior No_2

Debt - Exchangeable Senior Notes - Interest expense (Details) - Exchangeable Senior Notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash coupon	$ 55	$ 1,348	$ 331	$ 2,696
Amortization of debt discount		284		566
Amortization of issuance cost	13	247	71	490
Total interest expense	$ 68	$ 1,879	$ 402	$ 3,752

Debt - Exchangeable Senior No_3

Debt - Exchangeable Senior Notes - Carrying value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Principal amount	$ 306,453
Exchangeable Senior Notes
Principal amount	6,453	$ 33,373
Unamortized discount		(612)
Unamortized issuance cost	(79)	(529)
Carrying value	$ 6,374	$ 32,232

Debt - Notes due 2026 (Details)

Debt - Notes due 2026 (Details) - USD ($) $ in Thousands		6 Months Ended
	May 25, 2021	Jun. 30, 2022	Dec. 31, 2021	May 05, 2021
Principal amount		$ 306,453
Notes due 2026
Principal amount	$ 300,000	$ 300,000	$ 300,000
Interest rate	5.50%			5.50%
Issuance costs	$ 6,800
Notes due 2026 | Minimum
Debt instrument change in debt rating interest rate	6%
Notes due 2026 | Maximum
Debt instrument change in debt rating interest rate	6.50%
Notes due 2026 | Redeemed Prior To February 25, 2026
Percentage of principal amount redeemed		100%
Notes due 2026 | Redeemed On Or After February 25, 2026 [Member]
Percentage of principal amount redeemed		100%
Notes due 2026 | Accounts payable and accrued expenses
Accrued interest payable		$ 2,100	$ 2,100

Debt - Notes due 2026 - Interes

Debt - Notes due 2026 - Interest expense (Details) - Notes due 2026 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash coupon	$ 4,125	$ 1,695	$ 8,250	$ 1,695
Amortization of issuance cost	311	118	618	118
Total interest expense	$ 4,436	$ 1,813	$ 8,868	$ 1,813

Debt - Notes due 2026 - Carryin

Debt - Notes due 2026 - Carrying value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	May 25, 2021
Principal amount	$ 306,453
Notes due 2026
Principal amount	300,000	$ 300,000	$ 300,000
Unamortized issuance cost	(5,522)	(6,140)
Carrying value	$ 294,478	$ 293,860

Debt - Principal Payments (Deta

Debt - Principal Payments (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt
2024	$ 6,453
2026	300,000
Total	$ 306,453

Net Income Per Share - Addition

Net Income Per Share - Additional information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net Income Per Share
Dilutive effect of Exchangeable Senior Notes	103,742	2,182,691	304,348	2,182,691

Net Income Per Share - Computat

Net Income Per Share - Computations of net income per basic and diluted share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net income	$ 40,214	$ 29,339	$ 75,264	$ 55,266
Preferred stock dividends	(338)	(338)	(676)	(676)
Distribution to participating securities	(207)	(137)	(409)	(263)
Net income attributable to common stockholders used to compute net income per share - basic	39,669	28,864	74,179	54,327
Dilutive effect of Exchangeable Senior Notes	68	1,879	402	3,752
Net income attributable to common stockholders used to compute net income per share - diluted	$ 39,737	$ 30,743	$ 74,581	$ 58,079
Weighted-average common shares outstanding:
Basic	27,850,561	23,889,761	26,741,568	23,889,580
Dilutive effect of Exchangeable Senior Notes	103,742	2,182,691	304,348	2,182,691
Diluted	28,036,690	26,168,682	27,159,774	26,166,494
Net income attributable to common stockholders per share:
Basic	$ 1.42	$ 1.21	$ 2.77	$ 2.27
Diluted	$ 1.42	$ 1.17	$ 2.75	$ 2.22
Restricted stock and RSUs
Weighted-average common shares outstanding:
Restricted stock and RSUs	82,387	96,230	113,858	94,223

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value of Financial Instruments
Investments, Carrying Value	$ 309,442	$ 324,889
Exchangeable Senior Notes, Carrying Value	6,374	32,232
Notes due 2026, Carrying Value	294,478	293,860
Investments, Fair Value	308,489	324,772
Exchangeable Senior Notes, Fair Value	10,877	134,270
Notes due 2026, Fair Value	$ 272,379	$ 318,486

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Money market funds
Cash and Cash Equivalents, Fair Value Disclosure	$ 32.6	$ 72

Common Stock Incentive Plan - A

Common Stock Incentive Plan - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2022
Restricted Shares
Unrecognized compensation cost			$ 5,100,000		$ 5,100,000
Amortization period					2 years 2 months 12 days
Fair value of restricted stock					$ 6,900,000
Granted			2,811	21,645
RSUs
Unrecognized compensation cost			$ 6,500,000		$ 6,500,000
Amortization period					2 years 1 month 6 days
Granted			2,498	20,853
PSUs
Amortization period					2 years 3 months 18 days
Granted	102,641	70,795
Maximum total value at the at the vesting date as a percentage of the grant date price		800%
Dividends		$ 0
Minimum Term of Holding of Vested Shares		1 year
Granted date fair value	$ 20,000,000	$ 12,000,000
PSUs | Minimum
Percentage of Number of Target Awards and Deemed Dividend		0%
PSUs | Maximum
Percentage of Number of Target Awards and Deemed Dividend		150%
2016 Plan
Expiration term					10 years
2016 Plan | Maximum
Number of shares authorized			1,000,000		1,000,000

Common Stock Incentive Plan -_2

Common Stock Incentive Plan - Activity (Details) - $ / shares	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Beginning Balance	34,066	37,767
Granted	2,811	21,645
Vested	(1,987)	(16,064)
Forfeited		(9,282)
Shares, Ending Balance	34,890	34,066
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 186.12	$ 92.49
Weighted-Average Grant Date Fair Value, Granted	128.11	215.69
Weighted-Average Grant Date Fair Value, Vested	181.27	80.47
Weighted-Average Grant Date Fair Value, Forfeited		56.94
Weighted-Average Grant Date Fair Value, Ending Balance	$ 181.72	$ 186.12
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Beginning Balance	81,179	60,326
Granted	2,498	20,853
Shares, Ending Balance	83,677	81,179
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 144.79	$ 120.24
Weighted-Average Grant Date Fair Value, Granted	128.11	215.84
Weighted-Average Grant Date Fair Value, Ending Balance	$ 144.30	$ 144.79

Common Stock Incentive Plan - S

Common Stock Incentive Plan - Summary of Fair Value Assumption (Details) - PSUs - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per share on valuation date	$ 194.86	$ 169.51
Expected term	3 years	3 years
Expected price volatility	55.99%	57.64%
Risk-free interest rate	1.17%	0.20%
Discount for post vesting restriction	12.22%	12.44%
Stock-based compensation expense			$ 2.7	$ 1	$ 5.3	$ 2
Unrecognized compensation cost			$ 22.7		$ 22.7
Remaining Performance Period					2 years 3 months 18 days

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Commitments and Contingencies
2022 (six months ending December 31)	$ 241
2023	496
2024	511
2025	526
2026	543
Thereafter	45
Total future contractual lease payments	2,362
Effect of discounting	(305)
Office lease liability	$ 2,057
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Jul. 13, 2022 USD ($) property	Jun. 30, 2022 USD ($) property
Class Action Lawsuit
Other Commitments [Line Items]
Amount accrued		$ 0
Derivative Action Lawsuit
Other Commitments [Line Items]
Amount accrued		$ 0
Kings Garden | Kings Garden Lawsuit
Other Commitments [Line Items]
Number of leased properties | property		6
Number of leased properties that are operational | property		4
Number of leased properties with expansion project | property		1
Number of leased properties that were in development or redevelopment | property		2
Subsequent Event | Kings Garden
Other Commitments [Line Items]
Number of leased properties | property	6
Monetary default	$ 2,200,000
Base rent and property management fee	1,800,000
Insurance premium (excluding late charges and default interest)	382,000
Security deposits	$ 2,300,000
Subsequent Event | Kings Garden | Kings Garden Lawsuit
Other Commitments [Line Items]
Number of leased properties | property	6
Monetary default	$ 2,200,000
Base rent and property management fee	1,800,000
Insurance premium (excluding late charges and default interest)	382,000
Security deposits	$ 2,300,000
Commitments related to improvement allowances
Other Commitments [Line Items]
Other Commitment		$ 194,400,000
Commitments related to construction loan
Other Commitments [Line Items]
Other Commitment		$ 802,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Kings Garden	Aug. 04, 2022 USD ($)	Jul. 13, 2022 USD ($) property
Subsequent Event [Line Items]
Number of leased properties | property		6
Monetary default		$ 2,200,000
Base rent and property management fee		1,800,000
Insurance premium (excluding late charges and default interest)		382,000
Security deposits		$ 2,300,000
Security deposits remaining	$ 373,000