Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 27, 2024 | Jun. 30, 2023 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-37949 | ||
Entity Registrant Name | Innovative Industrial Properties, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 81-2963381 | ||
Entity Address, Address Line One | 1389 Center Drive, Suite 200 | ||
Entity Address, City or Town | Park City | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84098 | ||
City Area Code | 858 | ||
Local Phone Number | 997-3332 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 28,205,423 | ||
Entity Public Float | $ 2 | ||
Auditor Name | BDO USA, P.C. | ||
Auditor Firm ID | 243 | ||
Auditor Location | San Diego, California | ||
Entity Central Index Key | 0001677576 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | IIPR | ||
Security Exchange Name | NYSE | ||
Series A Preferred Stock | |||
Title of 12(b) Security | Series A Preferred Stock, par value $0.001 per share | ||
Trading Symbol | IIPR-PA | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Real estate, at cost: | ||
Land | $ 142,524 | $ 139,953 |
Buildings and improvements | 2,108,218 | 2,010,628 |
Construction in progress | 117,773 | 54,106 |
Total real estate, at cost | 2,368,515 | 2,204,687 |
Less accumulated depreciation | (202,692) | (138,405) |
Net real estate held for investment | 2,165,823 | 2,066,282 |
Construction loan receivable | 22,000 | 18,021 |
Cash and cash equivalents | 140,249 | 87,122 |
Restricted cash | 1,450 | 1,450 |
Investments | 21,948 | 200,935 |
Right of use office lease asset | 1,355 | 1,739 |
In-place lease intangible assets, net | 8,245 | 9,105 |
Other assets, net | 30,020 | 30,182 |
Total assets | 2,391,090 | 2,414,836 |
Liabilities: | ||
Exchangeable Senior Notes, net | 4,431 | 6,380 |
Notes due 2026, net | 296,449 | 295,115 |
Building improvements and construction funding payable | 9,591 | 29,376 |
Accounts payable and accrued expenses | 11,406 | 10,615 |
Dividends payable | 51,827 | 50,840 |
Rent received in advance and tenant security deposits | 59,358 | 58,716 |
Other liabilities | 5,056 | 1,901 |
Total liabilities | 438,118 | 452,943 |
Commitments and contingencies (Notes 6 and 11) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, $15,000 liquidation preference ($25.00 per share), 600,000 shares issued and outstanding at December 31, 2023 and December 31, 2022 | 14,009 | 14,009 |
Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,140,891 and 27,972,830 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 28 | 28 |
Additional paid-in capital | 2,095,789 | 2,065,248 |
Dividends in excess of earnings | (156,854) | (117,392) |
Total stockholders' equity | 1,952,972 | 1,961,893 |
Total liabilities and stockholders' equity | $ 2,391,090 | $ 2,414,836 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Preferred stock, Par Value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Par Value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 28,140,891 | 27,972,830 |
Common Stock, Shares Outstanding | 28,140,891 | 27,972,830 |
Series A Preferred Stock | ||
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 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Rental (including tenant reimbursements) | $ 307,349 | $ 274,377 | $ 204,551 |
Other | 2,157 | 1,982 | |
Total revenues | 309,506 | 276,359 | 204,551 |
Expenses: | |||
Property expenses | 24,893 | 10,520 | 4,443 |
General and administrative expense | 42,832 | 38,520 | 22,961 |
Depreciation and amortization expense | 67,194 | 61,303 | 41,776 |
Total expenses | 134,919 | 110,343 | 69,180 |
Gain on sale of real estate | 3,601 | ||
Income from operations | 174,587 | 169,617 | 135,371 |
Interest and other income | 8,446 | 3,195 | 397 |
Interest expense | (17,467) | (18,301) | (18,086) |
Gain (loss) on exchange of Exchangeable Senior Notes | 22 | (125) | (3,692) |
Net income | 165,588 | 154,386 | 113,990 |
Preferred stock dividends | (1,352) | (1,352) | (1,352) |
Net income attributable to common stockholders | $ 164,236 | $ 153,034 | $ 112,638 |
Net income attributable to common stockholders per share (Note 8): | |||
Basic (in dollars per share) | $ 5.82 | $ 5.57 | $ 4.69 |
Diluted (in dollars per share) | $ 5.77 | $ 5.52 | $ 4.55 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 27,977,807 | 27,345,047 | 23,903,017 |
Diluted (in shares) | 28,255,797 | 27,663,169 | 26,261,155 |
Consolidated Statements of Stoc
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 (Loss) | 113,990 | 113,990 | ||||||
Issuance of common stock in conjunction with inducement of Exchangeable Senior Notes, net | $ 2 | 108,591 | 108,593 | |||||
Issuance of common stock in conjunction with inducement of Exchangeable Senior Notes, net (in shares) | 1,684,237 | |||||||
Preferred stock dividend | (1,352) | (1,352) | ||||||
Common stock dividend | (139,736) | (139,736) | ||||||
Issuance of unvested restricted stock, net of forfeitures | (3,384) | (3,384) | ||||||
Issuance of unvested restricted stock, net of forfeitures (in shares) | (8,624) | |||||||
Stock-based compensation | 8,616 | 8,616 | ||||||
Balances at end of period at Dec. 31, 2021 | 14,009 | $ 26 | $ (1,340) | 1,672,882 | $ 728 | (75,218) | $ (612) | 1,611,699 |
Balances at end of period (in shares) at Dec. 31, 2021 | 25,612,541 | |||||||
Net Income (Loss) | 154,386 | 154,386 | ||||||
Exchange of Exchangeable Senior Notes | 26,682 | 26,682 | ||||||
Exchange of Exchangeable Senior Notes (in shares) | 413,166 | |||||||
Net proceeds from sale of common stock | $ 2 | 351,958 | 351,960 | |||||
Net proceeds from sale of common stock (in shares) | 1,932,813 | |||||||
Preferred stock dividend | (1,352) | (1,352) | ||||||
Common stock dividend | (195,936) | (195,936) | ||||||
Issuance of unvested restricted stock, net of forfeitures | (2,441) | (2,441) | ||||||
Issuance of unvested restricted stock, net of forfeitures (in shares) | 14,310 | |||||||
Stock-based compensation | 17,507 | 17,507 | ||||||
Balances at end of period at Dec. 31, 2022 | 14,009 | $ 28 | 2,065,248 | (117,392) | 1,961,893 | |||
Balances at end of period (in shares) at Dec. 31, 2022 | 27,972,830 | |||||||
Net Income (Loss) | 165,588 | 165,588 | ||||||
Exchange of Exchangeable Senior Notes | 1,964 | 1,964 | ||||||
Exchange of Exchangeable Senior Notes (in shares) | 32,200 | |||||||
Net proceeds from sale of common stock | 9,564 | 9,564 | ||||||
Net proceeds from sale of common stock (in shares) | 101,061 | |||||||
Preferred stock dividend | (1,352) | (1,352) | ||||||
Common stock dividend | (203,698) | (203,698) | ||||||
Issuance of unvested restricted stock, net of forfeitures | (568) | (568) | ||||||
Issuance of unvested restricted stock, net of forfeitures (in shares) | 34,800 | |||||||
Stock-based compensation | 19,581 | 19,581 | ||||||
Balances at end of period at Dec. 31, 2023 | $ 14,009 | $ 28 | $ 2,095,789 | $ (156,854) | $ 1,952,972 | |||
Balances at end of period (in shares) at Dec. 31, 2023 | 28,140,891 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 165,588 | $ 154,386 | $ 113,990 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 67,194 | 61,303 | 41,776 |
Loss (gain) on exchange of Exchangeable Senior Notes | (22) | 125 | 3,692 |
Gain on sale of real estate | (3,601) | ||
Other non-cash adjustments | 111 | 185 | 95 |
Stock-based compensation | 19,581 | 17,507 | 8,616 |
Amortization of discounts on investments | (3,198) | (2,246) | (340) |
Amortization of debt discount and issuance costs | 1,371 | 1,349 | 2,851 |
Changes in assets and liabilities | |||
Other assets, net | 352 | (3,506) | (3,687) |
Accounts payable, accrued expenses and other liabilities | 3,924 | 2,717 | 3,102 |
Rent received in advance and tenant security deposits | 642 | 5,911 | 18,652 |
Net cash provided by (used in) operating activities | 255,543 | 234,130 | 188,747 |
Cash flows from investing activities | |||
Purchases of investments in real estate | (34,906) | (150,090) | (287,585) |
Proceeds from sale of real estate asset | 23,500 | ||
Funding of draws for improvements and construction | (150,088) | (373,878) | (374,541) |
Funding of construction loan and other investments | (3,979) | (21,683) | (16,068) |
Deposits in escrow for acquisitions | (250) | (625) | |
Purchases of short-term investments | (111,872) | (388,800) | (569,772) |
Maturities of short-term investments | 294,057 | 515,000 | 864,498 |
Net cash provided by (used in) investing activities | (6,788) | (396,201) | (384,093) |
Cash flows from financing activities | |||
Issuance of common stock, net of offering costs | 9,564 | 351,960 | |
Gross proceeds from issuance of Notes due 2026 | 300,000 | ||
Payment of deferred financing costs | (561) | (6,855) | |
Payment of inducement and transaction costs relating to inducement of the Exchangeable Senior Notes | (1,696) | ||
Dividends paid to common stockholders | (202,711) | (183,943) | (130,954) |
Dividends paid to preferred stockholders | (1,352) | (1,352) | (1,352) |
Taxes paid related to net share settlement of equity awards | (568) | (2,441) | (3,384) |
Net cash provided by (used in) financing activities | (195,628) | 164,224 | 155,759 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 53,127 | 2,153 | (39,587) |
Cash, cash equivalents and restricted cash, beginning of year | 88,572 | 86,419 | 126,006 |
Cash, cash equivalents and restricted cash, end of year | 141,699 | 88,572 | 86,419 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for interest, net of interest capitalized | 16,125 | 17,247 | 14,381 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accrual for current-period additions to real estate | 8,385 | 29,376 | 46,274 |
Deposits applied for acquisitions | 250 | 25 | 200 |
Accrual for common and preferred stock dividends declared | 51,827 | 50,840 | 38,847 |
Exchange of Exchangeable Senior Notes for common stock | $ 2,000 | 26,682 | 109,040 |
Operating lease liability for obtaining right of use asset | $ 1,017 | $ 192 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization | |
Organization | 1. Organization As used herein, the terms “we”, “us”, “our”, or the “Company” refer to Innovative Industrial Properties, Inc., a Maryland corporation, and any of our subsidiaries, including IIP Operating Partnership, LP, a Delaware limited partnership (our “Operating Partnership”). We are an internally-managed real estate investment trust (“REIT”) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. We have acquired and intend to continue to acquire our properties through sale-leaseback transactions and third-party purchases. We have leased and expect to continue to lease our properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including structural repairs, maintenance, real estate taxes and insurance. We were incorporated in Maryland on June 15, 2016. We conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT structure, in which our properties are owned by our Operating Partnership, directly or through subsidiaries. We are the sole general partner of our Operating Partnership and own, directly or through subsidiaries, 100% of the limited partnership interests in our Operating Partnership. Information with respect to rentable square footage is unaudited. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
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. Reclassification Federal Income Taxes. Use of Estimates. Reportable Segment strategies. The financial information disclosed herein represents all of the financial information related to our one 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 the 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 the consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental income over the remaining term of the applicable lease. Certain acquisitions of real estate did not satisfy the requirements for sale-leaseback accounting and therefore as of December 31, 2023 and 2022, acquisitions of approximately $20.0 million and approximately $20.1 million, respectively, have been recognized as notes receivable and are included in other assets, net on our consolidated balance sheets. Sale of Real Estate. Gains and Losses from the Derecognition of Nonfinancial Assets Revenue from Contracts with Customers (Topic 606) Cost Capitalization and Depreciation. Amounts capitalized are depreciated on a straight-line basis over the estimated useful lives determined by management. We depreciate buildings and improvements based on our evaluation of the estimated useful life of each specific asset, not to exceed 40 years. For the years ended December 31, 2023, 2022 and 2021, we recognized depreciation expense of approximately $66.3 million, $60.5 million and $41.7 million, respectively, which are included in depreciation and amortization expense in our consolidated statements of income. We depreciate office equipment and furniture and fixtures on a straight-line basis over the 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. We define redevelopment properties as existing properties for which we expect to spend significant development and construction costs that are not reimbursements to tenants for improvements at the properties. When existing properties are determined to be redevelopment properties, the net carrying value of the buildings and improvements are transferred to construction in progress while the redevelopment activities are in process. Costs capitalized to construction in progress related to redevelopment properties are transferred to buildings and improvements at historical cost of the properties as the redevelopment project or phases of projects are placed in service. During the year ended December 31, 2023, we reclassified the net carrying value of the buildings and improvements Provision for Impairment. Long-lived assets are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. No impairment losses were recognized during the years ended December 31, 2023, 2022 and 2021. Revenue Recognition. For the year ended December 31, 2023, rental revenue recognized included the application of approximately $3.1 million of security deposits for rent with two tenants who were in default under their respective lease agreements and approximately $5.7 million of security deposits for rent with three tenants in connection with lease amendments. Construction Loan. In February 2023, we amended the construction loan to provide for, among other things: (1) the additional capital commitment of the borrower into the project of $1.0 million; (2) our agreement to fund an additional $4.5 million into the project; (3) an increase in the interest rate effective April 1, 2023; (4) an extension of the loan term to December 31, 2023; and (5) the provision of additional collateral from the borrower for the loan. Interest on the loan continued to accrue through March 31, 2023, with monthly payments of interest contractually required commencing April 1, 2023. In December 2023, we further amended to construction loan to extend the loan term to June 30, 2024, with an option for the borrower to extend the loan term to December 31, 2024 upon satisfaction of certain conditions and payment of an extension fee. Cash and Cash Equivalents Restricted Cash. Investments Exchangeable Notes. Deferred Financing Costs. Stock-Based Compensation. Lease Accounting. We account for our leases under ASC 842, Leases , and have elected the practical expedient not to separate certain non-lease components from the lease component if the timing and pattern of transfer are the same for the non-lease component and associated lease component, and the lease component would be classified as an operating lease if accounted for separately. We also elected the short-term lease exception for lessees for leases that are less than 12 months. 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, which contains annual escalations. 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 lease space and measured the lease liability 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 years ended December 31, 2023, 2022 and 2021, we recognized office lease expense of approximately $486,000, $466,000 and $231,000, respectively, which are included in general and administrative expense in our consolidated statements of income. For the years ended December 31, 2023, 2022 and 2021, amounts paid and classified as operating activities in our consolidated statements of cash flows for the office lease were approximately $496,000, $402,000 and $234,000, 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 revenues and as property expenses, respectively, on our consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our consolidated financial statements. 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. Recent Accounting Pronouncements . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, measures of segment profit and loss, and disclosures of how the chief operating decision maker uses the reported measure(s) of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. . Concentration of Credit Risk The following tables set forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the years ended December 31, 2023, 2022 and 2021, including tenant reimbursements: For the Year Ended December 31, 2023 Percentage of Number of Rental Leases Revenue PharmaCann Inc. ("PharmaCann") 11 15 % Ascend Wellness Holdings, Inc. ("Ascend") 4 10 % Green Thumb Industries, Inc. ("Green Thumb") 3 8 % SH Parent, Inc. ("Parallel") (1) 4 7 % Curaleaf Holdings, Inc. ("Curaleaf") 8 7 % For the Year Ended December 31, 2022 Percentage of Number of Rental Leases Revenue PharmaCann 11 14 % Parallel (1) 4 10 % Ascend 4 9 % Green Thumb 3 7 % Trulieve Cannabis Corp. 6 7 % For the Year Ended December 31, 2021 Percentage of Number of Rental Leases Revenue PharmaCann 5 12 % Parallel (1) 4 10 % Ascend 3 9 % Cresco Labs Inc. ("Cresco") 5 8 % Kings Garden (2) 5 8 % (1) Commencing in November 2022, Parallel defaulted on its obligations to pay rent at one of our Pennsylvania properties, and we regained possession of that property in October 2023. In February 2023, Parallel defaulted on its obligations to pay rent at one of our Texas properties, and we regained possession of that property in March 2023. See Note 11 “Commitments and Contingencies — Litigation” for more information. (2) In July 2022, Kings Garden defaulted on its obligations to pay rent at all of the properties it leases with us, and pursuant to a confidential, conditional settlement agreement executed on September 11, 2022 between us and Kings Garden, we terminated the leases for two properties and regained possession of those properties, which continued to be in development or redevelopment as of December 31, 2023. Kings Garden paid the stipulated rent during its period of occupancy for the remaining four properties through September 20, 2023, and we regained possession of those properties in September 2023. See Note 11 “Commitments and Contingencies — Litigation” for more information. In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of December 31, 2023, our largest property was located in New York and accounted for approximately 5.4% of our net real estate held for investment. No other properties accounted for more than 5% of our net real estate held for investment as of December 31, 2023. As of December 31, 2022, none of our properties individually represented more than 5% of our net real estate held for investment. We have deposited cash with a financial institution that is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of December 31, 2023, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Common Stock. | |
Common Stock | 3. Common Stock As of December 31, 2023, the Company was authorized to issue up to 50,000,000 shares of common stock, par value $0.001 per share, and there were 28,140,891 shares of common stock issued and outstanding. 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. During the year ended December 31, 2022, we sold 117,023 shares of our common stock pursuant to an “at-the-market” offering program (the “Prior ATM Program”) for net proceeds of approximately $21.1 million. In January 2023, we terminated the Prior ATM Program and entered into new equity distribution agreements with four 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 year ended December 31, 2023, we sold 101,061 shares of our common stock under the ATM Program for net proceeds of approximately $9.6 million. During the year ended December 31, 2022, we issued 413,166 shares of our common stock upon exchange by holders of approximately $26.9 million of outstanding principal amount of our Exchangeable Senior Notes. During the year ended December 31, 2023, we issued 32,200 shares of our common stock upon exchange by holders of $2.0 million of outstanding principal amount of our Exchangeable Senior Notes. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Preferred Stock. | |
Preferred Stock | 4. Preferred Stock As of December 31, 2023, the Company was authorized to issue up to 50,000,000 shares of preferred stock, par value $0.001 per share, and there were issued and outstanding 600,000 shares of 9.00% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”). The Company may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus all accrued and unpaid dividends on such Series A Preferred Stock up to, but excluding the redemption date. Holders of the Series A Preferred Stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2023 | |
Dividends | |
Dividends | 5. Dividends The following table describes the dividends declared by the Company during the years ended December 31, 2023, 2022 and 2021: Amount Dividend Dividend Declaration Date Security Class Per Share Period Covered Paid Date Amount (In thousands) March 15, 2021 Common stock $ 1.32 January 1, 2021 to March 31, 2021 April 15, 2021 $ 31,660 March 15, 2021 Series A preferred stock $ 0.5625 January 15, 2021 to April 14, 2021 April 15, 2021 $ 338 June 15, 2021 Common stock $ 1.40 April 1, 2021 to June 30, 2021 July 15, 2021 $ 33,584 June 15, 2021 Series A preferred stock $ 0.5625 April 15, 2021 to July 14, 2021 July 15, 2021 $ 338 September 15, 2021 Common stock $ 1.50 July 1, 2021 to September 30, 2021 October 15, 2021 $ 35,983 September 15, 2021 Series A preferred stock $ 0.5625 July 15, 2021 to October 14, 2021 October 15, 2021 $ 338 December 15, 2021 Common stock $ 1.50 October 1, 2021 to December 31, 2021 January 14, 2022 $ 38,509 December 15, 2021 Series A preferred stock $ 0.5625 October 15, 2021 to January 14, 2022 January 14, 2022 $ 338 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 April 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 September 15, 2022 Common stock $ 1.80 July 1, 2022 to September 30, 2022 October 14, 2022 $ 50,503 September 15, 2022 Series A preferred stock $ 0.5625 July 15, 2022 to October 14, 2022 October 14, 2022 $ 338 December 15, 2022 Common stock $ 1.80 October 1, 2022 to December 31, 2022 January 13, 2023 $ 50,502 December 15, 2022 Series A preferred stock $ 0.5625 October 15, 2022 to January 14, 2023 January 13, 2023 $ 338 March 15, 2023 Common stock $ 1.80 January 1, 2023 to March 31, 2023 April 14, 2023 $ 50,725 March 15, 2023 Series A preferred stock $ 0.5625 January 15, 2023 to April 14, 2023 April 14, 2023 $ 338 June 15, 2023 Common stock $ 1.80 April 1, 2023 to June 30, 2023 July 14, 2023 $ 50,742 June 15, 2023 Series A preferred stock $ 0.5625 April 15, 2023 to July 14, 2023 July 14, 2023 $ 338 September 15, 2023 Common stock $ 1.80 July 1, 2023 to September 30, 2023 October 13, 2023 $ 50,742 September 15, 2023 Series A preferred stock $ 0.5625 July 15, 2023 to October 14, 2023 October 13, 2023 $ 338 December 15, 2023 Common stock $ 1.82 October 1, 2023 to December 31, 2023 January 12, 2024 $ 51,489 December 15, 2023 Series A preferred stock $ 0.5625 October 15, 2023 to January 14, 2024 January 12, 2024 $ 338 |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Real Estate | |
Investments in Real Estate | 6. Investments in Real Estate Acquisitions The Company made the following acquisitions during the year ended December 31, 2023 (dollars in thousands): Rentable Initial Square Purchase Transaction Property Market Closing Date Feet (1) Price Costs Total Susquehanna Street Pennsylvania February 15, 2023 58,000 $ 15,000 $ 26 $ 15,026 Boltonfield Street Ohio March 3, 2023 157,000 20,100 29 20,129 (2) Total 215,000 $ 35,100 $ 55 $ 35,155 (3) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $21.9 million. (3) Approximately $2.6 million was allocated to land and approximately $32.6 million was allocated to building and improvements. Acquired In-Place Lease Intangible Assets In-place lease intangible assets and related accumulated amortization as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 In-place lease intangible assets $ 9,979 $ 9,979 Accumulated amortization (1,734) (874) In-place lease intangible assets, net $ 8,245 $ 9,105 Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our consolidated statements of income was approximately $860,000, $841,000 and $33,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The remaining weighted-average amortization period of the value of acquired in-place leases was approximately 9.6 years, and the estimated annual amortization of the value of the acquired in-place leases as of December 31, 2023 is as follows (in thousands): Year Amount 2024 $ 860 2025 860 2026 860 2027 860 2028 860 Thereafter 3,945 Total $ 8,245 Above-Market Lease The above-market lease and related accumulated amortization included in other assets, net on our consolidated balance sheets as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 Above-market lease $ 1,054 $ 1,054 Accumulated amortization (187) (95) Above-market lease, net $ 867 $ 959 next five years approximately Additional Improvement Allowances In February 2023, we amended our lease with a subsidiary of Ascend at one of our New Jersey properties, increasing the improvement allowance under the lease by $15.0 million to a total of approximately $19.6 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. We also amended each of our leases with Ascend to include cross-default provisions applicable to each lease. In February 2023, we amended our lease and development agreement with PharmaCann at one of our New York properties, increasing the construction funding by $15.0 million to a total of approximately $93.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. We also amended each of our leases with PharmaCann to include cross-default provisions applicable to each lease. In February 2023, we amended our lease with a subsidiary of Goodness Growth Holdings Inc. (“Goodness Growth”) at one of our New York properties, increasing the improvement allowance under the lease by $4.0 million to a total of approximately $53.4 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. We also amended each of our leases with Goodness Growth to include cross-default provisions applicable to each lease. In October 2023, we amended our lease with a subsidiary of Goodness Growth at one of our New York properties, increasing the improvement allowance under the lease by $14.0 million to a total of approximately $67.4 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. In connection with the lease amendment, the tenant prepaid rent for the three month period commencing on November 1, 2023 and ending January 31, 2024. Lease Amendments In January 2023 In January 2023, we executed a lease amendment with Calyx Peak, Inc. at our Missouri property, which (1) extended the term of the lease; and (2) provided for 100% base rent deferral through March 31, 2023, with pro rata monthly payback of the deferred rent over the twelve-month period starting April 2023. In March 2023, we executed a lease amendment with Temescal Wellness of Massachusetts, LLC at our Massachusetts property, which (1) provided for temporary reduced base rent from April 2023 through January 2024 to be partially paid through application of security deposits, with pro rata payback of those security deposits over twelve months starting in February 2024; (2) extended the lease term; and (3) increased base rent for the remainder of the term of the lease. In July 2023, we amended our lease with a subsidiary of 4Front Ventures Corp. (“4Front”) at one of our Illinois properties, pursuant to which, among other things, we agreed to apply a portion of the security deposit that we hold under the lease to pay one-half of the monthly installments of base rent due from the tenant, commencing on August 1, 2023 and continuing through November 30, 2023, which the tenant is then required to repay over a 12 -month period commencing on January 1, 2024. New Leases In June 2023, we executed a new long-term lease with a tenant at our property located at 68860 Perez Road in Cathedral City, California that was previously leased to Kings Garden, which is under construction as of December 31, 2023. In December 2023, we executed a new lease with a tenant at our property located at 9410 Davis Highway in Dimondale, Michigan that was previously leased to Green Peak, which is under construction as of December 31, 2023. Capitalized Costs Including all of our properties, during the year ended December 31, 2023, we capitalized costs of approximately $130.7 million and funded approximately $150.1 million relating to improvements and construction activities at our properties. Property Dispositions In November 2022, we sold one of our Pennsylvania properties that was leased to a subsidiary of Maitri Holdings, LLC for $23.5 million, excluding transaction costs, and recognized a gain on sale of the property of approximately $3.6 million. In March 2023, we sold the portfolio of four properties in California previously leased to affiliates of Medical Investor Holdings, LLC (“Vertical”) for $16.2 million (excluding transaction costs) and provided a secured loan for $16.1 million to the buyer of the properties. The loan matures on February 29, 2028 with two options to extend the maturity for twelve months, conditional in each instance on the payment of an extension fee and at least $500,000 of the principal balance. The loan is interest only and payments are payable monthly in advance. The transaction did not qualify for recognition as a completed sale under GAAP since not all of the criteria were met. Accordingly, we have not derecognized the assets transferred on our consolidated balance sheets. All consideration received, as well as any future payments, from the buyer will be recognized as a deposit liability and will be included in other liabilities on our consolidated balance sheet until such time the criteria for recognition as a sale have been met. As of December 31, 2023, we received interest payments of approximately $1.3 million. In addition, as we have not met all of the held-for-sale criteria, land and building and improvements with gross carrying values of approximately $3.4 million and approximately $13.9 million, respectively, and accumulated depreciation of approximately $1.6 million as of December 31, 2023, remain on the consolidated balance sheet, and the buildings and improvements continue to be depreciated. Future Contractual Minimum Rent Future contractual minimum rent (including base rent and property management fees) under the operating leases as of December 31, 2023 for future periods is summarized as follows (in thousands): Year Contractual Minimum Rent 2024 $ 291,260 2025 303,164 2026 312,135 2027 319,665 2028 326,618 Thereafter 3,727,850 Total $ 5,280,692 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Debt | 7. Debt Exchangeable Senior Notes As of December 31, 2023 and 2022, our Operating Partnership had outstanding approximately $4.4 million and $6.4 million, respectively, principal amount of 3.75% Exchangeable Senior Notes due 2024 (the “Exchangeable Senior Notes”). The Exchangeable Senior Notes are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and our Operating Partnership’s subsidiaries and are exchangeable for cash, shares of our common stock, or a combination of cash and shares of our common stock, at our Operating Partnership’s option, at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. The exchange rate for the Exchangeable Senior Notes at December 31, 2023 was 17.30699 shares of our common stock per $1,000 principal amount of the Exchangeable Senior Notes and the exchange price at December 31, 2023 was approximately $57.78 per share of our common stock. At December 31, 2023, there were 76,774 shares potentially issuable upon conversion of the Exchangeable Senior Notes. The exchange rate and exchange price are subject to adjustment in certain circumstances. The Exchangeable Senior Notes will pay interest semiannually at a rate of 3.75% per annum and will mature on February 21, 2024, unless earlier exchanged or repurchased in accordance with their terms. The effective interest rate including amortization of issuance costs is 4.53%. Our Operating Partnership will not have the right to redeem the Exchangeable Senior Notes prior to maturity, but may be required to repurchase the Exchangeable Senior Notes from holders under certain circumstances. At December 31, 2023, the if-exchanged value of the Exchangeable Senior Notes exceeded the principal amount by approximately $3.3 million. See Note 12 “Subsequent Events” for more information. During the year ended December 31, 2023, we issued 32,200 shares of our common stock upon exchanges by holders of $2.0 million of outstanding principal amount of our Exchangeable Senior Notes. For the year ended December 31, 2023, we recognized a gain on the exchange totaling approximately $22,000 , 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 net non-cash increase to our additional paid-in capital account of approximately $2.0 million for the year ended December 31, 2023. During the year ended December 31, 2022, we issued 413,166 shares of our common stock upon exchanges by holders of approximately $26.9 million of outstanding principal amount of our Exchangeable Senior Notes. For the year ended December 31, 2022, we recognized a loss on the exchange totaling approximately $125,000 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 $26.7 million for the year ended December 31, 2022. In December 2021, our Operating Partnership entered into separate privately-negotiated exchange agreements with certain holders of the Exchangeable Senior Notes, pursuant to which the Operating Partnership delivered and paid an aggregate of (a) 1,684,237 shares of the Company’s common stock and (b) approximately $2.3 million in cash (consisting of approximately $1.2 million in accrued interest and approximately $1.1 million in inducement), collectively, in exchange for approximately $110.4 million principal amount of the Exchangeable Senior Notes (the “Exchange Transactions”). The issuance of the shares pursuant to the Exchange Transactions resulted in a non-cash increase to our additional paid-in capital account of approximately $109.0 million, primarily driven by the fair value of the shares issued, partially offset by the amount allocated to the repurchase of the exchange option. In connection with the Exchange Transactions, we recognized a million. The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): For the Year Ended December 31, 2023 2022 2021 Cash coupon $ 182 $ 452 $ 5,380 Amortization of debt discount — — 1,146 Amortization of issuance cost 37 94 991 Capitalized interest (7) — — Total interest expense $ 212 $ 546 $ 7,517 The following table details the carrying value of our Exchangeable Senior Notes (in thousands): December 31, 2023 December 31, 2022 Principal amount $ 4,436 $ 6,436 Unamortized issuance cost (5) (56) Carrying value $ 4,431 $ 6,380 Accrued interest payable for the Exchangeable Senior Notes was approximately $49,000 and $70,000 as of December 31, 2023 and 2022, respectively, and is included in accounts payable and accrued expenses on our consolidated balance sheets. Notes due 2026 On May 25, 2021, our Operating Partnership issued $300.0 million aggregate principal amount of its 5.50% Senior Notes due 2026 (the “Notes due 2026”). The Notes due 2026 are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and our Operating Partnership’s subsidiaries and rank equally in right of payment with all of the Operating Partnership’s existing and future senior unsecured indebtedness, including the Exchangeable Senior Notes. However, the Notes due 2026 are effectively subordinated to any of the Company’s, the Operating Partnership’s and the Operating Partnership’s subsidiaries’ future secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes due 2026 will pay interest semiannually at a rate of 5.50% per year and will mature on 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, Argent Institutional 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 effective interest rate including amortization of issuance costs is 6.03%. The following table details our interest expense related to the Notes due 2026 (in thousands): For the Year Ended December 31, 2023 2022 2021 Cash coupon $ 16,500 $ 16,500 $ 9,854 Amortization of issuance cost 1,334 1,255 715 Capitalized interest (620) — — Total interest expense $ 17,214 $ 17,755 $ 10,569 The following table details the carrying value of our Notes due 2026 (in thousands): December 31, 2023 December 31, 2022 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost (3,551) (4,885) Carrying value $ 296,449 $ 295,115 The Operating Partnership may redeem some or all of the notes at its option at any time at the applicable redemption price. If the notes are redeemed prior to February 25, 2026, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the notes are redeemed on or after February 25, 2026, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date. The terms of the indenture for the Notes due 2026 require compliance with various financial covenants, including minimum level of debt service coverage and limits on the amount of total leverage and secured debt maintained by the Operating Partnership. Management believes that it was in compliance with those covenants as of December 31, 2023. Accrued interest payable for the Notes due 2026 as of December 31, 2023 and 2022 was approximately $2.1 million and is included in accounts payable and accrued expenses on our consolidated balance sheets. Revolving Credit Facility On October 23, 2023, our Operating Partnership entered into a loan and security agreement (the “Loan Agreement”) with a federally regulated commercial bank, as lender and as agent for lenders that become party thereto from time to time. The Loan Agreement matures on October 23, 2026, and provides $30.0 million in aggregate commitments for secured revolving loans (the “Revolving Credit Facility”), the availability of which is based on a borrowing base consisting of real properties owned by subsidiaries (the “Subsidiary Guarantors”) of the Operating Partnership that satisfy eligibility criteria set forth in the Loan Agreement. The obligations of the Operating Partnership under the Loan Agreement are guaranteed by the Company and the Subsidiary Guarantors, and are secured by (i) operating accounts of the Operating Partnership into which lease payments under the real property included in the borrowing base are paid, (ii) the equity interest of the Subsidiary Guarantors, (iii) the real estate included in the borrowing base and the leases and rents thereunder, and (iv) all personal property of the Subsidiary Guarantors. Borrowings under the Revolving Credit Facility bear interest at a variable rate based on the greater of the prime rate and an applicable margin based on deposits with the participating bank(s) and a stipulated interest rate. The Revolving Credit Facility is subject to an unused line of credit fee, calculated in accordance with the Loan Agreement. The Loan Agreement is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants and events of default. The Loan Agreement also allows the Operating Partnership, subject to the satisfaction of certain conditions, to request additional revolving loan commitments up to a specified amount. There were no amounts outstanding under the Revolving Credit Facility as of December 31, 2023. In connection with the Revolving Credit Facility, we recorded approximately $561,000 of issuance costs, which are being amortized on a straight-line basis and recognized as non-cash interest expense over the term of the Revolving Credit Facility. For the year ended December 31, 2023, we recognized approximately $41,000 of non-cash interest expense related to the Revolving Credit Facility. The following table summarizes the principal payments on our outstanding indebtedness as of December 31, 2023 (in thousands): Payments Due by Year Amount 2024 4,436 2025 — 2026 300,000 2027 — 2028 — Thereafter — Total $ 304,436 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Net Income Per Share | |
Net Income Per Share | 8. Net Income Per Share Grants of restricted stock and restricted stock units (“RSUs”) of the Company in share-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per share under the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. Earnings per basic share under the two-class method is calculated based on dividends declared on common shares and other participating securities (“distributed earnings”) and the rights of participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends and dividend equivalents accruing during the period. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding participating securities. Earnings per basic share represents the summation of the distributed and undistributed earnings per share class divided by the total number of shares. Through December 31, 2023, all of the Company’s participating securities received dividends or dividend equivalents at an equal dividend rate per share. As a result, distributions to participating securities have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. The 81,169 shares, 202,076 shares and 2,180,550 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the years ended December 31, 2023, 2022 and 2021, respectively, and were included in the computation of diluted earnings per share. For the years ended December 31, 2023 and 2022, the performance share units (“PSUs”) granted to certain employees were not included in dilutive securities as the performance thresholds for the vesting of the PSUs were not met as measured as of the respective dates. For the year ended December 31, 2021, 81,414 shares issuable upon vesting of PSUs granted to certain employees in January 2021 were included in dilutive securities, as the performance thresholds for vesting of these PSUs were met as measured as of December 31, 2021 (see Note 10 for further discussion of the PSUs). Computations of net income per basic and diluted share were as follows (in thousands, except share and per share data): Years Ended December 31, 2023 2022 2021 Net income $ 165,588 $ 154,386 $ 113,990 Preferred stock dividends (1,352) (1,352) (1,352) Distribution to participating securities (1,482) (834) (557) Net income attributable to common stockholders used to compute net income per share – basic 162,754 152,200 112,081 Dilutive effect of Exchangeable Senior Notes 212 546 7,517 Net income attributable to common stockholders used to compute net income per share – diluted $ 162,966 $ 152,746 $ 119,598 Weighted-average common shares outstanding: Basic 27,977,807 27,345,047 23,903,017 Restricted stock and RSUs 196,821 116,046 96,174 PSUs — — 81,414 Dilutive effect of Exchangeable Senior Notes 81,169 202,076 2,180,550 Diluted 28,255,797 27,663,169 26,261,155 Net income attributable to common stockholders per share: Basic $ 5.82 $ 5.57 $ 4.69 Diluted $ 5.77 $ 5.52 $ 4.55 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. The following table presents the carrying value and approximate fair value of financial instruments at December 31, 2023 and 2022 (in thousands): At December 31, 2023 At December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Investments (1) $ 21,948 $ 21,951 $ 200,935 $ 200,715 Investments as cash equivalents (2) $ 15,187 $ 15,029 $ — $ — Exchangeable Senior Notes (3) $ 4,431 $ 7,576 $ 6,380 $ 10,282 Notes due 2026 (3) $ 296,449 $ 278,325 $ 295,115 $ 264,234 Construction Loan (4) $ 22,000 $ 27,543 $ 18,021 $ 20,167 (1) Investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than three months and less than one year are classified as held-to-maturity and valued using Level 1 inputs. At December 31, 2023, the unrecognized gain was approximately $78,000 . (2) Investments as cash equivalents consisting of obligations of the U.S. government with an original maturity at the time of purchase of less than or equal to three months are classified as held-to-maturity and valued using Level 1 inputs. (3) 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. (4) The construction loan receivable is categorized as Level 3 and was valued using a yield analysis, which is typically performed for non-credit impaired loans. To determine fair value using a yield analysis, a current price is imputed for the loan based upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk. In the yield analysis, the Company considers the current contractual interest rate, the maturity and other terms of the loan relative to risk of the company and the specific loan. At December 31, 2023 and 2022, the expected market yields used to determine fair value were 16.25% and 25% , respectively. Changes in market yields may change the fair value of the construction loan. Generally, an increase in market yields may result in a decrease in the fair value of the construction loan. Due to the inherent uncertainty of determining the fair value of a loan that does not have a readily available market value, the fair value of the construction loan may fluctuate from period to period. Additionally, the fair value of the construction loan may differ significantly from the value that would have been used had a readily available market existed for such loan and may differ materially from the value that the Company may ultimately realize. The carrying amounts of cash equivalents, accounts payable, accrued expenses and other liabilities approximate fair values. |
Common Stock Incentive Plan
Common Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2023 | |
Common Stock Incentive Plan | |
Common Stock Incentive Plan | 10. Common Stock Incentive Plan Our board of directors adopted our 2016 Omnibus Incentive Plan (the “2016 Plan”), to enable us to motivate, attract and retain the services of directors, employees and consultants considered essential to our long-term success. The 2016 Plan offers our directors, employees and consultants an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2016 Plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 1,000,000 shares. Any equity awards that lapse, expire, terminate, are canceled or are forfeited (including forfeitures in connection with satisfaction of tax withholding obligations of the recipient) are re-credited to the 2016 Plan’s reserve for future issuance. The 2016 Plan automatically terminates on the date which is ten years following the effective date of the 2016 Plan. A summary of the restricted stock activity under the 2016 Plan and related information for the years ended December 31, 2023, 2022 and 2021 is included in the table below: Weighted- Restricted Average Grant Date Shares Fair Value Nonvested balance at December 31, 2020 76,346 $ 50.14 Granted 9,679 $ 187.74 Vested (29,955) $ 52.31 Forfeited (1) (18,303) $ 31.99 Nonvested balance at December 31, 2021 37,767 $ 92.49 Granted 24,456 $ 205.62 Vested (18,051) $ 91.57 Forfeited (1) (10,146) $ 69.74 Nonvested balance at December 31, 2022 34,026 $ 181.08 Granted 40,770 $ 105.85 Vested (12,115) $ 173.37 Forfeited (1) (5,970) $ 116.31 Nonvested balance at December 31, 2023 56,711 $ 135.46 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting or employees’ cessation of employment. The remaining unrecognized compensation cost of approximately $4.3 million for restricted stock awards is expected to be recognized over a weighted-average amortization period of approximately 1.6 years as of December 31, 2023. The fair value of restricted stock that vested in 2023, 2022 and 2021 was approximately $1.7 million, $6.9 million and $8.8 million, respectively. The following table summarizes our RSU activity for the years ended December 31, 2023, 2022 and 2021. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: Weighted- Unvested Average Grant Date RSUs Fair Value Balance at December 31, 2020 36,687 $ 76.06 Granted 23,639 $ 188.80 Balance at December 31, 2021 60,326 $ 120.24 Granted 23,351 $ 206.45 Balance at December 31, 2022 83,677 $ 144.30 Granted 66,279 $ 101.40 Balance at December 31, 2023 149,956 $ 125.34 The remaining unrecognized compensation cost of approximately $5.9 million for RSU awards is expected to be recognized over an amortization period of approximately 1.7 years as of December 31, 2023. In January 2021, we initiated the PSU program and issued 70,795 “target” PSUs to a select group of officers, which vest and are settled in shares of common stock (“Award Shares”) based on the Company’s total stockholder return over a period commencing on January 11, 2021 and ending on December 31, 2023 (the “Performance Period”) relative to two different comparator groups of companies. 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 Period is negative, the payout of Award Shares is capped at the target number of PSUs, notwithstanding the Company’s outperformance of comparator groups. No dividends are paid to the recipient during the 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 value of the PSUs granted in January 2021 and January 2022 was $12.0 million and $20.0 million, respectively. The fair value was 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 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 Periods. For the years ended December 31, 2023, 2022 and 2021, we recognized stock-based compensation expense of approximately $10.7 million, $10.7 million and $4.0 million respectively, relating to the PSU awards. As of December 31, 2023, the remaining unrecognized compensation cost of approximately $6.7 million relating to the PSUs granted in January 2022 is expected to be recognized over the remaining Performance Period of 1.0 year. As measured as of December 31, 2023, the performance thresholds for the vesting of the PSUs were not met for any of the applicable awards, and the PSUs granted in January 2021 were forfeited in their entirety pursuant to the terms of the agreements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Office Lease. Year Amount 2024 $ 511 2025 526 2026 543 2027 45 2028 — Total future contractual lease payments 1,625 Effect of discounting (143) Office lease liability $ 1,482 Improvement Allowances. Construction Commitments. million of commitments related to contracts with vendors for improvements at our properties. 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 On September 29, 2022, an Amended Class Action Complaint was filed under the same Case Number, adding as defendants Alan D. Gold and Benjamin C. Regin, and asserting causes of action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. According to the Amended Class Action Complaint, the plaintiff is seeking an undetermined amount of damages, interest, attorneys’ fees and costs and other relief on behalf of the putative classes of all persons who acquired shares of the Company’s common stock between August 7, 2020 and August 4, 2022. On December 1, 2022, defendants moved to dismiss the Amended Class Action Complaint. On September 19, 2023, the court granted defendants’ motion to dismiss the Amended Class Action Complaint without prejudice. On October 19, 2023, a Second Amended Class Action Complaint was filed under the same Case Number, and asserted causes of action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. According to the Second Amended Class Action Complaint, the plaintiff is seeking an undetermined amount of damages, interest, attorneys’ fees and costs and other relief on behalf of the putative classes of all persons who acquired shares of the Company’s common stock between August 7, 2020 and August 4, 2022. On December 18, 2023, defendants moved to dismiss the Second Amended Class Action Complaint. On February 1, 2024, plaintiff responded with their opposition to defendants’ motion to dismiss the Second Amended Class Action Complaint. Defendants’ reply in support of the motion to dismiss is due March 1, 2024. It is possible that similar lawsuits may yet be filed in the same or other courts that name the same or additional defendants. We intend to defend the lawsuit vigorously. However, at this time, we cannot predict the probable outcome of this action, and, accordingly, no amounts have been accrued in the Company’s consolidated financial statements. 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., The plaintiffs are seeking declaratory relief, direction to reform and improve corporate governance and internal procedures, and an undetermined amount of damages, restitution, interest, and attorneys’ fees and costs. On September 6, 2022, the defendants in this action filed a Consent Motion to Stay the Proceedings, which was granted on October 11, 2022. On September 28, 2022, a second derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Karen Draper, 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, Defendants, and Innovative Industrial Properties Inc., Nominal Defendant Ross Weintraub, derivatively on behalf of Innovative Industrial Properties, Inc. v. Alan Gold, Paul Smithers, Catherine Hastings, Ben Regin, Andy Bui, Tracie Hager, Gary Kreitzer, David Stecher, Scott Shoemaker, Mary Curran, and Innovative Industrial Properties, Inc., Franco DeBlasio, on behalf of Gerich Melenth Nin (GMN) LP, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Alan D. Gold, Tracie J. Hager, Benjamin C. Regin, Andy Bui, Gary A. Kreitzer, David Stecher, Scott Shoemaker, Mary Curran, and Innovative Industrial Properties, Inc., at this time, the Company cannot predict the probable outcome of these actions, and, accordingly, no amounts have been accrued in the Company’s consolidated financial statements. Kings Garden Lawsuit On July 25, 2022, IIP-CA 2 LP filed a lawsuit against Kings Garden, a former tenant at six properties. 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 On September 11, 2022, the parties to the lawsuit entered into a confidential, conditional settlement agreement pertaining to matters related to the lawsuit. Pursuant to the conditional settlement agreement, as of December 31, 2023, On February 14, 2023, Kings Garden filed an Arbitration Demand related to the interpretation of the confidential, conditional settlement agreement between the parties that concerns certain terms governing the assignment of one of the Kings Garden leases. On August 4, 2023, the Company accepted an offer of judgment extended by Kings Garden under California Code of Civil Procedure Section 998, pursuant to which Kings Garden (i) vacated the remaining four properties it previously occupied in September 2023, paying the stipulated rent during its period of occupancy through September 20, 2023, and (ii) agreed to pay the Company damages and attorneys’ fees totaling approximately $6.0 million, including interest on the then-outstanding amount, on a fully amortizing schedule of approximately $193,000 per month over a three-year period. The offer of judgment included a mutual release. During November and December 2023, we received an aggregate of approximately $386,000 from Kings Garden pursuant to the terms of the offer of judgement, which is primarily reported as rental revenues for the year ended December 31, 2023. Orr Lawsuit On August 16, 2023, we filed suit against Orr Builders, the general contractor for certain amounts on one construction project undertaken by Kings Garden, and filed a first amended complaint on January 24, 2024, named IIP-CA 2 LP v. Orr Builders and Does 1-20 Enviro Air Lawsuit On January 29, 2024, we filed suit against Enviro Air Systems Inc., Haik Akiopyan and Desert Construction Services, LLC, regarding certain amounts for one construction project undertaken by Kings Garden, named IIP-CA 2 LP vs. Enviro Air Systems Inc., Haik Akopyan and Desert Construction Services, LLC Parallel Pennsylvania Litigation On February 6, 2023, IIP-PA 8 LLC, as landlord and an indirect subsidiary of the Company, filed a lawsuit against Goodblend Pennsylvania LLC, as tenant, and Parallel, as guarantor, in the Court of Common Pleas of Allegheny County, Pennsylvania, regarding the lease and related guaranty for one of the Company’s properties located in Pennsylvania. On October 25, 2023, a consent order was executed by the Court which awarded possession of the property to IIP-PA 8 LLC on October 31, 2023 and damages in favor of IIP-PA 8 LLC in the amount of approximately $15.5 million. In December 2023, IIP-PA 8 LLC received approximately $1.7 million from Goodblend Pennsylvania LLC as a partial payment of the judgment, which is reported as rental revenues for the year ended December 31, 2023. Parallel Texas Litigation On February 11, 2023, a subsidiary of Parallel defaulted on its obligations to pay rent under the lease at one of our properties in Texas that is under development. On February 23, 2023, IIP-TX 1 LLC, as landlord and an indirect subsidiary of the Company, filed a lawsuit against Surterra San Marcos, LLC, as tenant, in the Justice Court of Hays County, Texas, regarding the lease, asserting claim for possession. In March 2023, a judgment for possession was entered in favor of IIP-TX 1 LLC, as well as monthly rental amounts due, and we regained possession of the property. On March 13, 2023, IIP-TX 1 LLC filed a subsequent lawsuit against Surterra San Marcos, LLC, Parallel and Sunstream Opportunities LP (“SAF Entity 1”) in the District Court of Hays County, Texas, regarding the same lease, asserting claims against Surterra San Marcos, LLC, Parallel and SAF Entity 1 for breach of contract, tortious interference with contract, unjust enrichment, fraud and fraudulent inducement, intentional failure to disclose and misrepresentations and conversion, and also requested the granting of a temporary injunction and the appointment of a receiver over the license(s) pertaining to the property’s operations as a regulated cannabis facility. The parties exchanged initial disclosures in September 2023, and are in the discovery phase. Green Peak Michigan Litigation On February 22, 2023, IIP-MI 1 LLC filed a lawsuit against Green Peak and Tropics LP (“SAF Entity 2”) in the Circuit Court of Eaton County, Michigan, regarding a lease for one of the Company’s properties located in Michigan, asserting claims against Green Peak for breach of contract, unjust enrichment, and innocent misrepresentation, against SAF Entity 2 for tortious interference with contract, and against both Green Peak and SAF Entity 2 for civil conspiracy (the “Circuit Court Action”). On March 3, 2023, a receiver was appointed over substantially all of Green Peak’s assets in the Circuit Court of Ingham County, Michigan (the “Receivership Case”), pursuant to which the Company subsequently re-gained possession of one of the Company’s cultivation and processing properties, which is under redevelopment as December 31, 2023, and three retail properties. As a result of the Receivership Case, the claims asserted against Green Peak in the Circuit Court Action were stayed by order of the court and the claims against SAF Entity 2 were suspended by agreement of the parties pending the outcome of the Receivership Case. On October 3, 2023, the court approved the sale of substantially all of Green Peak’s remaining assets in receivership to an affiliate of Green Peak’s senior secured lender. The receiver informed the Company that it intends to vacate the remaining operational cannabis cultivation and processing facility occupied by the receiver by February 29, 2024. The leases for the remaining 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. Deferred Compensation Plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events Exchange of Remaining Outstanding Principal Amount Exchangeable Senior Notes Subsequent to year-end, we issued 28,408 shares of our common stock and paid approximately $4.3 million in cash upon exchange by holders of approximately $4.3 million principal amount of Exchangeable Senior Notes and paid off the remaining $100,000 principal amount at maturity, in accordance with terms of the indenture for the Exchangeable Senior Notes. Lease Amendments In January 2024, we entered into lease amendments with subsidiaries of 4Front Ventures Corp. (“4Front”) at the four properties we lease to them in Illinois, Massachusetts and Washington, extending the term of each lease. The Illinois property, which is under development, has experienced significant delays in construction, primarily relating to completion of required utilities enhancements, which has resulted in an extended delay of the estimated completion of the project. As a result, we amended the Illinois lease to reduce base rent owing for the nine months ending September 30, 2024, defer the payback of the security deposit applicable to the lease (with the security deposit subject to future pro-rata monthly payback), and increase the base rent for the remainder of the term commencing November 1, 2024. In February 2024, we amended our lease and development agreement with PharmaCann at one of our New York properties, increasing the construction funding by $16.0 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. We also amended the lease to extend the term. New Lease In January 2024, we executed a new lease with a tenant at one of our retail properties in Michigan that was previously leased to Green Peak. Amendment to Loan Agreement to Increase Commitments Under Revolving Credit Facility In February 2024, our Operating Partnership entered into an amendment to the Loan Agreement, pursuant to which the aggregate commitments under the Revolving Credit Facility were increased from $30.0 million to $45.0 million. |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2023 | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | INNOVATIVE INDUSTRIAL PROPERTIES, INC. SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION As of December 31, 2023 (In thousands) Initial Costs Total Costs Costs Capitalized Year Building and Subsequent to Building and Accumulated Net Cost Property Property Type (1) State Built/Renovated Land Improvements Acquisition Land Improvements (6) Total Depreciation Basis Year Acquired East Cherry Street Industrial Arizona 1971 / 2016 $ 723 $ 3,995 $ — $ 723 $ 3,995 $ 4,718 $ (171) $ 4,547 2022 West Greenhouse Drive Industrial Arizona 1995 / 2017 398 14,629 5,003 398 19,632 20,030 (4,221) 15,809 2017 Perez Road (5) Industrial California 1981 / (2) 734 5,634 7,080 734 12,714 13,448 (329) 13,119 2022 64125 19th Avenue Industrial California 2019 / 2023 5,930 45,081 12,605 5,930 57,686 63,616 (3,144) 60,472 2021 McLane Street Industrial California 2005 / 2019 1,577 15,935 — 1,577 15,935 17,512 (1,449) 16,063 2020 Inland Center Drive (5) Industrial (4) California 1969 / (2) 3,485 21,911 10,481 3,485 32,392 35,877 — 35,877 2020 63795 19th Avenue (5) Industrial California 2004 / (2) 3,534 12,852 18,234 3,534 31,086 34,620 (1,869) 32,751 2019 North Anza Road Industrial (4) California 1980 / 2017 916 5,406 — 916 5,406 6,322 (786) 5,536 2019 North Anza Road & Del Sol Road Industrial (4) California 1980 / 2017 840 4,959 — 840 4,959 5,799 (721) 5,078 2019 1804 Needles Highway (3) Industrial California 1964 / 2019 174 715 1 174 716 890 (84) 806 2019 West Broadway (3) Industrial California 1976 / 2019 289 1,185 2 289 1,187 1,476 (139) 1,337 2019 3253 Needles Highway (3) Industrial California 2018 / 2019 949 3,900 8 949 3,908 4,857 (458) 4,399 2019 3241 & 3247 Needles Highway (3) Industrial California 2020 / 2020 1,981 8,138 16 1,981 8,154 10,135 (957) 9,178 2019 Sacramento Industrial California 1990 / 2019 1,376 5,321 6,033 1,376 11,354 12,730 (1,694) 11,036 2019 Steele Street Industrial Colorado 1967 / 1978 / 2018 2,101 9,176 — 2,101 9,176 11,277 (1,579) 9,698 2018 Washington Street Industrial Colorado 1975 / 2017 4,309 4,988 — 4,309 4,988 9,297 (271) 9,026 2021 West Barberry Place Industrial Colorado 1971 / 2012 389 2,478 — 389 2,478 2,867 (129) 2,738 2021 Hamilton Road Industrial Florida 1982 / 2021 2,186 17,371 36,340 2,186 53,711 55,897 (3,871) 52,026 2020 West Lake Drive Industrial Florida 2014 / 2021 1,071 34,249 16,007 1,071 50,256 51,327 (5,808) 45,519 2020 NW Highway 441 Industrial Florida 1981 / 2021 752 23,064 17,782 752 40,846 41,598 (3,237) 38,361 2021 Ben Bostic Road Industrial Florida 2019 / 2020 274 16,729 — 274 16,729 17,003 (2,214) 14,789 2019 East Mazon Avenue Industrial Illinois 1992 / 2020 201 17,807 10,008 201 27,815 28,016 (4,107) 23,909 2019 Revolution Road Industrial Illinois 2015 / 2020 563 18,457 51,538 563 69,995 70,558 (9,631) 60,927 2018 East 4th Street Industrial Illinois 2015 / 2020 739 8,284 40,998 739 49,282 50,021 (5,887) 44,134 2020 Industrial Drive Industrial Illinois 1984 / 2020 350 10,191 29,446 350 39,637 39,987 (5,287) 34,700 2019 S US Highway 45 52 Industrial Illinois 2015 / 2019 268 11,840 13,279 268 25,119 25,387 (3,477) 21,910 2019 Centerpoint Way Industrial Illinois 2016 / 2019 2,947 17,761 254 2,947 18,015 20,962 (2,376) 18,586 2019 Adams Street Industrial Illinois (2) 3,366 — 62,247 3,366 62,247 65,613 (2,273) 63,340 2021 South Street Industrial Maryland 1980 / 2021 1,861 14,775 12,858 1,861 27,633 29,494 (2,134) 27,360 2021 Alaking Court Industrial Maryland 2017 / 2017 2,785 8,410 22,765 2,785 31,175 33,960 (5,711) 28,249 2017 Western Maryland Parkway Industrial Maryland 1996 / 2021 1,849 23,441 — 1,849 23,441 25,290 (1,001) 24,289 2022 Hopping Brook Road Industrial Massachusetts 2020 / 2020 3,030 — 27,512 3,030 27,512 30,542 (3,236) 27,306 2018 Chestnut Hill Avenue Industrial Massachusetts 1938 / 2021 2,202 24,568 36,965 2,202 61,533 63,735 (6,039) 57,696 2020 Worcester Road Industrial Massachusetts 1973 / 2022 4,063 16,462 — 4,063 16,462 20,525 (532) 19,993 2022 Canal Street/7 North Bridge Street Industrial Massachusetts 1890 / 2021 694 2,831 40,035 694 42,866 43,560 (6,594) 36,966 2019 Palmer Road Industrial Massachusetts 1980 / 2018 1,059 11,717 6,977 1,059 18,694 19,753 (2,550) 17,203 2018 East Main Street Industrial Massachusetts 1991 / 2019 2,316 13,194 — 2,316 13,194 15,510 (1,135) 14,375 2020 Curran Highway Industrial Massachusetts 1978 / 2021 2,082 1,026 23,685 2,082 24,711 26,793 (1,568) 25,225 2021 Hoover Road Industrial Michigan 1940 / 2020 / 2021 1,237 17,791 64,484 1,237 82,275 83,512 (7,934) 75,578 2019 East Hazel Street Industrial Michigan 1929 / 2021 409 4,360 19,297 409 23,657 24,066 (2,656) 21,410 2019 Oliver Drive Industrial Michigan 1930 / 1972 / 2021 1,385 3,631 26,755 1,385 30,386 31,771 (3,011) 28,760 2020 Davis Highway (5) Industrial Michigan 1999 / (2) 1,907 13,647 42,105 1,907 55,752 57,659 — 57,659 2021 Harvest Park Industrial Michigan 2018 / 2021 1,933 3,559 10,301 1,933 13,860 15,793 (2,574) 13,219 2018 Executive Drive Industrial Michigan 1960 / 2020 389 6,489 3,140 389 9,629 10,018 (1,451) 8,567 2019 77th Street Northeast Industrial Minnesota 2015 / 2017 / 2019 427 2,644 6,618 427 9,262 9,689 (1,658) 8,031 2017 Industrial Drive Industrial Missouri 2022 753 787 26,710 753 27,497 28,250 (1,501) 26,749 2021 East Cheyenne Avenue Industrial Nevada 1984 / 2020 1,088 2,768 5,771 1,088 8,539 9,627 (1,313) 8,314 2019 Munsonhurst Road Industrial New Jersey 1956 / 2022 4,987 30,421 19,637 4,987 50,058 55,045 (2,499) 52,546 2022 South Route 73 Industrial New Jersey 1995 / 2020 702 4,857 29,511 702 34,368 35,070 (4,626) 30,444 2020 North West Blvd Industrial New Jersey 1962 / 2020 222 10,046 1,580 222 11,626 11,848 (1,231) 10,617 2020 Hudson Crossing Drive Industrial New York 2016 / (2) 7,600 22,475 93,670 7,600 116,145 123,745 (7,467) 116,278 2016 County Route 117 Industrial New York 1970 / (2) 1,593 3,157 72,008 1,593 75,165 76,758 (4,220) 72,538 2017 98th Ave South Industrial North Dakota 2018 / 2020 191 9,743 2,272 191 12,015 12,206 (1,602) 10,604 2019 Hunts Landing Road Industrial Ohio 2019 / 2019 712 — 19,309 712 19,309 20,021 (2,149) 17,872 2019 Jason Street Industrial Ohio 1937 / 2020 239 2,688 29,250 239 31,938 32,177 (3,259) 28,918 2020 Springs Way Industrial Ohio 2018 / 2020 235 10,377 2,335 235 12,712 12,947 (1,457) 11,490 2020 East Tallmadge Ave. Industrial Ohio 1954 / 1986 / 2020 22 1,014 2,501 22 3,515 3,537 (612) 2,925 2019 Boltonfield Street Industrial Ohio 2023 / (2) 1,253 18,876 21,990 1,253 40,866 42,119 (692) 41,427 2023 Scott Technology Park Industrial Pennsylvania 2020 / 2020 954 — 27,070 954 27,070 28,024 (2,413) 25,611 2019 New Beaver Avenue Industrial Pennsylvania 1976 / 2021 6,979 34,781 25,986 6,979 60,767 67,746 (4,838) 62,908 2021 East Market Street Industrial Pennsylvania 1927 / 2017 1,435 19,098 74,306 1,435 93,404 94,839 (10,239) 84,600 2019 Wayne Avenue Industrial Pennsylvania 1980 / (2) 1,228 13,080 47,359 1,228 60,439 61,667 (6,005) 55,662 2019 Horton Drive Industrial Pennsylvania 1988 / 2020 1,353 11,854 29,745 1,353 41,599 42,952 (4,353) 38,599 2019 Industrial Street Industrial Pennsylvania 1930 / 2020 941 7,941 16,318 941 24,259 25,200 (2,478) 22,722 2020 Rosanna Avenue Industrial Pennsylvania 1959 / 2020 3,540 5,603 36,671 3,540 42,274 45,814 (5,247) 40,567 2018 Susquehanna Street Industrial Pennsylvania 1968 / 2017 1,318 13,708 — 1,318 13,708 15,026 (327) 14,699 2023 FM 969 Industrial Texas (2) — 11,157 3,682 — 14,839 14,839 (604) 14,235 2022 Decatur Street Industrial Virginia 2019 / 2020 231 11,582 7,936 231 19,518 19,749 (3,233) 16,516 2020 Lathrop Industrial Drive SW Industrial Washington 1997 / 2015 1,826 15,684 — 1,826 15,684 17,510 (1,504) 16,006 2020 East Glendale Avenue Retail Arizona 2019 / 2019 1,216 811 501 1,216 1,312 2,528 (230) 2,298 2019 Dahlia Street Retail Colorado 2019 / 2019 179 2,132 — 179 2,132 2,311 (207) 2,104 2020 East Colfax Avenue Retail Colorado 1998 / 2020 244 307 916 244 1,223 1,467 (73) 1,394 2021 North 2nd Street Retail Colorado 1973 / 2020 140 258 810 140 1,068 1,208 (60) 1,148 2021 West Railroad Avenue Retail Colorado 1977 / 2020 149 618 168 149 786 935 (62) 873 2021 Southgate Pl Retail Colorado 1998 / 2019 367 645 54 367 699 1,066 (76) 990 2020 Wewatta Street Retail Colorado 2015 / 2018 4,036 2,417 — 4,036 2,417 6,453 (129) 6,324 2021 Southgate Place Retail Colorado 2018 / 2018 942 3,314 — 942 3,314 4,256 (194) 4,062 2021 South Peoria Court Retail Colorado 1979 / 2016 938 2,770 — 938 2,770 3,708 (161) 3,547 2021 Highway 6 & 24 Retail Colorado 1960 / 2019 892 1,996 — 892 1,996 2,888 (116) 2,772 2021 North College Avenue Retail Colorado 1952 / 2017 527 2,952 — 527 2,952 3,479 (156) 3,323 2021 East Quincy Avenue Retail Colorado 2018 / 2018 659 2,493 — 659 2,493 3,152 (139) 3,013 2021 East Montview Boulevard Retail Colorado 1952 / 2019 256 1,490 — 256 1,490 1,746 (80) 1,666 2021 South Federal Blvd Retail Colorado 1980 / 2017 193 1,361 — 193 1,361 1,554 (71) 1,483 2021 Santa Fe Trail Retail Colorado 1948 / 2000 232 1,110 — 232 1,110 1,342 (64) 1,278 2021 Water Street Retail Colorado 1930 / 2013 319 945 — 319 945 1,264 (56) 1,208 2021 Gregory Street Retail Colorado 1875 / 2014 101 1,058 — 101 1,058 1,159 (54) 1,105 2021 West 20th Avenue Retail Colorado 1970 / 2014 289 666 — 289 666 955 (38) 917 2021 South Federal Blvd. Retail Colorado 1941 / 2018 461 319 — 461 319 780 (20) 760 2021 West 6th Street Retail Colorado 2019 / 2019 60 272 — 60 272 332 (18) 314 2021 Elm Avenue Retail Colorado 1962 / 2020 21 311 — 21 311 332 (22) 310 2021 Bent Avenue North Retail Colorado 2019 / 2019 49 284 — 49 284 333 (18) 315 2021 Coolidge Rd Retail Michigan 2019 / 2019 1,635 — 1,727 1,635 1,727 3,362 (224) 3,138 2019 South Cedar Street Retail Michigan 1957 / 2019 282 1,951 — 282 1,951 2,233 (308) 1,925 2019 West Pierson Road Retail Michigan 1975 / 2019 122 2,065 — 122 2,065 2,187 (326) 1,861 2019 Wilder Road Retail Michigan 1988 / 2019 49 1,696 — 49 1,696 1,745 (267) 1,478 2019 East Front Street Retail Michigan 1992 / 2019 449 827 — 449 827 1,276 (130) 1,146 2019 South Mason Drive Retail Michigan 1970 / 2019 25 973 — 25 973 998 (153) 845 2019 N Delsea Dr Retail New Jersey 1974 / 2020 244 1,928 — 244 1,928 2,172 (167) 2,005 2020 24th Street East Retail North Dakota 2019 / 2019 348 1,368 — 348 1,368 1,716 (83) 1,633 2021 Highway 2 East Retail North Dakota 1976 / 2019 120 1,225 — 120 1,225 1,345 (78) 1,267 2021 Main Street Retail Pennsylvania 1980 / 2019 57 840 — 57 840 897 (43) 854 2021 South 17th Street Retail Pennsylvania 2021 / 2021 553 2,000 — 553 2,000 2,553 (90) 2,463 2022 Esperanza Street Industrial/Retail California 1926 / 1976 1,713 11,307 979 1,713 12,286 13,999 (1,346) 12,653 2019 Grape Street Industrial/Retail Colorado 1982 / 2018 1,380 5,786 — 1,380 5,786 7,166 (308) 6,858 2021 US 50 Business and Baxter Road Industrial/Retail Colorado 1929 / 2019 119 1,652 — 119 1,652 1,771 (106) 1,665 2021 South Fox Street Industrial/Retail Colorado 1965 / 2014 297 829 — 297 829 1,126 (44) 1,082 2021 West Street Industrial/Retail Massachusetts 1880 / 2021 650 7,119 19,050 650 26,169 26,819 (2,419) 24,400 2020 Mozzone Boulevard Industrial/Retail Massachusetts 1975 / 2019 1,626 38,406 — 1,626 38,406 40,032 (1,717) 38,315 2022 Stephenson Highway Industrial/Retail Michigan 2021 / 2021 6,211 — 22,304 6,211 22,304 28,515 (1,741) 26,774 2020 Hoover Road Industrial/Retail Michigan 1951 / 2021 700 9,557 6,984 700 16,541 17,241 (1,276) 15,965 2021 Leah Avenue (5) Industrial/Retail Texas (2) 2,222 1,195 4,471 2,222 5,666 7,888 — 7,888 2021 Total $ 142,524 $ 891,551 $ 1,334,440 $ 142,524 $ 2,225,991 $ 2,368,515 $ (202,692) $ 2,165,823 (1) “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space. (2) As of December 31, 2023, all or a portion of the property was under development or redevelopment. (3) These four properties were sold in March 2023 but the transaction did not qualify for recognition as a completed sale under GAAP. As such, the properties remain on the consolidated balance sheet. Refer to Note 6 “Investments in Real Estate” for more information. (4) As of December 31, 2023, we were evaluating alternative non-cannabis uses for the property, due in part to changes in the zoning of the property that no longer allow for regulated cannabis cultivation and processing. (5) As of December 31, 2023, these properties were vacant and excluded from our operating portfolio. (6) Building and improvements balance includes Construction in progress. As of December 31, 2023, the aggregate gross cost of the properties included above for federal income tax purposes was approximately $2.4 billion, which excludes the four properties that were sold in March 2023 that did not qualify for recognition as a completed sale under GAAP but is recognized as a sale for tax purposes. A reconciliation of historical cost and related accumulated depreciation is as follows (in thousands): Years Ended December 31, 2023 2022 2021 Investment in real estate, at cost: Balance at beginning of year $ 2,204,687 $ 1,722,104 $ 1,060,239 Purchases of investments in real estate 35,155 149,317 277,717 Additions and improvements, net 128,673 355,633 384,148 Sale of real estate investments — (22,367) — Balance at end of year $ 2,368,515 $ 2,204,687 $ 1,722,104 Accumulated Depreciation: Balance at beginning of year $ (138,405) $ (81,938) $ (40,195) Depreciation expense, net (64,287) (58,935) (41,743) Sale of real estate investments — 2,468 — Balance at end of year $ (202,692) $ (138,405) $ (81,938) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | |
Basis of Presentation | Basis of Presentation. |
Reclassifications | Reclassification |
Federal Income Taxes | Federal Income Taxes. |
Use of Estimates | Use of Estimates. |
Reportable Segment | Reportable Segment strategies. The financial information disclosed herein represents all of the financial information related to our one 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 the 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 the consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental income over the remaining term of the applicable lease. Certain acquisitions of real estate did not satisfy the requirements for sale-leaseback accounting and therefore as of December 31, 2023 and 2022, acquisitions of approximately $20.0 million and approximately $20.1 million, respectively, have been recognized as notes receivable and are included in other assets, net on our consolidated balance sheets. |
Sale of Real Estate | Sale of Real Estate. Gains and Losses from the Derecognition of Nonfinancial Assets Revenue from Contracts with Customers (Topic 606) |
Cost Capitalization and Depreciation | Cost Capitalization and Depreciation. Amounts capitalized are depreciated on a straight-line basis over the estimated useful lives determined by management. We depreciate buildings and improvements based on our evaluation of the estimated useful life of each specific asset, not to exceed 40 years. For the years ended December 31, 2023, 2022 and 2021, we recognized depreciation expense of approximately $66.3 million, $60.5 million and $41.7 million, respectively, which are included in depreciation and amortization expense in our consolidated statements of income. We depreciate office equipment and furniture and fixtures on a straight-line basis over the 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. We define redevelopment properties as existing properties for which we expect to spend significant development and construction costs that are not reimbursements to tenants for improvements at the properties. When existing properties are determined to be redevelopment properties, the net carrying value of the buildings and improvements are transferred to construction in progress while the redevelopment activities are in process. Costs capitalized to construction in progress related to redevelopment properties are transferred to buildings and improvements at historical cost of the properties as the redevelopment project or phases of projects are placed in service. During the year ended December 31, 2023, we reclassified the net carrying value of the buildings and improvements |
Provision for Impairment | Provision for Impairment. Long-lived assets are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. No impairment losses were recognized during the years ended December 31, 2023, 2022 and 2021. |
Revenue Recognition | Revenue Recognition. For the year ended December 31, 2023, rental revenue recognized included the application of approximately $3.1 million of security deposits for rent with two tenants who were in default under their respective lease agreements and approximately $5.7 million of security deposits for rent with three tenants in connection with lease amendments. |
Construction Loan | Construction Loan. In February 2023, we amended the construction loan to provide for, among other things: (1) the additional capital commitment of the borrower into the project of $1.0 million; (2) our agreement to fund an additional $4.5 million into the project; (3) an increase in the interest rate effective April 1, 2023; (4) an extension of the loan term to December 31, 2023; and (5) the provision of additional collateral from the borrower for the loan. Interest on the loan continued to accrue through March 31, 2023, with monthly payments of interest contractually required commencing April 1, 2023. In December 2023, we further amended to construction loan to extend the loan term to June 30, 2024, with an option for the borrower to extend the loan term to December 31, 2024 upon satisfaction of certain conditions and payment of an extension fee. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash. |
Investments | Investments |
Exchangeable Notes | Exchangeable Notes. |
Deferred Financing Costs | Deferred Financing Costs. |
Stock-Based Compensation | Stock-Based Compensation. |
Lease Accounting | Lease Accounting. We account for our leases under ASC 842, Leases , and have elected the practical expedient not to separate certain non-lease components from the lease component if the timing and pattern of transfer are the same for the non-lease component and associated lease component, and the lease component would be classified as an operating lease if accounted for separately. We also elected the short-term lease exception for lessees for leases that are less than 12 months. 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, which contains annual escalations. 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 lease space and measured the lease liability 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 years ended December 31, 2023, 2022 and 2021, we recognized office lease expense of approximately $486,000, $466,000 and $231,000, respectively, which are included in general and administrative expense in our consolidated statements of income. For the years ended December 31, 2023, 2022 and 2021, amounts paid and classified as operating activities in our consolidated statements of cash flows for the office lease were approximately $496,000, $402,000 and $234,000, 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 revenues and as property expenses, respectively, on our consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our consolidated financial statements. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, measures of segment profit and loss, and disclosures of how the chief operating decision maker uses the reported measure(s) of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. . |
Concentration of Credit Risk | Concentration of Credit Risk The following tables set forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the years ended December 31, 2023, 2022 and 2021, including tenant reimbursements: For the Year Ended December 31, 2023 Percentage of Number of Rental Leases Revenue PharmaCann Inc. ("PharmaCann") 11 15 % Ascend Wellness Holdings, Inc. ("Ascend") 4 10 % Green Thumb Industries, Inc. ("Green Thumb") 3 8 % SH Parent, Inc. ("Parallel") (1) 4 7 % Curaleaf Holdings, Inc. ("Curaleaf") 8 7 % For the Year Ended December 31, 2022 Percentage of Number of Rental Leases Revenue PharmaCann 11 14 % Parallel (1) 4 10 % Ascend 4 9 % Green Thumb 3 7 % Trulieve Cannabis Corp. 6 7 % For the Year Ended December 31, 2021 Percentage of Number of Rental Leases Revenue PharmaCann 5 12 % Parallel (1) 4 10 % Ascend 3 9 % Cresco Labs Inc. ("Cresco") 5 8 % Kings Garden (2) 5 8 % (1) Commencing in November 2022, Parallel defaulted on its obligations to pay rent at one of our Pennsylvania properties, and we regained possession of that property in October 2023. In February 2023, Parallel defaulted on its obligations to pay rent at one of our Texas properties, and we regained possession of that property in March 2023. See Note 11 “Commitments and Contingencies — Litigation” for more information. (2) In July 2022, Kings Garden defaulted on its obligations to pay rent at all of the properties it leases with us, and pursuant to a confidential, conditional settlement agreement executed on September 11, 2022 between us and Kings Garden, we terminated the leases for two properties and regained possession of those properties, which continued to be in development or redevelopment as of December 31, 2023. Kings Garden paid the stipulated rent during its period of occupancy for the remaining four properties through September 20, 2023, and we regained possession of those properties in September 2023. See Note 11 “Commitments and Contingencies — Litigation” for more information. In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of December 31, 2023, our largest property was located in New York and accounted for approximately 5.4% of our net real estate held for investment. No other properties accounted for more than 5% of our net real estate held for investment as of December 31, 2023. As of December 31, 2022, none of our properties individually represented more than 5% of our net real estate held for investment. We have deposited cash with a financial institution that is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of December 31, 2023, 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) | 12 Months Ended |
Dec. 31, 2023 | |
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 tables set forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the years ended December 31, 2023, 2022 and 2021, including tenant reimbursements: For the Year Ended December 31, 2023 Percentage of Number of Rental Leases Revenue PharmaCann Inc. ("PharmaCann") 11 15 % Ascend Wellness Holdings, Inc. ("Ascend") 4 10 % Green Thumb Industries, Inc. ("Green Thumb") 3 8 % SH Parent, Inc. ("Parallel") (1) 4 7 % Curaleaf Holdings, Inc. ("Curaleaf") 8 7 % For the Year Ended December 31, 2022 Percentage of Number of Rental Leases Revenue PharmaCann 11 14 % Parallel (1) 4 10 % Ascend 4 9 % Green Thumb 3 7 % Trulieve Cannabis Corp. 6 7 % For the Year Ended December 31, 2021 Percentage of Number of Rental Leases Revenue PharmaCann 5 12 % Parallel (1) 4 10 % Ascend 3 9 % Cresco Labs Inc. ("Cresco") 5 8 % Kings Garden (2) 5 8 % (1) Commencing in November 2022, Parallel defaulted on its obligations to pay rent at one of our Pennsylvania properties, and we regained possession of that property in October 2023. In February 2023, Parallel defaulted on its obligations to pay rent at one of our Texas properties, and we regained possession of that property in March 2023. See Note 11 “Commitments and Contingencies — Litigation” for more information. (2) In July 2022, Kings Garden defaulted on its obligations to pay rent at all of the properties it leases with us, and pursuant to a confidential, conditional settlement agreement executed on September 11, 2022 between us and Kings Garden, we terminated the leases for two properties and regained possession of those properties, which continued to be in development or redevelopment as of December 31, 2023. Kings Garden paid the stipulated rent during its period of occupancy for the remaining four properties through September 20, 2023, and we regained possession of those properties in September 2023. See Note 11 “Commitments and Contingencies — Litigation” for more information. |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dividends | |
Schedule of dividends declared | Amount Dividend Dividend Declaration Date Security Class Per Share Period Covered Paid Date Amount (In thousands) March 15, 2021 Common stock $ 1.32 January 1, 2021 to March 31, 2021 April 15, 2021 $ 31,660 March 15, 2021 Series A preferred stock $ 0.5625 January 15, 2021 to April 14, 2021 April 15, 2021 $ 338 June 15, 2021 Common stock $ 1.40 April 1, 2021 to June 30, 2021 July 15, 2021 $ 33,584 June 15, 2021 Series A preferred stock $ 0.5625 April 15, 2021 to July 14, 2021 July 15, 2021 $ 338 September 15, 2021 Common stock $ 1.50 July 1, 2021 to September 30, 2021 October 15, 2021 $ 35,983 September 15, 2021 Series A preferred stock $ 0.5625 July 15, 2021 to October 14, 2021 October 15, 2021 $ 338 December 15, 2021 Common stock $ 1.50 October 1, 2021 to December 31, 2021 January 14, 2022 $ 38,509 December 15, 2021 Series A preferred stock $ 0.5625 October 15, 2021 to January 14, 2022 January 14, 2022 $ 338 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 April 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 September 15, 2022 Common stock $ 1.80 July 1, 2022 to September 30, 2022 October 14, 2022 $ 50,503 September 15, 2022 Series A preferred stock $ 0.5625 July 15, 2022 to October 14, 2022 October 14, 2022 $ 338 December 15, 2022 Common stock $ 1.80 October 1, 2022 to December 31, 2022 January 13, 2023 $ 50,502 December 15, 2022 Series A preferred stock $ 0.5625 October 15, 2022 to January 14, 2023 January 13, 2023 $ 338 March 15, 2023 Common stock $ 1.80 January 1, 2023 to March 31, 2023 April 14, 2023 $ 50,725 March 15, 2023 Series A preferred stock $ 0.5625 January 15, 2023 to April 14, 2023 April 14, 2023 $ 338 June 15, 2023 Common stock $ 1.80 April 1, 2023 to June 30, 2023 July 14, 2023 $ 50,742 June 15, 2023 Series A preferred stock $ 0.5625 April 15, 2023 to July 14, 2023 July 14, 2023 $ 338 September 15, 2023 Common stock $ 1.80 July 1, 2023 to September 30, 2023 October 13, 2023 $ 50,742 September 15, 2023 Series A preferred stock $ 0.5625 July 15, 2023 to October 14, 2023 October 13, 2023 $ 338 December 15, 2023 Common stock $ 1.82 October 1, 2023 to December 31, 2023 January 12, 2024 $ 51,489 December 15, 2023 Series A preferred stock $ 0.5625 October 15, 2023 to January 14, 2024 January 12, 2024 $ 338 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of real estate properties | The Company made the following acquisitions during the year ended December 31, 2023 (dollars in thousands): Rentable Initial Square Purchase Transaction Property Market Closing Date Feet (1) Price Costs Total Susquehanna Street Pennsylvania February 15, 2023 58,000 $ 15,000 $ 26 $ 15,026 Boltonfield Street Ohio March 3, 2023 157,000 20,100 29 20,129 (2) Total 215,000 $ 35,100 $ 55 $ 35,155 (3) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $21.9 million. (3) Approximately $2.6 million was allocated to land and approximately $32.6 million was allocated to building and improvements. |
Schedule of future contractual minimum rent | Future contractual minimum rent (including base rent and property management fees) under the operating leases as of December 31, 2023 for future periods is summarized as follows (in thousands): Year Contractual Minimum Rent 2024 $ 291,260 2025 303,164 2026 312,135 2027 319,665 2028 326,618 Thereafter 3,727,850 Total $ 5,280,692 |
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 December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 In-place lease intangible assets $ 9,979 $ 9,979 Accumulated amortization (1,734) (874) In-place lease intangible assets, net $ 8,245 $ 9,105 |
Schedule of estimated annual amortization | The remaining weighted-average amortization period of the value of acquired in-place leases was approximately 9.6 years, and the estimated annual amortization of the value of the acquired in-place leases as of December 31, 2023 is as follows (in thousands): Year Amount 2024 $ 860 2025 860 2026 860 2027 860 2028 860 Thereafter 3,945 Total $ 8,245 |
Above-Market Lease | |
Schedule of Information Relating to Above Market Lease | The above-market lease and related accumulated amortization included in other assets, net on our consolidated balance sheets as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 December 31, 2022 Above-market lease $ 1,054 $ 1,054 Accumulated amortization (187) (95) Above-market lease, net $ 867 $ 959 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of principal payments on outstanding indebtedness | The following table summarizes the principal payments on our outstanding indebtedness as of December 31, 2023 (in thousands): Payments Due by Year Amount 2024 4,436 2025 — 2026 300,000 2027 — 2028 — Thereafter — Total $ 304,436 |
Exchangeable Senior Notes | |
Schedule of interest expense | The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): For the Year Ended December 31, 2023 2022 2021 Cash coupon $ 182 $ 452 $ 5,380 Amortization of debt discount — — 1,146 Amortization of issuance cost 37 94 991 Capitalized interest (7) — — Total interest expense $ 212 $ 546 $ 7,517 |
Schedule of carrying value | The following table details the carrying value of our Exchangeable Senior Notes (in thousands): December 31, 2023 December 31, 2022 Principal amount $ 4,436 $ 6,436 Unamortized issuance cost (5) (56) Carrying value $ 4,431 $ 6,380 |
Notes due 2026 | |
Schedule of interest expense | The following table details our interest expense related to the Notes due 2026 (in thousands): For the Year Ended December 31, 2023 2022 2021 Cash coupon $ 16,500 $ 16,500 $ 9,854 Amortization of issuance cost 1,334 1,255 715 Capitalized interest (620) — — Total interest expense $ 17,214 $ 17,755 $ 10,569 |
Schedule of carrying value | The following table details the carrying value of our Notes due 2026 (in thousands): December 31, 2023 December 31, 2022 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost (3,551) (4,885) Carrying value $ 296,449 $ 295,115 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Income Per Share | |
Schedule of earnings per share, basic and diluted | Computations of net income per basic and diluted share were as follows (in thousands, except share and per share data): Years Ended December 31, 2023 2022 2021 Net income $ 165,588 $ 154,386 $ 113,990 Preferred stock dividends (1,352) (1,352) (1,352) Distribution to participating securities (1,482) (834) (557) Net income attributable to common stockholders used to compute net income per share – basic 162,754 152,200 112,081 Dilutive effect of Exchangeable Senior Notes 212 546 7,517 Net income attributable to common stockholders used to compute net income per share – diluted $ 162,966 $ 152,746 $ 119,598 Weighted-average common shares outstanding: Basic 27,977,807 27,345,047 23,903,017 Restricted stock and RSUs 196,821 116,046 96,174 PSUs — — 81,414 Dilutive effect of Exchangeable Senior Notes 81,169 202,076 2,180,550 Diluted 28,255,797 27,663,169 26,261,155 Net income attributable to common stockholders per share: Basic $ 5.82 $ 5.57 $ 4.69 Diluted $ 5.77 $ 5.52 $ 4.55 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of Financial Instruments | |
Schedule of condensed financial statements | The following table presents the carrying value and approximate fair value of financial instruments at December 31, 2023 and 2022 (in thousands): At December 31, 2023 At December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Investments (1) $ 21,948 $ 21,951 $ 200,935 $ 200,715 Investments as cash equivalents (2) $ 15,187 $ 15,029 $ — $ — Exchangeable Senior Notes (3) $ 4,431 $ 7,576 $ 6,380 $ 10,282 Notes due 2026 (3) $ 296,449 $ 278,325 $ 295,115 $ 264,234 Construction Loan (4) $ 22,000 $ 27,543 $ 18,021 $ 20,167 (1) Investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than three months and less than one year are classified as held-to-maturity and valued using Level 1 inputs. At December 31, 2023, the unrecognized gain was approximately $78,000 . (2) Investments as cash equivalents consisting of obligations of the U.S. government with an original maturity at the time of purchase of less than or equal to three months are classified as held-to-maturity and valued using Level 1 inputs. (3) 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. (4) The construction loan receivable is categorized as Level 3 and was valued using a yield analysis, which is typically performed for non-credit impaired loans. To determine fair value using a yield analysis, a current price is imputed for the loan based upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk. In the yield analysis, the Company considers the current contractual interest rate, the maturity and other terms of the loan relative to risk of the company and the specific loan. At December 31, 2023 and 2022, the expected market yields used to determine fair value were 16.25% and 25% , respectively. Changes in market yields may change the fair value of the construction loan. Generally, an increase in market yields may result in a decrease in the fair value of the construction loan. Due to the inherent uncertainty of determining the fair value of a loan that does not have a readily available market value, the fair value of the construction loan may fluctuate from period to period. Additionally, the fair value of the construction loan may differ significantly from the value that would have been used had a readily available market existed for such loan and may differ materially from the value that the Company may ultimately realize. |
Common Stock Incentive Plan (Ta
Common Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the activity | A summary of the restricted stock activity under the 2016 Plan and related information for the years ended December 31, 2023, 2022 and 2021 is included in the table below: Weighted- Restricted Average Grant Date Shares Fair Value Nonvested balance at December 31, 2020 76,346 $ 50.14 Granted 9,679 $ 187.74 Vested (29,955) $ 52.31 Forfeited (1) (18,303) $ 31.99 Nonvested balance at December 31, 2021 37,767 $ 92.49 Granted 24,456 $ 205.62 Vested (18,051) $ 91.57 Forfeited (1) (10,146) $ 69.74 Nonvested balance at December 31, 2022 34,026 $ 181.08 Granted 40,770 $ 105.85 Vested (12,115) $ 173.37 Forfeited (1) (5,970) $ 116.31 Nonvested balance at December 31, 2023 56,711 $ 135.46 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting or employees’ cessation of employment. |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the activity | The following table summarizes our RSU activity for the years ended December 31, 2023, 2022 and 2021. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: Weighted- Unvested Average Grant Date RSUs Fair Value Balance at December 31, 2020 36,687 $ 76.06 Granted 23,639 $ 188.80 Balance at December 31, 2021 60,326 $ 120.24 Granted 23,351 $ 206.45 Balance at December 31, 2022 83,677 $ 144.30 Granted 66,279 $ 101.40 Balance at December 31, 2023 149,956 $ 125.34 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of fair value assumptions | The grant date fair value of the PSUs granted in January 2021 and January 2022 was $12.0 million and $20.0 million, respectively. The fair value was 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) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of future contractual lease payments | Office Lease. Year Amount 2024 $ 511 2025 526 2026 543 2027 45 2028 — Total future contractual lease payments 1,625 Effect of discounting (143) Office lease liability $ 1,482 |
Organization (Details)
Organization (Details) | Dec. 31, 2023 |
IIP Operating Partnership, LP | |
Percentage of limited partnership interests | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) segment tenant | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 28, 2023 USD ($) | Nov. 30, 2021 | Jun. 30, 2021 USD ($) | Dec. 31, 2018 | |
Tenant improvements | $ 705,300,000 | ||||||
Number of reportable segment | segment | 1 | ||||||
Depreciation expense | $ 66,300,000 | 60,500,000 | $ 41,700,000 | ||||
Buildings and improvements | 2,108,218,000 | 2,010,628,000 | |||||
Construction in progress | $ 117,773,000 | 54,106,000 | |||||
Number of properties that were placed into redevelopment | 2 | ||||||
Impairment losses | $ 0 | 0 | 0 | ||||
Rental revenue recognized from security deposits applied for rent with tenants in default | $ 3,100,000 | ||||||
Number of tenants who were in default | tenant | 2 | ||||||
Rental revenue recognized from security deposits applied for rent with tenants with lease amendments | $ 5,700,000 | ||||||
Number of affected tenants with lease amendments | tenant | 3 | ||||||
Maximum construction loan agreed to lend | $ 18,500,000 | ||||||
Additional capital commitment | $ 1,000,000 | ||||||
Additional amount of construction loan | $ 4,500,000 | ||||||
Construction loan funded | $ 22,000,000 | 18,021,000 | |||||
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 | $ 496,000 | 402,000 | 234,000 | ||||
Other assets, net | |||||||
Acquisitions of real estate did not satisfy the requirements for sale-leaseback accounting | 20,000,000 | 20,100,000 | |||||
Adjustment | |||||||
Buildings and improvements | (56,800,000) | ||||||
Construction in progress | 56,800,000 | ||||||
Adjustment | Accounting Standards Update 2020-06 | |||||||
Accumulated deficit | 728,000 | ||||||
Equity Components | 1,300,000 | ||||||
General and administrative expense | |||||||
Office lease expense | 486,000 | $ 466,000 | $ 231,000 | ||||
Maximum | |||||||
Cash, FDIC Insured Amount | $ 250,000 | ||||||
Building and Improvements | |||||||
Property, Plant and Equipment, Useful Life | 40 years | ||||||
Office equipment and furniture and fixtures | Minimum | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Office equipment and furniture and fixtures | Maximum | |||||||
Property, Plant and Equipment, Useful Life | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Concentration of Credit Risk (Details) | 12 Months Ended | |||
Dec. 31, 2023 lease item property tenant | Dec. 31, 2022 lease | Dec. 31, 2021 lease | Sep. 20, 2023 property | |
Concentration Risk | ||||
Number of Properties | property | 108 | |||
Number of states in which properties are owned | item | 19 | |||
Number of properties lease terminated | property | 2 | |||
Kings Garden Inc. | ||||
Concentration Risk | ||||
Number of properties stipulated rent paid | property | 4 | |||
Rental revenues (including tenant reimbursements) | Customer concentration | ||||
Concentration Risk | ||||
Number of tenants | tenant | 5 | |||
Rental revenues (including tenant reimbursements) | Customer concentration | PharmaCann | ||||
Concentration Risk | ||||
Number of Leases | 11 | 11 | 5 | |
Percentage of concentration risk | 15% | 14% | 12% | |
Rental revenues (including tenant reimbursements) | Customer concentration | Ascend Wellness Holdings, Inc. | ||||
Concentration Risk | ||||
Number of Leases | 4 | 4 | 3 | |
Percentage of concentration risk | 10% | 9% | 9% | |
Rental revenues (including tenant reimbursements) | Customer concentration | Green Thumb Industries, Inc. | ||||
Concentration Risk | ||||
Number of Leases | 3 | 3 | ||
Percentage of concentration risk | 8% | 7% | ||
Rental revenues (including tenant reimbursements) | Customer concentration | SH Parent, Inc. ("Parallel") | ||||
Concentration Risk | ||||
Number of Leases | 4 | 4 | 4 | |
Percentage of concentration risk | 7% | 10% | 10% | |
Rental revenues (including tenant reimbursements) | Customer concentration | Curaleaf Holdings, Inc. | ||||
Concentration Risk | ||||
Number of Leases | 8 | |||
Percentage of concentration risk | 7% | |||
Rental revenues (including tenant reimbursements) | Customer concentration | Cresco Labs Inc. | ||||
Concentration Risk | ||||
Number of Leases | 5 | |||
Percentage of concentration risk | 8% | |||
Rental revenues (including tenant reimbursements) | Customer concentration | Trulieve Cannabis Corp. | ||||
Concentration Risk | ||||
Number of Leases | 6 | |||
Percentage of concentration risk | 7% | |||
Rental revenues (including tenant reimbursements) | Customer concentration | Kings Garden Inc. | ||||
Concentration Risk | ||||
Number of Leases | 5 | |||
Percentage of concentration risk | 8% | |||
Net real estate held for investment | Customer concentration | ||||
Concentration Risk | ||||
Concentration Risk, Threshold Percentage | 5% | 5% | ||
Net real estate held for investment | Customer concentration | New York | ||||
Concentration Risk | ||||
Percentage of concentration risk | 5.40% |
Common Stock (Details)
Common Stock (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 item shares | Apr. 30, 2022 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||
Common Stock, Par Value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Common Stock, Shares Outstanding | 28,140,891 | 27,972,830 | ||
Common Stock, Shares Issued | 28,140,891 | 27,972,830 | ||
Number of shares issued | 1,815,790 | |||
Net proceeds from issuance | $ | $ 330,900 | $ 9,564 | $ 351,960 | |
Number of shares issued upon conversion | 32,200 | 413,166 | ||
Outstanding principal amount | $ | $ 2,000 | $ 26,900 | ||
Over-Allotment Option | ||||
Number of shares issued | 236,842 | |||
At Market Offerings Member | ||||
Number of shares issued | 101,061 | 117,023 | ||
Net proceeds from issuance | $ | $ 9,600 | $ 21,100 | ||
Number of sales agents | item | 4 | |||
Maximum number of common stock issuable | 500,000,000 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred stock, Par Value (in dollars per share) | $ 0.001 | $ 0.001 |
Series A Preferred Stock | ||
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, Redemption Price Per Share | $ 25 | |
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. |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||||||||||||||||
Jan. 12, 2024 | Dec. 15, 2023 | Oct. 13, 2023 | Sep. 15, 2023 | Jul. 14, 2023 | Jun. 15, 2023 | Apr. 14, 2023 | Mar. 15, 2023 | Jan. 13, 2023 | Dec. 15, 2022 | Oct. 14, 2022 | Sep. 15, 2022 | Jul. 15, 2022 | Jun. 15, 2022 | Apr. 14, 2022 | Mar. 14, 2022 | Jan. 14, 2022 | Dec. 15, 2021 | Oct. 15, 2021 | Sep. 15, 2021 | Jul. 15, 2021 | Jun. 15, 2021 | Apr. 15, 2021 | Mar. 15, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dividends declared per common share | $ 1.82 | $ 1.80 | $ 1.80 | $ 1.80 | $ 1.80 | $ 1.80 | $ 1.75 | $ 1.75 | $ 1.50 | $ 1.50 | $ 1.40 | $ 1.32 | |||||||||||||||
Dividends declared per Series A preferred stock | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | $ 0.5625 | |||||||||||||||
Dividend amount - Common stock | $ 50,742 | $ 50,742 | $ 50,725 | $ 50,502 | $ 50,503 | $ 49,101 | $ 45,830 | $ 38,509 | $ 35,983 | $ 33,584 | $ 31,660 | $ 202,711 | $ 183,943 | $ 130,954 | |||||||||||||
Dividend amount - Series A preferred stock | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 338 | $ 1,352 | $ 1,352 | $ 1,352 | |||||||||||||
Subsequent event | |||||||||||||||||||||||||||
Dividend amount - Common stock | $ 51,489 | ||||||||||||||||||||||||||
Dividend amount - Series A preferred stock | $ 338 |
Investments in Real Estate (Det
Investments in Real Estate (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) ft² | |
Rentable Square Feet | ft² | 215,000 |
Initial Purchase Price | $ 35,100 |
Transaction Costs | 55 |
Total | 35,155 |
Land | |
Total | 2,600 |
Building and Improvements | |
Total | $ 32,600 |
Susquehanna Street | |
Rentable Square Feet | ft² | 58,000 |
Initial Purchase Price | $ 15,000 |
Transaction Costs | 26 |
Total | $ 15,026 |
Boltonfield Street | |
Rentable Square Feet | ft² | 157,000 |
Initial Purchase Price | $ 20,100 |
Transaction Costs | 29 |
Total | 20,129 |
Boltonfield Street | Maximum | |
Agreed funding for redevelopment of building | $ 21,900 |
Investments in Real Estate - In
Investments in Real Estate - Intangible assets and related accumulated amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired In-Place Lease Intangible Assets | ||
Investments in Real Estate | ||
Gross | $ 9,979 | $ 9,979 |
Accumulated amortization | (1,734) | (874) |
Total | 8,245 | 9,105 |
Above-Market Lease | ||
Investments in Real Estate | ||
Gross | 1,054 | 1,054 |
Accumulated amortization | (187) | (95) |
Total | $ 867 | $ 959 |
Investments in Real Estate - Es
Investments in Real Estate - Estimated annual amortization (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired In-Place Lease Intangible Assets | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2024 | $ 860,000 | |
2025 | 860,000 | |
2026 | 860,000 | |
2027 | 860,000 | |
2028 | 860,000 | |
Thereafter | 3,945,000 | |
Total | 8,245,000 | $ 9,105,000 |
Above-Market Lease | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2024 | 92,000 | |
2025 | 92,000 | |
2026 | 92,000 | |
2027 | 92,000 | |
2028 | 92,000 | |
Thereafter | 407,000 | |
Total | $ 867,000 | $ 959,000 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2023 USD ($) | Jul. 31, 2023 | Mar. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jan. 31, 2023 | Nov. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Weighted-average amortization period (in years) | 9 years 7 months 6 days | ||||||||
Real estate property cost | $ 130,700,000 | ||||||||
Improvements and construction activities funded | 150,100,000 | ||||||||
Proceeds from sale of real estate asset | $ 23,500,000 | ||||||||
Gain on sale of real estate | (3,601,000) | ||||||||
Accrued interest | 1,300,000 | ||||||||
Illinois properties | 4Front Ventures Corp. | |||||||||
Percentage of security deposit hold on base rent due from tenant | 50% | ||||||||
Repayment period of tenant | 12 months | ||||||||
Acquired In-Place Lease Intangible Assets | |||||||||
Amortization expense | 860,000 | 841,000 | $ 33,000 | ||||||
Above-Market Lease | |||||||||
Amortization expense | $ 92,000 | $ 91,000 | $ 4,000 | ||||||
Amortization period (in years) | 9 years 3 months 18 days | ||||||||
Holistic | California Property | |||||||||
Base rent applied from the security deposits (in months) | 8 months | ||||||||
Holistic | Michigan Properties | |||||||||
Base rent applied from the security deposits (in months) | 9 months | ||||||||
Holistic | California, Maryland, Massachusetts, Michigan and Pennsylvania properties. | |||||||||
Percent of base rent which is applied from security deposits for lease payments | 100% | ||||||||
Payback of the security deposits (in months) | 12 months | ||||||||
Temescal MA | Massachusetts properties | |||||||||
Payback of the deferred rent (in months) | 12 months | ||||||||
Calyx Peak MO | Missouri Property | |||||||||
Percent of base rent deferral under lease | 100% | ||||||||
Payback of the deferred rent (in months) | 12 months | ||||||||
PharmaCann | New York Properties | |||||||||
Increase amount of tenant improvement allowance | $ 15,000,000 | ||||||||
Tenant improvement allowance | 93,500,000 | ||||||||
Maitri In Pennsylvania | Pennsylvania properties | |||||||||
Number of properties sold | 1 | ||||||||
Proceeds from sale of real estate asset | $ 23,500,000 | ||||||||
Gain on sale of real estate | $ 3,600,000 | ||||||||
Medical Investor Holdings LLC | California Property | |||||||||
Number of properties sold | 4 | ||||||||
Contracted sale price of properties disposed | $ 16,200,000 | ||||||||
Real estate loans receivable | $ 16,100,000 | ||||||||
Number of options to extend | 2 | ||||||||
Extension term | 12 months | ||||||||
Minimum principal balance payment | $ 500,000 | ||||||||
Accumulated depreciation | $ 1,600,000 | ||||||||
Medical Investor Holdings LLC | Land | California Property | |||||||||
Gross carrying value | 3,400,000 | ||||||||
Medical Investor Holdings LLC | Building and Improvements | California Property | |||||||||
Gross carrying value | $ 13,900,000 | ||||||||
Ascend Wellness Holdings, Inc. | New Jersey properties | |||||||||
Increase amount of tenant improvement allowance | 15,000,000 | ||||||||
Tenant improvement allowance | 19,600,000 | ||||||||
Goodness Growth Holdings Inc. | New York Properties | |||||||||
Increase amount of tenant improvement allowance | $ 14,000,000 | 4,000,000 | |||||||
Tenant improvement allowance | $ 67,400,000 | $ 53,400,000 |
Investments in Real Estate - Fu
Investments in Real Estate - Future Contractual Minimum Rent (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Contractual Minimum Rent | |
2024 | $ 291,260 |
2025 | 303,164 |
2026 | 312,135 |
2027 | 319,665 |
2028 | 326,618 |
Thereafter | 3,727,850 |
Total | $ 5,280,692 |
Debt - Exchangeable Senior Note
Debt - Exchangeable Senior Notes - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Jan. 01, 2024 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | |
Number of shares issued upon conversion | shares | 32,200 | 413,166 | ||
Outstanding principal amount | $ 2,000,000 | $ 26,900,000 | ||
Loss on exchange of Exchangeable Senior Notes | $ 3,700,000 | |||
Principal amount | 304,436,000 | |||
Exchangeable Senior Notes | ||||
Outstanding principal amount | $ 4,400,000 | $ 6,400,000 | ||
Interest rate | 3.75% | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.53% | |||
If-converted value in excess of principal amount | $ 3,300,000 | |||
Number of shares issued upon conversion | shares | 1,684,237 | 32,200 | 413,166 | |
Outstanding principal amount | $ 4,300,000 | $ 2,000,000 | $ 26,900,000 | |
Loss on exchange of Exchangeable Senior Notes | 125,000 | |||
Cash paid | $ 2,300,000 | |||
Accrued interest paid | 1,200,000 | |||
Inducement | 1,100,000 | |||
Non-cash increase to APIC | 109,000,000 | 2,000,000 | 26,700,000 | |
Principal amount | 4,436,000 | 6,436,000 | ||
Principal amount of Notes | $ 110,400,000 | |||
Gain on exchange of debt | 22,000 | |||
Exchangeable Senior Notes | Accounts payable and accrued expenses | ||||
Accrued interest payable | $ 49,000 | $ 70,000 | ||
Exchangeable Senior Notes | Common Stock | ||||
Exchange rate | 17.30699 | |||
Amount converted | $ 1,000 | |||
Exchange price | $ / shares | $ 57.78 | |||
Shares potentially issuable upon conversion | 76,774 |
Debt - Exchangeable Senior No_2
Debt - Exchangeable Senior Notes - Interest expense (Details) - Exchangeable Senior Notes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash coupon | $ 182 | $ 452 | $ 5,380 |
Amortization of debt discount | 1,146 | ||
Amortization of issuance cost | 37 | 94 | 991 |
Capitalized interest | (7) | ||
Total interest expense | $ 212 | $ 546 | $ 7,517 |
Debt - Exchangeable Senior No_3
Debt - Exchangeable Senior Notes - Carrying value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Principal amount | $ 304,436 | |
Exchangeable Senior Notes | ||
Principal amount | 4,436 | $ 6,436 |
Unamortized issuance cost | (5) | (56) |
Carrying value | $ 4,431 | $ 6,380 |
Debt - Notes due 2026 (Details)
Debt - Notes due 2026 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 25, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Principal amount | $ 304,436 | ||
Notes due 2026 | |||
Principal amount | $ 300,000 | $ 300,000 | $ 300,000 |
Interest rate | 5.50% | ||
Issuance costs | $ 6,800 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.03% | ||
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 | |||
Redemption price percentage | 100% | ||
Notes due 2026 | Redeemed On Or After February 25, 2026 | |||
Redemption price percentage | 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash coupon | $ 16,500 | $ 16,500 | $ 9,854 |
Amortization of issuance cost | 1,334 | 1,255 | 715 |
Capitalized interest | (620) | ||
Total interest expense | $ 17,214 | $ 17,755 | $ 10,569 |
Debt - Notes due 2026 - Carryin
Debt - Notes due 2026 - Carrying value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | May 25, 2021 |
Principal amount | $ 304,436 | ||
Notes due 2026 | |||
Principal amount | 300,000 | $ 300,000 | $ 300,000 |
Unamortized issuance cost | (3,551) | (4,885) | |
Carrying value | $ 296,449 | $ 295,115 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Oct. 23, 2023 | |
Aggregate commitments | $ 30,000,000 | |
Loan amount outstanding | $ 0 | |
Issuance costs | 561,000 | |
Non-cash interest expense | $ 41,000 |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt | |
2024 | $ 4,436 |
2026 | 300,000 |
Total | $ 304,436 |
Net Income Per Share - Addition
Net Income Per Share - Additional information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dilutive effect of Exchangeable Senior Notes | 81,169 | 202,076 | 2,180,550 |
PSUs | |||
Incremental common shares attributable to share-based payment arrangements | 81,414,000 | ||
PSUs | Employees | |||
Incremental common shares attributable to share-based payment arrangements | 81,414 |
Net Income Per Share - Computat
Net Income Per Share - Computations of net income per basic and diluted share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 165,588 | $ 154,386 | $ 113,990 |
Preferred stock dividends | (1,352) | (1,352) | (1,352) |
Distribution to participating securities | (1,482) | (834) | (557) |
Net income attributable to common stockholders used to compute net income per share - basic | 162,754 | 152,200 | 112,081 |
Dilutive effect of Exchangeable Senior Notes | 212 | 546 | 7,517 |
Net income attributable to common stockholders used to compute net income per share - diluted | $ 162,966 | $ 152,746 | $ 119,598 |
Weighted-average common shares outstanding: | |||
Basic | 27,977,807 | 27,345,047 | 23,903,017 |
Dilutive effect of Exchangeable Senior Notes | 81,169 | 202,076 | 2,180,550 |
Diluted | 28,255,797 | 27,663,169 | 26,261,155 |
Net income attributable to common stockholders per share: | |||
Basic (in dollars per share) | $ 5.82 | $ 5.57 | $ 4.69 |
Diluted (in dollars per share) | $ 5.77 | $ 5.52 | $ 4.55 |
Restricted stock and RSUs | |||
Weighted-average common shares outstanding: | |||
Incremental common shares attributable to share-based payment arrangements | 196,821,000 | 116,046,000 | 96,174,000 |
PSUs | |||
Weighted-average common shares outstanding: | |||
Incremental common shares attributable to share-based payment arrangements | 81,414,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Investments, Carrying Value | $ 21,948,000 | $ 200,935,000 |
Investments as cash equivalents, Carrying Value | 15,187,000 | |
Exchangeable Senior Notes, Carrying Value | 4,431,000 | 6,380,000 |
Notes due 2026, Carrying Value | 296,449,000 | 295,115,000 |
Construction loan receivable | 22,000,000 | 18,021,000 |
Investments, Fair Value | 21,951,000 | 200,715,000 |
Investments as cash equivalents, Fair Value | 15,029,000 | |
Exchangeable Senior Notes, Fair Value | 7,576,000 | 10,282,000 |
Notes due 2026, Fair Value | 278,325,000 | 264,234,000 |
Construction Loan, Fair Value | 27,543,000 | $ 20,167,000 |
Unrecognized gain | $ 78,000 | |
Expected market yield | ||
Loan Receivable, Measurement Input | 0.1625 | 0.25 |
Common Stock Incentive Plan - A
Common Stock Incentive Plan - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2022 USD ($) item shares | Jan. 31, 2021 USD ($) item shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Restricted Shares | |||||
Unrecognized compensation cost | $ 4,300,000 | ||||
Amortization period | 1 year 7 months 6 days | ||||
Fair value of restricted stock | $ 1,700,000 | $ 6,900,000 | $ 8,800,000 | ||
Granted | shares | 40,770 | 24,456 | 9,679 | ||
RSUs | |||||
Unrecognized compensation cost | $ 5,900,000 | ||||
Amortization period | 1 year 8 months 12 days | ||||
Granted | shares | 66,279 | 23,351 | 23,639 | ||
PSUs | |||||
Amortization period | 1 year | ||||
Granted | shares | 102,641 | 70,795 | |||
Number of comparator groups | item | 2 | 2 | |||
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 (in years) | 1 year | ||||
Granted date fair value | $ 20,000,000 | $ 12,000,000 | |||
Stock-based compensation expense | $ 10,700,000 | $ 10,700,000 | $ 4,000,000 | ||
Remaining unrecognized compensation | $ 6,700,000 | ||||
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 | shares | 1,000,000 |
Common Stock Incentive Plan -_2
Common Stock Incentive Plan - Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Shares | |||
Common Stock Incentive Plan | |||
Shares, Beginning Balance | 34,026 | 37,767 | 76,346 |
Granted | 40,770 | 24,456 | 9,679 |
Vested | (12,115) | (18,051) | (29,955) |
Forfeited | (5,970) | (10,146) | (18,303) |
Shares, Ending Balance | 56,711 | 34,026 | 37,767 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 181.08 | $ 92.49 | $ 50.14 |
Weighted-Average Grant Date Fair Value, Granted | 105.85 | 205.62 | 187.74 |
Weighted-Average Grant Date Fair Value, Vested | 173.37 | 91.57 | 52.31 |
Weighted-Average Grant Date Fair Value, Forfeited | 116.31 | 69.74 | 31.99 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 135.46 | $ 181.08 | $ 92.49 |
RSUs | |||
Common Stock Incentive Plan | |||
Shares, Beginning Balance | 83,677 | 60,326 | 36,687 |
Granted | 66,279 | 23,351 | 23,639 |
Shares, Ending Balance | 149,956 | 83,677 | 60,326 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 144.30 | $ 120.24 | $ 76.06 |
Weighted-Average Grant Date Fair Value, Granted | 101.40 | 206.45 | 188.80 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 125.34 | $ 144.30 | $ 120.24 |
Common Stock Incentive Plan - S
Common Stock Incentive Plan - Summary of Fair Value Assumption (Details) - PSUs - $ / shares | Jan. 07, 2022 | Jan. 06, 2021 |
Fair Value Assumptions: | ||
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% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies | |
2024 | $ 511 |
2025 | 526 |
2026 | 543 |
2027 | 45 |
Total future contractual lease payments | 1,625 |
Effect of discounting | (143) |
Office lease liability | $ 1,482 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 2 Months Ended | 6 Months Ended | 12 Months Ended | 16 Months Ended | ||||
Oct. 31, 2023 USD ($) | Aug. 04, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Jun. 30, 2022 item | Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Aug. 16, 2023 item | Jul. 25, 2022 item | |
Commitments and Contingencies | |||||||||
Number of projects | item | 2 | ||||||||
Amended Class Action Lawsuit | |||||||||
Commitments and Contingencies | |||||||||
Amount accrued | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Derivative Action Lawsuit | |||||||||
Commitments and Contingencies | |||||||||
Amount accrued | 0 | 0 | 0 | 0 | |||||
Kings Garden Lawsuit | |||||||||
Commitments and Contingencies | |||||||||
Number of leased properties | item | 6 | ||||||||
Settlement received | $ 386,000 | $ 4,400,000 | $ 19,800,000 | ||||||
Number of lease hold properties vacated | item | 4 | ||||||||
Damages and attorneys' fees awarded | $ 6,000,000 | ||||||||
Amortization of litigation damages | $ 193,000 | ||||||||
Term of amortization of litigation damages | 3 years | ||||||||
Number of construction project under investigation | item | 1 | ||||||||
Parallel Pennsylvania Litigation | |||||||||
Commitments and Contingencies | |||||||||
Settlement received | $ 1,700,000 | ||||||||
Damages and attorneys' fees awarded | $ 15,500,000 | ||||||||
Green Peak Michigan Litigation | |||||||||
Commitments and Contingencies | |||||||||
Number of leased properties | item | 3 | 3 | 3 | 3 | |||||
Number of leases retail properties | item | 3 | 3 | 3 | 3 | |||||
Commitments related to improvement allowances | |||||||||
Commitments and Contingencies | |||||||||
Other Commitment | $ 18,700,000 | $ 18,700,000 | $ 18,700,000 | $ 18,700,000 | |||||
Commitments related to construction commitments | |||||||||
Commitments and Contingencies | |||||||||
Other Commitment | 11,800,000 | 11,800,000 | 11,800,000 | 11,800,000 | |||||
Commitments related to construction loan | |||||||||
Commitments and Contingencies | |||||||||
Other Commitment | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Deferred Compensation Plan (Details) | Nov. 30, 2019 |
Deferred Base Salary | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 80% |
Deferred Bonus | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 100% |
Deferred Director Fees | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 100% |
Deferred Restricted Equity Awards | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred compensation rate (in percentage) | 100% |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 12 Months Ended | ||||
Jan. 01, 2024 USD ($) shares | Feb. 29, 2024 USD ($) property | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 31, 2024 USD ($) property | Oct. 23, 2023 USD ($) | |
Subsequent Events | ||||||
Outstanding principal amount | $ 2,000,000 | $ 26,900,000 | ||||
Exchangeable Senior Notes | ||||||
Subsequent Events | ||||||
Outstanding principal amount | $ 4,300,000 | $ 2,000,000 | $ 26,900,000 | |||
Revolving Facility | ||||||
Subsequent Events | ||||||
Aggregate commitments | $ 30,000,000 | |||||
Subsequent Event | Exchangeable Senior Notes | ||||||
Subsequent Events | ||||||
Exchange of Exchangeable Senior Notes (in shares) | shares | 28,408 | |||||
Principal amount paid | $ 4,300,000 | |||||
Principal amount paid off at maturity | $ 100,000 | |||||
Subsequent Event | Michigan Properties | ||||||
Subsequent Events | ||||||
Number of leased properties | property | 1 | |||||
Subsequent Event | PharmaCann | New York Properties | ||||||
Subsequent Events | ||||||
Number of leased properties | property | 1 | |||||
Increase in Construction Funding | $ 16,000,000 | |||||
Subsequent Event | Revolving Facility | ||||||
Subsequent Events | ||||||
Aggregate commitments | $ 45,000,000 | $ 30,000,000 | ||||
Subsequent Event | 4Front Ventures Corp. | ||||||
Subsequent Events | ||||||
Number of leased properties | property | 4 |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) $ in Thousands | 1 Months Ended | ||||
Mar. 31, 2023 property | Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | $ 142,524 | ||||
Building and Improvement, Initial Cost | 891,551 | ||||
Costs Capitalized Subsequent to Acquisition | 1,334,440 | ||||
Land, Total Costs | 142,524 | ||||
Building and Improvements, Total Costs | 2,225,991 | ||||
Total Costs | 2,368,515 | $ 2,204,687 | $ 1,722,104 | $ 1,060,239 | |
Accumulated Depreciation | (202,692) | $ (138,405) | $ (81,938) | $ (40,195) | |
Net Cost Basis | 2,165,823 | ||||
Number of properties sold | property | 4 | ||||
Aggregate gross cost of the properties for federal income tax purposes | $ 2,400,000 | ||||
Number of properties excluded | property | 4 | ||||
East Cherry Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | $ 723 | ||||
Building and Improvement, Initial Cost | 3,995 | ||||
Land, Total Costs | 723 | ||||
Building and Improvements, Total Costs | 3,995 | ||||
Total Costs | 4,718 | ||||
Accumulated Depreciation | (171) | ||||
Net Cost Basis | 4,547 | ||||
West Greenhouse Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 398 | ||||
Building and Improvement, Initial Cost | 14,629 | ||||
Costs Capitalized Subsequent to Acquisition | 5,003 | ||||
Land, Total Costs | 398 | ||||
Building and Improvements, Total Costs | 19,632 | ||||
Total Costs | 20,030 | ||||
Accumulated Depreciation | (4,221) | ||||
Net Cost Basis | 15,809 | ||||
Perez Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 734 | ||||
Building and Improvement, Initial Cost | 5,634 | ||||
Costs Capitalized Subsequent to Acquisition | 7,080 | ||||
Land, Total Costs | 734 | ||||
Building and Improvements, Total Costs | 12,714 | ||||
Total Costs | 13,448 | ||||
Accumulated Depreciation | (329) | ||||
Net Cost Basis | 13,119 | ||||
64125 19th Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 5,930 | ||||
Building and Improvement, Initial Cost | 45,081 | ||||
Costs Capitalized Subsequent to Acquisition | 12,605 | ||||
Land, Total Costs | 5,930 | ||||
Building and Improvements, Total Costs | 57,686 | ||||
Total Costs | 63,616 | ||||
Accumulated Depreciation | (3,144) | ||||
Net Cost Basis | 60,472 | ||||
McLane Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,577 | ||||
Building and Improvement, Initial Cost | 15,935 | ||||
Land, Total Costs | 1,577 | ||||
Building and Improvements, Total Costs | 15,935 | ||||
Total Costs | 17,512 | ||||
Accumulated Depreciation | (1,449) | ||||
Net Cost Basis | 16,063 | ||||
Inland Center Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 3,485 | ||||
Building and Improvement, Initial Cost | 21,911 | ||||
Costs Capitalized Subsequent to Acquisition | 10,481 | ||||
Land, Total Costs | 3,485 | ||||
Building and Improvements, Total Costs | 32,392 | ||||
Total Costs | 35,877 | ||||
Net Cost Basis | 35,877 | ||||
63795 19th Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 3,534 | ||||
Building and Improvement, Initial Cost | 12,852 | ||||
Costs Capitalized Subsequent to Acquisition | 18,234 | ||||
Land, Total Costs | 3,534 | ||||
Building and Improvements, Total Costs | 31,086 | ||||
Total Costs | 34,620 | ||||
Accumulated Depreciation | (1,869) | ||||
Net Cost Basis | 32,751 | ||||
North Anza Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 916 | ||||
Building and Improvement, Initial Cost | 5,406 | ||||
Land, Total Costs | 916 | ||||
Building and Improvements, Total Costs | 5,406 | ||||
Total Costs | 6,322 | ||||
Accumulated Depreciation | (786) | ||||
Net Cost Basis | 5,536 | ||||
North Anza Road & Del Sol Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 840 | ||||
Building and Improvement, Initial Cost | 4,959 | ||||
Land, Total Costs | 840 | ||||
Building and Improvements, Total Costs | 4,959 | ||||
Total Costs | 5,799 | ||||
Accumulated Depreciation | (721) | ||||
Net Cost Basis | 5,078 | ||||
1804 Needles Highway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 174 | ||||
Building and Improvement, Initial Cost | 715 | ||||
Costs Capitalized Subsequent to Acquisition | 1 | ||||
Land, Total Costs | 174 | ||||
Building and Improvements, Total Costs | 716 | ||||
Total Costs | 890 | ||||
Accumulated Depreciation | (84) | ||||
Net Cost Basis | 806 | ||||
West Broadway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 289 | ||||
Building and Improvement, Initial Cost | 1,185 | ||||
Costs Capitalized Subsequent to Acquisition | 2 | ||||
Land, Total Costs | 289 | ||||
Building and Improvements, Total Costs | 1,187 | ||||
Total Costs | 1,476 | ||||
Accumulated Depreciation | (139) | ||||
Net Cost Basis | 1,337 | ||||
3253 Needles Highway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 949 | ||||
Building and Improvement, Initial Cost | 3,900 | ||||
Costs Capitalized Subsequent to Acquisition | 8 | ||||
Land, Total Costs | 949 | ||||
Building and Improvements, Total Costs | 3,908 | ||||
Total Costs | 4,857 | ||||
Accumulated Depreciation | (458) | ||||
Net Cost Basis | 4,399 | ||||
3241 & 3247 Needles Highway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,981 | ||||
Building and Improvement, Initial Cost | 8,138 | ||||
Costs Capitalized Subsequent to Acquisition | 16 | ||||
Land, Total Costs | 1,981 | ||||
Building and Improvements, Total Costs | 8,154 | ||||
Total Costs | 10,135 | ||||
Accumulated Depreciation | (957) | ||||
Net Cost Basis | 9,178 | ||||
Sacramento | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,376 | ||||
Building and Improvement, Initial Cost | 5,321 | ||||
Costs Capitalized Subsequent to Acquisition | 6,033 | ||||
Land, Total Costs | 1,376 | ||||
Building and Improvements, Total Costs | 11,354 | ||||
Total Costs | 12,730 | ||||
Accumulated Depreciation | (1,694) | ||||
Net Cost Basis | 11,036 | ||||
Steele Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,101 | ||||
Building and Improvement, Initial Cost | 9,176 | ||||
Land, Total Costs | 2,101 | ||||
Building and Improvements, Total Costs | 9,176 | ||||
Total Costs | 11,277 | ||||
Accumulated Depreciation | (1,579) | ||||
Net Cost Basis | 9,698 | ||||
Washington Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 4,309 | ||||
Building and Improvement, Initial Cost | 4,988 | ||||
Land, Total Costs | 4,309 | ||||
Building and Improvements, Total Costs | 4,988 | ||||
Total Costs | 9,297 | ||||
Accumulated Depreciation | (271) | ||||
Net Cost Basis | 9,026 | ||||
West Barberry Place | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 389 | ||||
Building and Improvement, Initial Cost | 2,478 | ||||
Land, Total Costs | 389 | ||||
Building and Improvements, Total Costs | 2,478 | ||||
Total Costs | 2,867 | ||||
Accumulated Depreciation | (129) | ||||
Net Cost Basis | 2,738 | ||||
Hamilton Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,186 | ||||
Building and Improvement, Initial Cost | 17,371 | ||||
Costs Capitalized Subsequent to Acquisition | 36,340 | ||||
Land, Total Costs | 2,186 | ||||
Building and Improvements, Total Costs | 53,711 | ||||
Total Costs | 55,897 | ||||
Accumulated Depreciation | (3,871) | ||||
Net Cost Basis | 52,026 | ||||
West Lake Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,071 | ||||
Building and Improvement, Initial Cost | 34,249 | ||||
Costs Capitalized Subsequent to Acquisition | 16,007 | ||||
Land, Total Costs | 1,071 | ||||
Building and Improvements, Total Costs | 50,256 | ||||
Total Costs | 51,327 | ||||
Accumulated Depreciation | (5,808) | ||||
Net Cost Basis | 45,519 | ||||
NW Highway 441 | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 752 | ||||
Building and Improvement, Initial Cost | 23,064 | ||||
Costs Capitalized Subsequent to Acquisition | 17,782 | ||||
Land, Total Costs | 752 | ||||
Building and Improvements, Total Costs | 40,846 | ||||
Total Costs | 41,598 | ||||
Accumulated Depreciation | (3,237) | ||||
Net Cost Basis | 38,361 | ||||
Ben Bostic Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 274 | ||||
Building and Improvement, Initial Cost | 16,729 | ||||
Land, Total Costs | 274 | ||||
Building and Improvements, Total Costs | 16,729 | ||||
Total Costs | 17,003 | ||||
Accumulated Depreciation | (2,214) | ||||
Net Cost Basis | 14,789 | ||||
East Mazon Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 201 | ||||
Building and Improvement, Initial Cost | 17,807 | ||||
Costs Capitalized Subsequent to Acquisition | 10,008 | ||||
Land, Total Costs | 201 | ||||
Building and Improvements, Total Costs | 27,815 | ||||
Total Costs | 28,016 | ||||
Accumulated Depreciation | (4,107) | ||||
Net Cost Basis | 23,909 | ||||
Revolution Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 563 | ||||
Building and Improvement, Initial Cost | 18,457 | ||||
Costs Capitalized Subsequent to Acquisition | 51,538 | ||||
Land, Total Costs | 563 | ||||
Building and Improvements, Total Costs | 69,995 | ||||
Total Costs | 70,558 | ||||
Accumulated Depreciation | (9,631) | ||||
Net Cost Basis | 60,927 | ||||
East 4th Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 739 | ||||
Building and Improvement, Initial Cost | 8,284 | ||||
Costs Capitalized Subsequent to Acquisition | 40,998 | ||||
Land, Total Costs | 739 | ||||
Building and Improvements, Total Costs | 49,282 | ||||
Total Costs | 50,021 | ||||
Accumulated Depreciation | (5,887) | ||||
Net Cost Basis | 44,134 | ||||
Industrial Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 350 | ||||
Building and Improvement, Initial Cost | 10,191 | ||||
Costs Capitalized Subsequent to Acquisition | 29,446 | ||||
Land, Total Costs | 350 | ||||
Building and Improvements, Total Costs | 39,637 | ||||
Total Costs | 39,987 | ||||
Accumulated Depreciation | (5,287) | ||||
Net Cost Basis | 34,700 | ||||
S US Highway 45 52 | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 268 | ||||
Building and Improvement, Initial Cost | 11,840 | ||||
Costs Capitalized Subsequent to Acquisition | 13,279 | ||||
Land, Total Costs | 268 | ||||
Building and Improvements, Total Costs | 25,119 | ||||
Total Costs | 25,387 | ||||
Accumulated Depreciation | (3,477) | ||||
Net Cost Basis | 21,910 | ||||
Centerpoint Way | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,947 | ||||
Building and Improvement, Initial Cost | 17,761 | ||||
Costs Capitalized Subsequent to Acquisition | 254 | ||||
Land, Total Costs | 2,947 | ||||
Building and Improvements, Total Costs | 18,015 | ||||
Total Costs | 20,962 | ||||
Accumulated Depreciation | (2,376) | ||||
Net Cost Basis | 18,586 | ||||
Adams Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 3,366 | ||||
Costs Capitalized Subsequent to Acquisition | 62,247 | ||||
Land, Total Costs | 3,366 | ||||
Building and Improvements, Total Costs | 62,247 | ||||
Total Costs | 65,613 | ||||
Accumulated Depreciation | (2,273) | ||||
Net Cost Basis | 63,340 | ||||
South Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,861 | ||||
Building and Improvement, Initial Cost | 14,775 | ||||
Costs Capitalized Subsequent to Acquisition | 12,858 | ||||
Land, Total Costs | 1,861 | ||||
Building and Improvements, Total Costs | 27,633 | ||||
Total Costs | 29,494 | ||||
Accumulated Depreciation | (2,134) | ||||
Net Cost Basis | 27,360 | ||||
Alaking Court | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,785 | ||||
Building and Improvement, Initial Cost | 8,410 | ||||
Costs Capitalized Subsequent to Acquisition | 22,765 | ||||
Land, Total Costs | 2,785 | ||||
Building and Improvements, Total Costs | 31,175 | ||||
Total Costs | 33,960 | ||||
Accumulated Depreciation | (5,711) | ||||
Net Cost Basis | 28,249 | ||||
Western Maryland Parkway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,849 | ||||
Building and Improvement, Initial Cost | 23,441 | ||||
Land, Total Costs | 1,849 | ||||
Building and Improvements, Total Costs | 23,441 | ||||
Total Costs | 25,290 | ||||
Accumulated Depreciation | (1,001) | ||||
Net Cost Basis | 24,289 | ||||
Hopping Brook Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 3,030 | ||||
Costs Capitalized Subsequent to Acquisition | 27,512 | ||||
Land, Total Costs | 3,030 | ||||
Building and Improvements, Total Costs | 27,512 | ||||
Total Costs | 30,542 | ||||
Accumulated Depreciation | (3,236) | ||||
Net Cost Basis | 27,306 | ||||
Chestnut Hill Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,202 | ||||
Building and Improvement, Initial Cost | 24,568 | ||||
Costs Capitalized Subsequent to Acquisition | 36,965 | ||||
Land, Total Costs | 2,202 | ||||
Building and Improvements, Total Costs | 61,533 | ||||
Total Costs | 63,735 | ||||
Accumulated Depreciation | (6,039) | ||||
Net Cost Basis | 57,696 | ||||
Worcester Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 4,063 | ||||
Building and Improvement, Initial Cost | 16,462 | ||||
Land, Total Costs | 4,063 | ||||
Building and Improvements, Total Costs | 16,462 | ||||
Total Costs | 20,525 | ||||
Accumulated Depreciation | (532) | ||||
Net Cost Basis | 19,993 | ||||
Canal Street/7 North Bridge Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 694 | ||||
Building and Improvement, Initial Cost | 2,831 | ||||
Costs Capitalized Subsequent to Acquisition | 40,035 | ||||
Land, Total Costs | 694 | ||||
Building and Improvements, Total Costs | 42,866 | ||||
Total Costs | 43,560 | ||||
Accumulated Depreciation | (6,594) | ||||
Net Cost Basis | 36,966 | ||||
Palmer Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,059 | ||||
Building and Improvement, Initial Cost | 11,717 | ||||
Costs Capitalized Subsequent to Acquisition | 6,977 | ||||
Land, Total Costs | 1,059 | ||||
Building and Improvements, Total Costs | 18,694 | ||||
Total Costs | 19,753 | ||||
Accumulated Depreciation | (2,550) | ||||
Net Cost Basis | 17,203 | ||||
East Main Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,316 | ||||
Building and Improvement, Initial Cost | 13,194 | ||||
Land, Total Costs | 2,316 | ||||
Building and Improvements, Total Costs | 13,194 | ||||
Total Costs | 15,510 | ||||
Accumulated Depreciation | (1,135) | ||||
Net Cost Basis | 14,375 | ||||
Curran Highway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,082 | ||||
Building and Improvement, Initial Cost | 1,026 | ||||
Costs Capitalized Subsequent to Acquisition | 23,685 | ||||
Land, Total Costs | 2,082 | ||||
Building and Improvements, Total Costs | 24,711 | ||||
Total Costs | 26,793 | ||||
Accumulated Depreciation | (1,568) | ||||
Net Cost Basis | 25,225 | ||||
Hoover Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,237 | ||||
Building and Improvement, Initial Cost | 17,791 | ||||
Costs Capitalized Subsequent to Acquisition | 64,484 | ||||
Land, Total Costs | 1,237 | ||||
Building and Improvements, Total Costs | 82,275 | ||||
Total Costs | 83,512 | ||||
Accumulated Depreciation | (7,934) | ||||
Net Cost Basis | 75,578 | ||||
East Hazel Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 409 | ||||
Building and Improvement, Initial Cost | 4,360 | ||||
Costs Capitalized Subsequent to Acquisition | 19,297 | ||||
Land, Total Costs | 409 | ||||
Building and Improvements, Total Costs | 23,657 | ||||
Total Costs | 24,066 | ||||
Accumulated Depreciation | (2,656) | ||||
Net Cost Basis | 21,410 | ||||
Oliver Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,385 | ||||
Building and Improvement, Initial Cost | 3,631 | ||||
Costs Capitalized Subsequent to Acquisition | 26,755 | ||||
Land, Total Costs | 1,385 | ||||
Building and Improvements, Total Costs | 30,386 | ||||
Total Costs | 31,771 | ||||
Accumulated Depreciation | (3,011) | ||||
Net Cost Basis | 28,760 | ||||
Davis Highway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,907 | ||||
Building and Improvement, Initial Cost | 13,647 | ||||
Costs Capitalized Subsequent to Acquisition | 42,105 | ||||
Land, Total Costs | 1,907 | ||||
Building and Improvements, Total Costs | 55,752 | ||||
Total Costs | 57,659 | ||||
Net Cost Basis | 57,659 | ||||
Harvest Park | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,933 | ||||
Building and Improvement, Initial Cost | 3,559 | ||||
Costs Capitalized Subsequent to Acquisition | 10,301 | ||||
Land, Total Costs | 1,933 | ||||
Building and Improvements, Total Costs | 13,860 | ||||
Total Costs | 15,793 | ||||
Accumulated Depreciation | (2,574) | ||||
Net Cost Basis | 13,219 | ||||
Executive Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 389 | ||||
Building and Improvement, Initial Cost | 6,489 | ||||
Costs Capitalized Subsequent to Acquisition | 3,140 | ||||
Land, Total Costs | 389 | ||||
Building and Improvements, Total Costs | 9,629 | ||||
Total Costs | 10,018 | ||||
Accumulated Depreciation | (1,451) | ||||
Net Cost Basis | 8,567 | ||||
77th Street Northeast | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 427 | ||||
Building and Improvement, Initial Cost | 2,644 | ||||
Costs Capitalized Subsequent to Acquisition | 6,618 | ||||
Land, Total Costs | 427 | ||||
Building and Improvements, Total Costs | 9,262 | ||||
Total Costs | 9,689 | ||||
Accumulated Depreciation | (1,658) | ||||
Net Cost Basis | 8,031 | ||||
Industrial Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 753 | ||||
Building and Improvement, Initial Cost | 787 | ||||
Costs Capitalized Subsequent to Acquisition | 26,710 | ||||
Land, Total Costs | 753 | ||||
Building and Improvements, Total Costs | 27,497 | ||||
Total Costs | 28,250 | ||||
Accumulated Depreciation | (1,501) | ||||
Net Cost Basis | 26,749 | ||||
East Cheyenne Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,088 | ||||
Building and Improvement, Initial Cost | 2,768 | ||||
Costs Capitalized Subsequent to Acquisition | 5,771 | ||||
Land, Total Costs | 1,088 | ||||
Building and Improvements, Total Costs | 8,539 | ||||
Total Costs | 9,627 | ||||
Accumulated Depreciation | (1,313) | ||||
Net Cost Basis | 8,314 | ||||
Munsonhurst Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 4,987 | ||||
Building and Improvement, Initial Cost | 30,421 | ||||
Costs Capitalized Subsequent to Acquisition | 19,637 | ||||
Land, Total Costs | 4,987 | ||||
Building and Improvements, Total Costs | 50,058 | ||||
Total Costs | 55,045 | ||||
Accumulated Depreciation | (2,499) | ||||
Net Cost Basis | 52,546 | ||||
South Route 73 | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 702 | ||||
Building and Improvement, Initial Cost | 4,857 | ||||
Costs Capitalized Subsequent to Acquisition | 29,511 | ||||
Land, Total Costs | 702 | ||||
Building and Improvements, Total Costs | 34,368 | ||||
Total Costs | 35,070 | ||||
Accumulated Depreciation | (4,626) | ||||
Net Cost Basis | 30,444 | ||||
North West Blvd | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 222 | ||||
Building and Improvement, Initial Cost | 10,046 | ||||
Costs Capitalized Subsequent to Acquisition | 1,580 | ||||
Land, Total Costs | 222 | ||||
Building and Improvements, Total Costs | 11,626 | ||||
Total Costs | 11,848 | ||||
Accumulated Depreciation | (1,231) | ||||
Net Cost Basis | 10,617 | ||||
Hudson Crossing Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 7,600 | ||||
Building and Improvement, Initial Cost | 22,475 | ||||
Costs Capitalized Subsequent to Acquisition | 93,670 | ||||
Land, Total Costs | 7,600 | ||||
Building and Improvements, Total Costs | 116,145 | ||||
Total Costs | 123,745 | ||||
Accumulated Depreciation | (7,467) | ||||
Net Cost Basis | 116,278 | ||||
County Route 117 | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,593 | ||||
Building and Improvement, Initial Cost | 3,157 | ||||
Costs Capitalized Subsequent to Acquisition | 72,008 | ||||
Land, Total Costs | 1,593 | ||||
Building and Improvements, Total Costs | 75,165 | ||||
Total Costs | 76,758 | ||||
Accumulated Depreciation | (4,220) | ||||
Net Cost Basis | 72,538 | ||||
98th Ave South | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 191 | ||||
Building and Improvement, Initial Cost | 9,743 | ||||
Costs Capitalized Subsequent to Acquisition | 2,272 | ||||
Land, Total Costs | 191 | ||||
Building and Improvements, Total Costs | 12,015 | ||||
Total Costs | 12,206 | ||||
Accumulated Depreciation | (1,602) | ||||
Net Cost Basis | 10,604 | ||||
Hunts Landing Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 712 | ||||
Costs Capitalized Subsequent to Acquisition | 19,309 | ||||
Land, Total Costs | 712 | ||||
Building and Improvements, Total Costs | 19,309 | ||||
Total Costs | 20,021 | ||||
Accumulated Depreciation | (2,149) | ||||
Net Cost Basis | 17,872 | ||||
Jason Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 239 | ||||
Building and Improvement, Initial Cost | 2,688 | ||||
Costs Capitalized Subsequent to Acquisition | 29,250 | ||||
Land, Total Costs | 239 | ||||
Building and Improvements, Total Costs | 31,938 | ||||
Total Costs | 32,177 | ||||
Accumulated Depreciation | (3,259) | ||||
Net Cost Basis | 28,918 | ||||
Springs Way | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 235 | ||||
Building and Improvement, Initial Cost | 10,377 | ||||
Costs Capitalized Subsequent to Acquisition | 2,335 | ||||
Land, Total Costs | 235 | ||||
Building and Improvements, Total Costs | 12,712 | ||||
Total Costs | 12,947 | ||||
Accumulated Depreciation | (1,457) | ||||
Net Cost Basis | 11,490 | ||||
East Tallmadge Ave. | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 22 | ||||
Building and Improvement, Initial Cost | 1,014 | ||||
Costs Capitalized Subsequent to Acquisition | 2,501 | ||||
Land, Total Costs | 22 | ||||
Building and Improvements, Total Costs | 3,515 | ||||
Total Costs | 3,537 | ||||
Accumulated Depreciation | (612) | ||||
Net Cost Basis | 2,925 | ||||
Boltonfield Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,253 | ||||
Building and Improvement, Initial Cost | 18,876 | ||||
Costs Capitalized Subsequent to Acquisition | 21,990 | ||||
Land, Total Costs | 1,253 | ||||
Building and Improvements, Total Costs | 40,866 | ||||
Total Costs | 42,119 | ||||
Accumulated Depreciation | (692) | ||||
Net Cost Basis | 41,427 | ||||
Scott Technology Park | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 954 | ||||
Costs Capitalized Subsequent to Acquisition | 27,070 | ||||
Land, Total Costs | 954 | ||||
Building and Improvements, Total Costs | 27,070 | ||||
Total Costs | 28,024 | ||||
Accumulated Depreciation | (2,413) | ||||
Net Cost Basis | 25,611 | ||||
New Beaver Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 6,979 | ||||
Building and Improvement, Initial Cost | 34,781 | ||||
Costs Capitalized Subsequent to Acquisition | 25,986 | ||||
Land, Total Costs | 6,979 | ||||
Building and Improvements, Total Costs | 60,767 | ||||
Total Costs | 67,746 | ||||
Accumulated Depreciation | (4,838) | ||||
Net Cost Basis | 62,908 | ||||
East Market Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,435 | ||||
Building and Improvement, Initial Cost | 19,098 | ||||
Costs Capitalized Subsequent to Acquisition | 74,306 | ||||
Land, Total Costs | 1,435 | ||||
Building and Improvements, Total Costs | 93,404 | ||||
Total Costs | 94,839 | ||||
Accumulated Depreciation | (10,239) | ||||
Net Cost Basis | 84,600 | ||||
Wayne Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,228 | ||||
Building and Improvement, Initial Cost | 13,080 | ||||
Costs Capitalized Subsequent to Acquisition | 47,359 | ||||
Land, Total Costs | 1,228 | ||||
Building and Improvements, Total Costs | 60,439 | ||||
Total Costs | 61,667 | ||||
Accumulated Depreciation | (6,005) | ||||
Net Cost Basis | 55,662 | ||||
Horton Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,353 | ||||
Building and Improvement, Initial Cost | 11,854 | ||||
Costs Capitalized Subsequent to Acquisition | 29,745 | ||||
Land, Total Costs | 1,353 | ||||
Building and Improvements, Total Costs | 41,599 | ||||
Total Costs | 42,952 | ||||
Accumulated Depreciation | (4,353) | ||||
Net Cost Basis | 38,599 | ||||
Industrial Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 941 | ||||
Building and Improvement, Initial Cost | 7,941 | ||||
Costs Capitalized Subsequent to Acquisition | 16,318 | ||||
Land, Total Costs | 941 | ||||
Building and Improvements, Total Costs | 24,259 | ||||
Total Costs | 25,200 | ||||
Accumulated Depreciation | (2,478) | ||||
Net Cost Basis | 22,722 | ||||
Rosanna Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 3,540 | ||||
Building and Improvement, Initial Cost | 5,603 | ||||
Costs Capitalized Subsequent to Acquisition | 36,671 | ||||
Land, Total Costs | 3,540 | ||||
Building and Improvements, Total Costs | 42,274 | ||||
Total Costs | 45,814 | ||||
Accumulated Depreciation | (5,247) | ||||
Net Cost Basis | 40,567 | ||||
Susquehanna Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,318 | ||||
Building and Improvement, Initial Cost | 13,708 | ||||
Land, Total Costs | 1,318 | ||||
Building and Improvements, Total Costs | 13,708 | ||||
Total Costs | 15,026 | ||||
Accumulated Depreciation | (327) | ||||
Net Cost Basis | 14,699 | ||||
FM 969 | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Building and Improvement, Initial Cost | 11,157 | ||||
Costs Capitalized Subsequent to Acquisition | 3,682 | ||||
Building and Improvements, Total Costs | 14,839 | ||||
Total Costs | 14,839 | ||||
Accumulated Depreciation | (604) | ||||
Net Cost Basis | 14,235 | ||||
Decatur Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 231 | ||||
Building and Improvement, Initial Cost | 11,582 | ||||
Costs Capitalized Subsequent to Acquisition | 7,936 | ||||
Land, Total Costs | 231 | ||||
Building and Improvements, Total Costs | 19,518 | ||||
Total Costs | 19,749 | ||||
Accumulated Depreciation | (3,233) | ||||
Net Cost Basis | 16,516 | ||||
Lathrop Industrial Drive SW | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,826 | ||||
Building and Improvement, Initial Cost | 15,684 | ||||
Land, Total Costs | 1,826 | ||||
Building and Improvements, Total Costs | 15,684 | ||||
Total Costs | 17,510 | ||||
Accumulated Depreciation | (1,504) | ||||
Net Cost Basis | 16,006 | ||||
East Glendale Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,216 | ||||
Building and Improvement, Initial Cost | 811 | ||||
Costs Capitalized Subsequent to Acquisition | 501 | ||||
Land, Total Costs | 1,216 | ||||
Building and Improvements, Total Costs | 1,312 | ||||
Total Costs | 2,528 | ||||
Accumulated Depreciation | (230) | ||||
Net Cost Basis | 2,298 | ||||
Dahlia Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 179 | ||||
Building and Improvement, Initial Cost | 2,132 | ||||
Land, Total Costs | 179 | ||||
Building and Improvements, Total Costs | 2,132 | ||||
Total Costs | 2,311 | ||||
Accumulated Depreciation | (207) | ||||
Net Cost Basis | 2,104 | ||||
East Colfax Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 244 | ||||
Building and Improvement, Initial Cost | 307 | ||||
Costs Capitalized Subsequent to Acquisition | 916 | ||||
Land, Total Costs | 244 | ||||
Building and Improvements, Total Costs | 1,223 | ||||
Total Costs | 1,467 | ||||
Accumulated Depreciation | (73) | ||||
Net Cost Basis | 1,394 | ||||
North 2nd Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 140 | ||||
Building and Improvement, Initial Cost | 258 | ||||
Costs Capitalized Subsequent to Acquisition | 810 | ||||
Land, Total Costs | 140 | ||||
Building and Improvements, Total Costs | 1,068 | ||||
Total Costs | 1,208 | ||||
Accumulated Depreciation | (60) | ||||
Net Cost Basis | 1,148 | ||||
West Railroad Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 149 | ||||
Building and Improvement, Initial Cost | 618 | ||||
Costs Capitalized Subsequent to Acquisition | 168 | ||||
Land, Total Costs | 149 | ||||
Building and Improvements, Total Costs | 786 | ||||
Total Costs | 935 | ||||
Accumulated Depreciation | (62) | ||||
Net Cost Basis | 873 | ||||
Southgate Pl | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 367 | ||||
Building and Improvement, Initial Cost | 645 | ||||
Costs Capitalized Subsequent to Acquisition | 54 | ||||
Land, Total Costs | 367 | ||||
Building and Improvements, Total Costs | 699 | ||||
Total Costs | 1,066 | ||||
Accumulated Depreciation | (76) | ||||
Net Cost Basis | 990 | ||||
Wewatta Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 4,036 | ||||
Building and Improvement, Initial Cost | 2,417 | ||||
Land, Total Costs | 4,036 | ||||
Building and Improvements, Total Costs | 2,417 | ||||
Total Costs | 6,453 | ||||
Accumulated Depreciation | (129) | ||||
Net Cost Basis | 6,324 | ||||
Southgate Place | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 942 | ||||
Building and Improvement, Initial Cost | 3,314 | ||||
Land, Total Costs | 942 | ||||
Building and Improvements, Total Costs | 3,314 | ||||
Total Costs | 4,256 | ||||
Accumulated Depreciation | (194) | ||||
Net Cost Basis | 4,062 | ||||
South Peoria Court | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 938 | ||||
Building and Improvement, Initial Cost | 2,770 | ||||
Land, Total Costs | 938 | ||||
Building and Improvements, Total Costs | 2,770 | ||||
Total Costs | 3,708 | ||||
Accumulated Depreciation | (161) | ||||
Net Cost Basis | 3,547 | ||||
Highway 6 & 24 | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 892 | ||||
Building and Improvement, Initial Cost | 1,996 | ||||
Land, Total Costs | 892 | ||||
Building and Improvements, Total Costs | 1,996 | ||||
Total Costs | 2,888 | ||||
Accumulated Depreciation | (116) | ||||
Net Cost Basis | 2,772 | ||||
North College Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 527 | ||||
Building and Improvement, Initial Cost | 2,952 | ||||
Land, Total Costs | 527 | ||||
Building and Improvements, Total Costs | 2,952 | ||||
Total Costs | 3,479 | ||||
Accumulated Depreciation | (156) | ||||
Net Cost Basis | 3,323 | ||||
East Quincy Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 659 | ||||
Building and Improvement, Initial Cost | 2,493 | ||||
Land, Total Costs | 659 | ||||
Building and Improvements, Total Costs | 2,493 | ||||
Total Costs | 3,152 | ||||
Accumulated Depreciation | (139) | ||||
Net Cost Basis | 3,013 | ||||
East Montview Boulevard | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 256 | ||||
Building and Improvement, Initial Cost | 1,490 | ||||
Land, Total Costs | 256 | ||||
Building and Improvements, Total Costs | 1,490 | ||||
Total Costs | 1,746 | ||||
Accumulated Depreciation | (80) | ||||
Net Cost Basis | 1,666 | ||||
South Federal Blvd | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 193 | ||||
Building and Improvement, Initial Cost | 1,361 | ||||
Land, Total Costs | 193 | ||||
Building and Improvements, Total Costs | 1,361 | ||||
Total Costs | 1,554 | ||||
Accumulated Depreciation | (71) | ||||
Net Cost Basis | 1,483 | ||||
Santa Fe Trail | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 232 | ||||
Building and Improvement, Initial Cost | 1,110 | ||||
Land, Total Costs | 232 | ||||
Building and Improvements, Total Costs | 1,110 | ||||
Total Costs | 1,342 | ||||
Accumulated Depreciation | (64) | ||||
Net Cost Basis | 1,278 | ||||
Water Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 319 | ||||
Building and Improvement, Initial Cost | 945 | ||||
Land, Total Costs | 319 | ||||
Building and Improvements, Total Costs | 945 | ||||
Total Costs | 1,264 | ||||
Accumulated Depreciation | (56) | ||||
Net Cost Basis | 1,208 | ||||
Gregory Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 101 | ||||
Building and Improvement, Initial Cost | 1,058 | ||||
Land, Total Costs | 101 | ||||
Building and Improvements, Total Costs | 1,058 | ||||
Total Costs | 1,159 | ||||
Accumulated Depreciation | (54) | ||||
Net Cost Basis | 1,105 | ||||
West 20th Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 289 | ||||
Building and Improvement, Initial Cost | 666 | ||||
Land, Total Costs | 289 | ||||
Building and Improvements, Total Costs | 666 | ||||
Total Costs | 955 | ||||
Accumulated Depreciation | (38) | ||||
Net Cost Basis | 917 | ||||
South Federal Blvd. | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 461 | ||||
Building and Improvement, Initial Cost | 319 | ||||
Land, Total Costs | 461 | ||||
Building and Improvements, Total Costs | 319 | ||||
Total Costs | 780 | ||||
Accumulated Depreciation | (20) | ||||
Net Cost Basis | 760 | ||||
West 6th Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 60 | ||||
Building and Improvement, Initial Cost | 272 | ||||
Land, Total Costs | 60 | ||||
Building and Improvements, Total Costs | 272 | ||||
Total Costs | 332 | ||||
Accumulated Depreciation | (18) | ||||
Net Cost Basis | 314 | ||||
Elm Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 21 | ||||
Building and Improvement, Initial Cost | 311 | ||||
Land, Total Costs | 21 | ||||
Building and Improvements, Total Costs | 311 | ||||
Total Costs | 332 | ||||
Accumulated Depreciation | (22) | ||||
Net Cost Basis | 310 | ||||
Bent Avenue North | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 49 | ||||
Building and Improvement, Initial Cost | 284 | ||||
Land, Total Costs | 49 | ||||
Building and Improvements, Total Costs | 284 | ||||
Total Costs | 333 | ||||
Accumulated Depreciation | (18) | ||||
Net Cost Basis | 315 | ||||
Coolidge Rd | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,635 | ||||
Costs Capitalized Subsequent to Acquisition | 1,727 | ||||
Land, Total Costs | 1,635 | ||||
Building and Improvements, Total Costs | 1,727 | ||||
Total Costs | 3,362 | ||||
Accumulated Depreciation | (224) | ||||
Net Cost Basis | 3,138 | ||||
South Cedar Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 282 | ||||
Building and Improvement, Initial Cost | 1,951 | ||||
Land, Total Costs | 282 | ||||
Building and Improvements, Total Costs | 1,951 | ||||
Total Costs | 2,233 | ||||
Accumulated Depreciation | (308) | ||||
Net Cost Basis | 1,925 | ||||
West Pierson Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 122 | ||||
Building and Improvement, Initial Cost | 2,065 | ||||
Land, Total Costs | 122 | ||||
Building and Improvements, Total Costs | 2,065 | ||||
Total Costs | 2,187 | ||||
Accumulated Depreciation | (326) | ||||
Net Cost Basis | 1,861 | ||||
Wilder Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 49 | ||||
Building and Improvement, Initial Cost | 1,696 | ||||
Land, Total Costs | 49 | ||||
Building and Improvements, Total Costs | 1,696 | ||||
Total Costs | 1,745 | ||||
Accumulated Depreciation | (267) | ||||
Net Cost Basis | 1,478 | ||||
East Front Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 449 | ||||
Building and Improvement, Initial Cost | 827 | ||||
Land, Total Costs | 449 | ||||
Building and Improvements, Total Costs | 827 | ||||
Total Costs | 1,276 | ||||
Accumulated Depreciation | (130) | ||||
Net Cost Basis | 1,146 | ||||
South Mason Drive | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 25 | ||||
Building and Improvement, Initial Cost | 973 | ||||
Land, Total Costs | 25 | ||||
Building and Improvements, Total Costs | 973 | ||||
Total Costs | 998 | ||||
Accumulated Depreciation | (153) | ||||
Net Cost Basis | 845 | ||||
N Delsea Dr | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 244 | ||||
Building and Improvement, Initial Cost | 1,928 | ||||
Land, Total Costs | 244 | ||||
Building and Improvements, Total Costs | 1,928 | ||||
Total Costs | 2,172 | ||||
Accumulated Depreciation | (167) | ||||
Net Cost Basis | 2,005 | ||||
24th Street East | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 348 | ||||
Building and Improvement, Initial Cost | 1,368 | ||||
Land, Total Costs | 348 | ||||
Building and Improvements, Total Costs | 1,368 | ||||
Total Costs | 1,716 | ||||
Accumulated Depreciation | (83) | ||||
Net Cost Basis | 1,633 | ||||
Highway 2 East | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 120 | ||||
Building and Improvement, Initial Cost | 1,225 | ||||
Land, Total Costs | 120 | ||||
Building and Improvements, Total Costs | 1,225 | ||||
Total Costs | 1,345 | ||||
Accumulated Depreciation | (78) | ||||
Net Cost Basis | 1,267 | ||||
Main Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 57 | ||||
Building and Improvement, Initial Cost | 840 | ||||
Land, Total Costs | 57 | ||||
Building and Improvements, Total Costs | 840 | ||||
Total Costs | 897 | ||||
Accumulated Depreciation | (43) | ||||
Net Cost Basis | 854 | ||||
South 17th Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 553 | ||||
Building and Improvement, Initial Cost | 2,000 | ||||
Land, Total Costs | 553 | ||||
Building and Improvements, Total Costs | 2,000 | ||||
Total Costs | 2,553 | ||||
Accumulated Depreciation | (90) | ||||
Net Cost Basis | 2,463 | ||||
Esperanza Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,713 | ||||
Building and Improvement, Initial Cost | 11,307 | ||||
Costs Capitalized Subsequent to Acquisition | 979 | ||||
Land, Total Costs | 1,713 | ||||
Building and Improvements, Total Costs | 12,286 | ||||
Total Costs | 13,999 | ||||
Accumulated Depreciation | (1,346) | ||||
Net Cost Basis | 12,653 | ||||
Grape Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,380 | ||||
Building and Improvement, Initial Cost | 5,786 | ||||
Land, Total Costs | 1,380 | ||||
Building and Improvements, Total Costs | 5,786 | ||||
Total Costs | 7,166 | ||||
Accumulated Depreciation | (308) | ||||
Net Cost Basis | 6,858 | ||||
US 50 Business and Baxter Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 119 | ||||
Building and Improvement, Initial Cost | 1,652 | ||||
Land, Total Costs | 119 | ||||
Building and Improvements, Total Costs | 1,652 | ||||
Total Costs | 1,771 | ||||
Accumulated Depreciation | (106) | ||||
Net Cost Basis | 1,665 | ||||
South Fox Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 297 | ||||
Building and Improvement, Initial Cost | 829 | ||||
Land, Total Costs | 297 | ||||
Building and Improvements, Total Costs | 829 | ||||
Total Costs | 1,126 | ||||
Accumulated Depreciation | (44) | ||||
Net Cost Basis | 1,082 | ||||
West Street | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 650 | ||||
Building and Improvement, Initial Cost | 7,119 | ||||
Costs Capitalized Subsequent to Acquisition | 19,050 | ||||
Land, Total Costs | 650 | ||||
Building and Improvements, Total Costs | 26,169 | ||||
Total Costs | 26,819 | ||||
Accumulated Depreciation | (2,419) | ||||
Net Cost Basis | 24,400 | ||||
Mozzone Boulevard | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 1,626 | ||||
Building and Improvement, Initial Cost | 38,406 | ||||
Land, Total Costs | 1,626 | ||||
Building and Improvements, Total Costs | 38,406 | ||||
Total Costs | 40,032 | ||||
Accumulated Depreciation | (1,717) | ||||
Net Cost Basis | 38,315 | ||||
Stephenson Highway | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 6,211 | ||||
Costs Capitalized Subsequent to Acquisition | 22,304 | ||||
Land, Total Costs | 6,211 | ||||
Building and Improvements, Total Costs | 22,304 | ||||
Total Costs | 28,515 | ||||
Accumulated Depreciation | (1,741) | ||||
Net Cost Basis | 26,774 | ||||
Hoover Road | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 700 | ||||
Building and Improvement, Initial Cost | 9,557 | ||||
Costs Capitalized Subsequent to Acquisition | 6,984 | ||||
Land, Total Costs | 700 | ||||
Building and Improvements, Total Costs | 16,541 | ||||
Total Costs | 17,241 | ||||
Accumulated Depreciation | (1,276) | ||||
Net Cost Basis | 15,965 | ||||
Leah Avenue | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Land, Initial Cost | 2,222 | ||||
Building and Improvement, Initial Cost | 1,195 | ||||
Costs Capitalized Subsequent to Acquisition | 4,471 | ||||
Land, Total Costs | 2,222 | ||||
Building and Improvements, Total Costs | 5,666 | ||||
Total Costs | 7,888 | ||||
Net Cost Basis | $ 7,888 |
SCHEDULE III - REAL ESTATE AN_3
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment in real estate, at cost: | |||
Balance at beginning of year | $ 2,204,687 | $ 1,722,104 | $ 1,060,239 |
Purchases of investments in real estate | 35,155 | 149,317 | 277,717 |
Additions and improvements, net | 128,673 | 355,633 | 384,148 |
Sale of real estate investments | (22,367) | ||
Balance at end of year | 2,368,515 | 2,204,687 | 1,722,104 |
Accumulated Depreciation: | |||
Balance at beginning of year | (138,405) | (81,938) | (40,195) |
Depreciation expense, net | (64,287) | (58,935) | (41,743) |
Sale of real estate investments | 2,468 | ||
Balance at end of year | $ (202,692) | $ (138,405) | $ (81,938) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 165,588 | $ 154,386 | $ 113,990 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |