Innovative Industrial Properties (IIPR) 10-Q 7 Nov 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 07, 2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-37949
Entity Registrant Name	Innovative Industrial Properties, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	81-2963381
Entity Address, Address Line One	1389 Center Drive, Suite 200
Entity Address, City or Town	Park City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84098
City Area Code	858
Local Phone Number	997-3332
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,331,833
Entity Central Index Key	0001677576
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Real estate, at cost:
Land	$ 146,043	$ 142,524
Buildings and improvements	2,209,720	2,108,218
Construction in progress	59,998	117,773
Total real estate, at cost	2,415,761	2,368,515
Less accumulated depreciation	(253,165)	(202,692)
Net real estate held for investment	2,162,596	2,165,823
Construction Loan receivable	22,000	22,000
Cash and cash equivalents	147,128	140,249
Restricted cash		1,450
Investments	25,315	21,948
Right of use office lease asset	1,051	1,355
In-place lease intangible assets, net	7,600	8,245
Other assets, net	29,641	30,020
Total assets	2,395,331	2,391,090
Liabilities:
Exchangeable Senior Notes, net		4,431
Notes due 2026, net	297,503	296,449
Building improvements and construction funding payable	9,204	9,591
Accounts payable and accrued expenses	14,961	11,406
Dividends payable	54,817	51,827
Rent received in advance and tenant security deposits	61,084	59,358
Other liabilities	11,225	5,056
Total liabilities	448,794	438,118
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, liquidation preference of $25.00 per share, 1,002,673 and 600,000 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	23,632	14,009
Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,331,833 and 28,140,891 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	28	28
Additional paid-in capital	2,119,798	2,095,789
Dividends in excess of earnings	(196,921)	(156,854)
Total stockholders' equity	1,946,537	1,952,972
Total liabilities and stockholders' equity	$ 2,395,331	$ 2,391,090

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
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	28,331,833	28,140,891
Common Stock, Shares Outstanding	28,331,833	28,140,891
Series A Preferred Stock
Preferred Stock, Dividend Rate, Percentage	9%	9%
Preferred Stock, Liquidation Preference Per Share	$ 25	$ 25
Preferred Stock, Shares Issued	1,002,673	600,000
Preferred Stock, Shares Outstanding	1,002,673	600,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues:
Rental (including tenant reimbursements)	$ 76,052	$ 77,286	$ 230,219	$ 228,734
Other	474	540	1,554	1,616
Total revenues	76,526	77,826	231,773	230,350
Expenses:
Property expenses	7,295	6,318	20,867	17,700
General and administrative expense	9,330	10,981	28,553	31,924
Depreciation and amortization expense	17,944	16,678	52,567	50,096
Total expenses	34,569	33,977	101,987	99,720
Gain (loss) on sale of real estate			(3,449)
Income from operations	41,957	43,849	126,337	130,630
Interest income	2,685	2,075	8,435	6,625
Interest expense	(4,427)	(4,330)	(13,136)	(13,322)
Gain (loss) on exchange of Exchangeable Senior Notes				22
Net income	40,215	41,594	121,636	123,955
Preferred stock dividends	(564)	(338)	(1,240)	(1,014)
Net income attributable to common stockholders	$ 39,651	$ 41,256	$ 120,396	$ 122,941
Net income attributable to common stockholders per share (Note 8):
Basic (in dollars per share)	$ 1.38	$ 1.46	$ 4.21	$ 4.36
Diluted (in dollars per share)	$ 1.37	$ 1.45	$ 4.16	$ 4.32
Weighted-average shares outstanding:
Basic (in shares)	28,254,565	27,983,004	28,216,946	27,971,544
Diluted (in shares)	28,579,687	28,265,605	28,548,050	28,248,054

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Series A Preferred Stock Preferred Stock	Common Stock	Additional Paid-In-Capital	Dividends in Excess of Earnings	Total
Balances at beginning of period at Dec. 31, 2022	$ 14,009	$ 28	$ 2,065,248	$ (117,392)	$ 1,961,893
Balances at beginning of period (in shares) at Dec. 31, 2022	600,000	27,972,830
Net Income (Loss)				123,955	123,955
Issuance of unvested restricted stock, net of forfeitures			(568)		(568)
Issuance of unvested restricted stock, net of forfeitures (in shares)		34,800
Exchange of Exchangeable Senior Notes			1,964		1,964
Exchange of Exchangeable Senior Notes (in shares)		32,200
Preferred stock dividend				(1,014)	(1,014)
Common stock dividend				(152,208)	(152,208)
Stock-based compensation			14,647		14,647
Balances at end of period at Sep. 30, 2023	$ 14,009	$ 28	2,081,291	(146,659)	1,948,669
Balances at end of period (in shares) at Sep. 30, 2023	600,000	28,039,830
Balances at beginning of period at Jun. 30, 2023	$ 14,009	$ 28	2,076,357	(137,174)	1,953,220
Balances at beginning of period (in shares) at Jun. 30, 2023	600,000	28,040,054
Net Income (Loss)				41,594	41,594
Issuance of unvested restricted stock, net of forfeitures (in shares)		(224)
Preferred stock dividend				(338)	(338)
Common stock dividend				(50,741)	(50,741)
Stock-based compensation			4,934		4,934
Balances at end of period at Sep. 30, 2023	$ 14,009	$ 28	2,081,291	(146,659)	1,948,669
Balances at end of period (in shares) at Sep. 30, 2023	600,000	28,039,830
Balances at beginning of period at Dec. 31, 2023	$ 14,009	$ 28	2,095,789	(156,854)	1,952,972
Balances at beginning of period (in shares) at Dec. 31, 2023	600,000	28,140,891
Net Income (Loss)				121,636	121,636
Issuance of unvested restricted stock, net of forfeitures			(750)		(750)
Issuance of unvested restricted stock, net of forfeitures (in shares)		39,310
Net proceeds from sale of preferred stock	$ 9,623				9,623
Net proceeds from sale of preferred stock (in shares)	402,673
Exchange of Exchangeable Senior Notes (in shares)		28,408
Net proceeds from sale of common stock			11,757		11,757
Net proceeds from sale of common stock (in shares)		123,224
Preferred stock dividend				(1,240)	(1,240)
Common stock dividend				(160,463)	(160,463)
Stock-based compensation			13,002		13,002
Balances at end of period at Sep. 30, 2024	$ 23,632	$ 28	2,119,798	(196,921)	1,946,537
Balances at end of period (in shares) at Sep. 30, 2024	1,002,673	28,331,833
Balances at beginning of period at Jun. 30, 2024	$ 14,009	$ 28	2,115,482	(182,319)	1,947,200
Balances at beginning of period (in shares) at Jun. 30, 2024	600,000	28,331,833
Net Income (Loss)				40,215	40,215
Net proceeds from sale of preferred stock	$ 9,623				9,623
Net proceeds from sale of preferred stock (in shares)	402,673
Preferred stock dividend				(564)	(564)
Common stock dividend				(54,253)	(54,253)
Stock-based compensation			4,316		4,316
Balances at end of period at Sep. 30, 2024	$ 23,632	$ 28	$ 2,119,798	$ (196,921)	$ 1,946,537
Balances at end of period (in shares) at Sep. 30, 2024	1,002,673	28,331,833

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 121,636	$ 123,955
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization	52,567	50,096
Loss (gain) on exchange of Exchangeable Senior Notes		(22)
Loss (gain) on sale of real estate	3,449
Other non-cash adjustments	79	83
Stock-based compensation	13,002	14,647
Amortization of discounts on investments	(504)	(2,894)
Amortization of debt discount and issuance costs	1,214	1,021
Changes in assets and liabilities
Other assets, net	(2,800)	(2,905)
Accounts payable, accrued expenses and other liabilities	10,271	5,077
Rent received in advance and tenant security deposits	1,726	404
Net cash provided by (used in) operating activities	200,640	189,462
Cash flows from investing activities
Purchases of investments in real estate	(13,026)	(34,906)
Proceeds from sale of real estate asset	9,100
Funding of draws for improvements and construction	(45,642)	(129,502)
Funding of Construction Loan and other investments		(3,535)
Purchases of short-term investments	(45,110)	(91,772)
Maturities of short-term investments	42,247	253,716
Net cash provided by (used in) investing activities	(52,431)	(5,999)
Cash flows from financing activities
Issuance of common stock, net of offering costs	11,757
Issuance of preferred stock, net of offering costs	9,623
Principal payment on Exchangeable Senior Notes	(4,436)
Payment of deferred financing costs	(261)
Dividends paid to common stockholders	(157,699)	(151,969)
Dividends paid to preferred stockholders	(1,014)	(1,014)
Taxes paid related to net share settlement of equity awards	(750)	(568)
Net cash provided by (used in) financing activities	(142,780)	(153,551)
Net increase (decrease) in cash, cash equivalents and restricted cash	5,429	29,912
Cash, cash equivalents and restricted cash, beginning of period	141,699	88,572
Cash, cash equivalents and restricted cash, end of period	147,128	118,484
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of interest capitalized	7,806	8,253
Supplemental disclosure of non-cash investing and financing activities:
Accrual for current-period additions to real estate	8,574	10,520
Deposits applied for acquisitions		250
Accrual for common and preferred stock dividends declared	54,817	51,079
Reclassification from other assets to real estate held for investment	$ 3,152
Exchange of Exchangeable Senior Notes for common stock		$ 1,964

Organization

Organization	9 Months Ended
	Sep. 30, 2024
Organization
Organization	1. Organization As used herein, the terms “we”, “us”, “our” or the “Company” refer to Innovative Industrial Properties, Inc., a Maryland corporation, and any of our subsidiaries, including IIP Operating Partnership, LP, a Delaware limited partnership (our “Operating Partnership”). We are an internally-managed real estate investment trust (“REIT”) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. We have acquired and intend to continue to acquire our properties through sale-leaseback transactions and third-party purchases. We have leased and expect to continue to lease our properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including structural repairs, maintenance, real estate taxes and insurance. We were incorporated in Maryland on June 15, 2016. We conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT structure, in which our properties are owned by our Operating Partnership, directly or through subsidiaries. We are the sole general partner of our Operating Partnership and own, directly or through subsidiaries, 100% of the limited partnership interests in our Operating Partnership. ​

Summary of Significant Accounti

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2024
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	2. Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements Basis of Presentation. This interim financial information should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2024. Federal Income Taxes. Use of Estimates. Reportable Segment. Acquisition of Real Estate Properties. The fair value of acquired in-place leases is derived based on our assessment of estimated lost revenue and costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased. The amounts recorded for acquired in-place leases are reflected as in-place lease intangible assets, net on our condensed consolidated balance sheets and are amortized on a straight-line basis as a component of depreciation and amortization expense over the remaining term of the applicable leases. The fair value of the above-market component of an acquired in-place operating lease is based upon the present value (calculated using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining non-cancellable lease term and (ii) our estimate of the rents that would be paid using fair market rental rates and rent escalations at the date of acquisition measured over the remaining non-cancellable term of the lease. The amount recorded for one above-market operating lease is included in other assets, net on our condensed consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental revenues 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 September 30, 2024 and December 31, 2023, acquisitions of $16.8 million and $20.0 million, respectively have been recognized as notes receivable and are included in other assets, net on our condensed consolidated balance sheets. During the three months ended September 30, 2024, a $3.2 million acquisition of real estate which previously did not satisfy the requirements for sale-leaseback accounting was reclassified to real estate held for investment as the requirements for sale-leaseback accounting were satisfied. 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 three months ended September 30, 2024 and 2023, we recognized depreciation expense of $17.7 million and $16.5 million, respectively, and for the nine months ended September 30, 2024 and 2023, we recognized depreciation expense of $51.9 million and $49.5 million, respectively. Depreciation expense relating to our real estate held for investment is included in depreciation and amortization expense in our condensed 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. 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 three and nine months ended September 30, 2024 and 2023. Revenue Recognition. For the three and nine months ended September 30, 2024, rental revenue recognized included the application of $1.4 million and $2.0 million of security deposits for rent, respectively. For the three and nine months ended September 30, 2023, rental revenue recognized included the application of $2.2 million and $8.0 million of security deposits for rent, respectively. Construction Loan. . 30, 2024 and December 31, 2023, we had funded $22.0 million of the $23.0 million total commitment. Interest income on the Construction Loan is recognized on a cash basis. Cash and Cash Equivalents Restricted Cash Investments. Deferred Financing Costs. Stock-Based Compensation. Lease Accounting. Leases The right-of-use asset is measured based on the corresponding lease liability. We did not incur any initial direct leasing costs or exchange any other consideration 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. In each of the three and nine months ended September 30, 2024 and 2023, we recognized office lease expense of $0.1 million and $0.4 million, respectively, which is included in general and administrative expenses in our condensed consolidated statements of income. In each of the nine months ended September 30, 2024 and 2023, amounts paid and classified as operating activities in our condensed consolidated statements of cash flows for the office lease were $0.4 million. 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 are classified as operating leases. 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. In January 2024, the lease modifications for two of our leases to extend the initial term of each lease changed the lease classification from operating lease to sales-type lease that did not satisfy all the criteria for recognition as a completed sale. Accordingly, we have not derecognized the underlying assets and all lease payments received, as well as any future lease payments, will be recognized as a deposit liability and will be included in other liabilities on our condensed consolidated balance sheet until certain criteria are met. As of September 30, 2024, we have received lease payments of $4.4 million that have been included in other liabilities on our condensed consolidated balance sheet. The underlying assets’ land and building and improvements had a gross carrying value of $4.1 million and $28.9 million, respectively, and accumulated depreciation of $3.3 million as of September 30, 2024. 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 Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). 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 table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and nine months ended September 30, 2024 and 2023, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ September 30, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 17 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 11 % Green Thumb Industries, Inc. ("Green Thumb") 3 ​ 8 % Curaleaf Holdings, Inc. ("Curaleaf") 8 ​ 7 % Trulieve Cannabis Corp. ("Trulieve") ​ 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 17 % Ascend ​ 4 ​ 11 % Green Thumb 3 ​ 8 % Holistic Industries Inc. 5 ​ 8 % Curaleaf ​ 8 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ September 30, 2023 ​ ​ ​ Percentage of ​ Number of Rental ​ Leases Revenue PharmaCann ​ 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb ​ 3 ​ 8 % Curaleaf ​ 8 ​ 7 % Trulieve ​ 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2023 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb 3 ​ 8 % Curaleaf ​ 8 ​ 7 % SH Parent, Inc. ("Parallel") (1) 4 ​ 7 % ​ (1) We regained possession of two properties previously leased to Parallel in Texas and Pennsylvania in 2023. In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of September 30, 2024 and December 31, 2023, our largest property was located in New York and accounted for 5.5% and 5.4%, respectively, 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 September 30, 2024 and December 31, 2023. We have deposited cash with financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of September 30, 2024, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2024
Common Stock.
Common Stock	3. Common Stock As of September 30, 2024, the Company was authorized to issue up to 50,000,000 shares of common stock, par value $0.001 per share, and there were 28,331,833 shares of common stock issued and outstanding. ​ In May 2024, we terminated the previously existing “at-the-market” offering program (the “Prior ATM Program”) and entered into new equity distribution agreements with , pursuant to which we may offer and sell from time to time through an “at-the-market” offering program (the “ATM Program”), including on a forward basis, shares of our common stock and , up to an aggregate offering price of . See Note 4 “Preferred Stock” for information regarding the sale of Series A Preferred Stock under the ATM Program. ​ During the nine months ended September 30, 2024, we sold 123,224 shares of our common stock pursuant to the Prior ATM Program for net proceeds of $11.8 million. No shares of common stock were issued pursuant to the Prior ATM Program during the nine months ended September 30, 2023. ​ During the nine months ended September 30, 2024, we issued 28,408 shares of our common stock related to the exchange premium upon exchange by holders of $4.3 million of outstanding principal amount of our 3.75% Exchangeable Senior Notes due 2024 (the “Exchangeable Senior Notes”). ​ During the nine months ended September 30, 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	9 Months Ended
	Sep. 30, 2024
Preferred Stock.
Preferred Stock	4. Preferred Stock As of September 30, 2024, the Company was authorized to issue up to 50,000,000 shares of preferred stock, par value $0.001 per share, and there were 1,002,673 shares issued and outstanding ​ During the nine months ended September 30, 2024, we sold 402,673 shares of our Series A Preferred Stock pursuant to the ATM Program for net proceeds of $9.6 million.

Dividends

Dividends	9 Months Ended
	Sep. 30, 2024
Dividends
Dividends	5. Dividends The following table describes the dividends declared by the Company during the nine months ended September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 15, 2024 ​ Common stock ​ $ 1.82 ​ January 1, 2024 to March 31, 2024 ​ April 15, 2024 ​ $ 51,957 March 15, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2024 to April 14, 2024 ​ April 15, 2024 ​ $ 338 June 14, 2024 ​ Common stock ​ $ 1.90 ​ April 1, 2024 to June 30, 2024 ​ July 15, 2024 ​ $ 54,253 June 14, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2024 to July 14, 2024 ​ July 15, 2024 ​ $ 338 September 13, 2024 ​ Common stock ​ $ 1.90 ​ July 1, 2024 to September 30, 2024 ​ October 15, 2024 ​ $ 54,253 September 13, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2024 to October 14, 2024 ​ October 15, 2024 ​ $ 564 ​

Investments in Real Estate

Investments in Real Estate	9 Months Ended
	Sep. 30, 2024
Investments in Real Estate
Investments in Real Estate	6. Investments in Real Estate Acquisitions The Company made the following acquisition during the nine months ended September 30, 2024 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total ​ Ocala Florida ​ ​ June 7, 2024 ​ 145,000 ​ $ 13,000 ​ $ 26 ​ $ 13,026 (2) Total ​ ​ ​ ​ ​ ​ 145,000 ​ $ 13,000 ​ $ 26 ​ $ 13,026 (3) (1) Includes expected rentable square feet at completion of construction at the property. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $30.0 million. (3) $2.1 million was allocated to land and $10.9 million was allocated to building and improvements. ​ Acquired In-Place Lease Intangible Assets In-place lease intangible assets and related accumulated amortization as of September 30, 2024 and December 31, 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 In-place lease intangible assets ​ $ 9,979 ​ $ 9,979 Accumulated amortization (2,379) ​ (1,734) In-place lease intangible assets, net ​ $ 7,600 ​ $ 8,245 ​ Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our condensed consolidated statements of income was $0.2 million in each of the three months ended September 30, 2024 and 2023, and $0.6 million in each of the nine months ended September 30, 2024 and 2023. The weighted-average remaining amortization period of the acquired in-place leases was 9.0 years, and the estimated annual amortization of the value of the acquired in-place leases as of September 30, 2024 is as follows (in thousands): ​ ​ ​ ​ ​ Year Amount 2024 (three months ending December 31) ​ $ 215 2025 ​ 860 2026 ​ 860 2027 ​ 860 2028 ​ ​ 860 Thereafter ​ 3,945 Total ​ $ 7,600 ​ Above-Market Lease The above-market lease and related accumulated amortization included in other assets, net on our condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 Above-market lease ​ $ 1,054 ​ $ 1,054 Accumulated amortization (256) ​ (187) Above-market lease, net ​ $ 798 ​ $ 867 ​ The above-market lease is amortized on a straight-line basis as a reduction to rental revenues over the remaining lease term of 8.7 years. In each of the three and nine months ended September 30, 2024 and 2023, the amortization of the above-market lease was $23,000 and $69,000, respectively. 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 being 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 commitment 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. In April 2024, we amended our lease with a subsidiary of Battle Green Holdings LLC at one of our Ohio properties to provide an additional improvement allowance of $4.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. ​ In April 2024, we amended the lease with a subsidiary of 4Front at one of our Illinois properties to provide an additional improvement allowance of $1.6 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property and increased the annual base rent escalations for the remainder of the lease term. ​ New Leases In January 2024, we executed a new lease with a tenant at one of our retail properties in Michigan. In March 2024, we executed a new long-term lease with a subsidiary of Gold Flora Corporation (“Gold Flora”) at our property located at 63795 19th Avenue in Palm Springs, California (the “19 th Ave. Lease”). In April 2024, we executed a new long-term lease with Lume Cannabis Co. at our property located at 10070 Harvest Park in Dimondale, Michigan. ​ In May 2024, we executed a new long-term lease with a subsidiary of Gold Flora at our property located at 19533 McLane Street in Palm Springs, California (the “McLane Lease”). ​ The commencement date under each of the 19 th ​ Capitalized Costs ​ During the nine months ended September 30, 2024, we capitalized costs of $45.0 million and funded $45.6 million relating to improvements and construction activities at our properties. Property Dispositions In May 2024, we sold our leased property in Los Angeles, California for $9.1 million (excluding closing costs) to a third-party buyer. Concurrently with the sale, pursuant to a separate agreement previously executed between us and the tenant, the tenant paid us a lease termination fee of $3.9 million and paid for the closing and other costs incurred by us in connection with the sale of the property. In connection with this sale, during the nine months ended September 30, 2024, we recognized a disposition-contingent lease termination fee of $3.9 million, which is included in rental revenue (including tenant reimbursements) on our condensed consolidated statements of income, and a loss on sale of real estate of $3.4 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 $0.5 million 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 condensed 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 condensed consolidated balance sheet until such time the criteria for recognition as a sale have been met. As of September 30, 2024, we have received interest payments of $2.4 million. In addition, as we have not met all of the held-for-sale criteria, land and building and improvements with a gross carrying value of $3.4 million and $13.9 million, respectively, and accumulated depreciation of $1.9 million as of September 30, 2024, remain on the condensed 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) to be received on our leases as of September 30, 2024 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2024 (three months ending December 31) ​ $ 74,500 2025 ​ 310,800 2026 ​ 322,415 2027 ​ 330,720 2028 ​ 338,062 Thereafter ​ 3,978,962 Total ​ $ 5,355,459 ​ Future contractual minimum rent includes payments to be received on two sales-type leases, which will be recognized as a deposit liability and will be included in other liabilities on our condensed consolidated balance sheet until certain criteria are met (see Note 2 “Lease Accounting” for further details).

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt
Debt	7. Debt Exchangeable Senior Notes During the nine months ended September 30, 2024, we issued 28,408 shares of our common stock and paid $4.3 million in cash upon exchange by holders of $4.3 million principal amount of Exchangeable Senior Notes and paid off the remaining $0.1 million principal amount at maturity in February 2024, in accordance with terms of the indenture for the Exchangeable Senior Notes. During the nine months ended September 30, 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 nine months ended September 30, 2023, we recognized a gain on the exchange totaling $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 $2.0 million for the nine months ended September 30, 2023. The following table details our interest expense related to the Exchangeable Senior Notes which matured in February 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended September 30, ​ For the Nine Months Ended September 30, ​ 2024 2023 2024 2023 Cash coupon $ — $ 41 $ 24 $ 140 Amortization of issuance cost ​ — ​ 9 ​ 5 ​ 29 Capitalized interest ​ ​ — ​ ​ (2) ​ ​ (1) ​ ​ (2) Total interest expense $ — $ 48 $ 28 $ 167 ​ The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 Principal amount $ — $ 4,436 Unamortized issuance cost — ​ (5) Carrying value $ — $ 4,431 ​ Accrued interest payable for the Exchangeable Senior Notes as of December 31, 2023 was $49,000 and was included in accounts payable and accrued expenses on our condensed consolidated balance sheets. Notes due 2026 In May 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 rank equally in right of payment with all of the Operating Partnership’s future senior unsecured indebtedness. 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, and 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 $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 Three Months Ended September 30, ​ For the Nine Months Ended September 30, ​ 2024 ​ 2023 2024 ​ 2023 Cash coupon ​ $ 4,125 ​ $ 4,125 ​ $ 12,375 ​ $ 12,375 Amortization of issuance cost ​ 357 ​ ​ 335 ​ ​ 1,054 ​ ​ 992 Capitalized interest ​ (127) ​ ​ (178) ​ ​ (516) ​ ​ (212) Total interest expense ​ $ 4,355 ​ $ 4,282 ​ $ 12,913 ​ $ 13,155 ​ The following table details the carrying value of our Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost (2,497) ​ (3,551) Carrying value $ 297,503 $ 296,449 ​ The Operating Partnership may redeem some or all of the Notes due 2026 at its option at any time at the applicable redemption price. If the Notes due 2026 are redeemed prior to February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the Notes due 2026 are redeemed on or after February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date. The terms of the indenture for the Notes due 2026 require compliance with various financial covenants, including minimum level of debt service coverage and limits on the amount of total leverage and secured debt maintained by the Operating Partnership. Management believes that it was in compliance with those covenants as of September 30, 2024. Accrued interest payable for the Notes due 2026 as of September 30, 2024 and December 31, 2023 was $6.2 million and $2.1 million, respectively, and is included in accounts payable and accrued expenses on our condensed consolidated balance sheets. Revolving Credit Facility In October 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, which matures on October 23, 2026. The Loan Agreement provides $50.0 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 September 30, 2024. In connection with the Revolving Credit Facility, we recorded $0.8 million 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 three and nine months ended September 30, 2024, we recognized $72,000 and $0.2 million, respectively, of non-cash interest expense related to the Revolving Credit Facility. The following table summarizes the principal payments on our outstanding indebtedness as of September 30, 2024 (in thousands): ​ ​ ​ ​ Payments Due ​ ​ by Year Amount 2024 (three months ending December 31) ​ $ — 2025 ​ ​ — 2026 ​ ​ 300,000 2027 ​ ​ — 2028 ​ ​ — Thereafter ​ ​ — Total ​ $ 300,000 ​

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2024
Net Income Per Share
Net Income Per Share	8. Net Income Per Share Grants of restricted stock and restricted stock units (“RSUs”) of the Company in share-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per share under the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. Earnings per basic share under the two-class method is calculated based on dividends declared on common shares and other participating securities (“distributed earnings”) and the rights of participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends accruing during the period. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding participating securities. Earnings per basic share represents the summation of the distributed and undistributed earnings per share class divided by the total number of shares. Through September 30, 2024, all of the Company’s participating securities received dividends or dividend equivalents at an equal dividend rate per share or unit. As a result, distributions to participating securities for the three and nine months ended September 30, 2024 and 2023 have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. The 12,647 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the nine months ended September 30, 2024 and were included in the computation of diluted earnings per share. The 75,682 and 83,007 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the three and nine months ended September 30, 2023, respectively, and were included in the computation of diluted earnings per share. For the three and nine months ended September 30, 2024, 25,352 shares issuable upon vesting of the performance share units (“PSUs”) granted to certain employees were included in dilutive securities as the performance thresholds for vesting of the PSUs were met as measured as of September 30, 2024. For the three and nine months ended September 30, 2023, the PSUs granted to certain employees were not included in dilutive securities as the performance thresholds for vesting of the PSUs were not met as measured as of September 30, 2023 (see Note 10 “Common Stock Incentive Plan” for further discussion of PSUs). Computations of net income per basic and diluted share (in thousands, except share and per share data) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2024 2023 2024 2023 Net income ​ $ 40,215 ​ $ 41,594 ​ $ 121,636 ​ $ 123,955 Preferred stock dividends ​ (564) ​ (338) ​ ​ (1,240) ​ ​ (1,014) Distribution to participating securities ​ (570) ​ (372) ​ ​ (1,684) ​ ​ (1,106) Net income attributable to common stockholders used to compute net income per share – basic ​ ​ 39,081 ​ ​ 40,884 ​ ​ 118,712 ​ ​ 121,835 Dilutive effect of Exchangeable Senior Notes ​ ​ — ​ ​ 50 ​ ​ 28 ​ ​ 169 Net income attributable to common stockholders used to compute net income per share – diluted ​ $ 39,081 ​ $ 40,934 ​ $ 118,740 ​ $ 122,004 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 28,254,565 ​ 27,983,004 ​ ​ 28,216,946 ​ ​ 27,971,544 Restricted stock and RSUs ​ ​ 299,770 ​ ​ 206,919 ​ ​ 293,105 ​ ​ 193,503 PSUs ​ ​ 25,352 ​ ​ — ​ ​ 25,352 ​ ​ — Dilutive effect of Exchangeable Senior Notes ​ ​ — ​ ​ 75,682 ​ ​ 12,647 ​ ​ 83,007 Diluted ​ 28,579,687 ​ 28,265,605 ​ ​ 28,548,050 ​ ​ 28,248,054 Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.38 ​ $ 1.46 ​ $ 4.21 ​ $ 4.36 Diluted ​ $ 1.37 ​ $ 1.45 ​ $ 4.16 ​ $ 4.32 ​

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2024
Fair Value of Financial Instruments
Fair Value of Financial Instruments	9. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. The following table presents the carrying value and approximate fair value of financial instruments at September 30, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2024 ​ At December 31, 2023 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 25,315 ​ $ 25,318 ​ $ 21,948 ​ $ 21,951 Investments as cash equivalents (2) ​ $ 55,104 ​ $ 54,996 ​ $ 15,187 ​ $ 15,029 Exchangeable Senior Notes (3) ​ $ — ​ $ — ​ $ 4,431 ​ $ 7,576 Notes due 2026 (3) ​ $ 297,503 ​ $ 292,389 ​ $ 296,449 ​ $ 278,325 Construction Loan (4) ​ $ 22,000 ​ $ 27,844 ​ $ 22,000 ​ $ 27,543 Notes receivable (5) ​ $ 16,796 ​ $ 16,796 ​ $ 20,028 ​ $ 20,028 (1) At September 30, 2024, investments consisting of short-term certificates of deposit with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity and stated at cost, which approximates fair value, and investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at amortized cost and valued using Level 1 inputs. At December 31, 2023, investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at amortized cost and valued using Level 1 inputs. (2) Investments as cash equivalents consisting of obligations of the U.S. government with an original maturity at the time of purchase of 90 days or less are classified as held-to-maturity, stated at amortized cost 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 not traded in an active market. The Exchangeable Senior Notes matured in February 2024. (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 each of September 30, 2024 and December 31, 2023, the expected market yield used to determine fair value was 16.25% . 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. (5) Notes receivable relate to certain acquisitions of real estate which did not satisfy the requirements for sale-leaseback accounting (see Note 2 “Acquisition of Real Estate Properties” to our condensed consolidated financial statements for more information). The notes receivable are categorized as Level 3 and were also valued using a yield analysis. At September 30, 2024 and December 31, 2023, the weighted average expected market yields used to determine fair values were 19.7% and 17.2% , respectively. ​ The carrying amounts of cash equivalents, accounts payable, accrued expenses and other liabilities approximate their fair values.

Common Stock Incentive Plan

Common Stock Incentive Plan	9 Months Ended
	Sep. 30, 2024
Common Stock Incentive Plan
Common Stock Incentive Plan	10. Common Stock Incentive Plan Our board of directors adopted our 2016 Omnibus Incentive Plan (the “2016 Plan”) to enable us to motivate, attract and retain the services of directors, employees and consultants considered essential to our long-term success. The 2016 Plan offers our directors, employees and consultants an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2016 Plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 1,000,000 shares. Any equity awards that lapse, expire, terminate, are canceled or are forfeited (including forfeitures in connection with satisfaction of tax withholdings obligations of the recipient) are re-credited to the 2016 Plan’s reserve for future issuance. The 2016 Plan automatically terminates on the date which is ten years following the effective date of the 2016 Plan. A summary of the restricted stock activity under the 2016 Plan and related information for the nine months ended September 30, 2024 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock ​ Value Balance at December 31, 2023 56,711 ​ $ 135.46 Granted 43,566 ​ $ 91.81 Vested (13,698) ​ $ 126.83 Forfeited (1) (7,442) ​ $ 205.15 Balance at March 31, 2024 79,137 ​ $ 106.37 Granted ​ 3,186 ​ $ 113.05 Vested ​ (5,055) ​ $ 71.23 Balance at June 30, 2024 and September 30, 2024 ​ 77,268 ​ $ 108.95 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting. The remaining unrecognized compensation cost of $5.2 million for restricted stock awards is expected to be recognized over a weighted-average amortization period of 1.8 years as of September 30, 2024. The fair value of restricted stock that vested during the nine months ended September 30, 2024 was $2.6 million. The following table summarizes our RSU activity for the nine months ended September 30, 2024. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock Units ​ Value Balance at December 31, 2023 ​ 149,956 ​ $ 125.34 Granted ​ 69,714 ​ $ 91.81 Balance at March 31, 2024 ​ 219,670 ​ $ 114.70 Granted ​ 2,832 ​ $ 113.05 Balance at June 30, 2024 and September 30, 2024 ​ 222,502 ​ $ 114.68 ​ The remaining unrecognized compensation cost of $8.0 million for RSU awards is expected to be recognized over an amortization period of 1.8 years as of September 30, 2024. In January 2021 and 2022, we issued 70,795 and 102,641 “target” PSUs, respectively, to a select group of officers, which vest and are settled in shares of common stock based on the Company’s total stockholder return over a performance period beginning on the applicable grant date and ending on December 31, 2023 and 2024, respectively. ​ Stock-based compensation for market-based PSU awards is based on the grant date fair value of the equity awards and is recognized over the applicable performance period. For the three months ended September 30, 2024 and 2023, we recognized stock-based compensation expense of $1.7 million and $2.7 million, respectively, relating to PSU awards. For the nine months ended September 30, 2024 and 2023, we recognized stock-based compensation expense of $5.0 million and $8.0 million, respectively, relating to PSU awards. As of September 30, 2024, the remaining unrecognized compensation cost of $1.7 million relating to PSU awards is expected to be recognized over the remaining performance period of 0.3 years. The PSUs granted in January 2021 were forfeited in their entirety on December 31, 2023 pursuant to the terms of the agreements, as the PSUs failed to meet the performance threshold for vesting.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Office Lease ​ ​ ​ ​ ​ Year Amount 2024 (three months ending December 31) ​ $ 128 2025 ​ 526 2026 ​ 543 2027 ​ 45 2028 ​ — Total future contractual lease payments ​ 1,242 Effect of discounting ​ (83) Office lease liability ​ $ 1,159 ​ 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. Mallozzi, 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; and on March 1, 2024, defendants replied to plaintiff’s response. On September 25, 2024, the court granted defendants’ motion to dismiss the Second Amended Class Action Complaint with prejudice. On September 30, 2024, plaintiff filed a notice of appeal of the court’s dismissal of the Second Amended Class Action Complaint with prejudice. ​ 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 condensed consolidated financial statements. ​ Derivative Action Lawsuits 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., Case Number 24-C-22-003312, 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 motion to dismiss the federal class action lawsuit described above. On April 17, 2023, a third derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named 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., ​ On May 9, 2024, a fifth derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Gary A Gedig, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Ben Regin, Andy Bui, Tracy Hager, Alan Gold, Gary A. Kreitzer, Mary Curran, Scott Shoemaker, M.D., and David Stecher, and Innovative Industrial Properties, Inc., Civil No. C-24-CV-24-000130, and filed in the Circuit Court for Baltimore City, Maryland. Plaintiff and defendants in this action filed a Joint Stipulation to Stay the Proceedings, which was granted on September 17, 2024. ​ The Company intends to vigorously defend each of these lawsuits. However, at this time, the Company cannot predict the probable outcome of these actions, and, accordingly, no amounts have been accrued in the Company’s condensed consolidated financial statements. ​ We may, from time to time, be a party to other legal proceedings, which arise in the ordinary course of our business. Although the results of these proceedings, claims, inquiries, and investigations cannot be predicted with certainty, we do not believe that the final outcome of these matters is reasonably likely to have a material adverse effect on our business, financial condition, or results of operations. Regardless of final outcomes, however, any such proceedings, claims, inquiries, and investigations may nonetheless impose a significant burden on management and employees and may come with significant defense costs or unfavorable preliminary and interim rulings.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events
Subsequent Events	12. Subsequent Events Acquisition ​ In October 2024, we acquired a 23,000 square foot industrial property in Maryland for $5.6 million and executed a lease with a subsidiary of Maryland Cultivation and Processing, L.L.C. for the entire property. ​ Amendment to Loan Agreement to Increase Commitments Under Revolving Credit Facility ​ In November ​ ​

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 40,215	$ 41,594	$ 121,636	$ 123,955

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false	false	false
Non-Rule 10b5-1 Arrangement Adopted	false	false	false
Rule 10b5-1 Arrangement Terminated	false	false	false
Non-Rule 10b5-1 Arrangement Terminated	false	false	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2024
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Basis of Presentation	Basis of Presentation. This interim financial information should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2024.
Federal Income Taxes	Federal Income Taxes.
Use of Estimates	Use of Estimates.
Reportable Segment	Reportable Segment.
Acquisition of Real Estate Properties	Acquisition of Real Estate Properties. The fair value of acquired in-place leases is derived based on our assessment of estimated lost revenue and costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased. The amounts recorded for acquired in-place leases are reflected as in-place lease intangible assets, net on our condensed consolidated balance sheets and are amortized on a straight-line basis as a component of depreciation and amortization expense over the remaining term of the applicable leases. The fair value of the above-market component of an acquired in-place operating lease is based upon the present value (calculated using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining non-cancellable lease term and (ii) our estimate of the rents that would be paid using fair market rental rates and rent escalations at the date of acquisition measured over the remaining non-cancellable term of the lease. The amount recorded for one above-market operating lease is included in other assets, net on our condensed consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental revenues 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 September 30, 2024 and December 31, 2023, acquisitions of $16.8 million and $20.0 million, respectively have been recognized as notes receivable and are included in other assets, net on our condensed consolidated balance sheets. During the three months ended September 30, 2024, a $3.2 million acquisition of real estate which previously did not satisfy the requirements for sale-leaseback accounting was reclassified to real estate held for investment as the requirements for sale-leaseback accounting were satisfied.
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 three months ended September 30, 2024 and 2023, we recognized depreciation expense of $17.7 million and $16.5 million, respectively, and for the nine months ended September 30, 2024 and 2023, we recognized depreciation expense of $51.9 million and $49.5 million, respectively. Depreciation expense relating to our real estate held for investment is included in depreciation and amortization expense in our condensed 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.
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 three and nine months ended September 30, 2024 and 2023.
Revenue Recognition	Revenue Recognition. For the three and nine months ended September 30, 2024, rental revenue recognized included the application of $1.4 million and $2.0 million of security deposits for rent, respectively. For the three and nine months ended September 30, 2023, rental revenue recognized included the application of $2.2 million and $8.0 million of security deposits for rent, respectively.
Construction Loan	Construction Loan. . 30, 2024 and December 31, 2023, we had funded $22.0 million of the $23.0 million total commitment. Interest income on the Construction Loan is recognized on a cash basis.
Cash and Cash Equivalents	Cash and Cash Equivalents
Restricted Cash	Restricted Cash
Investments	Investments.
Deferred Financing Costs	Deferred Financing Costs.
Stock-Based Compensation	Stock-Based Compensation.
Lease Accounting	Lease Accounting. Leases The right-of-use asset is measured based on the corresponding lease liability. We did not incur any initial direct leasing costs or exchange any other consideration 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. In each of the three and nine months ended September 30, 2024 and 2023, we recognized office lease expense of $0.1 million and $0.4 million, respectively, which is included in general and administrative expenses in our condensed consolidated statements of income. In each of the nine months ended September 30, 2024 and 2023, amounts paid and classified as operating activities in our condensed consolidated statements of cash flows for the office lease were $0.4 million. 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 are classified as operating leases. 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. In January 2024, the lease modifications for two of our leases to extend the initial term of each lease changed the lease classification from operating lease to sales-type lease that did not satisfy all the criteria for recognition as a completed sale. Accordingly, we have not derecognized the underlying assets and all lease payments received, as well as any future lease payments, will be recognized as a deposit liability and will be included in other liabilities on our condensed consolidated balance sheet until certain criteria are met. As of September 30, 2024, we have received lease payments of $4.4 million that have been included in other liabilities on our condensed consolidated balance sheet. The underlying assets’ land and building and improvements had a gross carrying value of $4.1 million and $28.9 million, respectively, and accumulated depreciation of $3.3 million as of September 30, 2024. 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 Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). 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 table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and nine months ended September 30, 2024 and 2023, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ September 30, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 17 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 11 % Green Thumb Industries, Inc. ("Green Thumb") 3 ​ 8 % Curaleaf Holdings, Inc. ("Curaleaf") 8 ​ 7 % Trulieve Cannabis Corp. ("Trulieve") ​ 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 17 % Ascend ​ 4 ​ 11 % Green Thumb 3 ​ 8 % Holistic Industries Inc. 5 ​ 8 % Curaleaf ​ 8 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ September 30, 2023 ​ ​ ​ Percentage of ​ Number of Rental ​ Leases Revenue PharmaCann ​ 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb ​ 3 ​ 8 % Curaleaf ​ 8 ​ 7 % Trulieve ​ 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2023 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb 3 ​ 8 % Curaleaf ​ 8 ​ 7 % SH Parent, Inc. ("Parallel") (1) 4 ​ 7 % ​ (1) We regained possession of two properties previously leased to Parallel in Texas and Pennsylvania in 2023. In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of September 30, 2024 and December 31, 2023, our largest property was located in New York and accounted for 5.5% and 5.4%, respectively, 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 September 30, 2024 and December 31, 2023. We have deposited cash with financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of September 30, 2024, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Tables)	9 Months Ended
	Sep. 30, 2024
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Schedule of tenants in the company's portfolio that represented the largest percentage of total rental revenue for each period presented, including tenant reimbursements	The following table sets forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the three and nine months ended September 30, 2024 and 2023, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ September 30, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 17 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 11 % Green Thumb Industries, Inc. ("Green Thumb") 3 ​ 8 % Curaleaf Holdings, Inc. ("Curaleaf") 8 ​ 7 % Trulieve Cannabis Corp. ("Trulieve") ​ 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 17 % Ascend ​ 4 ​ 11 % Green Thumb 3 ​ 8 % Holistic Industries Inc. 5 ​ 8 % Curaleaf ​ 8 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ ​ September 30, 2023 ​ ​ ​ Percentage of ​ Number of Rental ​ Leases Revenue PharmaCann ​ 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb ​ 3 ​ 8 % Curaleaf ​ 8 ​ 7 % Trulieve ​ 6 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2023 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb 3 ​ 8 % Curaleaf ​ 8 ​ 7 % SH Parent, Inc. ("Parallel") (1) 4 ​ 7 % ​ (1) We regained possession of two properties previously leased to Parallel in Texas and Pennsylvania in 2023. In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty.

Dividends (Tables)

Dividends (Tables)	9 Months Ended
	Sep. 30, 2024
Dividends
Schedule of dividends declared	The following table describes the dividends declared by the Company during the nine months ended September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 15, 2024 ​ Common stock ​ $ 1.82 ​ January 1, 2024 to March 31, 2024 ​ April 15, 2024 ​ $ 51,957 March 15, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2024 to April 14, 2024 ​ April 15, 2024 ​ $ 338 June 14, 2024 ​ Common stock ​ $ 1.90 ​ April 1, 2024 to June 30, 2024 ​ July 15, 2024 ​ $ 54,253 June 14, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2024 to July 14, 2024 ​ July 15, 2024 ​ $ 338 September 13, 2024 ​ Common stock ​ $ 1.90 ​ July 1, 2024 to September 30, 2024 ​ October 15, 2024 ​ $ 54,253 September 13, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2024 to October 14, 2024 ​ October 15, 2024 ​ $ 564 ​

Investments in Real Estate (Tab

Investments in Real Estate (Tables)	9 Months Ended
	Sep. 30, 2024
Schedule of real estate properties	The Company made the following acquisition during the nine months ended September 30, 2024 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total ​ Ocala Florida ​ ​ June 7, 2024 ​ 145,000 ​ $ 13,000 ​ $ 26 ​ $ 13,026 (2) Total ​ ​ ​ ​ ​ ​ 145,000 ​ $ 13,000 ​ $ 26 ​ $ 13,026 (3) (1) Includes expected rentable square feet at completion of construction at the property. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $30.0 million. (3) $2.1 million was allocated to land and $10.9 million was allocated to building and improvements.
Schedule of future contractual minimum rent	Future contractual minimum rent (including base rent and property management fees) to be received on our leases as of September 30, 2024 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2024 (three months ending December 31) ​ $ 74,500 2025 ​ 310,800 2026 ​ 322,415 2027 ​ 330,720 2028 ​ 338,062 Thereafter ​ 3,978,962 Total ​ $ 5,355,459
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 September 30, 2024 and December 31, 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 In-place lease intangible assets ​ $ 9,979 ​ $ 9,979 Accumulated amortization (2,379) ​ (1,734) In-place lease intangible assets, net ​ $ 7,600 ​ $ 8,245
Schedule of estimated annual amortization	​ ​ ​ ​ ​ Year Amount 2024 (three months ending December 31) ​ $ 215 2025 ​ 860 2026 ​ 860 2027 ​ 860 2028 ​ ​ 860 Thereafter ​ 3,945 Total ​ $ 7,600
Above-Market Lease
Schedule of intangible assets and related accumulated amortization	The above-market lease and related accumulated amortization included in other assets, net on our condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 Above-market lease ​ $ 1,054 ​ $ 1,054 Accumulated amortization (256) ​ (187) Above-market lease, net ​ $ 798 ​ $ 867

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Summary of principal payments on outstanding indebtedness	The following table summarizes the principal payments on our outstanding indebtedness as of September 30, 2024 (in thousands): ​ ​ ​ ​ Payments Due ​ ​ by Year Amount 2024 (three months ending December 31) ​ $ — 2025 ​ ​ — 2026 ​ ​ 300,000 2027 ​ ​ — 2028 ​ ​ — Thereafter ​ ​ — Total ​ $ 300,000 ​
Exchangeable Senior Notes
Schedule of interest expense	The following table details our interest expense related to the Exchangeable Senior Notes which matured in February 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended September 30, ​ For the Nine Months Ended September 30, ​ 2024 2023 2024 2023 Cash coupon $ — $ 41 $ 24 $ 140 Amortization of issuance cost ​ — ​ 9 ​ 5 ​ 29 Capitalized interest ​ ​ — ​ ​ (2) ​ ​ (1) ​ ​ (2) Total interest expense $ — $ 48 $ 28 $ 167
Schedule of carrying value	The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 Principal amount $ — $ 4,436 Unamortized issuance cost — ​ (5) Carrying value $ — $ 4,431
Notes due 2026
Schedule of interest expense	The following table details our interest expense related to the Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended September 30, ​ For the Nine Months Ended September 30, ​ 2024 ​ 2023 2024 ​ 2023 Cash coupon ​ $ 4,125 ​ $ 4,125 ​ $ 12,375 ​ $ 12,375 Amortization of issuance cost ​ 357 ​ ​ 335 ​ ​ 1,054 ​ ​ 992 Capitalized interest ​ (127) ​ ​ (178) ​ ​ (516) ​ ​ (212) Total interest expense ​ $ 4,355 ​ $ 4,282 ​ $ 12,913 ​ $ 13,155
Schedule of carrying value	The following table details the carrying value of our Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 December 31, 2023 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost (2,497) ​ (3,551) Carrying value $ 297,503 $ 296,449

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Net Income Per Share
Schedule of computations of net income per basic and diluted share	Computations of net income per basic and diluted share (in thousands, except share and per share data) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2024 2023 2024 2023 Net income ​ $ 40,215 ​ $ 41,594 ​ $ 121,636 ​ $ 123,955 Preferred stock dividends ​ (564) ​ (338) ​ ​ (1,240) ​ ​ (1,014) Distribution to participating securities ​ (570) ​ (372) ​ ​ (1,684) ​ ​ (1,106) Net income attributable to common stockholders used to compute net income per share – basic ​ ​ 39,081 ​ ​ 40,884 ​ ​ 118,712 ​ ​ 121,835 Dilutive effect of Exchangeable Senior Notes ​ ​ — ​ ​ 50 ​ ​ 28 ​ ​ 169 Net income attributable to common stockholders used to compute net income per share – diluted ​ $ 39,081 ​ $ 40,934 ​ $ 118,740 ​ $ 122,004 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 28,254,565 ​ 27,983,004 ​ ​ 28,216,946 ​ ​ 27,971,544 Restricted stock and RSUs ​ ​ 299,770 ​ ​ 206,919 ​ ​ 293,105 ​ ​ 193,503 PSUs ​ ​ 25,352 ​ ​ — ​ ​ 25,352 ​ ​ — Dilutive effect of Exchangeable Senior Notes ​ ​ — ​ ​ 75,682 ​ ​ 12,647 ​ ​ 83,007 Diluted ​ 28,579,687 ​ 28,265,605 ​ ​ 28,548,050 ​ ​ 28,248,054 Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.38 ​ $ 1.46 ​ $ 4.21 ​ $ 4.36 Diluted ​ $ 1.37 ​ $ 1.45 ​ $ 4.16 ​ $ 4.32 ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value of Financial Instruments
Schedule of carrying value and approximate fair value of financial instruments	The following table presents the carrying value and approximate fair value of financial instruments at September 30, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2024 ​ At December 31, 2023 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 25,315 ​ $ 25,318 ​ $ 21,948 ​ $ 21,951 Investments as cash equivalents (2) ​ $ 55,104 ​ $ 54,996 ​ $ 15,187 ​ $ 15,029 Exchangeable Senior Notes (3) ​ $ — ​ $ — ​ $ 4,431 ​ $ 7,576 Notes due 2026 (3) ​ $ 297,503 ​ $ 292,389 ​ $ 296,449 ​ $ 278,325 Construction Loan (4) ​ $ 22,000 ​ $ 27,844 ​ $ 22,000 ​ $ 27,543 Notes receivable (5) ​ $ 16,796 ​ $ 16,796 ​ $ 20,028 ​ $ 20,028 (1) At September 30, 2024, investments consisting of short-term certificates of deposit with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity and stated at cost, which approximates fair value, and investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at amortized cost and valued using Level 1 inputs. At December 31, 2023, investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at amortized cost and valued using Level 1 inputs. (2) Investments as cash equivalents consisting of obligations of the U.S. government with an original maturity at the time of purchase of 90 days or less are classified as held-to-maturity, stated at amortized cost 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 not traded in an active market. The Exchangeable Senior Notes matured in February 2024. (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 each of September 30, 2024 and December 31, 2023, the expected market yield used to determine fair value was 16.25% . 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. (5) Notes receivable relate to certain acquisitions of real estate which did not satisfy the requirements for sale-leaseback accounting (see Note 2 “Acquisition of Real Estate Properties” to our condensed consolidated financial statements for more information). The notes receivable are categorized as Level 3 and were also valued using a yield analysis. At September 30, 2024 and December 31, 2023, the weighted average expected market yields used to determine fair values were 19.7% and 17.2% , respectively.

Common Stock Incentive Plan (Ta

Common Stock Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2024
Restricted Shares
Common Stock Incentive Plan
Summary of the activity	A summary of the restricted stock activity under the 2016 Plan and related information for the nine months ended September 30, 2024 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock ​ Value Balance at December 31, 2023 56,711 ​ $ 135.46 Granted 43,566 ​ $ 91.81 Vested (13,698) ​ $ 126.83 Forfeited (1) (7,442) ​ $ 205.15 Balance at March 31, 2024 79,137 ​ $ 106.37 Granted ​ 3,186 ​ $ 113.05 Vested ​ (5,055) ​ $ 71.23 Balance at June 30, 2024 and September 30, 2024 ​ 77,268 ​ $ 108.95 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting.
RSUs
Common Stock Incentive Plan
Summary of the activity	The following table summarizes our RSU activity for the nine months ended September 30, 2024. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Restricted ​ Grant Date Fair ​ ​ Stock Units ​ Value Balance at December 31, 2023 ​ 149,956 ​ $ 125.34 Granted ​ 69,714 ​ $ 91.81 Balance at March 31, 2024 ​ 219,670 ​ $ 114.70 Granted ​ 2,832 ​ $ 113.05 Balance at June 30, 2024 and September 30, 2024 ​ 222,502 ​ $ 114.68 ​

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies
Schedule of future contractual lease payments	Office Lease ​ ​ ​ ​ ​ Year Amount 2024 (three months ending December 31) ​ $ 128 2025 ​ 526 2026 ​ 543 2027 ​ 45 2028 ​ — Total future contractual lease payments ​ 1,242 Effect of discounting ​ (83) Office lease liability ​ $ 1,159

Organization (Details)

Organization (Details)	Sep. 30, 2024
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)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2024 lease	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2021	Dec. 31, 2019
Number of reportable segment | segment				1
Reclassification from other assets to real estate held for investment		$ 3,200,000		$ 3,152,000
Depreciation expense		17,700,000	$ 16,500,000	51,900,000	$ 49,500,000
Impairment losses		0	0	0	0
Rental revenue		1,400,000	2,200,000	2,000,000	8,000,000
Construction loan funded		22,000,000		22,000,000		$ 22,000,000
Construction loan, total commitment amount		23,000,000		$ 23,000,000		23,000,000
Lease, Practical Expedients, Package				true
Incremental borrowing rate							5.50%	7.25%
Amounts paid and classified as operating activities for the office lease				$ 400,000	400,000
Number of lease modifications | lease	2
Underlying assets accumulated depreciation		3,300,000		3,300,000
Other assets, net
Acquisitions of real estate did not satisfy the requirements for sale-leaseback accounting		16,800,000		16,800,000		$ 20,000,000
Other liabilities
Received lease payments		4,400,000		4,400,000
Cannabis cultivation and processing facility, California
Maximum construction loan agreed to lend		23,000,000		23,000,000
General and administrative expense
Office lease expense		$ 100,000	$ 100,000	$ 400,000	$ 400,000
Building and Improvements
Estimated useful lives (in years)		40 years		40 years
Underlying assets gross carrying value		$ 28,900,000		$ 28,900,000
Office equipment and furniture and fixtures | Minimum
Estimated useful lives (in years)		3 years		3 years
Office equipment and furniture and fixtures | Maximum
Estimated useful lives (in years)		7 years		7 years
Land
Underlying assets gross carrying value		$ 4,100,000		$ 4,100,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements - Concentration of Credit Risk (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($) lease tenant property	Sep. 30, 2023 tenant lease	Sep. 30, 2024 USD ($) tenant lease state property	Sep. 30, 2023 tenant lease	Dec. 31, 2023 property
Concentration Risk
Number of properties | property	108		108
Number of states in which properties are owned | state			19
Number of tenants | tenant	30		30
Number of properties for which possession regained | property					2
Maximum
Concentration Risk
Cash FDIC insured limits | $	$ 250,000		$ 250,000
Non cannabis tenants
Concentration Risk
Number of tenants excluded from lease | tenant			3
Number of properties excluded from lease | property			2
Rental revenues (including tenant reimbursements) | Customer concentration
Concentration Risk
Number of tenants | tenant	5	5	5	5
Rental revenues (including tenant reimbursements) | Customer concentration | PharmaCann
Concentration Risk
Number of Leases	11	11	11	11
Percentage of concentration risk	17%	15%	17%	15%
Rental revenues (including tenant reimbursements) | Customer concentration | Ascend Wellness Holdings, Inc.
Concentration Risk
Number of Leases	4	4	4	4
Percentage of concentration risk	11%	10%	11%	10%
Rental revenues (including tenant reimbursements) | Customer concentration | Holistic Industries Inc.
Concentration Risk
Number of Leases			5
Percentage of concentration risk			8%
Rental revenues (including tenant reimbursements) | Customer concentration | Green Thumb Industries, Inc.
Concentration Risk
Number of Leases	3	3	3	3
Percentage of concentration risk	8%	8%	8%	8%
Rental revenues (including tenant reimbursements) | Customer concentration | Curaleaf Holdings, Inc.
Concentration Risk
Number of Leases	8	8	8	8
Percentage of concentration risk	7%	7%	7%	7%
Rental revenues (including tenant reimbursements) | Customer concentration | SH Parent, Inc. ("Parallel")
Concentration Risk
Number of Leases				4
Percentage of concentration risk				7%
Rental revenues (including tenant reimbursements) | Customer concentration | Trulieve Cannabis Corp.
Concentration Risk
Number of Leases	6	6
Percentage of concentration risk	7%	7%
Net real estate held for investment | Geographic Concentration Risk
Concentration Risk
Concentration risk			5%		5%
Net real estate held for investment | Geographic Concentration Risk | New York
Concentration Risk
Percentage of concentration risk			5.50%
Concentration risk					5.40%

Common Stock (Details)

Common Stock (Details) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended		12 Months Ended
	May 31, 2024 item $ / shares shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) shares	Dec. 31, 2023 $ / 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 issued		28,331,833		28,140,891
Common stock, shares outstanding		28,331,833		28,140,891
Preferred stock, Par Value (in dollars per share) | $ / shares		$ 0.001		$ 0.001
Net proceeds from issuance | $		$ 11,757
Number of shares issued upon conversion		28,408	32,200
Exchangeable Senior Notes, rate		3.75%
Outstanding principal amount | $		$ 4,300	$ 2,000
Prior ATM Program
Net proceeds from issuance | $		$ 11,800
Number of shares issued		123,224	0
At The Market Offerings
Number of sales agents | item	4
Series A Preferred Stock
Preferred Stock, Dividend Rate, Percentage		9%		9%
Series A Preferred Stock | Prior ATM Program
Number of shares issued		402,673
Series A Preferred Stock | At The Market Offerings
Preferred Stock, Dividend Rate, Percentage	9%
Preferred stock, Par Value (in dollars per share) | $ / shares	$ 0.001
Maximum number of common stock issuable	500,000,000

Preferred Stock (Details)

Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Preferred Stock, Shares Authorized	50,000,000		50,000,000
Preferred stock, Par Value (in dollars per share)	$ 0.001		$ 0.001
Issuance of Series A Preferred Stock, net of offering costs	$ 9,623
Prior ATM Program
Net proceeds from sale of common stock (in shares)	123,224	0
Series A Preferred Stock
Preferred Stock, Shares Issued	1,002,673		600,000
Preferred Stock, Shares Outstanding	1,002,673		600,000
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.
Series A Preferred Stock | Prior ATM Program
Net proceeds from sale of common stock (in shares)	402,673
Issuance of Series A Preferred Stock, net of offering costs	$ 9,600

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Dividend amount - Series A preferred stock	$ 564			$ 338	$ 1,240	$ 1,014
O 2024 Q1 Dividends
Dividends declared per common share			$ 1.82
Dividends declared per Series A preferred stock			$ 0.5625
Dividend amount - Common stock			$ 51,957
Dividend amount - Series A preferred stock			$ 338
O 2024 Q2 Dividends
Dividends declared per common share		$ 1.90
Dividends declared per Series A preferred stock		$ 0.5625
Dividend amount - Common stock		$ 54,253
Dividend amount - Series A preferred stock		$ 338
O 2024 Q3 Dividends
Dividends declared per common share	$ 1.90
Dividends declared per Series A preferred stock	$ 0.5625
Dividend amount - Common stock	$ 54,253
Dividend amount - Series A preferred stock	$ 564
Common Stock | O 2024 Q1 Dividends
Declaration Date			Mar. 15, 2024
Dividend Paid Date			Apr. 15, 2024
Common Stock | O 2024 Q2 Dividends
Declaration Date		Jun. 14, 2024
Dividend Paid Date		Jul. 15, 2024
Common Stock | O 2024 Q3 Dividends
Declaration Date	Sep. 13, 2024
Dividend Paid Date	Oct. 15, 2024
Series A Preferred Stock | O 2024 Q1 Dividends
Declaration Date			Mar. 15, 2024
Dividend Paid Date			Apr. 15, 2024
Series A Preferred Stock | O 2024 Q2 Dividends
Declaration Date		Jun. 14, 2024
Dividend Paid Date		Jul. 15, 2024
Series A Preferred Stock | O 2024 Q3 Dividends
Declaration Date	Sep. 13, 2024
Dividend Paid Date	Oct. 15, 2024

Investments in Real Estate (Det

Investments in Real Estate (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) ft²	Jun. 30, 2004 USD ($)
Rentable Square Feet | ft²	145,000
Purchase Price	$ 13,000
Transaction Costs	26
Total	$ 13,026
Land
Total		$ 2,100
Building and Improvements
Total		$ 10,900
Ocala
Rentable Square Feet | ft²	145,000
Purchase Price	$ 13,000
Transaction Costs	26
Total	13,026
Ocala | Maximum
Agreed funding for redevelopment of building	$ 30,000

Investments in Real Estate - In

Investments in Real Estate - Intangible assets and related accumulated amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investments in Real Estate
Total	$ 7,600	$ 8,245
Acquired In-Place Lease Intangible Assets
Investments in Real Estate
Gross	9,979	9,979
Accumulated amortization	(2,379)	(1,734)
Total	7,600	8,245
Above-Market Lease
Investments in Real Estate
Gross	1,054	1,054
Accumulated amortization	(256)	(187)
Total	$ 798	$ 867

Investments in Real Estate - Es

Investments in Real Estate - Estimated annual amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity
Total	$ 7,600	$ 8,245
Acquired In-Place Lease Intangible Assets
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity
2024 (three months ending December 31)	215
2025	860
2026	860
2027	860
2028	860
Thereafter	3,945
Total	$ 7,600	$ 8,245

Investments in Real Estate - Ad

Investments in Real Estate - Additional Information (Details)	1 Months Ended				3 Months Ended		9 Months Ended
	May 31, 2024 USD ($)	Apr. 30, 2024 USD ($) property	Feb. 29, 2024 USD ($) property	Mar. 31, 2023 USD ($) property item	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jan. 31, 2024 property
Real estate property cost					$ 45,000,000		$ 45,000,000
Tenant improvements and construction activities funded					45,600,000		45,600,000
Disposition-contingent lease termination fee							3,900,000
loss on sale of real estate							3,400,000
Accrued interest					2,400,000		2,400,000
4Front Ventures Corp.
Number of leased properties | property									4
Michigan Properties
Number of leased properties | property									1
Illinois properties | 4Front Ventures Corp.
Number of leased properties | property		1
Increase amount of tenant improvement allowance		$ 1,600,000
Property in Los Angeles, California
Contracted sale price of properties disposed	$ 9,100,000
Lease termination fee	$ 3,900,000
Acquired In-Place Lease Intangible Assets
Amortization expense					200,000	$ 200,000	$ 600,000	$ 600,000
Weighted-average amortization period (in years)							9 years
Above-Market Lease
Amortization expense					$ 23,000	$ 23,000	$ 69,000	$ 69,000
Amortization period (in years)					8 years 8 months 12 days		8 years 8 months 12 days
PharmaCann | New York Properties
Number of leased properties | property			1
Medical Investor Holdings LLC | California Property
Number of properties sold | property				4
Contracted sale price of properties disposed				$ 16,200,000
Real estate loans receivable				$ 16,100,000
Number of options to extend | item				2
Extension term				12 months
Minimum principal balance payment				$ 500,000
Accumulated depreciation					$ 1,900,000		$ 1,900,000
Medical Investor Holdings LLC | Land | California Property
Gross carrying value					3,400,000		3,400,000
Medical Investor Holdings LLC | Building and Improvements | California Property
Gross carrying value					$ 13,900,000		$ 13,900,000
PharmaCann At New York
Increase in construction funding			$ 16,000,000
Battle Green Holdings LLC | Ohio properties
Number of leased properties | property		1
Increase amount of tenant improvement allowance		$ 4,500,000

Investments in Real Estate - Fu

Investments in Real Estate - Future Contractual Minimum Rent (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Contractual Minimum Rent
2024 (three months ending December 31)	$ 74,500
2025	310,800
2026	322,415
2027	330,720
2028	338,062
Thereafter	3,978,962
Total	$ 5,355,459

Debt - Exchangeable Senior Note

Debt - Exchangeable Senior Notes - Additional Information (Details) - USD ($)	1 Months Ended	9 Months Ended
	Feb. 29, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Number of shares issued upon conversion		28,408	32,200
Outstanding principal amount		$ 4,300,000	$ 2,000,000
Principal amount		300,000,000
Gain on exchange of debt			22,000
Principal amount paid		4,436,000
Additional Paid-In-Capital
Stock Issued During Period, Value, Conversion of Convertible Securities			$ 2,000,000
Exchangeable Senior Notes
Number of shares issued upon conversion			32,200
Outstanding principal amount			$ 2,000,000
Principal amount				$ 4,436,000
Principal amount paid off at maturity		$ 4,300,000
Principal amount paid	$ 100,000
Exchangeable Senior Notes | Accounts payable and accrued expenses
Accrued interest payable				$ 49,000
Exchangeable Senior Notes | Common Stock
Conversion of Stock, Shares Issued		28,408
Principal amount paid		$ 4,300,000

Debt - Exchangeable Senior No_2

Debt - Exchangeable Senior Notes - Interest expense (Details) - Exchangeable Senior Notes - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash coupon	$ 41	$ 24	$ 140
Amortization of issuance cost	9	5	29
Capitalized interest	(2)	(1)	(2)
Total interest expense	$ 48	$ 28	$ 167

Debt - Exchangeable Senior No_3

Debt - Exchangeable Senior Notes - Carrying value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Principal amount	$ 300,000
Exchangeable Senior Notes
Principal amount		$ 4,436
Unamortized issuance cost		(5)
Carrying value		$ 4,431

Debt - Notes due 2026 (Details)

Debt - Notes due 2026 (Details) - USD ($) $ in Thousands		9 Months Ended
	May 25, 2021	Sep. 30, 2024	Dec. 31, 2023
Principal amount		$ 300,000
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
Percentage of principal amount redeemed		100%
Notes due 2026 | Redeemed On Or After February 25, 2026
Percentage of principal amount redeemed		100%
Notes due 2026 | Accounts payable and accrued expenses
Accrued interest payable		$ 6,200	$ 2,100

Debt - Notes due 2026 - Interes

Debt - Notes due 2026 - Interest expense (Details) - Notes due 2026 - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash coupon	$ 4,125	$ 4,125	$ 12,375	$ 12,375
Amortization of issuance cost	357	335	1,054	992
Capitalized interest	(127)	(178)	(516)	(212)
Total interest expense	$ 4,355	$ 4,282	$ 12,913	$ 13,155

Debt - Notes due 2026 - Carryin

Debt - Notes due 2026 - Carrying value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	May 25, 2021
Principal amount	$ 300,000
Notes due 2026
Principal amount	300,000	$ 300,000	$ 300,000
Unamortized issuance cost	(2,497)	(3,551)
Carrying value	$ 297,503	$ 296,449

Debt - Revolving Credit Facilit

Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Oct. 31, 2023
Aggregate commitments			$ 50,000,000
Loan amount outstanding	$ 0	$ 0
Issuance costs	800,000	800,000
Non-cash interest expense	$ 72,000	$ 200,000

Debt - Principal Payments (Deta

Debt - Principal Payments (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Debt
2026	$ 300,000
Total	$ 300,000

Net Income Per Share - Addition

Net Income Per Share - Additional information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Dilutive effect of Exchangeable Senior Notes		75,682	12,647	83,007
PSUs
Dilutive effect of share-based payment arrangements	25,352		25,352

Net Income Per Share - Computat

Net Income Per Share - Computations of net income per basic and diluted share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 40,215	$ 41,594	$ 121,636	$ 123,955
Preferred stock dividends	(564)	(338)	(1,240)	(1,014)
Distribution to participating securities	(570)	(372)	(1,684)	(1,106)
Net income attributable to common stockholders used to compute net income per share - basic	39,081	40,884	118,712	121,835
Dilutive effect of Exchangeable Senior Notes		50	28	169
Net income attributable to common stockholders used to compute net income per share - diluted	$ 39,081	$ 40,934	$ 118,740	$ 122,004
Weighted-average common shares outstanding:
Basic	28,254,565	27,983,004	28,216,946	27,971,544
Dilutive effect of Exchangeable Senior Notes		75,682	12,647	83,007
Diluted	28,579,687	28,265,605	28,548,050	28,248,054
Net income attributable to common stockholders per share:
Basic (in dollars per share)	$ 1.38	$ 1.46	$ 4.21	$ 4.36
Diluted (in dollars per share)	$ 1.37	$ 1.45	$ 4.16	$ 4.32
Restricted stock and RSUs
Weighted-average common shares outstanding:
Dilutive effect of share-based payment arrangements	299,770	206,919	293,105	193,503
PSUs
Weighted-average common shares outstanding:
Dilutive effect of share-based payment arrangements	25,352		25,352

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Investments, Carrying Value	$ 25,315	$ 21,948
Investments as cash equivalents, Carrying Value	55,104	15,187
Exchangeable Senior Notes, Carrying Value		4,431
Notes due 2026, Carrying Value	297,503	296,449
Construction Loan receivable	22,000	22,000
Notes receivable, Carry Value	16,796	20,028
Investments, Fair Value	25,318	21,951
Investments as cash equivalents, Fair Value	54,996	15,029
Exchangeable Senior Notes, Fair Value		7,576
Notes due 2026, Fair Value	292,389	278,325
Construction Loan, Fair Value	27,844	27,543
Notes receivable, Fair Value	$ 16,796	$ 20,028
Expected market yield
Loan Receivable, Measurement Input	0.1625	0.1625
Weighted average expected market yield
Notes Receivable, Measurement Input	0.197	0.172

Common Stock Incentive Plan - A

Common Stock Incentive Plan - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended				9 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restricted Stock
Unrecognized compensation cost			$ 5.2				$ 5.2
Amortization period							1 year 9 months 18 days
Fair value of restricted stock							$ 2.6
Granted			0	3,186	43,566
RSUs
Unrecognized compensation cost			$ 8				$ 8
Amortization period							1 year 9 months 18 days
Granted			0	2,832	69,714
PSUs
Amortization period							3 months 18 days
Granted	102,641	70,795
Stock-based compensation expense			$ 1.7			$ 2.7	$ 5	$ 8
Remaining unrecognized compensation			$ 1.7				$ 1.7
2016 Plan
Expiration term							10 years
2016 Plan | Maximum
Number of shares authorized			1,000,000				1,000,000

Common Stock Incentive Plan -_2

Common Stock Incentive Plan - Activity (Details) - $ / shares	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Restricted Stock
Common Stock Incentive Plan
Shares, Beginning Balance	77,268	79,137	56,711
Granted	0	3,186	43,566
Vested		(5,055)	(13,698)
Forfeited			(7,442)
Shares, Ending Balance	77,268	77,268	79,137
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 108.95	$ 106.37	$ 135.46
Weighted-Average Grant Date Fair Value, Granted		113.05	91.81
Weighted-Average Grant Date Fair Value, Vested		71.23	126.83
Weighted-Average Grant Date Fair Value, Forfeited			205.15
Weighted-Average Grant Date Fair Value, Ending Balance	$ 108.95	$ 108.95	$ 106.37
Restricted Stock Units
Common Stock Incentive Plan
Shares, Beginning Balance	222,502	219,670	149,956
Granted	0	2,832	69,714
Shares, Ending Balance	222,502	222,502	219,670
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 114.68	$ 114.70	$ 125.34
Weighted-Average Grant Date Fair Value, Granted		113.05	91.81
Weighted-Average Grant Date Fair Value, Ending Balance	$ 114.68	$ 114.68	$ 114.70

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Commitments and Contingencies
2024 (three months ending December 31)	$ 128
2025	526
2026	543
2027	45
Total future contractual lease payments	1,242
Effect of discounting	(83)
Office lease liability	$ 1,159
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Sep. 30, 2024 USD ($)
Amended Class Action Lawsuit
Commitments and Contingencies
Amount accrued	$ 0
Derivative Action Lawsuit
Commitments and Contingencies
Amount accrued	0
Commitments related to improvement allowances
Commitments and Contingencies
Other Commitment	44,200,000
Commitments related to construction commitments
Commitments and Contingencies
Other Commitment	1,100,000
Commitments related to construction loan
Commitments and Contingencies
Other Commitment	$ 1,000,000

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	1 Months Ended
	Oct. 31, 2024 USD ($) ft²	Nov. 30, 2024 USD ($)	Oct. 31, 2023 USD ($)
Revolving Facility
Subsequent Events
Revolving credit facility maximum			$ 50
Subsequent Event | Industrial property, Maryland
Subsequent Events
Net rentable area of the property acquired | ft²	23,000
Payments for area of property acquired	$ 5.6
Subsequent Event | Revolving Facility
Subsequent Events
Revolving credit facility maximum	$ 50	$ 87.5