IIPR - Earnings call transcript Q3 2019 | Innovative Industrial Properties, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Innovative Industrial Properties, Inc.

Third Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Mr. Counsel. General Wolfe, Brian Mr. is floor yours, the sir. Wolf,

Brian Wolfe

Regin, for Gold, Executive you Officer; Hastings, and joining and the Alan are Catherine Ben Officer; Financial today Presenting Chief of Chairman; Executive Investments. call. Chief Thank Director Paul President Smithers,

to begin, materially forward-looking Act statements deemed made everyone we to the Reform differ the within results XXXX, meaning conference Before and other and safe remind may Private harbor Litigation today's of call that variety a of of actual like I'd uncertainties due be statements during of the may Securities risks, factors.

reports as of For and a yesterday to detailed risks future of SEC. any discussion the company's refer or news the statements, company's The update revise the with some filed the information, periodically or intention as with any filed uncertainties business, you well new events I and disclaims whether X-K of the issued ongoing of or forward-looking SEC to obligation otherwise. result company a release the Form as on

hand our call many for mention time Alan, we to but that Alan? the remarks. can over I limited to call we after will as want answer have questions today, we as prepared the I Before

Alan Gold

financial our our third and welcome, the most for based XXXX everyone. and our Thank on acquisition you, Brian, the from and subsequent year-to-date on quarter the third perspective in plus provide to we chosen results recent Today, today August. the to share call industry to exciting have and quarter activity, quarter the updated business call host a

XXXX relationships. our property existing tenant X and our tremendous. tenant million representing has momentum expansion The existing XX amended leases of properties To follow-on improvements, in our business states partners into with Now transactions operations. of acquired of investments, recap tenants in briefly, we and year been with $XXX facilitate new to which continued year-to-date, included third our both their for over additional collectively

multistate the Investments overall of in addition in operators acquisitions more will discuss our top-performing, Director detail Regin, and the industry. including several portfolio, Ben our recent of

properties X.X states, to on totaling today, of cannabis square a we which own XX XXX% As feet, in leased operators. long-term basis high-quality, are XX licensed million

yield lease a of properties XX.X%, XX.X with current years. term is blended remaining average weighted these on Our

paid quarter stock representing of of and to confidence XXXX pipeline to In addition, we our dividend acquisitions. XXth, over per operating portfolio's stockholders third our a share and quarterly XXX% our a $X.XX dividend October increase a property on testament in performance

regarding rental AFFO, our acquisitions dividend supported over also which constituting in growth investments. detail net income and million plus of all some today. our not provide into end, the year-over-year financial take change, This call was continues results. to industry on and to The quarter industry completed and more by after our cannabis Catherine note, growth revenue, provide medical-use experience at we will does also XX tremendous regulatory will Paul and additional tremendous detail $XXX in XXX% account trends

as continue announced to most Vice with Counsel. as real experience Tracie of Senior President, of make of recently appointment Estate advising additions years as clients property week, a Real over with leadership in Hager XX decades variety team, management Management; our this and Spicher X complex the we Tracie earlier Finally, Kelly Asset institutional matters. Kelly brings on nearly of estate and to great

to IIP team. thrilled join them are We have the

by tenant the our and estate be nascent deliver optimistic this very value to capital solutions industry that providing stakeholders key ability about needs. our for of partners our to future meet real tailored and enduring to operational continue results We and

call to the Paul? over With that, I'd like to turn Paul.

Paul Smithers

Alan. Thanks,

environment, main an to as and topics: time two, we in short effective current dynamics to focusing have closely. we'll calls, we can try provide X the continue prior regulatory we industry today, the that and with developments as the with monitor on overview an one, of As the

legislative current and regulatory environment federal the regarding First, developments.

Schedule a which That to XXXX this all from been in which funds continued spending bill included passed this remains That the substance, cannabis with by implementation on enact the Congress part to stop carries to spending using year's was gap year XX. cannabis a earlier as has through said, course, with the Justice congressional that medical-use activity interfere of of XXst bills I year, United generally passed and again this controlled Of November has provision bill laws. the prohibits States. preventing cannabis-related cannabis commercial Department state of of September since courts use provision interpreted spending as in

Appropriations Senate year late also September. this in XXXX Committee spending for the provision fiscal bill approved again has Importantly, the

its we as well. But reported the included house would protections to proposed broader the XXX approve that XXX not did language in programs regulated voted similar to provision these legislation. the As June, a earlier Appropriations adult-use in for have cannabis include Committee Senate

is programs. provision programs to has result, the since cannabis not but for protection expected it adult-use the a states, as medical-use cannabis As similar XXXX, protecting include will continue additional

you're likely now vote legislation addition, and Act, the more Act, the Senate was Banking as and house XXX. aware, In with to late SAFE September be by to on amended. in passed sure Secure support in opposition is moves of known it am all the face also The to I as XXX resounding the a where Banking Fair to Enforcement

previously, provide servicing result these As in protection Banking providing state if would operators came the being may also greater banks and SAFE to capital more to law, we noted to banks federal operators. act compliant open licensed debt it

would attorneys September, legal leaders the cannabis pass the congressional late in which Act. to that sent from exempt urging general Federal Controlled activity Act, Substances States note state XX letter a state we Finally,

continues movement regarding of forward concerns the and legalization industry. see, can you key As addressing federal the

that I touch we're also other developments monitoring Vaping. want closely. industry to on

those and causes the lung commonality CDC. other all have aware, As you injury to the THC, cases. Wisconsin vaping been FDA CDC containing particularly the the than there use XX illicitly, with THC number identified reported Officials interviews are conducted reported The indicate patients identifying vaping cartridges large to with using that The noted also in-depth and containing lung the with that the cases linked a obtained CDC has the the further products injuries purchased Illinois in patients, vape prefilled of of no reported reporting doubt vast not of illicit unregulated products associated were findings vaping the products. most majority of that from sources.

this definitively to are regulated injuries the We where robust identify subject industry as be the and unsafe and possible source that of of away that these from generally able further push markets authorities products quality protection as are products to the requirements. hopeful cannabis and testing potentially, the the will illicit, public to soon for will safety laboratory

Consolidation.

operators of and which industry. operators ties team industry smaller, believe continue, activity, At ample with Ben footprints. of We space with continue do trend acquire as acquisition and the have to larger to in leases our themselves. a large the smaller with to the accelerate, new with operators thrive the in to continue strong operators we includes to businesses and footprint their complementary this brands for in businesses some continue between and to continue the been local leasing nation. operators discuss will consolidation will national communities if recent to multistate grow We strong time, with also mergers monitoring leading, the multistate independent multistate addition and licenses companies see same resources as Cannabis continued seek not to capital

the program adult-use to Capital rollout cannabis traded public impacted markets. publicly challenges sizes. a of Vaping on valuations concerns nationwide and of the both addition connection with of of companies capital the impacted markets operators Canada price negatively have and number has private in in stock fronts for many cannabis in for all also significantly

compared for between cannabis This threefold still and its will to XXXX time sales. from to is many very Marijuana raised increase closed continuing an for in over capital be Business operator emerge billion an long-term projects provider year, estimated from believers sales this amazing, to fewer but XX for years year's By we were in Daily, the cannabis to to tremendous XXXX. month, the total there annual reach equity more the $XXX XXX%. recent early more raises a in key billion prior in the annually, August industry totaled than we with but $XXX our XXXX, that in we amount capital the continue according of from said, the of regulated certainly future be long-term than an come. Marijuana note, United the $XX million the August of tenants X look $XX and potential time, will the increase stages, real States industry. estate million headwinds pullback growth see Daily firm Business market's headwinds to of there forward industry and Despite That and regulated be

will call I'll over you recent Ben? walk through who now our turn acquisitions. the Ben, to

Ben Regin

been October, their Xst, have demand Thanks, Paul. busiest to and in lease Since at executed acquisition The have activity. acquired properties four to months July by with build additional of X history continue as amendments through the in properties our tenants last XX terms existing company's X products. we states far meet X for months, in capacity July the they

our properties under to today, on across million overall in portfolio information of state each of including XXX,XXX the acquisitions or plan feet approximately tenant representing square also some by approximately redevelopment. feet, touch own XX XX and I we As about each states, our X.X development state. and provide square

property, We with acquisition tenant Starting and lease significantly entering months, Ascend In state to the a to corresponding the is for over the X improvements to amended last which an production additional to provide expected with September, Wellness the active year. we million capacity property. and our at $X very resulted our leased were Illinois. with base increase at late last rents originally Ascend adjustment in

operational vertically in two and and million each properties in and date. feet cannabis acquired in with acquisitions, licensed property over has we and pending Labs square vertically the integrated Including improvements that of licensed space X with operator our totaling to XX transactions in industrial investment the more the in the companies $XXX production and integrated into licenses a long-term its is Cresco founded at XXXX retail for multistate dispensaries. the In leases million cannabis Cresco acquisition has capital States properties in Labs, be of states. XX total XX $XX.X XX,XXX operations in entered with pending raised one largest October, tenant Illinois in facilities, Cresco Ascend aggregate. states expected to is cannabis United was X

a year Illinois planned into Grassroots including our investment at improvements we with total property Also property, XX,XXX this a expansion operators in states by leading earlier the in and the tenant in foot of to to square lease is one in a Curaleaf. acquired acquired cannabis and square a Grassroots foot the acquisition $XX.X be long-term XX multistate with October, million. operations industrial expected and definitive entered XX,XXX signed be about with agreement

Illinois our $XX in acquired at lease expected square long-term a into a to October, PharmaCann square the a in tenant investment be we Finally, XX,XXX total the expansion, property XX,XXX acquisition and improvements planned including industrial in and property, with entered foot with foot million.

in with know, our you sale-leaseback in As processing and for cultivation facilities acquisition XXXX PharmaCann transaction was New their York. a first

acquisition our Ohio transaction licensed lease facilities property Our fifth Massachusetts, processing for and with in their transactions them, cultivation marks with cannabis including PharmaCann in and Illinois Pennsylvania. and

expansion. real go they to their estate multistate proud are We be partner continue long-term to PharmaCann's as

$X requested Our million, Pennsylvania PharmaCann, be $XXX.X commitments to improvements total to is investment or fund million, additional construction in at future including the property. tenant PharmaCann including not which by may properties an leased

may Illinois, Grassroots today, our additional which future of million not own by funding tenant total $XX.X is requested in include investment, including for at X does be and the committed $XXX our which property. Litchfield over As properties million, we improvements

with expanding are program are medical of strong cannabis industry and of rapidly the and the multistate in the this year. the very future We Illinois new introduced medical for pleased relaxation through group next qualifying program and operators being certain of regulations with cannabis the regulated conditions excited of introduction cannabis adult-use

Oregon, of Established into acquisition $XX.X total and expected million. the million. LivWell with be foot approximately is our operations industrial Colorado XXX,XXX acquired our and property property in LivWell October, of total property, and in XXX long-term into Michigan redevelopment is industrial preeminent $XX.X Michigan. square operators Michigan, with one locations, improvements our Including and in investment the for entered In we to be in to XXX,XXX leased expected the addition million. redevelopment square future employing dispensary with to cannabis employees, Ascend, in to in our including Rico licensed acquired lease entered of total the Puerto XXXX, investment with Illinois Canada. and lease we to long-term with over Ascend, commitments In XX in properties a investment July, property fund with property tenant a acquisition the $XX Now foot

dispensary location. We entered our investment into Green October, in XXXX. for Peak investment $X Green the we leased Peak together Peak's in Michigan relocations, to leases commitments including million, and future each total certain future cultivation facility acquisition million, And of Green acquired completed mid for processing total improvements and reimbursement dispensary a $XX in relocations is these including Also in long-term of for X Innovations leases tenant development with to and with tenant properties improvements. fund in

in including for we Michigan, the committed X tenant is funding million. own improvements As our market, today, properties future of in and investment total $XXX.X

is that the is the will of starting occur next under largest one in sales country the program it expected year. cannabis adult-use and program cannabis first Michigan's medical-use quarter in regulated, Michigan's of

operator, Angeles DYME Now California close that, and its greater We into industrial million. lender to we with DYME Brands us full both into be for by good of to there has tenant. long-term acquired on lease and as foot offers is the to find another acquisition distribution DYME property publicly the note, believe paid and investment be for date, to been property entered $XX has a them. or been DionyMed our square rent disclosed well-located a redevelopment are its contact to and though and total value a in replacement in July, expected should California. need a we it placed owed with cannabis XX,XXX In to the access a We in senior very in with Los the area property receivership

In As in base aggregate for base to acquisition portfolio a square represents our reminder, of the distribution completed continued and facilities. of of X-property and September, space rent for long-term our industrial Southern factoring date. we total DYME's feet with rent the in million in a into cultivation, cannabis stabilized $XX.X purchase a acquisitions price, Vertical manufacturing California licensed as approximately comprising leases XX,XXX entered operation X.X% extraction,

properties in improvements including expected than XXXX XX% we committed cannabis regulated $XX California, billion a tenant whole. $X.X market, total sales Canada and for of in As today, XXXX in and to own California almost is to our the allowances in billion and million. is investment larger $X.X Arcview, as XX it According future generate in making

by illicit We a continued promote for are market years that the of hopeful to to continue will of the regulated to its driver adapt market, very California regulations to the would be transition which market come. significant from regulated itself growth the

$X to and plus facilities an In request. lease development move which additional long-term expected million, development, with now XX,XXX Pennsylvania $XX total and square to feet the for a acquisition be property may acquired expected PharmaCann to of million, completion that total are upon in entered of with to up investment industrial in We our the we PharmaCann Pennsylvania. into a and greenhouse property comprise X of a August,

we and our is has today, own million. committed XXXX over patients Pennsylvania total grown X very in of the tenant including year. just allowance in with for in commencing XXX,XXX market, period medical-use of last and time, Pennsylvania's As first short August of a investment sales improvements $XX.X program cannabis future tremendously as properties

rent multistate X,XXX the country to in of X employing for square Trulieve's $XX an and by the to purchase preeminent leading first with XXX,XXX the foot operator to adjustment one Trulieve, corresponding to the reduction at tenant commitment which of of into provide September, at we operators to base acquired option we long-term to improvements in the redevelopment properties is Holistic In entered Trulieve of lease property is within million for price term. up approximately X and a and with million a July, In people. our Massachusetts. property, us with at lease months funding. fund to million the initial come additional Massachusetts we Florida subject of amended lease Now industrial up with the $X upon $X.X our funding property an

property, on at a XXXX. in is Maryland a which acquired multistate the is property, XXX In and over just Holistic a $XX million addition Massachusetts in operator tenant Holistic closed financing October. equity we with to employees our

we PharmaCann additional September, properties an at in provide to lease X at $X of our amended for Also Massachusetts with improvements tenant property. our million the

requested As of the Trulieve including X properties funding in our we $XX.X be million, is that the own Holistic. in may and market not today, Massachusetts, total or investment by future

leased of in recently be its sales And on the our opened for United to feet and available space markets a properties property assuming Together medical-use Florida. and approximately the dispensary of XXth a square with lease our comprising with in the over $XX into state. largest million, of of XXX,XXX one million the represents Trulieve. all $XX.X investment funding the there, in captures of to mid-October. Florida In with full completed Florida long-term nearly cannabis to to cannabis October, Trulieve for of one XX% new additional the total and entered States, expected XXX,XXX property, of in medical-use Trulieve the we Florida in acquisition qualified is as million. a $XX state patients fastest-growing industrial us, Massachusetts Trulieve

on. Moving

Pharm Arizona. XX,XXX The processing long-term Arizona, of medical redevelopment reimbursement investment triple-net long-term we and facility total cultivation with of completion $X.X in our also total affiliate Goods, million, We expected Canada with in for of our a into be acquired into acquired lease for $X.X of entered Nevada. who and and lease In industrial including also development leases property In a a dispensary investment to an location Sunday entered a the first square the million. our property MJardin, we with and in property July, foot acquired acquisition a

we Health our a just lease Minnesota, It tenant important our provide in location operators, but lease resulted with is additional portion particular corporate-level tenant overall to very a which adjustment to $X.X guarantee, base which the tenant's national corresponding we to state, an securing is base, million specific a within operator the we when invest or at the for Finally, at multistate allows properties property, operations. rent. amended overall large not with focus on operations to the of the in that improvements Vireo which in us note underwrite

to Catherine, for capital now over XXXX. quarter about the I'll call financial activity third of the will Catherine? turn and results who raising our talk

Catherine Hastings

busy It the reflected our financial Ben. months Thanks, has ended months generated rent The driven quarter to results been a and X is We million which for XX, periods acquisition at XXXX, of new quarter, and additional in X were X certain respectively. escalations revenues and approximately at tenants million $XX.X the the by September in for that allowances of year-to-date. increases $XX.X rent certain third and rental base properties, primarily contractual in tenant improvement adjustments provided both properties. leasing and properties resulted

revenue this leases XX the of revenues and acquisitions course, leases revenue, partial numerous from executed the growth the Importantly, the executed we of from And no year. the end of during reflects quarters quarter. only after

few continue than of off revenues tripled cash this, Our account by rent impacted also QX a we rental of quarter that revenues year-over-year all to to from expected next on as months burn QX basis. our all deferrals leases or under leases XXXX. the in certain Notwithstanding are our for were of more the for abatements

notes XXXX, recorded was stock-based million. and adds which property September adds from related funds we net operations, noncash, income to from $X.X expense back $X.X of million, operations, exchangeable $X.X ended noncash compensation million. our months Adjusted to was income back net XX, expense three the For depreciation which interest senior funds

XXX% period. QX XXXX, funds the months For operations prior for September XX, adjusted ended from from X the grew

months For operations net from the $XX.X recorded $XX.X adjusted million, XXXX, of ended September of $XX.X income we and from X of operations XX, funds million, funds million.

XXX% months X the the XX, by adjusted from operations funds from prior XXXX, September period. ended For increased

This dividend we stockholders quarter a reflects common QX share common year's on completed of pipeline, XXth, XX% our to performance our from prior XXth. mentioned, a the third and stock growth our record $X.XX of paid October acquisition including over reflection a post-September XXXX of from the earlier. increase year as quarterly XXth our and XXX% Alan prior operational As increase September that confidence the acquisitions and of quarter. in Ben strong dividend per the as discussed The serves past

activity, purchase with to in of option we and XXXX, offering aftermarket in of established additional financing XXXX, program in follow-on of of completed million. sales proceeds X program $XX ATM respect to July underwriters' exercise September the net October our under common raised proceeds program a an million, or net with $XXX September shares. public equity stock, about the And raising In including agents we full offering and about

and continued I'll it are grateful investing of tenants. the from truly recent raises back the with equity with are our exclusively We turn stakeholders' for support, all on best that, our And proceeds we Alan? focused Alan. to

Alan Gold

fast-growing Thanks, we for We've expectations. come sustainable singularly to industry this excited a you. year-to-date want focused long-term for opportunities our support and that, continue thank are to for we your had outpacing acquisitions, our as stockholders With plan. in executing the our and Catherine. create are on business personally to continued aim I value about far tremendous to very

to like it questions. to up I'd open that, With

the please open questions. up for you Operator, could call

Operator

question Catherwood BTIG. of And have first we the [Operator from Instructions]. will Tom come

William Catherwood

more like then your XX been When recent next to wider a it dispersion what of of over with to XX% the recently, seems underwriting And X operators it Cresco, expectations Trulieve closer are yields some Have larger in average. yields, both of normal hurdle you to your changed months? investment rates? for your investment are and comes blended the there's and than investment around terms kind yields

Alan Gold

Tom. a was great that Yes, Sure. question,

even it's way last players down nascent on -- that our growers been The industry It's where our in roster, some those years. we increasing that's is the mid of XX% given growers for the those excited as you relatively to to number normal, those going and today, yields are last the just fact XXX have than are of on industry from we quality what's we purpose. or basis And yes, X say First, these be greater done the to tenant that's we're doing We the higher have our the anywhere a market how top and only acquisition guess, focused to all the purpose. most quality growers the the a yields, and added increased of fast we've an north our year acquisition are growing acquisition XX%, I dispersion increase in name time or in over roster. the to which seen industry now early -- saw most And But -- ranging transactions is the strong to several recent this very in year. we the of the and yields the to about. normal, on acquisition and seeing a acquisition hard how very yields projecting -- acquisition in and period. highest size points XX% yields of sale-leaseback XXX

William Catherwood

tend tend proper then that what kind even to how to on way your and of investment business? it rate pursue? pursue? I the a what's you you you of been hit do But think have it. then your a Is about typically it do volume way to that of much for And underwrite, to And appreciate think this right it. aggregate Got not sense the of be that when might opportunities, you comes that. to

Alan Gold

a Ben, are But And in I our business acquisitions down you is talked perhaps our mind with over actually our path. percentage go of would we existing from been, that we what And -- today? growers. if focus the pipeline, I see our our think, growers could tenant keeping with about -- recent repeat probably existing I can you acquisitions, have say, that as most XX% growers -- if the roster. on tenant guess,

Ben Regin

Yes. XX% depending anywhere to XX% time. I'd the at say from on going forward, pipeline the it's

Alan Gold

Right.

strong forward partner being We those to given fact greater we on on we we're -- underwritten So tend very be these a growers, for highly with tend capital already a growers. growers. focused we've to the these percentage and -- move see that

growers On we that of haven't of other know answer your capital have new that, have chosen question, and of more lot do that fit have the top transactions recently some do with to consistently our perhaps some we I receive just Although acquisition providers. proposed directly -- go inquiries the that some don't contact point large a to stay just And at our our then yields criteria move from business part in roster tenant We fit their get continue underwriting with aren't forward become they in as today. enough plan. -- the growers on to them they future. hopefully, of do to in

William Catherwood

Got It the I makes And a lot appreciate of then DionyMed. sense. it. color on

you take? on other watch are even though, your have of them, tenant? challenged would had tenants kind if beyond Moving what could you you that of you there take any Or a any a list? And kind steps of

Alan Gold

of all our watch tenants, are. we Well, we

William Catherwood

Very fair.

Alan Gold

single the tenant. Obviously, than this We that given play the looking industry, out that in other -- long-term in asset how given with the that is -- they indicated MSOs them. interest think tremendous We We have still other see to contact of tenant the DionyMed There on issues still believe think is are that do correctly. lot we're is and -- asset been we DionyMed underwritten that we've interest we nascent moving -- that -- direct public more because going going And receivership think industry. things by there any a -- moving in several think that watching and site, any closely parts now how with right are contacted value. process we that, a to going is isn't -- who we've it's has that through.

tied we closely with the -- given multi out value. when we operations. with linked obviously We MSOs are And the that then, have tremendous for the fact a they assets think lot proving or underwrite, of licenses themselves, it's absolutely to So that situation. look in DionyMed

revenue Two, So on draw facilities, we believe from. seen in is Three, have -- we sales estate valuable, the we are And will mean, business, need that aspect I use and the -- continuing security years. four, in cash rate balances that to the growth one, their grow. most exceeding themselves to is licenses deposits that there are grow itself. should percent the creating year-over-year ability the industry them. tied several have the And year-over-year we've generate real -- to we value their we down still XX-plus should that or to could up or in a industry of the situation, it, the support approaching growers is most -- and end or the their the mission-critical which last have think we sales tremendous of over

so And are cash tremendous business asset become the number into the that factors protect that help we and anticipate. flow the all growers and in the getting there or the of those are value people that believe we of longevity that -- interested a of interested of

William Catherwood

Got it. Massachusetts. last background color, had me. I one facility in Trulieve then Alan. for And appreciate the you Ben the mentioned

Or we it finalize you decide looking what year? is. Is plans, is pricing just end to have I and what kind Is Do event? they're it XXXX and any have that might they of to kind the timeline of for -- So their going reimbursement there? think this should sense of happen something January we of until budget kind January? a before on see your

Alan Gold

thanks, Tom. Yes,

they in XXXX. their continue and facility, the property. them needed them in think with their amount finalize to on and of the Trulieve with ultimately as remaining and budget the build-out for their that's working likely I we'll support for We're that's contact to plans close be

Operator

Next, have of John we Thalman. Massocca Ladenburg

John Massocca

John.

matching cash choice, though to given you is there facility have last bit going think still of the mean to where that has door with is something that about for at hand think know something funding to stuff their the that fact kind that the how of draw for rent philosophically, on take, dollars cash it kind hand. capital potential out tenants in today, have committed you much a where you have tenant that is question, you can anyway. of you do kind ATM at up you today, I match you can hasn't little the down a the of place following kind or more it Even like you of want to kind the the as draw? don't of out just So about that pay time maybe tenant that on have access of like on to that gone that. TI some the you've that the Or credit given

So money? later it of can the you something similar type Or you from to get it the fund is you where when decision actual is tenant? feel that that

Alan Gold

it, desire we we're But making to us aren't and capital to And it available -- and growers, at tenant sure available needs have that going a the not are provide demand when to clear. that for option a are our options these to of where -- and it -- it's it. think those through on basis commitment all I'm we Cat so that have based consider that's we so and There's just certainly, the to need them. a through. we for kind they to run commitment available -- Well, that If -- cash them on be make make commitment. to our

we where basis that a for balance So take -- for where don't commitments today. cash stand Cat, and sheet go seriously retain why our on you we through are those cash we those But commitments. extremely on --

Catherine Hastings

when available and various the We think when kind they're important. timeline and we that operators operators, the cash that's construction doing is out reserve. with plans are to do who of understand of the of we've one $XXX And development that monitor have raised mean those extremely balance do it manage that the is it requesting make cash held our in Alan said us why and I John, the also enables that we capital those and to there well. we think, have what to be them. that have committed available when that we're sure what that's date. players is I we going Yes, I that other And differentiators, between do us and unfunded as big out on of needs to doing actually paid and you the see timing large sheet that understand to and we of be so to draws million commitment

million with to $XXX capital about have of date proceeds, So date if ATM we've million raised $XXX with of $XXX and and look the funded at you to raised what about unfunded including that we've commitments million.

John Massocca

commitments, stuff include that's the the And at that the PharmaCann does Trulieve and unfunded one tenant's as such option of assets? the

Catherine Hastings

since turn No. a portion that have to they ability back. excluded of the We've that

John Massocca

leave of cash kind you that, that's say, where today. would that So if fully let's of versus you executed, all include

Catherine Hastings

ATM continue We're to about cash capacity to of today. at million $XX happy the have have we our pipeline as with additional that on We're grow to that to $XX million growing well. extremely

we common are also raises incredible to place well follow-on as and very be the to like debt it. have the because as convertible see continue options happy opportunity We able capital options to raise other to

to you July wanted the acquisitions we I months. within place have can pace that X be raised been common pace. we that that the think raise, capital did we of when the to said X And we we from ahead that able to of see

John Massocca

sense. gears that little then a makes And bit. Okay, switching

buy your completed in dispenser assets what is dispensary you more you transactions what QX did the QX 'XX, estate opportunity made retail real for attractive? Given acquisitions 'XX, to complete first and the

Alan Gold

Michigan indicated always and that revenues appropriate we market we interested their when with retail believe generate we Green let their look transactions Industries for made given underwriting and in mind alone retail-located continue Peak the their sense a with and with dispensaries, amount small needs -- strong opportunity a transaction. for aren't of complexity on capital the of Green -- type to dispensaries from transaction, -- Keeping one-off tremendous of at in the we supporting very in Peak go think was just of we any a exciting -- assets ability Michigan growers a us. appropriate. and we've The size would with for And work our supporting that to portfolio path the So retail-type to grower. down their that

John Massocca

possible color. these to this and existing helpful and subsequent lot to XQ like Very anything need kind of functioning, time just buildings? functioning of be of but And demand to existing to drove any quarter high, buildings Just their -- Is It then give is think or lease facilities? that additional it a it Or what of that to subsequent requirement there the keep specific like kind of just natural the is first some money as amendments kind -- CapEx efficient kind is they the XQ to feels just operations? of kind to helpful. continue properties? you funding not additional color sorry, was of would we so the maybe necessary for as to saw do expand their funding -- there

Alan Gold

Right.

factors they into way. sometimes more come them, especially there's positive they fully a facility, finalizing programs initial occurring. individual situation progressing build enter how these to like of capital and through the And are combination tenants of One, the out plans state transaction, would for the are projects. to quickly moving provided a where their with So in some we the the a still and development they transaction, as go when --

likely than was in are that leases -- tenant when growers And do keeping amended than not the more that and -- worked rent does mind funding so the original we more and -- the often, that and additional from from with original improvements. that, stop the we started extended most and likely, leases and add any with provide to additional capital, not amend our have

facilities. have what's have do on, participate adult-use the changed, we're as the for then but dollars program. when focus going focused in you there's when that improvement not additional demand And like from only growers that primarily program to So also ability these then have -- occurs, also And the at our has you the in medical happened cannabis -- fact the that. Illinois, that

Catherine Hastings

of support And the our get of many rolls the and buildings to as supports have a as program add-on capacity infrastructure new they're which kind will able grow that in well, building different portions within grow we But and when improvement. especially expansion to through out just was portion operators tenant market the amendment license that, that state, that add a add do running -- of when John, up within facilities the continues the to new indicating, as to a on, then of and Alan a building market. into

Operator

[Operator Instructions].

Paul Smithers

right. It there no are questions. that appears, All more operator,

dedicated a we'd operator. their I'd for So fantastic just our off. quarter. like love you, And thank all your certainly support. with that, And to you to With stakeholders for for work. we'll and all thank Thank thank that, hard team sign the

Operator

this the disconnect you also everyone, have now thank and day. again, sir, we time, Again, At call the Thank great is take your team management the a your may rest you, care, And for of time. and to concluded. you conference lines.

Innovative Industrial Properties (IIPR) 7 Nov 192019 Q3 Earnings call transcript