IIPR - Earnings call 3 2023 | 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 2023 Earnings Call. [Operator Instructions] Please note this event is being recorded.I would now like to turn the conference over to Brian Wolfe, General Counsel. Please go ahead.

Brian Wolfe

Thank you for joining the call. Regin, actual and Gold, variety David Paul Catherine most XXXX, with Securities harbor remind Smith, in Operating within and to of Alan results Chief of President Hastings, that may meaning and differ everyone factors.Please are we and a Act those the be Reform Officer; specifically from the recent Officer; differ Officer.Before the deemed company during of to due Litigation results Forms factors Executive Chief Ben call that today XX-K statements Executive like could by XX-Q, of other safe today's cause the Smithers, Chairman; forward-looking materially on the Private and the Chief begin, made Presenting I'd contained statements. SEC, Investment the conference to may uncertainties Chief the which Financial actual statements Officer; risks, reports risk documents identify refer to filed important forward-looking

are update and such as to non-GAAP otherwise.In will information, any certain on information, normalized new FFO, today's revise publicly events addition, future discuss or obligated result of whether call, a financial statements, adjusted we forward-looking FFO. as FFO We not or

call our information in can to X-K in comparable Alan. GAAP filed our to the You financial over this together as the with find now measure as Alan? yesterday earnings reconciliations with most the hand well directly release SEC.I'll issued

Alan Gold

Thank you, welcome, Brian, and everyone.

position the of operations.As impacted cannabis noted are to challenges financial reflect industry regulated our economy team's broader hard We have the a pleased work and macro the results the we believe respects. our as calls, I've to I that of with continued are in for continued experience our fundamentals number day-to-day pleased operator company's past and the report execution quarter, in our dedication which in

press to dividend quarter. collection $XX ratio XX% X% operations financial performance targeted from of XX share increase Rent gross prior continued revolving touch was and in high-quality cannabis acquisitions May noted have strongest XX% enhanced of AFFO.This returns the a recap industry, was which XXXX. real of And no one payout funds past professionals teams dividends to issued David over period. quarter portfolio debt, our and the with declared a terms additional credit portfolio investors the obtaining arguably of our rate and The of XX-month ratio IIP's and The until in XX% our maturities drive sheet, of of below no flexible generated debt adjusted the activity. experienced in yesterday, for per balance a of our months, for operating to estate variable at an midpoint quiet XX% modestly in further another for the million facility, position the and with liquidity We assets, total of meaningful release conservative his a most prepared by one QX total will investment of AFFO, dividend in of QX we've in we on the quarter, million. XX% to revenues remarks.To $XX as us earnings was $X.XX debt

the from pace adjustments to We regulatory are be last a CSA. to under one As Ben cannabis expected significant which of quarters, Schedule will rates the Human New we to following rescheduled of Department of raising year. began noted the significantly the additional and cost the commit that the complete to Health development perspective, development certainly closely and from properties, I recommendation our III funding stemming discuss.From of uncertainty of we a York Schedule DEA Fed Services ongoing we several slower did since activity for macroeconomic aggressively investment the given capital

of discuss Of are cannabis operators, benefits in detail.While taxes federal Paul including lifting the imposed will XXXE a we taken Kings from provide potential Peak thoughts Paul course, properties Garden, and certain continues properties. on discussed, have vast confiscatory Ben will and have tenant regulated majority to there perform, on Green Parallel, previously our we back significant this, base of our more the and and to those updates

As to here can.I to you the now discuss any dynamics. answer the are regulatory turn to always, we and call Paul questions to will we over have industry extent Paul?

Paul Smithers

Thanks, Alan.

the provide and to like Peak leased Parallel, I'd developments, leased market Garden. overall on previously or properties an discussing Green Before update Kings to

first As businesses maximizing we successfully properties focused course, industry. with here, value are, ups having repeating through can noted downs then, and each we of I worth that their of tenants inevitable our this on the of strong is the and foremost it manage and teams think and of

We March. processing Green in counsel situations, into Peak with in mid-March, placed are and we Summit discussions and and was under quarter, call have cultivation regained these the in agencies.As advisers for receivership redevelopment. engaged legal noted And we proceedings possession a local facility our in of other and possession, last commenced damages in regulatory building, applicable

our remaining actions against leases harvest the peak to to we October and assuming terms.As for noted buyer also facility possession filed the in remaining is assets prior Parallel May, Peak's for property no Green a buyer location locations and with just regained in possession week. November.The court The and calls, leased one and including $X on Peak, changes the at the rent the to leased and the more harvest at in stages less X sale Texas cultivation remaining which with Pennsylvania the our of Green receiver Green is in of of possession of X of we previously Peak, retail the Texas on for lease the our Pennsylvania this property properties addition, of paying million and early retail other property. March, processing We in possession our total damages regained which and earlier than approved Michigan is In property locations retail small part all locations. to expect the investment development, to retail regain end

We are actively all these for exploring options properties.

obligations on the September, and occupied properties in the we possession continues their in as Kings by regained noted of previously leased will be Michigan.Market those for Garden, on discuss marketing remaining the we as late X as to we them for As in properties X previously to properties Florida.And Ben disclosed, activity previously, current other Parallel our building we developments. Summit well

to to U.S. strong, sales some remain noted projecting of in $XX.X industry cannabis environment, experience to the have we regulated note industry growth circumstances. from for XXXX. set of this that representing As BDSA XX% I a a approximately cannabis would macroeconomic cannabis continues But during overall with the challenging of even now, time continues billion in growth the like XXXX,

uptick XX% under states adults could cannabis XXXX a wholesale reflective pressure factors, of to with approximately certain basic BDSA Additionally, to cannabis by level, estimates of products have including state in what programs new has regulated supply/demand state-specific adult-use conditions. dynamics, lack number for U.S. by access law at pricing been spot be coming that of online.Unit believe states the illicit wholesale variations, we national continued availability. enforcement certain enforcement though, macroeconomic an of pricing with have some since as local through of course, in QX matter, and sales meaningful mid-September.Capital general a in and we general seen on taxation nonlicensed dynamic state authorities, That cannabis and

the capital financial has our that Another impact the tightening on had from for industry. the prior is of conditions continuing calls availability theme cannabis

at now.Federal U.S. with both capital plus.With availability since cannabis operator Advisors fundamentally for that over capital acquisitions Capital their reporting capital of cost the have industries, year the the and levels environment be As significantly the right and other before of XXXX, continues funding lowest to Viridian changed raising mergers challenged were legislation. and year-to-date course operators activity past

advanced front, that developments. September, In few was Act by the noteworthy the a first On marking there banking late Senate the cannabis the through this time legislation were SAFER committee. Banking Committee, passed legislation federal

victory, supported Majority There of floor bring SAFER a by to state to Chuck with bowing to also Congress law. Schumer, "as Leader, Senate act While numerous sent quickly remain letter a getting symbolic leaders in in bipartisan the attorneys act was possible." the as general and a obstacles into congressional to and the coalition XX

which Order final any long XXXX.The a prior as on was great years process I recommendation in operator to reclassified significant Schedule on from the tax been immediately scope of XX it complex has likely DEA the be the will Executive treatment, an remains a drug in quarter take in that in Health tempered So the of Schedule with and starting introductions imposed we DEA reclassification of to require of the for a Biden's Act our III an and win and the course, pursuant such during Department classification improvement reclassification on development administrative industry That Controlled and significant a the this regulated other drug end are rules. proceedings, rule-making to and for how under expected a for will to review based enthusiasm approval many cannabis' cannabis process August, that the is XXXE extreme financials. this would SAFE ago.Of operators, we be unclear Human Act. have provide tax President recommended Services HHS FDA October which burden said, decisions Substances

Ben? our leasing in be Ben area months.I'd in activity over and now to quarter. turn the of coming will, the this course, to like We in closely monitoring discuss third call progress to portfolio

Ben Regin

Paul. Thanks,

earlier, by we properties.Regarding lease assets. took on completion are the continuing through and As possession focus late properties which regaining of we an properties property over Parallel, Garden, have of this Peak an just we to are after Kings lease for Green working executed pleased efforts are until respect a announce month we we LOI regained executed on from those for McLane our of re-leasing year, Summit earlier redevelopment previously this noted for occupied property project.With to Avenue X Kings assets control certain the to XXth lease Michigan, in to week, the negotiations of entire earlier and planning and back and final that X LOI we Garden the September, and those

that evaluating active X our self-storage properties. venture to represent capital.Regarding other property, mixed-use property, of executed LOI we given total of potential in than back San properties discussions an from with also Garden continue which noncannabis joint to which zoning certain invested the smaller Bernardino and that include impacted last a late X% are potential development including our component We Those changes may took those less a uses, a year, partner. uses pursuant regarding properties we alternative have X explore smaller Kings

in we process but explore Texas the back many Pennsylvania property to our can.For on we'll months, continue where to continue late Texas we previously we awarded of a trial mid-March and damages in noted, in operations properties in its site. take in at the to on it In down took October, for as expect we and report October.While quiet Pennsylvania, As possession was progress and active defaulted, we investments, the Parallel we wound late that leasing judgment terms Parallel options quarter. a and for relatively were been have new front,

we significant made the cost including accordingly. noted several overall adjustments in we our our cost the we and given and development providing across cannabis have evaluating of capital Goodness to to and potential activity investment extremely has capital late the uncertainties funding now, of decision industries, additional Alan rent October, regulated Growth with the facility York, quarters selective to the own in expanded our facing, processing and As a be macroeconomic strategic lease reduce adjusting for industry amended cultivation of noted, investment been patient continue to complete in opportunities.As and New

Growth over is that, the operations, disclosed York I'll facility.With New its the Goodness exploring sale it company to the As including last operations Catherine. quarter, Catherine? at turn this of

Catherine Hastings

Thanks, Ben.

our our For I on our property tenant development addition will statistics call, in and projects. and roster this rent collection describe portfolio updates to

states owned XX are XXX XX and X.X leased feet. to included As of operators, in comprising XXX XXX operating square XX, we properties, portfolio. million September across rentable Of properties these our properties

collected XX% than base tenants. more most with relationships of with than be representing of amount experienced no our our representing square and the per the The rent.We annualized operators Pennsylvania of the management and well of diversified and in XX% base operating total portfolio. multistate Our XX% portfolio our we remains largest of we one fees our defaulted our some operating related and and no tenant of operating properties. from continues company portfolio our XX% collect operators equates state with at rent have leased one quarter, public leased of comprised base industry annualized contractually more across below rent which to to foot, we committed replacement believe capital significantly previously to $XXX The invested tenant our cost.For did to XX% portfolio Parallel property X% third not disclosed approximately due primarily

agreed in and application portion we previously Our provisions for in deposits.As collection Holistic leases cross-default of operators quarter, of our amended terms X/X X, as in pro of security remainder collected rent November a for due has on security for apply began reduced paying XXXX, to XX-month commencing we our disclosed last rent approximately over payments properties XFront in XFront quarter these monthly lease deposits the California completion from September temporarily and rent with the a began of the leases tenant, contractual exchange paying to last XX, pay one application the with through the XXXX. has and to the base starting October which in lease for which through we the starting included to of paid January. all repayment period properties January million XX, continuing revenue term disclosed of in of Illinois we a been with XXXX, and the security security July, Massachusetts, September, Holistic deposit at amended these $X.X April fully for October.Finally, for applying of XX% in property rent since due and to payback in rata with of previously this improvement defaulted and contractually certain Michigan deposits relating the with through Temescal property collected with the draws for continued October.Similarly, Parallel in of base our did our disclosed, rent our and or construction, rent disclosed leases. properties quarter payments. rent for the extension under operating development we portfolio our inclusion from experienced pursuant approximately also rent that to stats, rent X% the October, third the amendment.Similar in of construction delays we rent fees we we increased of allowances our collect our not to due on as Temescal through security term tenant XX% January, to management then our amended quarter, with in base Pennsylvania.We extended the of fund lease, deposits

of products that, of building construction noted we've I'll As over are quality calls, funded the our In scale. these XXXX, million, critical we on at David? previously of at prior $XX to turn improvements in cannabis activities for with efficient it net QX production properties.And improvements David.

David Smith

Thank you, Catherine.

$XX contractual third driven year. XX% base properties, For to QX last in the provided quarter, and tenants the we and at funding generated reimbursements certain periods total activity at rent increases as a of additional that of increase million, increase was period the leasing prior for as primarily an of well new revenues building increase properties. improvements tenant versus resulted in prior rental properties certain escalations The of by from in acquisition

quarter reimbursements, September an the increased increase income security Garden with the quarter share quarter revenue deposits second up contractual the tenant Notably, or rent increases, for per record XX, $X.X common for acquired the included AFFO share was the end And quarter was AFFO million X.X% longer $X.XX revenue in earned $X.XX share, included rent share contractual of or months of $XX Kings attributable properties.AFFO we $X.XX them. per quarterly million third the $X.XX, common properties additional Kings versus of per investments share.For XX, income rent in by operations of the million generated generated as from from $X.XX the existing XXXX, $X.XX noted, tenant net quarter September the at $X.XX of to annualized prior a per recorded as of X rents applied by of $XX or driven October of due quarter to and on to payment an per per results of dividend the the third periods, funds third stockholders $X.XX CapEx we per by noted or increase compared $X.XX offset escalations stockholders of $XX share. of $X.X Garden, dividend equivalent in for paid of slightly ended revenue Catherine Adjusted As from XXXX, for to XX, million million no third lower of share. they are primarily per the in common third of his regarding as portfolio. to Paul a of September.On remarks, share

XX% covered of At our with sheet. payout remained which balance and noted, in AFFO our had the is the XX%, gross is roughly payout importantly, end, during $XXX all total $X.X line targeted in debt, approximately our quarter to Alan of XX% to rate. assets in quarter ratio fixed dividend at Board's As with a by AFFO.Turning which of billion we a million ratio of

Our debt or the million, $XXX consists not maturing May XXXX. majority solely with until of unsecured debt, of this

In on sheet can will for option excellent assets this The credit demonstrates the markets. to balance publicly access addition, and of million additional to based ratio the obtaining metrics revolving in XX% of in a I to the less ratio credit provides plus convertible in industry best traded among our accessed and markets deposits bank multiple capital stock, it previously credit back October, closing expanded our an $XX remains which with applicable we always closing strong the we since our Alan. XXx.While industry we IPO, have to debt-to-gross is the on on Alan? company.With with of ability liquidity service excess to further REIT prime access unsecured entire X-year strived capital turn a a facility stock, bond the and Pricing our common debt that, in and have remain coverage another with margin the commitments. our than shape, bank.Notably, in additional added subject cannabis rate the be revolving based maintain facility, liquidity debt as preferred

Alan Gold

Thanks, closing. following David. I'd like to in the note

continue professionals company regulated environment.We a and our dedicated advisers foundation to properties, vision long-term the steadfast in and is business team of focused We cannabis and be this a industry, future. clear solid have evolving on growth of dedicated believers success a through rapidly and team the of our for singularly the navigating

well about questions. and trends. We position us are the questions? open expertise, the call open for it that, for portfolio to with balance up up believe legalization please the our Operator, could you future.Now sheet I'd optimistic We like for property

Operator

[Operator BTIG. Instructions] comes first Tom question with The Catherwood from

William Catherwood

Maybe added Paul in or in cannabis mentioned a obviously, you the more adult-use that your or modest the markets programs. wholesale there as fall. the we've pricing for hesitant Alan, industry that the have thinking more And is constructive broadly outlook you're this seen recent With where states of And how any trending? starting improvements business U.S., in incrementally are backdrop, tenants point? at

Alan Gold

Tom. Thanks,

I wish the think you're continues and I to perform the the I We question, asking well. best a clearest industry crystal had really good with vision. ball think

year What as not are continues positioning move have than is over, that industry, the rates it continues growth in supposed as with think to of in experienced the billion themselves be potentially growth as a but widely adult either And continuing we've and higher states growth been think I I direction. general, it's robust $XX projection by in that accepted maybe XXXX, or next think have now described early medical think, is we've it's sales year. have positive future number to experiencing in XX to I -- year-over-year they increase states total the be sales.So not I rates we to mean, now. the cannabis, this very expected in have use or I for past, the

our best the that's think can -- think in we in we analyzing is I today. industry So do the where

Paul Smithers

I can just have the XXXE Paul, And think impact is operators that as overstate obviously, board. at we relief don't positive, the would on XXXE I could a the add, look rescheduling the Tom, this we implication. next possibility with huge across And year

REC developments. next state look and still a a we as next week. look eyes at Also, that Ohio positive. week we Ohio on at has So all boat real on

there's So industry. positive a in going on of things the lot

William Catherwood

just you've mainly have alluded higher for maybe to, you company of past your great is Great. hadn't coming the quality Appreciate going in industry assets back. over those for capital that cultivation potential the When assets? the we LOIs. to on the comments. out looking tenants with the in to them then of to new the to And add new you in or are Ben kind for out, formation Maybe into months? the on hear a rescheduling, broader Or seen kind from news this market, get looking the coming of, had MSOs demand marketing them when XX question those and Paul, market you assets Paul, mix assets? the X maybe seeing at we the as What's the of

Paul Smithers

Yes.

ask respond to day. me to that Ben every Let that. He's[Audio Gap]With

Ben Regin

to really was which we took market. out great see we're I back of a Tom, to them properties these took think when seeing some and mix,

Our facilities we main quickly It I of that LOI fully got able of attractive fact that LOI. -- take if existing And value a a the properties to types And Garden get really X to under were lot these existing companies think announce put the interest lot that out in were companies. were in new recently mix that ready-to-go to looking in and saw those an We We we're the the new really we a both of saw was companies investment properties those I interest and that we different amount that these interest had in into fully very that to the think good the pleased of to feels the built from properties, how past, and Kings built from saw mission-critical are of we've facilities time out.As saw for. said California back build. from X the we industry. players market. assets really we

William Catherwood

fourth for addition maybe the in And great the David, then of helpful. quarter. the to Really revolver Ben. see Thanks,

of Or to the for you As the behind structure to pulled it the matter this color behind of adding you've now? took a flexibility be? that, process was you so gets and to find the and and as you trigger the while you rate you a opportunities the terms Can the far that just the at on out in where provide process that? are kind thought looking and added market capital want any worked

David Smith

Tom. liquidity you The say, opportunity so It itself, Sure, at was bolster that company. just Yes. revolver I'd the to more latter an the mentioned.

years I -- They cannabis As to It's terms it's we the what know, attractive lending over can for bank. you already bank the just say was been large of for company, very us. assets. have say an on a $XX incredibly sheet. the to of billion strong balance I'll They've liquidity of additional have a chance add itself, couple in a in now.

attractive So is think use ongoing that very credit. in with a just interest pricing interest too also to, the very, I fees. speaks also no one, also us industry as And and in

So just at chance of increase just us. liquidity again, it's to day, the another end the for

William Catherwood

looking have to Goodness a you lease And operator? a sell business, assigning what one me. in Do is say last then quickly York, the to you tenant Ben, their involvement? for when in a is us, IIP's like remind New Growth mentioned just new for

Ben Regin

want a to lease transaction. in say Yes. a that the involved yes, Tom, buildings. necessarily discussions course, we have we in might our be do on not to over come of But would anyone

in be. who get of would So tenant lease assignment terms the new from involved do we a perspective

it's we for like any sure we other underwrite just them that and feel underwrite good will fit a We the property. that transaction make

Operator

Fortune The next comes Scott with Capital. ROTH question from

Scott Fortune

First, side you [indiscernible] give great. and potential potentially if the or of a little kind of litigation and item the things, kind litigation be on would update that movement there housekeeping quarter around timing expenses that, of of

Paul Smithers

Sure. Scott, it's Paul.

As with $XX.X we of in concluded judgment in -- favor Pennsylvania mentioned, million. our a we we were litigation the

got property We effective week. this the also recovered --

some remains defaulting but litigation we that done. options against our is vigorously So Ongoing tenants. areas, in pursue continue to litigation the

just aggressively our Pennsylvania. continue all we So good that pursue legal in win And was remedies. to a

Scott Fortune

Perfect. partners, on I filed to on cannabis And influential and against while of recent activity, to seeking your by they're can few likely years law the government the more state a legal kind and block bit call MSO from Paul, little a enforcing have to although expand you of play firm protection there, you from the thoughts prohibition your take some MSO going tenants lawsuit operations of they side the the federal potentially there? of and cannabis kind potentially and business or the states states moving of on justice any -- ]? forward the reform But and for the vertical in and model key of in Supreme Court state out these kind of kind thoughts with facilities things these [ kind progress

Paul Smithers

the course, a Yes. U.S. it's Weiss, really of one top David of litigators country. Scott, Supreme interesting lawsuit. retained And they who's Court in the

challenging now, go government the you way The So regulate of in Massachusetts. it case Gonzales the filed basically state-operated in the federal it's back government gave that to because right the right gives course, businesses instant the interstate states operating commerce. to commerce. Court. XXXX, to intrastate But case federal credibility, of Supreme the I think, to get It's the the case cannabis is regulate before are

So the to from the not within it's solely that government XX, violate allowed does is to interesting basically businesses state's that now. the federal has a own nullification for government regulate saying the case theory. federal second states borders.The have legal jurisdiction the that the operate federal is And a challenge years analysis XX is government saying is part that of also XX,

you're get Court. that state this to think government its the continue to not but federal going it's be waiver says enforce Supreme argument to it's the do the right, I a before a So have prohibition to allowed is -- of refused kind haul, long rights.So when it it's will

we'll the think before Supreme have probably it Court. I rescheduling hits

to really case it's and executive course, it's legitimate process. wind fronts. rescheduling, Banking, looking we're we'll at judicial X-year to its and looking trying nice We're of at probably see, SAFER a looking X at level a So through Congress. certainly at activity but Banking the now, to through SAFE see activity way X- We're is But the now level.

that the it's industry. So is we X front think healthy for a very attack

Scott Fortune

on kind companies of the cost, slip if similar -- color. to CapEx Ben, with provide we're in debt, you the expecting the you a their from appreciate as kind this seeing XXXE. to reduce debt of doing? as I maturities with more flow fund I current larger in, be for Can single-state of color in cash beneficial as we're generate the is by significantly what environment trends operations just operators flow can positive of bit seeing to color tenants, one can and put that the your public private that on health those are there by probably tenant the improving far kind kind interactions meeting environment.And they private tenants side and actions extending of seems your And or out private cash but or to of tough obviously, following little elimination equitizing public the of your without

Ben Regin

private in really groups operations. the initiatives same we're Scott, say seeing Happy market the taken they're dynamics companies. with similar capital Sure. Yes. terms all public as public some as in this color the is And by terms there. companies of I'd raising, we're to provide of Ben. the experiencing seeing

private companies. single-state have We

have.It's the We to have any that investors and of challenges of very And public been lot lot some loan I refinance, focusing publics for been MSOs. been sheet that really see think the might debt push the had of they some of extend of maturities, some the restructure companies. that out balance some of efficiencies healthy. a debt industry that on concerns you great the have sort noted to able might A have terms of that addressing it's private multistate operations, for things in of

to steps. I to operate again, is overall focus rent. think, -- the it's their health, again, taking They're facilities our continuing industry pleased So occupy collection. They industry. operations overall. which same healthy think the They're financial been for continue and report to out on very their on They're benefit improve to really we're really strong current and I have the the staying rent of and a

Operator

Goldfarb Alexander Sandler. next with question Piper The from comes

Alexander Goldfarb

law. call earnings an whenever interesting constitutional into Always gets

Paul. that, for you thank So

questions here. X So

billion. from legality bank you the first guys got along is was going you that maybe letter over The credit of part. Dave, mentioned the the $XX

So certainly, like has Banking, but would to Banking credit. the -- cannabis subject up provide level, be bank but access discussed almost all already community we would underwrite big a given bank obviously, the in lending, one have? banks industry like on clearly I practicality, benefit it of to it not that all prohibitions SAFE looks and at $XX billion the what seem assume would to theoretically seems the level, doesn't the And way the federal SAFE that enforced.So

So a credit. unworthy or get is going clearly potential credit operator not borrower bad a to

from good from basis, had So we sponsorship a what's now difference if right SAFE Banking? the to

Paul Smithers

this Paul. Well, Alex, is

to it FinCEN answer right make it the basically more would the to banks short banks and encourage So do regulations now, the think expensive because I of for requirements, reporting is SARs. get borrowers customers because space into extensive have and the accounts

your more encourage which away, credit So that if think to banks would of these would have the I point, SAFE in, still theory there are we issues operators. Banking get to in.But go

for the Wells, X we access we've were potential we've be of XXXE an talking whole to the SAFER because think, back don't the Banking go But industry better then now, and relief. X, this about consistent, talking come money we even now the are more have space. we Chases Banking to to a or Banking operators the for is is of banks, always what we would cheaper.And think the for rescheduling idea, about earlier since right years certainly definitely the than impactful about SAFE the be large which So with positive that to going into I it SAFER been think would been

going Banking to Schumer really what on. fundings of and be the see having not year.We'll is eye But space SAFER the our competition get year. he's keeping would we're get and the war to -- end it's to but good, all this fund to before vote the says the with that's floor with So going it's the probably it government various

get some to So we over the next it house. some time at I in can the think if I think where understand year, the Senate, all it's house, gets resistance SAFER have floor QX going

next on year. all So eyes rescheduling for

Alexander Goldfarb

Okay.

question key is second hard imagine mean, given the yes, view knows. especially is is The second Johnson's is have I Mike But like -- to but grappled and as as the there's question although a at you you've passes, the through one a credit with, comes the that guys issues who it house managed look every -- that on we industry, up tenant of quarter, new issue.

pops So steadily up. then legacy issues, new but you credit resolving are guys one a

conveyor it ideally, belt, doesn't... a And like right? it's So

Alan Gold

belt. conveyor There's no

issues. personal in words occurring. out fact your or companies don't not That's that's in of you with ours. mouth credit but -- not we or problems, other a some own put belt Let's in a our there. conveyor Maybe not have have dealt in your legacy But life, those

So, what's question again? your

Alexander Goldfarb

past though been issues in few the fairness, have quarters, have question there my that a come is up. of number tenant So for

capital right, on question a away? recently, that to stay is historically, the is solution? issue.So burden I'm been continue illicit? to competitive is footing? key the So grow that a resolve Is to XXX% collections Is go the better But having cost the guys we going trying regain of Is on rent you crackdown and can you're what XXXE belt. what a to the it gets conveyor way to back the to current my do that better operators tax it the have hasn't been situation it understand big such have? historically you getting What

Paul Smithers

Alex, this is Paul. Yes.

mean is things. probably to better across calls, many certainly and the in said rates. interest on board as one, it's and think access crackdown Certainly, and in talked would that capital you a is I and it, another prior have price combination I we've about know I stability operators, for illicit the the So stabilization market of

that the of lot credit #X I come macro that the into the think a would XXXE there's improve be again, play, and certainly the So factors would relief But operators. would of health if been to retroactive solution.I've that and opinions, X XXXE at rescheduling be January we of think if year, it during legal next would looking that they -- a various have quickest 'XX.

we sometime relief that whole it get even these the year, So tax would election, August, operators. before likely the get most for September, if for

money that line. down move bottom an to something immediate that's the really be relief and So could

Operator

question Capital. The Craig-Hallum with comes Lauriers from next Eric Des

Eric Des Lauriers

has the from by improvement capital look I the was But In with $XX bit list just more. the of at can that a of me Goodness already a if allowance million. housekeeping understand states previous of increased $XX question. I you quarters, all, Growth the million the a about help it was bit to First release, now committed $XX press amount lease property million. amendment hoping

just $XX wondering, I'm committed this that between is the is the and improvement for tenant now amendment, So roughly capital difference million? just now property capital and allowance lease committed post this

Catherine Hastings

The correct. Yes, September Eric, through financial is XX. that's supplement

we million So this amendments $XX next with the committed new for the adjust but is would capital. that quarter,

Eric Des Lauriers

And I you're associated see broadly, you market to Illicit it's can start. guess viewing Was being the capital with York? surprised New slower that a been of about more risks just pretty it. there. kind just is Obviously, Got how talk allocated bit state. market entrenched a more to to

York? kind updated us just your could thoughts on New give I So you of guess,

Paul Smithers

Yes.

see retail big any do we're get compelling. on also can I the see of to these crackdown I open So do handle size or will market, market Ben, stores growing pains. of supply. on really we but York that? thoughts to an next some you that don't believe need And the this know, stores. have And through obviously, New getting is struggles, we some course, see, the going we're on that other more has is And emphasis starting York more thing going think to had the quarter but New it that but open quarter, black

Ben Regin

York, would have it issues that. might market projected is seen still I to by the mean, add I a and that be X just even we top to XXXX. all Yes, with historical in New

term. there of value time. to long-term this sure apart property think that completed and we is lot underdeveloped to a property do adds was the for a under wanted dynamics, that This that We felt -- the we good from property was felt long state we investment. value this in state-specific an So make on the is development

amount for a this that So where potential. tremendous we this particular a sets challenges has up while like growth has some of seen asset market

Eric Des Lauriers

hoping that's helpful. revenues potential No, of overall kind more your what's that you the then assets last portfolio. rental Skymint help bit appreciate that. me, can I'm on to me with I And for going impacts and understand a and just

of is this might And you What you were approved restructuring a at restructure economic more look collection leases announcing of a $XX receivership of press just to potentially fixed a look? on of lease? I part then, leases a this questions. those So guess your takeover their yours that to a than just few rejected.So how the being receivership couple Would guess, of representing release was look issued rent uneconomical? bid weeks of ago, assets the and impact million do How of kind that broadly Sundial more million? of to process I risk speaking, other obligations $XX Skymint annual that deemed

Ben Regin

Eric, this is Ben.

more lot wanted clarify. I have just just obviously leases They So a to than us. with

some I portfolio. So to our outside press release things referring of think was the

prepared Summit and an and we've was Peak. assets very we're for and requested to property of those leases. X.X% assets. retail take changes is, not across changes, X happy on the from our were the remarks, property Total announce back leases, looking are that is did retail and deal there Green tenant took those and terms we LOI That any to paying any that As that are buyer The retail mentioned a no our did those forward agree getting asset. the back described, entire in May, And about is operating remaining properties. third signed assuming those of and we there to rent.We X in and in we of as smaller making

Operator

closing turn back any would conference concludes to Gold question-and-answer Alan for like the session. remarks. I to our This over

Alan Gold

And Thank hard and the you for team joining a they've here forward thank can't to done all again, quarter you. you thank quarter all. I the their Thank over work last coming once all fantastic that for up better looking to a and today. fantastic And XXXX.

Operator

The concluded. attending presentation. conference Thank today's for has now you

disconnect. now may You

Innovative Industrial Properties (IIPR) 2 Nov 232023 Q3 Earnings call transcript