IIPR - Earnings call transcript Q2 2024 | 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 Second Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Brian Wolfe, General Counsel.

Brian Wolfe

Thank you for joining the call. Presenting today are Alan Gold, Executive Chairman; Paul Smithers, President and Chief Executive Officer; David Smith, Chief Financial Officer; Catherine Hastings, Chief Operating Officer; and Ben Regin, Chief Investment Officer.

Before we begin, I'd like to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties and other factors. factors documents most the XX-K those recent which important the SEC, with and contained to actual identify the cause statements. specifically reports risk in refer the filed differ company by the XX-Q, results forward-looking Please to could from that on Forms

update obligated events forward-looking or revise statements, new whether We are or of future not as information, to publicly any a result otherwise.

and as adjusted we will discuss non-GAAP FFO, on normalized addition, such FFO today's call, In FFO. financial certain information,

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

Alan Gold

solid Thank and properties needs you, in achieved dividend $X.XX, us Ben common further our since year-to-date, quarter the we development, Catherine track these of the impact leases full new total on certain for updates million construction completed. by progress will in rents in generating We $X.XX to every QX record to inception year to preleased of Brian, That revenues addition in our $XX sequentially late where and XXXX executed XXXX. in to results and IIP, welcome, be without our provide performance under and that here. another stock per X.X% was for share. AFFO our enabled dividend our increase everyone. continuing increasing QX

regulated partner are ours our is upon long-term redevelopment them. property, expand completion undergo long-term the excited cannabis with in partnership On which June, an in for total Ohio, a announced use acquisition investment front, Florida expected cultivation as existing for $XX lease of newest an we we Ayr investment million. Wellness with our our and with will to and Ayr of tenant facility

the cannabis we real we of industry. light our in pleased environment estate the position, impacting macroeconomic the reiterated in with really As especially companies have are past, capital in

in $XX Our total development upsizing as for ample investments. and to QX fully under million end, available along we commitments credit funds providing remaining our with including of liquidity quarter strategic million additional exceeded $XXX power dry another facility have capacity revolving any

will under Schedule and Paul on in level rescheduling to addition some X cannabis availability the I discuss to developments. be financial over levered detail regarding XX% Additionally, to the we will in total debt for lowest capital gross the our debt process rescheduling the from strengthening green will thoughts detail perspective, to well are one industry of From state discuss to a cannabis variable rate capital potential operators. a regulatory no X Schedule turn at as sheets results we assets. shoots a to provide position are more call dynamics for market REIT focused Paul the this balance as of maturities David that seeing quarter. potential XXXX, all Act. in May of we that Controlled eyes and seeing now on dynamics No more regulatory Substance have our continue debt, and until and

Paul Smithers

Market developments.

the have calls. the after market in continue some while As high highlighted we some markets we competing dynamics divergence we and a markets increasingly to mature for compression from in past have become noted challenges experiencing growth, new illicit with of state now, competitive, time markets that see extended performance and in especially period price with perspective, the

all. use also no both only of XXXX For Missouri at which program and program our example, a as benefited sales call, last purchasing rollouts we strong with noted by or residents Maryland, either neighboring cross-border from adult-use for in in states in saw medical

operational billion. cannabis the Missouri to sales expected introductions Ohio, June topped which follows markets future be for of fact, one on Ohio Missouri's and over In issuing $X.X $X.X billion the and total in and in adult-use Maryland. annual fastest-growing XXXX July adult-use through Maryland's is very cannabis adult-use month. adult-use near sales XXXX, legalized in from November, successful cannabis regulated began last the XXXX licenses totaled cultivation year first heels for of

have York months about the while XXXX to increased of million illicitly. the York enforcement market York for of program, on $XXX discussed sales in all pace $XXX have for in we adoption adult-use licensed level and increased over XXXX. are its million struggled the from first has As since on adult-use the calls, New program other operating New X openings we Regulated stores of turnaround some increased seeing in dispensary of regulated New of with

would on While a with fraction increase In for update call other in continue $X.X also just to expected appear is adult-use to industry to regulated this projection of welcome, programs the Office November which prior Amendment and of represents New associated we for term, near for X, Florida, support X to regulated the are and in legalize of further York annually XX,XXX a is the Florida that monitor our Pennsylvania. provide still the cannabis running cannabis. generate from developments, Management's this revenue on adult-use legislative progress adoption I the ballot states billion in levels NYS in to With like Cannabis state-level to in regard the sales jobs.

added be $X.X retail for could for support measure M&A. more developments. From some seeing and touted the and FTI XX,XXX advocacy and million for amount billion number industry for announced in cannabis with month, and M&A challenged, a be raising on advanced legalize Meridian regulated operators Florida Politics generate approval come of that lawmakers that Florida recent through XX, raising Pennsylvanians. XX to also organization adult-use Party raises from Responsible capital perspective, ], year-to-date both Libertarian period regulated for PA year of cultivation approximately [ estimated an alone, have XX%, time of July According threshold. no capital the Pennsylvania, a sales In year's in markets been operators of recent which capital down the the rollout creating the upwards just could the first M&A is Lawmakers encouraging are that from threshold though bill over $XXX above period. billion consultation Ohio. sense recent While that study XX,XXX cannabis are to online to raised, with of last neighboring total the states like prior with Capital closed we by conducted in Consulting, state better. its urgency raises as support the XX% $X.X of an shortly estimated polling to continues News of the marijuana to regulated same signaling Fox And initiative. and the a has jobs

file certain DEA of secured of the X perspective, submissions MSO comment which progress to dollar here tracking against on and the or had from could these in since of such MSO thousands for Federal period through prior a hardly notably served when tens DEA by debt rule to the also move, raise a of first responses which M&A up $XXX of senior and year's published, any prevent transactions rescheduling for down number discretion subject closing of the is evidenced from The notes federal total placement Schedule more XXXX. Register. large process to million opponents comments published of closely in rescheduling of XX% its a the include a are, From $XXX XXXX, potential XX-day respectively. period due the proposal. representing the a public then If markets the tenant course, holding significantly during rule That period, acceptance final the administrative the effect. received of signs taking debt legislation. in federal delayed XX% we DEA's private is million hearing rule seeing July the II. clear to Federal Process-wise, is to cannabis and Schedule than With more an refinancing, and/or are in the from final on said, is final amount from late before our we and recent most Ascend's altogether part to the for suit government,

hurdles So deal uncertainty our like that to occurs, Ben in of rescheduling to very now optimistic I'd leasing while happen. remains over turn the if discuss actually we investment there significant when may remain activity is great on a some to to as year-to-date. there rescheduling, and and and call QX

Ben Regin

of the vacant just invested our pleased quarters, We've investment capital re-leasing Year-to-date, investments been with as $XX properties recent on new retenanted we new in and in covering on opportunities activity over selectively X we million. have as closed of well $XX very million assets. have seen both

MSO production in of the more allowance of round maintains additional Ohio's cultivation to as we adult-use on or committed $XX We rollout additional XX,XXX dispensaries acres in closed XX XX X complete than across on Florida, $XX redevelop million expand building Ayr with Ohio and excluding provided out construction in foot X square noted for with acquired in across we an XXX,XXX an of with square $XX provided on main to an in to million additional operating use Ayr to the forefront long-term We Illinois a feet presence and prior a operations our Ayr feet square cannabis we our As existing industrial advance production $X.X Florida, publicly per strong capacity for square development foot facility. Wellness, Battle industrial property property. foot acquisition of lease in our space June, states. a production And capacity, traded executing and the a their April, to in for regulated committed square of XXX,XXX projects. million facility. Green XXX,XXX allowance call,

disposition closely the to between leased opportunities Los adult-use are we an the very the disciplined on new election sale basis. active that, termination Angeles, to and total exceeding will closed property's over Florida believe track Also continue the into Paul and As lease property was built us pipeline turn adoption price and we provide it will fully cannabis. across our markets, actively to in selective, opportunities sales superior This regards property that and on look developments for evaluating the cannabis to never capital carrying fee recycle And November on which provides potential opportunities out consideration to investment we we other up value. of a of discussed, was risk-adjusted the the in forward I in watching for use, with sale returns. Catherine. QX, net additional With until executing

Catherine Hastings

foot square highlighted completion Illinois We've foot $XXX XXX,XXX committed fully development expansion last development made out operational square call, Battle square and X Ohio. completed development Road XFront's QX, completed just of and projects. capital, our nearing project the development Summit many foot on our From totaling In July. in ground-up of invested year-to-date a Michigan we in leased and in lot square million of building XXXX square Greens' the or development York, Vireo's in of which we Perez leased XXX,XXX XXX,XXX on of cultivation New progress completion tenants closing in remaining in projects of in foot component our XX,XXX ground-up is foot California, XXX,XXX

As has and the operations occupying for of project received foot XX,XXX Harvest and section facility. that We're to our approved leased. building now you processing is square at new operate Park may that that tenant pleased facility Loom, is the to recall, the note entire approvals also was previously

a design overall very see qualifying out with reusability this agreed we in facility we the our built million use. that example facility. has $X cannabis new little to of good replacement change for the in to the up to general layout for facilities been of overall Loom have we've infrastructure While of tenants the to facility, of as provide lease and the build-out the brought The worked enhancement

rentable portfolio, pre-leased Of at XXX,XXX remaining portfolio, Regarding included [ properties including across June term which XX feet or ], properties redevelopment. development in end are the square redevelopment leased XX.X% under own XX.X million of average weighted comprising quarter a years. square end. X our X Of these under XXX lease was XXX development, X we our XX, with of properties operating XXX states, properties, were feet, at quarter as

base Our diversified XX% well portfolio state with annualized representing base more representing and than more rent. rent our continues our no to annualized one no of tenant than be of XX%

to portfolio company and amount operating of leased of David. and of remains we We invested operating tenants. leased our our over capital significantly replacement with that, I'll experienced per to costs. and $XXX operators equates have public the relationships largest some industry XX% the total with operators foot, committed believe with portfolio it multistate XX% comprised below in square And The to across turn which most

David Smith

million, the X, leases X but $X.X of the building January the This quarter, base California addition for quarter certain sales-type total acquisition versus new up the and recognized revenue driven depth quarter's partially primarily rental rent for increases in Angeles quarter $XX.X as to was year, in X% funding second at For by relating year. primarily tenants sold not provided termination a properties, second with paid increase along in due we of with a increases activity million in of $X.X of from periods million improvements discussed back total by increase as Los possession $X.X termination quarter, of XXXX million. leases our escalations prior and disposition additional loss the on were sequentially revenues increase loss in was and we in the last of a In fee resulted fee the contingent also quarter lease a for California recognized we of during The in of XXXX, property. on in the modest last sale QX $X.X received properties property a contractual rental reimbursements. to of this that offset sale Los call. of quarter revenues leasing generated to in us to lease we sequential first revenues million as total for the and and second revenues since a reclassification Revenues took properties concurrently of Angeles, to rent tenant in

earned also million $X.X However, contingent termination fee. we a disposition lease

the the end as a exceeded of the gain result, a property sale million. of $X.X As on million total the consideration quarter, the $XX received resulting carrying of of of our net first value in

we increase was the quarter $X.XX increase income the the per XXXX first million I a materials, income of compared sale we and are XX lender that our As date ended to fee increase months quarter. X X% XX, a for a driven paid fee AFFO million disclosed nature of the maturity of The share, construction for loan compared the the by associated I June the our X disposition and extension loss the property discussed. year. on to to ended for XXXX, by quarter out in the a note included California increase at given June of impact from termination higher the Interest X% to estate quarter million $X.X to a that increased real second June quarter $XX.X termination where million lease interest earnings the lease or and second the positive loan of to our million $X.X primarily interest XXXX, of want to the contingent fee, us the primarily subtracted in months second for end secured of calculation $X.X low received cash in quarter XXXX. in the this net $X.X was on to construction maturity versus extend loan for arriving just when of due the with FFO XX,

our regulatory and As we local are rent differ first we re-leasing achieved time properties year-to-date noted completed earnings, our for while between assets there meaningfully line additional contribute call, the state on activity requirements may at to transitions as be to expect Loom to Park operations. quarter needed front, at our happy the operation the these Ben to said, new and in stabilization certain long-term level is we approvals our very tenants tenant to the pleased to approvals with its discussed for some see on That activity of being facility abatement rent for we a receive detail ramping our in as allow and Harvest Michigan. of re-leasing negotiated substantial are our

XX paid re-leasing of As June a on $X.XX stockholders as earnings, to was of progress result increased our dividend significant July our our dividend consistent X% quarterly XX. date per common to The and Board share. by of record to

payout of targeted by Board's track our XXXX. the continued year the during noted, XX%, AFFO XX% quarter of is increase AFFO. in line ratio remained with This record payout every dividend our Alan which dividend of in covered the ratio with our dividend As to our since XX% inception of increasing a

and of ratio to debt strong in we quarter until XX% Our less continue than gross unsecured of to to metrics the only maintain remained $X.X EBITDA Furthermore, balance consisting coverage debt debt sheet of during credit total REIT billion with assets a of million a and ratio XXx. debt with service maturing our net in Xx, fixed-rate industry-leading gross not assets $XXX XXXX. May bonds

liquidity. over revolving of comprised to of We credit at availability investments quarter million under the liquidity and Moving our finished on facility. total cash, second short-term $XXX our

we with a second revolving As Alan headquartered facility New to quarter $XX the million during successfully noted, the increased addition York our of credit bank.

dialogue to in interest We credit their are continuing have capacity. with regarding continue the increase to to overall numerous joining banks our facility

program we program Finally, into of and common at-the-market and a entered shares quarter stock of new the stock. existing during time ATM second for to equity time offering from provide our A to Series issuance the our preferred terminated

We for the more stock, sales of our future add a dilutive the investments us program. also impact component overall opportunity a our precisely reducing goal common with forward match equity this of to took fund raises through allowing to of our

balance back continued our the With multiple As turn it on increase can to you relationships be facility. to our capital well access growth to I'll that, progress we with markets continue Alan. see, expanding positioned of conservative to continued size a sheet, for and banking credit

Alan Gold

to the in following like closing. note I'd

the of our goal and capital for continually investment maintaining stockholders portfolio to evaluate strong to continues balance sheet with the of I'm of this serve our Operator, the of through our you term. disposition maximize will a team's plan activities team position. I'd execute leasing, and long could options benefit well on please to our over it value Our to With to our open up stockholders and performance up call liquidity for proud and core questions. believe that, the questions? the this focus like open

Operator

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

William Catherwood

And on new any in CapEx driven spending year-to-date. but year-over-year seeing you by trends follows in far maybe adult-use tighter Typically, markets? availability, operators this capital CapEx despite program the I starting lower cannabis the capital capital commentary so the Paul, on with are sector movement appreciate state for case, positive the side formation expansions

Paul Smithers

going a industry, And when as in to rescheduling wait is know, you talk the a effect is is I the hit When of I a operators, built and about excitement, see lot of enthusiasm that going the actually timing market capital there There we the So of the around to built-up XXXE lot think, is relief XXXE there's lot of the to some but there relief. to issue. rescheduling more we of the think and and is there the hit that's on think once happen? going line? bottom lot clarity is

the wanted than percentage hands and XX,XXX comments received They further Tom, course, as And quick pleased, process. we are DEA. it's, it It's rescheduling So I a fact, would And pretty the go thought as with we're of rescheduling to today we big rescheduling, gone think right positive. the of over now, about in well of schedule. you're would, XX% in descheduling. aware where get the to those but of it on

and which we that going see Once is what final filed by think happens, happen period a DEA their agreed really final can so. ruling, of do that wants be to waiting could we're there's lawsuit party XX-day So any issue next day. any to do order to that a course, the and

hit prior when to XXXE seeing. mean, calls And to it the goes deduct operators capital rescheduled all these for line and understand we've expansion. does significance and waiting once away, once maintenance closely follow things XXXE line, bottom get costs, wages, people bottom such really be there's we think, insurance, as up, hit rent, of I we're salaries do there's the going of advertising, and if in utility the relief health those as things a think it, we don't that that that and lot course. So said X, a of more available things lot can't and that we CapEx marketing, repairs, add for now And

William Catherwood

change sticking impact it completely And recent Chevron might a up with in Paul, when activity? change there the slow progress that or that the an administration on ruling could either be either comes rescheduling to item, maybe from rescheduling or potential

Paul Smithers

Yes.

Chevron. let's about Court So the Supreme talk recent case away took that

think actually it's going I And who'll know get complicate. to I a people no, going say, positive. to you're it's

what leave a an that recent rid U.S. Congress of that rulings the case administrative did Chevron what courts people federal ambiguity Supreme following to the interpret there's up for Court aren't which to the that is says closely, statute, in get meant. So when Doctrine the body it

Substance get So substances would to Chevron, really there would the I case, explicitly in in the CSA an because to in the have DEA was order ambiguity, reschedule And in controlled discretion. have allows be to at this it Act. ambiguity their to that Controlled you no the argue certainly CSA

to don't get Chevron. I think you even So the

So that think question. don't and his cannabis. Question we aware a who's always stance not cannabis year, in look has a going has far, supporter And on -- fair been I'm has of, President updated to present research. I Trump supported it's former so medical I He next of about is think, happen.

is of and rescheduling get of it thought more be because the my for him does to research. medical we more it So X, to support I when thought supportive expect follow

medical we've So of could in then, while by cannabis. And as undo, in happen it's to I calls, certainly, overwhelming DEA majority it's prior the going think yes, this country political discussed to a he think don't instruct voters support I the because issue.

would happen, could not. but it say So I

William Catherwood

on have or basis. at your does What you requirements a a meet me, to investment Ben, all follow-on quarters? pursuing on for investments changed the recent had include selective one new leaseback And these sale mentioned characteristics maybe underwriting? last to And have in highly

Alan Gold

for we not only -- to the it Tom both business that with has last basic starts that remind what concept think to X I the are and is to I'd sale-leaseback following been produce returns. but just with risks it seems like above years, we've think average Ben average since below be model everybody our before that, continued

and sale-leaseback turn acquisition to to underwriting. go Now with to over do describe it what that, and that Ben going we a I'm in ahead

Ben Regin

underwriting say changed wouldn't we're necessarily I since of our years. has as we we with that types tenants markets over the still criteria on I Tom, have our And the we think in selective opportunities inception. been like highly like

I low very pleased We're the think still we're in on opportunities the with the state of the pipeline. the seeing yields mid-teens pipeline. to

think investment our will of did activity in I that we're of top we as that XXXX. north optimistic the in we cautiously hit On goal million year $XXX activity this of investment we've of seen of and leasing assets $XXX assets million over quarters. over the with worth and and very the last as year-to-date well activity retenanting $XX X worth million pleased year-to-date

the executing that, good and portfolio of about overall. the state between the feel pipeline on very we So selective opportunities, pipeline

Operator

with comes question Mitchell Piper from Connor Sandler. next The

Connor Mitchell

then tenants, continuing I terms just just balancing and cetera? how focusing that commitments, new existing tenants investments et think the you tenants on Maybe wondering the with external and additional was in about of retenanting, really the investment on guys

Alan Gold

that very we've believe and them you what supporting -- environment our a focusing tenants this good we want in partner greatest I macroeconomic our and we existing? maybe, our think capital to very on a we've is spent success giving in we believe to how might support real you chance general for difficult a a competitive because and discussed, a and is about throughout question of time look deal estate for industry. being Ben, our at them as best. And -- the we great tenants could that's new how the really in strong continue history, talk tenants But existing

Ben Regin

with see our we as opportunities portfolio that across We, Alan's like we've of existing roster fit continued management have and we current revenue work look feel to with tenants our describing, financials, used our the track same to tenants. in record of have historically that from tenant XX as tenant support across about years of new in at north a XX% well-diversified our have of we and the them well rigorous base feel strong the will performance industry really and comes of operators that some markets. we also very multistate course, best as in our good the that I over operators maintaining of [Audio portfolio while state new our underwriting teams criteria for Gap] operators,

Connor Mitchell

And then available XX pretty re-leasing months. done job have that you past have of good a or the guys some XX over come spaces

and on are if efforts you wondering could any of an efforts update current provide possibly properties? that Just spaces those leasing unoccupied the or selling like

Alan Gold

No.

I those complement over it to to I think I before team I turn want do, to provide for again really execution our [indiscernible] details, their unbelievable on re-leasing.

that re-leasing. foot belief they the out very would that's that the we underwritten cost think I our re-lease company with and it inception, believe per great be would difficult our goes facilities, and was given that infrastructure too specialized. amount that And As very many we involved them properly, be properties proven from people have who we've a reasonable with square the a these into been have of continuously to

Catherine Hastings

And plan are with talking think facilities. down a I general bring to properties. Connor, of to remaining reusability that as to facilities to have, which assets that we about, really of just of handful really attractiveness same we the of the to the Alan those is team success speaks tenants the re-leasing and those was new just the pleased really our the success

square and of parcel in square XXX,XXX estate a real of have in We land Texas. XX-acre XXX,XXX feet feet Pittsburgh, in California cannabis of space warehouse

feet. We position confident work retail our as And X,XXX we additional about hope square continue X we're the those. totaled also to Michigan have in team to that and of assets have these the updates in small really in talent future properties overall, through to

Connor Mitchell

question one maybe And for more me. then

guys had fixing handle tenants pretty You correcting system. with any have on any the had in good you've a issues or issues

you you an a Just the feel guys anything watch a update brewing? update, about it list might Or or credit provide on maybe is? wondering if as could environment good tenant be pretty if

Alan Gold

getting a we general still we So And the the tenants, through environment in is those when and we indicated, -- quality talk difficult macroeconomic audience Cat that we our some issues are about and and that [ that very in issues and that pleased talk we're very about general, is environment But have be as hand. supply pretty we of there with some still I ] the XX will cannabis difficulties. particularly in the Ben and of there or our industry changing we even the strength up reminded has are chain think tenants we and watch the that industry about that because of working statement tenants. the we're with list all of with working to think tenants. â€“ believe well in speed We've watch

Operator

The Partners. next Capital with Roth question comes from Scott Fortune

Scott Fortune

and side regulations with these Just rent end follow the the in expect revenue Just is this to getting on on update Cat, timing place the an that lease place, early to and year? turning we maybe, the the a the out, moving the regulation into you're happen of year, there it? forward towards those where still them properties developing obviously, up, re-lease, kind looking of in of progression licenses next timing for that

Alan Gold

Ben, might facilities. associated address built you out in the timing Perhaps are already the the that cannabis assets want to with

Ben Regin

might any worth with, market $XXX everyone lines to investments quarters over remind licensing of required. leasing can the very might again, X want by just million been over the and I that talking that that which, we've by market time build-out be any state, about vary state we've be that last Again, activity, the required, for retenanted pleased

from relatively a XX-plus months, can in short the that that to again, period situation. municipality take depending particular time on anywhere of So

of a first happened XXXX, lot the that but XXXX, knowing more has asset, QX depending year would rent an into to So on last asset-by-asset commence it's really on this we that. and activity basis the likely expect year, of in late into this half

Scott Fortune

seeing on cash obviously, flow without benefit these And positive then Ben, the from from to as environment. M&A to continue reporting standpoint, seen just XQ the margin up this environment expansion very and being health a we've little we're that generation here focus in pick industry of operate XXXE operators in revenue some a color, early cannabis growth, more

the a guys starting in capacity opportunities in and be markets, Ohio add Florida, seems the out is potential capital different with on onboard, as York seeing a you're adult-use it seeing ramp states and potential operators up capacity to backdrop, on a states, portfolio were with you of more just to question call lot portfolio can discussions pickup work. to this positive the there? New So coming added to But expanding to where like or we're saying your you in large go there some

Ben Regin

day I probably So could if Ohio. waiting the see not yes, actually but follow adult-use. closely, I'm Scott, kind actually tomorrow out today, you be And today Ohio the stores special of in sales today, open a rolls know really this if in when to

way could the excited Ohio really the it a with example really that in to operators license so the could existing it of did running. hit do the that's we're co-licensing So a right. state ground And adult-use they medical great be by new going

coming talking governor remember ago is some news making but really Ohio there's positive a issuing disappointed just and really I padlocking I exciting. New York finally XX% stores, absolutely, year New concrete think, York, and have And month rollout, last we York as City. with as of new of sales New about the the in boy, the a some actually moves. then as up out been more got of she had licenses So importantly, of some illegal much that result just result a reported as about that

Boy, New York around? it it. is turning looks like sure So

really, get market excited Florida, we be. can hits, overstate that that. how amazing think, if think we I Florida what we can't about So In

the XX% talked and in news but about have funded We for well the positive. is still certainly, remains up and threshold the detail polling the more opposition about picking the in vote it's

Democrats I we course, think, pro we shot going assembly. trading between legislature the right on Pennsylvania, in think and that's Pennsylvania the horse Republicans of in got The governor good So hitting. in now, legislation there's adult-use. some, a that's Pennsylvania, in the like at and the is the and very

long. think get before across finish the line not we will So that too

to on we So be what's think going continue really about we those there. states, excited --

Scott Fortune

and look around ahead Harris provided new differentiate over the rule the being new moving now is Harris that now VP the about here to forward kind there, seems the will you of know thoughts view forward draft anything update VP that election, on now finish that line cannabis rescheduling Democratic just the in that, on elect. that final by the ticket election with that's There's been or Obviously, that Democrats here? elect get Democrat coming of process. help this the months but of ahead the moving I policy an the

Paul Smithers

Yes.

morning, pro the So it to we're he see, and history a watch. just cannabis is her of And this mate, being very course. of has Minnesota running very which to she course, happy fun Governor, of as strong announced

see supporting the them acceleration, Harris cannot So stay think I cannabis. doing the at before Democratic I in we think pro on between course. the November. very possibly X rescheduling the I the ticket, certainly but anything of it it's voters the that an but Democratic will with see and And getting the top, ticket

So And then, too just that these the don't will positive. undo as he about it. he it's they'll a much talked it's we Trump risk think see gets earlier, I if by with momentum have I and I the won't elected, voters. too -- think things? idea

rescheduling. nothing to and for VP that So we her a running answer positive your are new question, Harris but think mate

Operator

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

Eric Des Lauriers

tenants lease and in kind the to increasing demand of sort How the this of just of from where there's properties remain. think and natural operators now decreasing with we industrial fixed wondering do, of with demand your for one longer-term you're me seeing It's sort demand but if existing existing you talk Can mix see pipeline. this from terms versus of trend First Ayr, of course of in of a from tenants? nice new about tenants tenants longer that you new should term? more you this existing relatively number trend? less And the are leasebacks sale given the of

Alan Gold

that. keep demand. not new existing additional in just Yes. But markets Ben occur, markets growing can existing only opportunities that and when in there's that from approvals mind but new come take tenants

Ben Regin

Eric, a revenue mentioned, as said, tenants, think we've of XX our I mix, I from you is XX% of it comes sure. mean, Yes, the multistate as operators.

the in portfolio. of MSOs have We largest our lot kind of and a best-in-class

So tenants mix to that well think as established these describing as tenants portfolio opportunities. continue to it we of existing of we That natural inception term, be to markets we additional to we've well that the as on base, goes continue a well our as underwriting. it's we follow-on state support as the we potential across of continuing very I balance existing continuing done there and opportunities grow today as with the it said, that as their We're always to look we've support diversify are the pleased growth mix some will markets, those a opportunities initiatives. some tenants with Long markets as And really are tenants with new tenants as is to both existing our as the portfolio. call. be continue been our across will between into since pipeline sourcing as this tenant

Eric Des Lauriers

last just York And my State. then on question New

X the still of as improvements New are of these the are a improvement leases that these Obviously, market. you having its of some a York. see I'm serviceability to on mentioned, nice you of sort in leases? at there of Obviously, in tenants potential. your the profitability or of if fraction material wondering largest have your impact So least

tenants if current Just those how give. this in you in at fact, are, like help feeling with still perhaps pressures? ramp comfortable something wondering should It a think we potentially slow willingness your pace, period your got how has through seems to leases possibility relation they if that wondering there's how just that to risk the I'm you continues and to are any about a slow ramp? ramp view

Alan Gold

is, or relief New But talked not Ben, for market York indication I York. how any rent the strong giving ahead. think Paul any [indiscernible] looking about New you've of we're but in go anybody

Paul Smithers

the and New very We're correct. And New illicit market think and to sales, York well. such a talk of very positive. when And really I get of the I that's mentioned, as New pleased that's through level, bump So think And a is course, that our these And is huge. along at about our York taking I issuing leases new that's performance the are retail I in licenses that, whole demand we with up. going think XX% York in away performing this tenants. carry with idea,

market, of corner can it's our just I more huge, which just the of big think realizing So that turned is with positive and indicator added is tenants market. that a how news, that its potential for positive on and the to take well York be positioned is New to just this are advantage market definitely way

think in great position. they're we a So

Operator

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

Alan Gold

you team Thank efforts. Thank hard and with And you, for conclude joining the today, all we and you your work us thank continued here you. to call. that, thank and the for

Operator

for attending you Thank presentation. conference. today's concludes This today's

You may now disconnect.

Innovative Industrial Properties (IIPR) 6 Aug 242024 Q2 Earnings call transcript