Innovative Industrial Properties (IIPR) investor relations material

Executive summary

• Diversified REIT with $2.4B invested across cannabis and life sciences, spanning 108 properties in 19 U.S. states, with 95.8% leased as of June 30, 2026, and a weighted-average lease term of 11.9 years.

• Completed $270 million investment in IQHQ, including $120 million Series G preferred equity funded in Q2 2026, enhancing sector diversification.

• Strong execution in portfolio management, leasing, and capital markets, including new leases and re-leasing initiatives totaling nearly 900,000 sq ft year-to-date.

• Faced tenant defaults and lease terminations, notably with PharmaCann, 4Front Ventures, Gold Flora, TILT Holdings, Cannabist, and Parallel, impacting rental revenues and occupancy.

• Strengthened balance sheet with $402.5 million exchangeable notes offering, full repayment of $291 million senior notes, and significant share repurchases.

Financial highlights

• Q2 2026 total revenues were $63.3 million, up 0.7% year-over-year from $62.9 million, with six-month revenues at $131.8 million.

• Net income attributable to common stockholders for Q2 2026 was $40.7 million ($1.36 per diluted share), up from $25.1 million ($0.86) year-over-year.

• AFFO was $53.0 million ($1.83 per share), up from $48.4 million ($1.71) year-over-year.

• Declared $1.90 per share dividend for Q2 2026, annualized at $7.60 per share; dividends per share grew at a 9% CAGR since 2020.

• Ended the quarter with $299.7 million in liquidity, including cash and revolving credit availability.

Outlook and guidance

• Positioned for growth with a focus on selective, accretive capital deployment in both life sciences and cannabis sectors.

• Cannabis industry projected to grow at 8% CAGR from 2025 to 2030; life sciences market opportunity expanding, driven by AI-enabled discovery and limited new supply.

• Ongoing monitoring of tenant health and optimism regarding cannabis rescheduling and regulatory progress.

• Arrangements with new tenants for 4Front assets expected to be effective by year-end 2026 or early 2027, subject to contingencies.

• Management believes the company is well positioned for accretive growth opportunities.