SAN DIEGO–(BUSINESS WIRE)– Innovative Industrial Properties, Inc. (IIP), the primary and solely actual property firm on the New York Stock Exchange (NYSE: IIPR) centered on the regulated U.S. hashish business, introduced immediately that it entered into an modification of the lease with a subsidiary of Green Leaf Medical, LLC (Green Leaf) at 135 Horton Drive in Saxton, Pennsylvania, making accessible $30.zero million in funding for extra growth of their hashish cultivation and processing services at the property. The lease modification additionally adjusted the bottom lease below the lease to take note of the extra accessible funding and prolonged the time period of the lease settlement. Assuming full fee of the extra funding, IIP’s complete funding within the property can be $43.zero million.
IIP acquired the property in a sale-leaseback transaction with Green Leaf in May of final yr, which contains two buildings totaling roughly 266,000 sq. toes of commercial area. Green Leaf beforehand redeveloped roughly 103,000 sq. toes of the commercial area for medical-use hashish cultivation and processing, and this funding is predicted to incorporate the build-out of the remaining 163,000 sq. toes of commercial area.
IIP additionally owns and leases to Green Leaf an 82,000 sq. foot medical-use hashish cultivation, processing and dishing out facility in Richmond, Virginia, which IIP acquired earlier this yr.
As the pioneering actual property funding belief (REIT) for the medical-use hashish business, IIP companions with skilled medical-use hashish operators and serves as a supply of capital by buying and leasing again their actual property belongings, along with providing different inventive actual estate-based capital options.
“We are thrilled to expand our real estate partnership once again with Green Leaf, providing them the capital for this key expansion at their mission-critical facility in Saxton,” stated Paul Smithers, President and Chief Executive Officer of IIP. “Green Leaf has always taken a thoughtful, long-term view toward expansion, and this second phase is expected to dramatically increase production capacity at the Saxton facility, with an eye toward meeting demand in one of the strongest medical cannabis markets in the United States.”
Green Leaf, recognized for its model gLeaf, operates medical hashish cultivation, extraction and retail operations in 4 contiguous states within the mid-Atlantic area, together with Maryland, Pennsylvania, Ohio and Virginia, with pending vertical purposes in New Jersey and West Virginia. According to Green Leaf, the corporate has raised roughly $27 million from the sale of fairness to construct its multi-state operation and has generated optimistic EBITDA since 2018. In April of this yr, Green Leaf introduced a brand new debt financing transaction with Chicago Atlantic Group, elevating $10 million to fund the acquisition of extra dispensaries in Virginia and Pennsylvania. Green Leaf has one in every of 25 medical hashish cultivation/processor licenses issued by the state of Pennsylvania.
“We appreciate the continued strong support of IIP as our long-term real estate capital partner, and look forward to expanding capacity at our Saxton facility, which provides the enhanced infrastructure elements that are key to growing the highest quality, consistent cannabis products for our patients,” stated Philip Goldberg, Chief Executive Officer of Green Leaf.
With first gross sales in 2018, the Pennsylvania medical hashish market has grown considerably, and in accordance with the Pennsylvania Department of Health’s report dated May 15, 2020, over 300,000 affected person certifications have been issued by permitted practitioners for the reason that program started. Similar to different states, Pennsylvania has expanded its program over time, including a number of new medical situations eligible for remedy with medical hashish, together with, amongst others, nervousness issues and Tourette Syndrome. In addition, in accordance with an April 2020 research by Harper Polling, over 60% of Pennsylvanians help legalizing adult-use hashish within the state, with sturdy ranges of help all through the political spectrum. Multiple payments to legalize adult-use hashish are pending in Pennsylvania’s legislature.
As of June 22, 2020, IIP owned 57 properties positioned in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling roughly 4.three million rentable sq. toes (together with roughly 1.three million rentable sq. toes below growth/redevelopment), which have been 99.2% leased (primarily based on sq. footage) with a weighted-average remaining lease time period of roughly 16.1 years. As of June 22, 2020, IIP had invested roughly $780.5 million within the mixture (excluding transaction prices) and had dedicated a further roughly $172.9 million to reimburse sure tenants and sellers for completion of development and tenant enhancements at IIP’s properties. These statistics don’t embody as much as $7.zero million that could be funded sooner or later pursuant to IIP’s lease with a tenant at one in every of IIP’s Illinois properties, or roughly $19.7 million that could be funded sooner or later pursuant to IIP’s lease with a tenant at one in every of IIP’s Massachusetts properties, because the tenants at these properties could not elect to have IIP disburse these funds to them and pay IIP the corresponding base lease on these funds. These statistics additionally deal with IIP’s Los Angeles, California property as not leased, as a result of tenant being in receivership and its ongoing default in its obligation to pay lease at that location.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland company centered on the acquisition, possession and administration of specialised industrial properties leased to skilled, state-licensed operators for his or her regulated medical-use hashish services. Innovative Industrial Properties, Inc. has elected to be taxed as an actual property funding belief, commencing with the yr ended December 31, 2017. Additional data is obtainable at www.innovativeindustrialproperties.com.
Innovative Industrial Properties Forward-Looking Statements
This press launch comprises statements that IIP believes to be “forward-looking statements” inside the which means of the protected harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements aside from historic information, together with, with out limitation, statements relating to the lease of the Pennsylvania property, Green Leaf and the Pennsylvania regulated hashish market, are forward-looking statements. When used on this press launch, phrases reminiscent of we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the detrimental thereof or related terminology are typically supposed to determine forward-looking statements. Such forward-looking statements are topic to dangers and uncertainties that would trigger precise outcomes to vary materially from these expressed in, or implied by, such statements. Investors shouldn’t place undue reliance upon forward-looking statements. IIP disclaims any obligation to replace or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case.
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Innovative Industrial Properties, Inc.
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