PRESS RELEASE

IIP Expands Portfolio to 66 Properties Comprising 5.4 Million Square Feet in 17 States

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 trade, introduced right this moment that it closed on the acquisitions of a property in Georgetown, Massachusetts and a property in Olympia, Washington, which collectively comprise roughly 181,000 sq. ft of business area.

The buy costs for the properties have been $33.zero million in complete (excluding transaction prices). Concurrent with the closings of the purchases, IIP entered into an extended-time period, triple-internet lease settlement for every property with a subsidiary of 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (4Front), which intends to proceed to function the Massachusetts property as a regulated hashish cultivation, processing and meting out facility and to sublease the Washington property to a hashish license holder for continued use as a hashish cultivation and processing facility.

As the pioneering actual property funding belief (REIT) for the medical-use hashish trade, 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 artistic actual property-primarily based capital options.

“We are excited to welcome 4Front to our premier tenant roster,” stated Paul Smithers, President and Chief Executive Officer of IIP. “4Front has developed a strong footprint in their core operating markets, with a proven ability to execute and deliver a wide variety of high-quality, consistent cannabis products on a large scale. We look forward to continuing to support 4Front as they deepen their operations and strategic relationships in existing states and expand into new ones like California.”

4Front is a nationwide multi-state hashish operator and retailer, with a market benefit in mass-produced, low-value high quality branded hashish merchandise. 4Front manufactures, licenses and distributes a portfolio of over 25 hashish manufacturers together with Marmas, Crystal Clear, Funky Monkey, Pebbles, and the Pure Ratios wellness assortment, distributed by means of stores and their chain of strategically positioned Mission branded dispensaries. Headquartered in Phoenix, Arizona, 4Front has operations in Illinois, Massachusetts, California and Michigan and leases property and supplies companies to hashish license holders in Washington state that manufacture and distribute these merchandise.

“We are thrilled to enter into this new long-term real estate partnership with IIP,” stated Leo Gontmakher, Chief Executive Officer of 4Front. “These sale-leaseback transactions further enhance our balance sheet with non-dilutive capital, while allowing us to retain full operational control of our key production facilities in Massachusetts. It also allows us to continue to provide top-notch services to our tenants in Washington, and supplies us with the efficient funding for our targeted growth plans.”

Massachusetts, with roughly 6.9 million residents, accredited hashish for medical-use by widespread vote in 2012, with first gross sales in 2014. The Commonwealth launched its grownup-use hashish program in 2018, with first gross sales in November of that 12 months. Adult-use hashish gross sales have exceeded $630 million in 2020 12 months-to-date and $1.zero billion within the two years since first gross sales started, and annual complete regulated hashish gross sales are anticipated to achieve $1.5 billion by 2025, in line with BDS Analytics. Similar to different states throughout this coronavirus well being disaster, Massachusetts authorities ordered all companies that aren’t providing important companies to shut operations for a time period. However, the Massachusetts Cannabis Control Commission deemed Medical Marijuana Treatment Centers and Certifying Health Care Providers as important companies that have been permitted to stay open throughout this time. The grownup-use hashish program was required to shut for roughly two months, however reopened in late May.

Washington, with roughly 7.7 million residents, accredited hashish for medical-use in 1998 and hashish for grownup-use in 2012, with first grownup-use gross sales in mid-2014. According to BDS Analytics, regulated grownup-use gross sales of hashish topped $1.zero billion in 2019, and are anticipated to develop to roughly $1.Three billion by 2025. Marijuana Business Daily additionally estimates the full variety of in-state sufferers and customers to be between 1.5 million and 1.eight million residents. Cannabis companies have been additionally thought of important within the state of Washington in the course of the coronavirus pandemic, with restrictions and working protocols designed to guard the well being and security of shoppers and staff, along with stress-free protocols surrounding curbside pickup.

As of December 17, 2020, IIP owned 66 properties situated in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Virginia and Washington, totaling roughly 5.Four million rentable sq. ft (together with roughly 2.zero million rentable sq. ft below improvement/redevelopment), which have been 99.3% leased (primarily based on sq. footage) with a weighted-common remaining lease time period of roughly 16.6 years. As of December 17, 2020, IIP had dedicated roughly $1.Three billion by investing roughly $1.zero billion within the mixture (excluding transaction prices) and committing an extra roughly $298.1 million to reimburse sure tenants and sellers for completion of development and tenant enhancements at IIP’s properties. These statistics 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 hire at that location.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-suggested 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 amenities. Innovative Industrial Properties, Inc. has elected to be taxed as an actual property funding belief, commencing with the 12 months ended December 31, 2017. Additional info is out there 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 secure 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 leases of the Massachusetts and Washington properties, 4Front and the Massachusetts and Washington regulated hashish markets, are ahead-trying statements. When used on this press launch, phrases equivalent to we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the adverse thereof or comparable terminology are usually supposed to determine ahead-trying statements. Such ahead-trying 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 mustn’t place undue reliance upon ahead-trying statements. IIP disclaims any obligation to replace or revise any ahead-trying statements, whether or not on account of new info, future occasions or in any other case.

Contacts

IIP Contact:
Catherine Hastings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Innovative Industrial Properties, Inc.
(858) 997-3332



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