Innovative Industrial Properties acquires Maryland property and expands partnership with Harvest

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SAN DIEGO, 16 August 2021– (BUSINESS WIRING) – Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) specializing in the regulated cannabis industry in the United States, announced today that it has completed its acquisition of the property. in Hancock, Maryland and entered into a long-term lease with a subsidiary of Harvest Health & Recreation Inc. (Harvest) (CSE: HARV, OTCQX: HRVSF).

The purchase price of the property was approximately $ 16.6 million (excluding transaction costs). Harvest is expected to complete additional tenant improvements to the property as a regulated cannabis growing and processing facility for which MIP has agreed to provide refunds of up to $ 12.9 million. Assuming full reimbursement of improvements to tenants, MIP’s total investment in real estate is expected to be around $ 29.5 million. Earlier this year, IIP acquired a Florida property and entered into a long-term lease with Harvest of approximately 295,000 square feet, and IIP expects its total investment to be approximately $ 41.7 million, subject to full reimbursement of tenant improvement costs.

Harvest, founded in 2011, is a leading multi-state vertically integrated operator in the United States with licensed operations in Arizona, California, Colorado, Florida, Maryland, Nevada and Pennsylvania, including 44 retail locations, 11 cultivation and processing locations, and over 1,600 employees in their operations. … In May 2021, Trulieve Cannabis Corp., another IIP tenant in Florida and Massachusetts, announced an agreement to acquire Harvest subject to certain conditions.

“We are delighted to further expand our long-term real estate partnership with Harvest in Maryland,” said Paul Smithers, President and CEO of IIP. “Harvest continues to deliver on its business plan well with a huge vertically integrated presence in some of the strongest regulated cannabis markets in the United States. We look forward to working closely with Harvest as they expand their Maryland manufacturing capacity to meet their needs. continued strong growth in patient demand across the state; and the possibility of expanding the current program to regulated adult use in the near future. “

As a pioneering Real Estate Investment Trust (REIT) for the regulated cannabis industry, IIP partners with experienced regulated cannabis operators and serves as a source of capital by acquiring and renting their properties and offering other creative properties. based on capital decisions.

In 2017, Maryland implemented its medical cannabis program with limited licenses to grow, process and distribute cannabis. Relevant medical conditions for the program include, but are not limited to, anorexia, conditions that result in a patient receiving hospice or palliative care, PTSD, seizures, chronic pain, severe nausea, and severe or persistent muscle spasms, and other chronic severe illness if other treatments have proven ineffective, and the referring healthcare professional believes that medical cannabis may provide some relief. As in other states, state regulators have expanded the program over time, including allowing physician assistants to advise patients with medical cannabis and expanding forms of medical cannabis use. According to the Maryland Medical Cannabis Commission, sales of medical cannabis in the three months ended June 30, 2021 were about $ 140 million. In addition, according to a survey by Goocher College in February this year, approximately two-thirds of Maryland residents support the legalization of adult cannabis. Maryland House Speaker Adrienne Jones pledged last month that lawmakers would pass a bill to raise the issue of legalizing cannabis for adult use as a referendum on the 2022 ballot. Including this property, IIP owns two properties in Maryland, totaling approximately 184,000 square feet (including refurbishment), which is approximately $ 51.9 million.

As of August 16, 2021 IIP owned 74 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania , Texas, Virginia and other countries. Washington DC, representing a total of approximately 6.9 million square feet (including approximately 2.5 million square feet under development / redevelopment) that were leased at 100% for a weighted average remaining lease of approximately 16.6 years. As of August 16, 2021, IIP has committed approximately USD 1.7 billion across its entire portfolio, including capital invested to date (excluding transaction costs) and additional capital commitments to finance future construction and improvement of tenants at IIP facilities, but excluding a loan of $ 18.5 million from the IIP. a developer to build a regulated cannabis growing and processing facility in California.

On innovative industrial property

Innovative Industrial Properties, Inc. is a Maryland-based self-improvement corporation specializing in the acquisition, ownership and management of specialized industrial property leased to experienced government licensed operators for their regulated cannabis growing businesses. Innovative Industrial Properties, Inc. decided to be taxed as a real estate investment fund for the year ended 31 December 2017. Additional information is available on the website www.innovativeindustrialproperties.com

About Harvest Health & Recreation Inc.

Harvest Health & Recreation Inc. headquartered in Tempe, Arizona, is a vertically integrated cannabis company and operator with operations in multiple states. Since 2011, Harvest has sought to expand its retail and wholesale presence throughout the United States, acquiring, manufacturing and selling cannabis products to patients and consumers, and providing services to retail dispensaries. Through its organic licenses, service agreements and targeted acquisitions, Harvest has established operations in several states in the United States. Harvest’s mission is to improve the quality of life through the health benefits of cannabis. We hope you will join us on our journey: https://harvesthoc.com

Industrial Property Innovative Outlook Statements

This press release contains statements that IIP considers “forward-looking statements” within the meaning of the safeguard provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical fact, including but not limited to statements regarding Maryland leases and property renovations, Maryland’s crop and regulated cannabis market, are forward-looking statements. When used in this press release, words such as “expect,” “intend,” “plan,” “estimate,” “assume,” “believe,” or “should,” or their negation, or similar terminology, are generally are intended to indicate forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Investors should not place undue reliance on forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

See the original version at businesswire.com: https://www.businesswire.com/news/home/20210816005483/en/

Contacts

Katherine Hastings
Chief Financial Officer
Innovative Industrial Properties, Inc.
(858) 997-3332

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