Innovative Industrial Properties Inc (IIPR) 2023 Q2 法說會逐字稿

Good day, and welcome to the Innovative Industrial Properties, Inc. Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加 Innovative Industrial Properties, Inc. 2023 年第二季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Brian Wolfe, General Counsel. Please go ahead, Mr. Wolfe.

我現在想將會議交給總法律顧問布萊恩·沃爾夫 (Brian Wolfe)。請繼續，沃爾夫先生。

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.

感謝您加入通話。今天出席會議的有執行主席艾倫·戈爾德 (Alan Gold)；保羅·史密瑟斯 (Paul Smithers)，總裁兼首席執行官；大衛·史密斯，首席財務官；凱瑟琳·黑斯廷斯，首席運營官；和首席投資官本·雷金 (Ben Regin)。

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.

在開始之前，我想提醒大家，今天電話會議中的陳述可能被視為 1995 年《私人證券訴訟改革法案》安全港含義內的前瞻性陳述，實際結果可能會因以下因素而產生重大差異：各種風險、不確定性和其他因素。

Please refer to the documents filed by the company with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

請參閱公司向 SEC 提交的文件，特別是 10-K 和 10-Q 表格的最新報告，其中確定了可能導致實際結果與前瞻性陳述中包含的結果不同的重要風險因素。我們沒有義務公開更新或修改任何前瞻性陳述，無論是由於新信息、未來事件還是其他原因。

In addition, on today's call, we'll discuss certain non-GAAP financial information, such as FFO, normalized FFO and adjusted FFO. You can find this information, together with reconciliations to the most directly comparable GAAP financial measure in our earnings release issued yesterday as well as in our 8-K filed with the SEC. I'll now hand the call over to Alan. Alan?

此外，在今天的電話會議上，我們將討論某些非 GAAP 財務信息，例如 FFO、標準化 FFO 和調整後 FFO。您可以在我們昨天發布的收益報告以及我們向 SEC 提交的 8-K 中找到這些信息，以及與最直接可比的 GAAP 財務指標的調節表。我現在將電話轉交給艾倫。艾倫？

Thank you, Brian, and welcome, everyone. We are pleased to report another solid quarter of operations and financial results. We believe we have positioned ourselves well in this context with one of the strongest and most experienced teams of real estate professionals in the cannabis industry, a high-quality portfolio and arguably a conservative and flexible balance sheet with a 12% debt to total gross assets, no variable rate debt and no meaningful debt maturities until 2026.

謝謝你，布萊恩，歡迎大家。我們很高興地報告又一個穩健的季度運營和財務業績。我們相信，在這種背景下，我們擁有大麻行業最強大、最有經驗的房地產專業團隊之一、高質量的投資組合以及可以說是保守而靈活的資產負債表（債務佔總資產的12 %），從而使自己處於有利地位。 ，在 2026 年之前沒有可變利率債務，也沒有有意義的債務到期日。

To recap the quarter, we generated total revenues of $76 million in Q2 and adjusted funds from operations of $64 million. Rent collection for IIPs operating portfolio was 97% for the quarter. That financial performance continue to drive dividend returns to our investors with $7.20 of dividends declared per share in the past 12 months alone, an increase of 11% over the prior 12-month period.

回顧本季度，我們第二季度的總收入為 7600 萬美元，調整後的運營資金為 6400 萬美元。本季度 IIP 運營投資組合的租金回收率為 97%。這種財務業績繼續為我們的投資者帶來股息回報，僅在過去 12 個月內就宣布每股股息 7.20 美元，比前 12 個月增長了 11%。

This quarter was a quiet one for us in terms of additional acquisitions and investment activity. And as we've noted for several quarters, we expected a significantly lower pace of investment activity, given the significant adjustments to cost of capital since the Fed began aggressively raising rates last year.

就額外收購和投資活動而言，本季度對我們來說是一個安靜的季度。正如我們在幾個季度中所指出的那樣，鑑於自美聯儲去年開始大幅加息以來資本成本發生了重大調整，我們預計投資活動的步伐將顯著放緩。

That said, we are pleased to announce the pre-leasing of a project under construction in Cathedral City, California, which was one of the projects that we took back from Kings Garden late last year. Ben will provide more detail on that project and the status of leasing for other projects in our portfolio.

儘管如此，我們很高興地宣布預租了加利福尼亞州大教堂城的一個在建項目，該項目是我們去年年底從 Kings Garden 收回的項目之一。 Ben 將提供有關該項目的更多詳細信息以及我們投資組合中其他項目的租賃狀態。

We continue to strive as we have from the very beginning, to be as transparent and detailed as we can about our business and prospects, especially in the context of ongoing challenges in the macro economy that we are all experiencing and in the regulated cannabis industry in particular, which we have noted in the past several calls.

我們從一開始就繼續努力，盡可能透明和詳細地介紹我們的業務和前景，特別是在我們都在經歷的宏觀經濟和受監管的大麻行業持續挑戰的背景下特別是，我們在過去的幾次電話會議中已經註意到這一點。

We also want to note the green shoots that we are seeing in the industry with the ongoing potential for passage of the SAFE Banking Act, state-level momentum for additional programs and tax relief and unit price stabilization trends we are seeing in certain markets, which Paul will spend more time discussing.

我們還想指出，我們在該行業中看到的萌芽，包括《安全銀行法》通過的持續潛力、州級額外計劃和稅收減免的動力以及我們在某些市場看到的單價穩定趨勢，這些保羅會花更多時間討論。

While the vast majority of our tenant base continues to perform, as we have previously discussed, our tenants Parallel and Green Peak are experiencing difficulties and defaulted on their obligation to pay rent for certain properties.

正如我們之前所討論的，雖然我們的絕大多數租戶群繼續表現良好，但我們的租戶 Parallel 和 Green Peak 卻遇到了困難，並且拖欠了某些物業的租金義務。

Paul will provide an update on the status of those situations. And as always, we are here to answer your questions to the extent we can. I will now turn the call over to Paul to discuss licensing and industry dynamics. Paul?

保羅將提供有關這些情況的最新情況。一如既往，我們會盡力回答您的問題。我現在將把電話轉給保羅，討論許可和行業動態。保羅？

Thanks, Alan. Before discussing overall market developments, I'd like to provide an update on the properties we previously disclosed, where tenants Parallel and Green Peak have not paid rent.

謝謝，艾倫。在討論整體市場發展之前，我想先介紹一下我們之前披露的物業的最新情況，其中租戶Parallel和Green Peak尚未支付租金。

As we noted then, and I think it's worth repeating here, we are, of course, first and foremost focused on maximizing the value of each of our properties and having tenants with strong teams that can manage their businesses successfully through the inevitable ups and downs of this industry.

正如我們當時指出的那樣，我認為值得在這裡重複一遍，當然，我們首先關注的是最大化我們每處房產的價值，並擁有擁有強大團隊的租戶，能夠在不可避免的起起落落中成功管理自己的業務這個行業的。

We have engaged local counsel and other advisers in these situations, commenced legal proceedings for damages and possession and are in discussions with applicable regulatory agencies. With our veteran team internally, in combination with our advisers across a spectrum of specialties, I am confident in our ability to successfully navigate these situations.

我們已就這些情況聘請了當地律師和其他顧問，針對損害和占有提起了法律訴訟，並正在與適用的監管機構進行討論。憑藉我們內部經驗豐富的團隊，再加上我們各個專業的顧問，我對我們成功應對這些情況的能力充滿信心。

In March, as many of you may know, Green Peak was placed into receivership. And in mid-March, we regained possession of the Summit building. In addition, we regained possession of 2 small retail locations in Michigan, previously leased to Green Peak, for which our total investment is less than $3 million.

正如你們很多人所知，三月份，Green Peak 被接管。三月中旬，我們重新獲得了峰會大樓的所有權。此外，我們還重新獲得了密歇根州2個小型零售店的所有權，這些零售店之前租給了Green Peak，我們的總投資不到300萬美元。

The receiver is paying rent on all other remaining properties leased to Green Peak, including the Harvest Park cultivation and processing facility and 4 other retail locations, and we are closely monitoring the situation and receivership process. We are currently in the process of discussing and touring the Summit property with interested cannabis operators.

接管人正在支付租賃給 Green Peak 的所有其他剩餘財產的租金，包括 Harvest Park 種植和加工設施以及其他 4 個零售地點，我們正在密切關注情況和接管流程。我們目前正在與感興趣的大麻經營者討論和參觀 Summit 地產。

As noted on our prior call, we also filed actions against Parallel for possession and damages at our Pennsylvania property and our Texas property, which is in the early stages of development. We regained possession of the Texas property in March, where Parallel failed to pay rent for the first time in February. We are actively exploring all options for these properties, including speaking to a number of interested parties.

正如我們之前的電話中所指出的，我們還對 Parallel 提起訴訟，要求其占有和損壞我們位於賓夕法尼亞州的房產和德克薩斯州的房產，該房產正處於開發的早期階段。我們於 3 月份重新獲得了德克薩斯州房產的所有權，而 Parallel 在 2 月份首次未能支付該房產的租金。我們正在積極探索這些房產的所有選擇，包括與一些感興趣的各方進行交談。

As we noted previously, Parallel continues to be current on their obligations for the 2 other properties we leased to them in Florida. Late last month, Parallel announced that it is ending its Pennsylvania operations on September 15, including at our facility and at its medical cannabis dispensaries in the towns of [Friendship] and Erie. We are closely monitoring the situation and continue to be in active discussions with a number of parties.

正如我們之前指出的，Parallel 繼續履行我們在佛羅里達州租給他們的另外兩處房產的義務。上個月末，Parallel 宣布將於 9 月 15 日結束在賓夕法尼亞州的業務，包括我們的工廠以及位於 [友誼] 和伊利鎮的醫用大麻藥房。我們正在密切關注事態發展，並繼續與多方積極討論。

Market developments. While it is clear that the regulated cannabis industry has experienced in the past several months and continues to experience a set of challenging circumstances, I would like to note that the growth of the overall cannabis industry in the United States is expected to continue to be strong, with industry research group, New Frontier Data projecting a doubling of annual sales from 2023 to 2030 to over $70 billion, representing a double-digit compound annual growth rate.

市場發展。雖然受監管的大麻行業顯然在過去幾個月中經歷了並將繼續經歷一系列具有挑戰性的情況，但我想指出的是，美國整體大麻行業的增長預計將繼續強勁行業研究團體New Frontier Data預計，從2023 年到2030 年，年銷售額將翻一番，達到700 億美元以上，複合年增長率達到兩位數。

The regulated cannabis industry remains an exceptional case of industry size and growth potential. As we have noted for some time now, unit pricing for regulated cannabis products have been challenged in certain states at the wholesale level, reflective of what we believe to be a number of factors, including basic supply, demand dynamics, lack of meaningful enforcement in certain states on illicit nonlicensed cannabis sales by state and local enforcement authorities, taxation and general macroeconomic conditions.

受監管的大麻行業在行業規模和增長潛力方面仍然是一個特例。正如我們一段時間以來所注意到的，受監管大麻產品的單位定價在某些州的批發層面受到了挑戰，這反映了我們認為的許多因素，包括基本供應、需求動態、缺乏有意義的執法某些州的州和地方執法機構非法無證大麻銷售、稅收和一般宏觀經濟狀況。

Reflecting that continued price compression in combination with the continued inflation on input and labor costs, we note that consensus analyst expectations for 2023 and 2024 sales and EBITDA growth have fallen significantly for publicly traded U.S. operators nearly across the board.

我們注意到，分析師對美國上市運營商的 2023 年和 2024 年銷售額和 EBITDA 增長的普遍預期幾乎全面大幅下降，反映出價格持續壓縮以及投入和勞動力成本持續通脹。

That said, this price compression dynamic is certainly not uniform across states, and we are cautiously optimistic that certain states, like California and Michigan, may be showing signs of price stability after months of declines. While new adult-use states, like Missouri and Maryland, are seeing very healthy wholesale price dynamics.

也就是說，這種價格壓縮動態在各州之間肯定並不統一，我們謹慎樂觀地認為，某些州，如加利福尼亞州和密歇根州，在經歷了數月的下跌後可能會顯示出價格穩定的跡象。而新的成人使用州，如密蘇里州和馬里蘭州，批發價格動態非常健康。

According to cannabis benchmarks, there has been stabilization in average wholesale pricing nationwide after significant declines last year, with recent nationwide wholesale pricing even showing a modest uptick in July versus pricing in December of last year.

根據大麻基準，全國平均批發價格在去年大幅下降後已趨於穩定，最近全國批發價格甚至在 7 月份較去年 12 月份略有上漲。

Capital availability. Another continuing theme from our prior calls is the tightening of financial conditions and the impact it continues to have on capital availability for the cannabis industry.

資本可用性。我們之前電話會議的另一個持續主題是金融狀況收緊及其對大麻行業資本可用性的持續影響。

As with other industries, the cost of capital and capital availability have fundamentally changed for cannabis operators over the course of the past year plus. As we noted previously, capital raising across the cannabis industry continues to be very subdued, with Viridian Capital Advisors reporting that U.S. operator capital raises were down more than 3 quarters in the first half of 2023 versus the prior-year period. And of those raises, over 85% was in the form of debt.

與其他行業一樣，在過去一年多的時間裡，大麻運營商的資本成本和資本可用性發生了根本性變化。正如我們之前指出的，整個大麻行業的融資活動仍然非常低迷，Viridian Capital Advisors 報告稱，2023 年上半年美國運營商的融資活動與去年同期相比下降了三個多季度。在這些加薪中，超過 85% 是以債務形式進行的。

The continued focus on debt in combination with ongoing pressure on equity valuations, with cannabis equities seeing further significant drawdowns in pricing over the first half of 2023, have driven a handful of publicly traded MSOs to have a debt-to-market cap ratio in excess of 5x.

對債務的持續關注，加上股票估值持續面臨壓力，大麻股票的定價在 2023 年上半年進一步大幅下跌，導致少數上市 MSO 的債務與市值比率過高5 倍。

As we noted from our prior call, we believe the present macroeconomic challenges of unit pricing compression and cost inflation, in combination with depressed valuations and capital availability, have translated into the larger MSOs focusing more on efficiency of existing operations and generating positive free cash flow versus growth through M&A.

正如我們在之前的電話會議中指出的那樣，我們認為當前單位定價壓縮和成本通脹的宏觀經濟挑戰，加上估值和資本可用性低迷，已轉化為大型MSO 更加關注現有運營效率和產生正的自由現金流與通過併購實現增長。

That certainly appeared to continue to be the case through the first half of this year, where we saw just over $1 billion in U.S. M&A transaction versus $2 billion in the first half of 2022 and $6 billion in the first half of 2021.

今年上半年的情況肯定會繼續如此，我們看到美國的併購交易額略高於 10 億美元，而 2022 年上半年為 20 億美元，2021 年上半年為 60 億美元。

State programs. Shifting to state-specific programs, as noted in prior calls, we continue to see momentum for both adult-use and medical-use adoption and rollout. Missouri officially launched its adult-use program in February, with regulated cannabis sales in March totaling over $126 million alone.

國家計劃。正如之前的電話會議中指出的那樣，轉向針對特定州的計劃，我們繼續看到成人使用和醫療用途採用和推出的勢頭。密蘇里州於 2 月份正式啟動了成人使用計劃，僅 3 月份受管制的大麻銷售總額就超過 1.26 億美元。

Maryland's adult-use cannabis program saw first legal sales on July 1, including over $10 million in sales in the first weekend alone. And in April, Delaware became the 22nd state to legalize adult-use cannabis with the licensing process they are expected to commence in 2024.

馬里蘭州的成人用大麻項目於 7 月 1 日首次實現合法銷售，僅第一個週末的銷售額就超過 1000 萬美元。今年 4 月，特拉華州成為第 22 個將成人用大麻合法化的州，預計將於 2024 年啟動許可程序。

In Minnesota, a bill legalizing adult-use cannabis was passed by both chambers, with the launch of the market projected in 2025. In March, Kentucky lawmakers overwhelmingly passed legislation to establish a medical cannabis program which is also expected to launch in 2025.

在明尼蘇達州，參眾兩院都通過了成人用大麻合法化的法案，預計該市場將於2025 年啟動。3 月，肯塔基州立法者以壓倒性多數通過立法，建立醫用大麻計劃，預計也將於2025 年啟動。

In Florida, a legalization campaign has already collected in excess of 1 million signatures to put on a recreational use referendum on the ballot next year, with Florida having the largest medical cannabis program already in the country, including more than 830,000 enrolled patients.

在佛羅里達州，合法化運動已經收集了超過 100 萬個簽名，以便在明年的選票上進行娛樂用途公投，佛羅里達州已經擁有該國最大的醫用大麻計劃，其中包括超過 830,000 名註冊患者。

We're also tracking other potential referendums or legislation regarding establishing regulated cannabis programs, including for adult use in Ohio, in South Dakota and medical cannabis programs in Nebraska, Idaho and Wyoming.

我們還在跟踪有關建立受監管大麻計劃的其他潛在公投或立法，包括俄亥俄州、南達科他州的成人使用以及內布拉斯加州、愛達荷州和懷俄明州的醫用大麻計劃。

Federal legislation. On the federal legislation front, as you know, versions of the SAFE Act have been introduced numerous times over the last several years in both the House and Senate. Believe it or not, we are at the tenth anniversary for when the first version of the SAFE Act bill was introduced in 4 years after it first passed the house with more than 100 Republican votes.

聯邦立法。在聯邦立法方面，如您所知，過去幾年，眾議院和參議院已多次提出《安全法案》的版本。不管你相信與否，我們正值《安全法案》第一版法案在四年後首次以 100 多張共和黨選票在眾議院獲得通過後提出十週年。

While Senate Majority Leader, Chuck Schumer's recent comments placed a priority on cannabis banking legislation, it remains highly uncertain whether such a bill could make it into the National Defense Authorization Act, one of the few bills passed each year on a bipartisan basis and one which has been targeted repeatedly as a vehicle to pass SAFE.

雖然參議院多數黨領袖查克·舒默(Chuck Schumer) 最近的評論將大麻銀行立法列為優先事項，但此類法案是否可以納入《國防授權法案》仍然存在高度不確定性，該法案是每年兩黨通過的少數法案之一，也是一項已多次成為通過 SAFE 的工具。

As in calls past, we also want to note some of the recent legislative movement and commentary by federal officials and commercial organizations, which we believe show the continued momentum forward for change.

與過去的電話會議一樣，我們還想指出最近的一些立法運動以及聯邦官員和商業組織的評論，我們認為這表明了變革的持續動力。

In June, the House Armed Services Committee approved a version of the NDAA with provisions to create a medical marijuana pilot program to examine the health impacts of Marijuana used by veterans and service members who are DoD veteran of fair beneficiaries that are diagnosed with PTSD, depression or anxiety or have been prescribed pain management.

6 月，眾議院軍事委員會批准了NDAA 的一個版本，其中規定創建一個醫用大麻試點計劃，以檢查退伍軍人和國防部退伍軍人以及被診斷患有創傷後應激障礙（PTSD）、抑鬱症的公平受益人使用大麻對健康的影響或焦慮或已接受疼痛治療。

Also in June, the Senate Appropriations Committee approved a spending bill that includes a provision allowing VA physicians to recommend medical cannabis as a potential treatment option for its veteran patients.

同樣在六月，參議院撥款委員會批准了一項支出法案，其中包括一項允許退伍軍人管理局醫生推薦醫用大麻作為退伍軍人患者潛在治療選擇的條款。

Finally, also in June, the President of one of the largest labor unions in the country wrote to the Biden administration, urging comprehensive cannabis reform, including full descheduling of cannabis from the Controlled Substance Act and provisions to protect state-based industries from monopolization.

最後，也是在6 月，該國最大工會之一的主席寫信給拜登政府，敦促進行全面的大麻改革，包括將大麻從《管制物質法》中全面取消，以及保護國有行業免受壟斷的規定。

I'd like to now turn the call over to Ben to discuss our investment and portfolio activity in the second quarter. Ben?

我現在想將電話轉給本，討論我們第二季度的投資和投資組合活動。本？

Thanks, Paul. It was a relatively quiet quarter in terms of acquisitions and additional investments in our portfolio. As we've noted for several quarters now, given the significant adjustments to cost of capital across industries, including our own cost of capital, and the macroeconomic uncertainties the regulated cannabis industry has been facing, we made the strategic decision to reduce our overall investment activity and continue to be extremely selective and patient in evaluating potential investment opportunities.

謝謝，保羅。就我們投資組合的收購和額外投資而言，這是一個相對平靜的季度。正如我們幾個季度以來所注意到的，鑑於各行業資本成本的重大調整，包括我們自己的資本成本，以及受監管的大麻行業面臨的宏觀經濟不確定性，我們做出了減少總體投資的戰略決定活動，並在評估潛在投資機會時繼續保持高度選擇性和耐心。

As Alan noted, we executed a lease for the Perez Road property in Cathedral City, a property under development that we took back from Kings Garden some months ago. We look forward to completing that project as a cannabis facility and having the tenant occupy pursuant to a long-term lease.

正如艾倫所指出的，我們簽署了大教堂城佩雷斯路房產的租約，這是我們幾個月前從國王花園收回的一處正在開發的房產。我們期待著將該項目作為大麻設施完成，並讓租戶根據長期租約入住。

Regarding our San Bernardino property, a property we took back from Kings Garden late last year, we continue to explore a potential mixed-use development of the property, which may include a self-storage component pursuant to an LOI executed with a potential joint venture partner. As we've previously noted, this project is in its early stages, and we expect the process to take many months, but we'll continue to report on progress as we can.

關於我們去年年底從 Kings Garden 收回的聖貝納迪諾房產，我們將繼續探索該房產潛在的混合用途開發，其中可能包括根據與潛在合資企業簽署的意向書的自助存儲部分夥伴。正如我們之前指出的，該項目正處於早期階段，我們預計該過程需要數月時間，但我們將繼續盡可能地報告進展情況。

For our properties in Texas and Pennsylvania, where Parallel defaulted, as Paul noted, we took back the Texas property in mid-March and exploring options for that site. In Pennsylvania, Parallel continues to occupy that property while we work through the process to regain possession in the context of Pennsylvania's licensing dynamics, and we will provide updates as we can. With that, I will turn it over to Catherine. Catherine?

正如 Paul 指出的那樣，對於我們在德克薩斯州和賓夕法尼亞州的資產，Parallel 違約了，我們於 3 月中旬收回了德克薩斯州的資產，並探索了該網站的選擇。在賓夕法尼亞州，Parallel 繼續佔據該財產，同時我們在賓夕法尼亞州許可動態的背景下努力重新獲得所有權，並且我們將盡力提供更新。這樣，我就把它交給凱瑟琳。凱瑟琳？

Thanks, Ben. For this call, I'll describe our property portfolio and tenant roster, in addition to our rent collection statistics and updates on our development projects.

謝謝，本。在這次電話會議中，除了我們的租金收集統計數據和開發項目的更新之外，我還將介紹我們的房地產投資組合和租戶名冊。

As of June 30, we owned 108 properties across 19 states, comprising 8.9 million rentable square feet. Of these 108 properties, 103 properties are included in our operating portfolio. Our portfolio continues to be well diversified, with no one tenant representing more than 14% of our total invested capital and no state representing more than 17% of our total invested capital.

截至 6 月 30 日，我們在 19 個州擁有 108 處房產，可出租面積為 890 萬平方英尺。在這 108 處房產中，有 103 處房產屬於我們的運營投資組合。我們的投資組合繼續保持多元化，沒有一個租戶占我們總投資資本的 14% 以上，也沒有一個州占我們總投資資本的 17% 以上。

We have relationships with some of the largest and most experienced operators in the industry, with our leased operating portfolio comprised of 89% multistate operators and 58% leased to public company tenants. In addition, for operators with multiple leases with us, we have cross-default provisions included for 42% of our operating portfolio, with another 14% of our operating portfolio leased to operators with just one lease with us.

我們與業內一些規模最大、經驗最豐富的運營商建立了合作關係，我們的租賃運營組合包括 89% 的跨國運營商和 58% 的租賃給上市公司租戶的運營商。此外，對於與我們簽訂多項租賃合同的運營商，我們為 42% 的運營投資組合製定了交叉違約條款，另外 14% 的運營投資組合租賃給僅與我們簽訂一份租賃合同的運營商。

The total amount of capital invested and committed across our operating portfolio equates to $275 per square foot, which we believe remains significantly below replacement cost. For the second quarter, we collected approximately 97% of contractually due base rent and property management fees from our operating portfolio. The 3% we did not collect, is related to contractual rent in excess of security deposits applied for our previously disclosed defaulted tenant Parallel at one of our Pennsylvania properties.

我們的運營投資組合投資和承諾的資本總額相當於每平方英尺 275 美元，我們認為該金額仍遠低於重置成本。第二季度，我們從運營組合中收取了約 97% 的合同到期基本租金和物業管理費。我們沒有收取的 3% 與合同租金有關，該租金超出了我們之前披露的賓夕法尼亞州一處房產的違約租戶 Parallel 所申請的保證金。

During the quarter for Green Peak, I'd like to note that we did collect an additional $305,000 in rent and operating expense reimbursements for the Summit building and the 2 small retail locations that the receivership turned back to us, plus collecting an additional $118,000 subsequent to quarter end in July by [petitioning] the court for payments during the receiverships occupancy.

我想指出的是，在Green Peak 季度期間，我們確實為Summit 大樓和破產管理權返還給我們的2 個小型零售店額外收取了305,000 美元的租金和運營費用報銷，此外還額外收取了118,000 美元的後續費用。到 7 月季度末，[請求]法院要求在破產管理權佔用期間付款。

The receiver continues to pay rent in full for the remaining locations that continues to occupy, which are the Harvest Park cultivation and processing facility and the remaining 4 retail locations. Our revenue in rent collection for the quarter included the application of approximately $1.5 million in security deposits.

接收方繼續為繼續佔用的剩餘地點全額支付租金，即 Harvest Park 種植和加工設施以及其餘 4 個零售地點。我們本季度的租金收入包括使用約 150 萬美元的保證金。

As we previously disclosed, we amended our leases with Holistic in exchange for the inclusion of cross-default provisions and extension of terms for all the leases, and they agreed to apply security deposits for rent payments to the Michigan and California properties through September 30, with pro rata payback of these security deposits starting in January 2024.

正如我們之前披露的，我們修改了與 Holistic 的租約，以換取納入交叉違約條款並延長所有租約的期限，並且他們同意在 9 月 30 日之前使用保證金來支付密歇根州和加利福尼亞州的房產租金。從2024 年1 月開始按比例償還這些保證金。

Similarly, as disclosed last quarter, we amended our lease with Temescal in Massachusetts, a property that experienced delays in completion of construction, pursuant to which we extended the term of the lease, temporarily reduced base rent for April through January and then increased the base rent for the remainder of the term with application of security deposits for certain rent payments.

同樣，正如上季度所披露的，我們修改了與馬薩諸塞州Temescal 的租約，該物業的施工進度出現延誤，據此我們延長了租約期限，暫時降低了4 月至1 月的基本租金，然後增加了基本租金剩餘期限的租金，並使用保證金支付某些租金。

In July, similar to our second quarter stats, we collected approximately 97% of contractually due base rent and property management fees from our operating portfolio, with the 3% we did not collect relating to our previously disclosed defaulted tenant Parallel in Pennsylvania.

7 月份，與我們第二季度的統計數據類似，我們從我們的運營投資組合中收取了約97% 的合同到期基本租金和物業管理費，其中3% 的費用與我們之前披露的賓夕法尼亞州平行租戶有關。

We also continued to fund draws for improvement allowances or construction development to our operators under our leases. As we previously noted on prior calls, these improvements are critical for the efficient production of quality cannabis products at scale.

我們還繼續根據租約向運營商提供改善津貼或建築開發資金。正如我們之前在之前的電話會議中指出的那樣，這些改進對於大規模高效生產優質大麻產品至關重要。

In Q2 of 2023, we funded a net $45 million for building improvements and construction activity at our properties. As in prior quarters, we continue to see construction delays related to the delivery of electrical infrastructure, specifically switchgears, which is a common delay that we've seen across the entire construction industry.

2023 年第二季度，我們淨資助 4500 萬美元，用於我們物業的建築改善和建設活動。與前幾個季度一樣，我們繼續看到與電力基礎設施交付相關的施工延誤，特別是開關設備，這是我們在整個建築行業看到的常見延誤。

We continue to believe in the tremendous value of our mission-critical real estate portfolio as well as our operators and their ability to weather the current conditions, and we'll continue to monitor their progress closely in the coming months. And with that, I'll turn it over to David. David?

我們仍然相信我們的關鍵任務房地產投資組合以及我們的運營商及其應對當前狀況的能力的巨大價值，我們將在未來幾個月繼續密切關注他們的進展。有了這個，我會把它交給大衛。大衛？

Thank you, Catherine. For the second quarter, we generated total revenues of $76 million, an 8% increase from Q2 of last year. The increase was driven primarily by prior period's acquisition and leasing of new properties, additional funding of building improvements provided to tenants at certain properties that resulted in base rent increases, contractual rental escalations at certain properties and higher tenant reimbursements.

謝謝你，凱瑟琳。第二季度，我們的總收入為 7600 萬美元，比去年第二季度增長 8%。這一增長主要是由於上期收購和租賃新房產、為某些房產的租戶提供的建築改善額外資金導致基本租金上漲、某些房產的合同租金上漲以及租戶報銷增加所致。

As Catherine noted, the $76 million of revenue for the second quarter included $1.5 million of security deposits applied for payments of rents or $0.05 per share relating to the Holistic leases in Michigan and California and the Temescal lease in Massachusetts that we previously disclosed.

正如Catherine 指出的那樣，第二季度7600 萬美元的收入包括用於支付租金的150 萬美元保證金或與我們之前披露的密歇根州和加利福尼亞州Holistic 租賃以及馬薩諸塞州Temescal 租賃相關的每股0.05 美元的保證金。

For the 3 months ended June 30, 2023, we recorded net income attributable to common stockholders of $41 million or $1.44 per diluted share. Adjusted funds from operations for the second quarter was $64 million or $2.26 per diluted share, an increase of 5% compared to the $2.15 per share of AFFO generated in the second quarter of 2022.

截至 2023 年 6 月 30 日的三個月，我們記錄的歸屬於普通股股東的淨利潤為 4100 萬美元，即稀釋後每股收益 1.44 美元。第二季度調整後的運營資金為 6400 萬美元，即稀釋後每股 2.26 美元，與 2022 年第二季度 AFFO 每股 2.15 美元相比增長了 5%。

Our second quarter AFFO was up $0.01 compared to the first quarter AFFO of $2.25, which included an $0.11 nonrecurring benefit from the application of security deposits for Green Peak and Parallel, as I mentioned on the call in May.

我們第二季度的AFFO 比第一季度的AFFO 2.25 美元增長了0.01 美元，其中包括從Green Peak 和Parallel 的保證金申請中獲得的0.11 美元的非經常性收益，正如我在5 月份的電話會議上提到的。

AFFO for the second quarter benefited from a full quarter's impact of our first quarter investment activity, totaling $91 million, a full quarter of rent on our Calyx Peak property, which had a previously disclosed rent deferral end on March 31 and rent escalations.

第二季度的AFFO 受益於我們第一季度投資活動的整個季度的影響，總計9100 萬美元，相當於我們Calyx Peak 房產的整個季度租金，該房產之前披露的租金延期已於3 月31 日結束，並且租金上漲。

On July 14, we paid a quarterly dividend of $1.80 per share to common stockholders of record as of June 30, equivalent to an annualized dividend of $7.20 per common share. Our dividend remained covered by our AFFO during the quarter with a payout ratio of 80%, which is in line with the Board's targeted payout ratio of 75% to 85% of AFFO.

7 月 14 日，我們向截至 6 月 30 日登記在冊的普通股股東支付了每股 1.80 美元的季度股息，相當於每股普通股 7.20 美元的年化股息。本季度我們的股息仍然由 AFFO 支付，支付率為 80%，這符合董事會 AFFO 75% 至 85% 的目標支付率。

At quarter end, we had approximately $2.6 billion in total gross assets and roughly $304 million in debt, importantly, all of which is at a fixed rate. Our debt consists solely of unsecured debt, with a majority of this, or $300 million, not maturing for roughly 3 years until May 2026.

截至季度末，我們的總資產約為 26 億美元，債務約為 3.04 億美元，重要的是，所有這些都是固定利率的。我們的債務僅由無擔保債務組成，其中大部分（即 3 億美元）在大約 3 年內到期，直到 2026 年 5 月。

At quarter end, our credit metrics remain strong and among the best in the entire publicly traded REIT industry, with a debt-to-gross assets ratio of less than 12% and a debt service coverage ratio in excess of 16x. In addition, the company continues to generate significant cash flow from operations, which totaled nearly $240 million over the last 12 months.

截至季度末，我們的信用指標依然強勁，在整個上市 REIT 行業中名列前茅，債務與總資產比率低於 12%，償債覆蓋率超過 16 倍。此外，該公司繼續從運營中產生大量現金流，過去 12 個月總計近 2.4 億美元。

With that, I'll turn it back to Alan. Alan?

有了這個，我會把它轉回給艾倫。艾倫？

Thank you, David. I'd like to note the following in closing. Our conviction is as strong as ever in the long-term growth and promise of the regulated cannabis industry. Our team of highly experienced talented professionals will continue to work through the inevitable challenges that rapidly evolving high-growth industries face.

謝謝你，大衛。最後我想指出以下幾點。我們對受監管的大麻行業的長期增長和前景一如既往地堅信。我們的經驗豐富的專業人才團隊將繼續努力應對快速發展的高增長行業所面臨的不可避免的挑戰。

With the quality of our team and the quality of our facilities, I believe we are well positioned to meet these challenges and continue to focus on value creation for you all, our valued long-term owners.

憑藉我們團隊的素質和設施的質量，我相信我們有能力應對這些挑戰，並繼續專注於為你們所有人（我們尊貴的長期所有者）創造價值。

With that, I'd like to open it up to questions. Operator, could you please open the call up for questions?

說到這裡，我想提出一些問題。接線員，您可以撥打電話詢問問題嗎？

(Operator Instructions) And our first question comes from Tom Catherwood from BTIG.

（操作員說明）我們的第一個問題來自 BTIG 的 Tom Catherwood。

Paul, I appreciate the detail in your prepared remarks talking about the broader macroeconomic picture and how it's mixed both on the negative side and on the green shoot side. But when you take a step back, what is your expectation or the company's expectation for the cannabis industry through the rest of '23? And how are your tenants positioned?

保羅，我很欣賞你在準備好的講話中詳細討論了更廣泛的宏觀經濟形勢，以及它如何在消極方面和綠色萌芽方面混合在一起。但是，當您退後一步時，您或公司對 23 年剩餘時間大麻行業的期望是什麼？您的租戶定位如何？

Yes. Thanks, Tom. So I think it's no surprise that we're not expecting any major turn, I think, for the next -- for the rest of the year. I think with interest rates where they are, I think it's going to remain a bit of a challenged market. But we are happy to report that our MSOs and our tenants are doing very well under the conditions they're operating. And so I think overall for the industry it's going to remain a bit of a challenged environment, but we're very pleased with the way our tenants are performing.

是的。謝謝，湯姆。因此，我認為我們預計明年剩餘時間不會出現任何重大轉變，這並不奇怪。我認為，就目前的利率而言，我認為市場仍將面臨一些挑戰。但我們很高興地報告，我們的 MSO 和租戶在他們的運營條件下表現得非常好。因此，我認為總體而言，對於該行業來說，這仍將是一個充滿挑戰的環境，但我們對租戶的表現非常滿意。

Yes, this is Alan. And as a matter of fact that over probably -- I think it's 86% of our portfolio, our tenants are adjusted EBITDA positive. And as you know that 58% of our portfolio is public, and of those public companies, 96% of those are adjusted EBITDA positive or better, with the balance expected to get to that metric end of this year or middle of next year. So I think very strong health of our tenants.

是的，這是艾倫。事實上，我認為我們的租戶的 EBITDA 調整後的 EBITDA 可能為正，占我們投資組合的 86%。如您所知，我們投資組合的 58% 是上市公司，而在這些上市公司中，其中 96% 的調整後 EBITDA 為正或更好，預計餘額將在今年年底或明年年中達到該指標。所以我認為我們的租戶非常健康。

Got it. Appreciate that. And then maybe, Paul, sticking with you again, you mentioned operators have retrenched and are prioritizing cash flow. Alan, that goes to what you mentioned as far as being adjusted EBITDA positive. But at the same time, new markets opening in Maryland and Missouri and obviously, other ones following close thereafter, what trends are you seeing, if any, in terms of new investments and expansion plans from cannabis companies?

知道了。感謝。保羅，也許你又提到運營商已經緊縮開支並優先考慮現金流。艾倫，這就是你提到的調整後 EBITDA 為正值的情況。但與此同時，馬里蘭州和密蘇里州的新市場開放，顯然，其他市場也緊隨其後，您在大麻公司的新投資和擴張計劃方面看到了什麼趨勢（如果有的話）？

I think we are [accurate] when we say we're seeing some retrenching. I think as you look at what happened with the Cresco and Columbia deal, there were some retrenching there, and they ran in some difficulty about trying to divest some of the assets in Florida and Ohio. So we look at that as perhaps a positive in the sense that these things are shaking out.

我認為當我們說我們看到一些緊縮措施時，我們是[準確的]。我認為，當你看看克雷斯科和哥倫比亞交易發生的情況時，就會發現那裡有一些緊縮，他們在試圖剝離佛羅里達州和俄亥俄州的一些資產時遇到了一些困難。因此，我們認為這可能是積極的，因為這些事情正在發生變化。

So I think as these operators become more efficient, they are going to look to grow. And there are great opportunities, as you mentioned, in Missouri and Maryland, we look at Delaware. We're going to launch next year. We're looking forward to Minnesota, launching the REC program in '25, and of course, all eyes on Florida to get that vote by the end of the year in November on the ballot.

所以我認為，隨著這些運營商變得更加高效，他們將會尋求增長。正如您提到的，密蘇里州和馬里蘭州有很好的機會，我們關注特拉華州。我們將於明年推出。我們期待明尼蘇達州在 25 年啟動 REC 計劃，當然，所有人都在關注佛羅里達州，希望能在年底 11 月的投票中獲得投票。

So we think there's tremendous opportunities in these large states that are getting ready or have converted from medical to adult use. So we think the operators that are increasing their efficiencies, we'll look to expand in those states.

因此，我們認為這些正在準備或已從醫療用途轉向成人用途的大州存在巨大的機會。因此，我們認為運營商正在提高效率，我們將尋求在這些州進行擴張。

And then last one for me, Ben. Could you provide some more detail the backfill of the Perez Road asset? And then, if you can maybe talk about the process and when the lease commences and how the rent compares to the prior agreement.

最後一個是我的，本。您能否提供佩雷斯路資產回填的更多細節？然後，您是否可以談談流程、租賃何時開始以及租金與之前協議的比較如何。

Yes, sure, no problem. So that was a property, as you know, we took back from Kings Garden a number of months ago. We marketed it, and we're very happy with how quickly we were able to put that under LOI. As you know, that property is still under development, so there will be a period of time where we wrap up construction, get the tenant in there before they're starting to pay rent.

是的，當然，沒問題。正如你所知，這是我們幾個月前從國王花園收回的財產。我們對它進行了營銷，我們對能夠如此迅速地將其納入意向書感到非常高興。如您所知，該房產仍在開發中，因此我們將在一段時間內完成施工，讓租戶在開始支付租金之前入住。

That is a private California operator. And the returns we're seeing on the deal are right at where we were with the previous tenant. So again, very excited to get the new -- get the building done, get the new tenant in there and feel very, very good about where that's going forward.

那是一家加州私人運營商。我們在這筆交易中看到的回報與我們與前任租戶的回報是一樣的。再說一次，我非常高興能得到新的——把大樓建成，讓新租戶住進去，並對未來的發展感到非常非常好。

And we have a question now from Eric Des Lauriers from Craig-Hallum Capital.

現在我們有一個來自 Craig-Hallum Capital 的 Eric Des Lauriers 的問題。

First one, I figured it was just -- since you brought up the Columbia Care and Cresco deal, I'm just wondering, how you're looking at both those tenants? And if there's any -- if you're starting to work with them on any potential flexibility? Or just kind of wondering, just how you're looking at these two tenants in light of this combination not going through?

第一個，我想這只是 - 自從你提出了 Columbia Care 和 Cresco 的交易以來，我只是想知道，你如何看待這兩個租戶？如果有的話——如果你開始與他們合作以實現任何潛在的靈活性？或者只是想知道，鑑於這種合併沒有成功，您如何看待這兩個租戶？

I mean, I think we're very happy with both the tenants. I think they're very strong in their own behalf, and they continue to pay rent. And everything is good.

我的意思是，我認為我們對這兩位租戶都非常滿意。我認為他們對自己的利益非常強大，並且他們繼續支付租金。一切都很好。

All right. And then just in terms of New York, just kind of like as a case study, obviously, it's a market that hasn't had as robust of a start as many had expected, and you have illicit market competition kind of seeping in there. I'm wondering, how you're looking at the New York opportunity here? There are more licensees coming online.

好的。就紐約而言，就像一個案例研究一樣，顯然，這個市場的起步並不像許多人預期的那樣強勁，而且非法市場競爭正在滲透其中。我想知道，您如何看待紐約的機會？有更多的被許可人上線。

Are those potential opportunities for you? Are you kind of -- are you focused on New York? Is that a state that you're avoiding? If you could just help us understand sort of how you're thinking about potentially deploying capital in New York in light of how the market has rolled out.

這些對你來說是潛在的機會嗎？你是不是專注於紐約？這是你要避免的狀態嗎？如果您能幫助我們了解您如何考慮根據市場的發展情況在紐約部署資本。

So I mean, first of all, New York is a very robust market just by the virtue of the number of nonlicensed sellers that are selling cannabis on a regular basis in that market and how the authorities are having to really focus on cracking down on that. So I think that's a really strong thing. But Paul, what do you think about...

所以我的意思是，首先，紐約是一個非常強勁的市場，因為在該市場上定期銷售大麻的無證賣家數量很多，而且當局必須真正集中精力打擊這種情況。所以我認為這是一件非常強大的事情。但是保羅，你覺得怎麼樣......

Yes, 100% because the headline last week, of course, was the authorities shut down 7 unlicensed operators Upstate New York, with promises of more to come. So as far as we look at the black market as an impediment to sales growth in New York, I think Albany has gotten the message, and they're out there enforcing the unlicensed operators. So I think that's a positive for the market in New York.

是的，100%，因為上週的頭條新聞當然是當局關閉了紐約州北部的 7 家無照運營商，並承諾將關閉更多運營商。因此，就我們將黑市視為紐約銷售增長的障礙而言，我認為奧爾巴尼已經明白了這一點，他們正在對無證經營者進行執法。所以我認為這對紐約市場來說是積極的。

And so New York remains a market that you are potentially looking to deploy capital into?

那麼紐約仍然是您可能尋求配置資本的市場嗎？

Well, as we -- as Ben and Paul had indicated, we're being very cautious about deploying capital, certainly in the next couple of quarters. New York continues to have things that it's going to work out. And as it continues to work out, we will be constantly evaluating not only the market, but any new potential growers and their financial strength and ability to really operate within what we think is a robust and competitive market.

嗯，正如本和保羅所指出的那樣，我們對資本部署非常謹慎，尤其是在接下來的幾個季度。紐約仍然有一些事情可以解決。隨著它的繼續發展，我們不僅會不斷評估市場，還會評估任何新的潛在種植者及其財務實力和在我們認為強大且競爭激烈的市場中真正運營的能力。

All right. That's helpful. And then last question for me here. I'm just kind of wondering your comfort level with most of your tenants' ability to raise capital. Obviously, you commented on something like the Viridian figures with obviously, capital raises are down pretty significantly this year and remains scarce in the industry. You highlighted the positive adjusted EBITDA with most of your tenants, obviously, with 280 [e-taxes], cash flow is kind of a whole another beast.

好的。這很有幫助。然後是我的最後一個問題。我只是想知道您對大多數租戶籌集資金的能力是否滿意。顯然，您對 Viridian 數據之類的內容進行了評論，顯然，今年的融資額大幅下降，並且在該行業仍然稀缺。您強調了大多數租戶的正調整 EBITDA，顯然，280 [電子稅]，現金流完全是另一頭野獸。

And so I'm just wondering, how you're sort of looking at that equation? I mean, it sounds like you're very comfortable with some of the tenants that you have, even some of these with the Columbia and Cresco deal falling apart, for example.

所以我只是想知道，你是如何看待這個方程的？我的意思是，聽起來您對自己擁有的一些租戶感到非常滿意，甚至其中一些租戶與哥倫比亞和克雷斯科的交易破裂了。

And so I'm just wondering, I guess if this is something that you're kind of focused on and see the sort of light at the end of the tunnel or if it's just that so far, so good, and we're going to continue to try to support the highest quality ones we can?

所以我只是想知道，我想這是否是你所關注的事情，並看到隧道盡頭的那種光，或者是否只是到目前為止，那麼好，我們要去繼續盡力支持最高質量的產品？

I think so far, so good. We're supporting the highest-quality tenants that we have in our portfolio. We're very, very proud of the tenants that we have in our portfolio. The market continues to be dynamic, especially in this -- the issues with the broader macro economy. We are cautiously optimistic as to the future of the industry while it continues to grow very rapidly and with expected significant increases in revenue.

我認為到目前為止，一切都很好。我們正在支持我們投資組合中最優質的租戶。我們對我們投資組合中的租戶感到非常非常自豪。市場仍然充滿活力，尤其是在更廣泛的宏觀經濟問題上。我們對該行業的未來持謹慎樂觀態度，該行業繼續快速增長，預計收入將大幅增長。

And we have a question from Alexander Goldfarb from Piper Sandler.

Piper Sandler 的 Alexander Goldfarb 向我們提出了一個問題。

And I guess maybe from California, your optimism for Albany doing something is impressive. New York, we have maybe a jaded view. But -- so two questions here. The first is, Alan, you spoke about -- or Paul, I forget, you spoke about 85% of your tenants being adjusted EBITDA positive. And obviously, adjusted stands out. And then, there's the cost of financing.

我想也許來自加利福尼亞州，你對奧爾巴尼做某事的樂觀態度令人印象深刻。紐約，我們可能有一種厭倦的看法。但是——這裡有兩個問題。第一個是，艾倫，你談到了——或者保羅，我忘了，你談到你的 85% 的租戶調整後的 EBITDA 為正值。顯然，調整後的情況很突出。然後，還有融資成本。

So when you look at your tenants on a cash -- like bottom line cash profitability after they've paid their financing costs and everything else, would you stand by that 85% number? Or where does that number really shake out?

因此，當您以現金來衡量租戶時，比如他們支付融資成本和其他所有費用後的底線現金盈利能力，您會支持 85% 的數字嗎？或者這個數字到底在哪裡發生變化？

I mean I think we've analyzed it, and we believe the 85% or 86% of our tenants are adjusted EBITDA positive. And moving towards, I think, full free cash flow is something that they're all striving to do by reducing headcounts and focusing on expenses and driving revenues as best they can, knowing that cost of capital is significant and perhaps even increasing. So no, we're very positive, and you shouldn't be bringing up politics on a call like that. I mean, Alex, come on. No, I'm just kidding.

我的意思是，我認為我們已經對此進行了分析，並且我們相信 85% 或 86% 的租戶調整後的 EBITDA 為正值。我認為，他們都在努力實現完全的自由現金流，通過減少員工數量、專注於支出並儘最大努力增加收入，因為他們知道資本成本很高，甚至可能還在增加。所以不，我們非常積極，你不應該在這樣的電話會議上談論政治。我的意思是，亞歷克斯，來吧。不，我只是開玩笑。

And -- but when you look at the profitability, I mean, that's ultimately what we're going for here, right? So how many of your tenants -- when you move beyond the adjusted EBITDA and you say that the tenants are working towards cash flow profitability, where do your tenants stand right now? Do you think half of them are cash flow positive, so it's really just, "Hey, we need another 50%"? Is it less than that?

而且——但是當你考慮盈利能力時，我的意思是，這就是我們最終的目標，對嗎？那麼，當您超出調整後的 EBITDA 並說租戶正在努力實現現金流盈利時，您有多少租戶，您的租戶現在處於什麼位置？您是否認為其中一半的現金流為正，因此實際上只是“嘿，我們還需要 50%”？是不是比這個還少？

I'm just trying to get a perspective because, obviously, we're all concerned about what's going on in the industry. Tenants are having to renegotiate or use security deposits. So just trying to get a sense of where the profitability level of your tenants currently stands on a cash basis.

我只是想了解一個觀點，因為顯然我們都關心這個行業正在發生的事情。租戶不得不重新談判或使用保證金。因此，只是想了解一下租戶目前以現金計算的盈利水平。

Yes. I mean I think that we're very comfortable with our tenants and their profitability status. We're very comfortable with the program that we've used in the past for our tenants to bridge some of the supply chain issues in their completion of their -- the developments that have allowed them to be successful and continue to pay rent after the deferrals have expired. We think that that's been a very positive thing and something that we'll continue to look at.

是的。我的意思是，我認為我們對我們的租戶及其盈利狀況非常滿意。我們對過去為租戶使用的計劃感到非常滿意，該計劃幫助我們的租戶在完成他們的項目時解決了一些供應鏈問題——這些發展使他們能夠取得成功並在租期結束後繼續支付租金。延期已過期。我們認為這是一件非常積極的事情，我們將繼續關注。

No. I think in general, we are very, very positive with our tenants. And I think you can look at statistics in a lot of different ways. And keeping in mind that we have not only public companies, which you can have access to see what their financial strength is and where they're financials are going because, as you know, and I mentioned 58% of our tenants are public. And then on our private, in general, our private tenants are doing very well.

不。我認為總的來說，我們對租戶非常非常積極。我認為你可以用很多不同的方式來看待統計數據。請記住，我們不僅擁有上市公司，您還可以通過這些公司了解他們的財務實力以及財務狀況，因為如您所知，我提到我們 58% 的租戶是上市公司。然後在我們的私人方面，總的來說，我們的私人租戶做得很好。

Okay. The second question is, one of the themes in the industry has been overcapacity that people invested and built for a bigger market than has actually occurred, whether it's because slower rollouts or competition from the illicit market.

好的。第二個問題是，該行業的主題之一是人們為比實際情況更大的市場投資和建設的產能過剩，無論是因為推出速度較慢還是來自非法市場的競爭。

As you guys assess your portfolio in the states within you operate, do you have a sense of how far overcapacity the markets are or some metric that sort of helps frame out maybe how much of a shakeout or how much consolidation needs to occur?

當你們評估你們所在州的投資組合時，你們是否了解市場產能過剩的程度，或者是否有某種指標可以幫助確定需要進行多少次洗牌或進行多少次整合？

Well, I mean, you could -- I don't know if I can answer it and answer your question on the way you've asked it. But look, the tenants are performing well. The markets are -- they are -- revenues are increasing. Sales are occurring. It's really hard to say that there's overcapacity and a bunch of new growers being funded, but -- when we just talked about how there's very little capital going into this market.

嗯，我的意思是，你可以——我不知道我是否可以回答這個問題並按照你提出的方式回答你的問題。但你看，租戶們的表現都不錯。市場——確實——收入正在增加。銷售正在發生。確實很難說存在產能過剩和一批新種植者獲得資金，但是——當我們剛剛談到進入這個市場的資本非常少時。

So you can't have it both ways, Alex. So it's either -- there's very little capital and that's a concern or there's new growers and overcapacity. That just doesn't make any sense.

所以你不能兩者兼顧，亞歷克斯。因此，要么資本很少，這是一個令人擔憂的問題，要么有新的種植者和產能過剩。那沒有任何意義。

Yes, I wasn't talking about new. I was talking about what was already built in the system. Clearly, I'm not talking about new.

是的，我不是在談論新的。我說的是系統中已經內置的內容。顯然，我不是在談論新的。

Yes. And then what's already built in the system, as the market continues to grow as these -- the states move to adult use, capacity will be used to deal with that increased usage of the product. As we indicated that by 2030, there is expected to be a doubling of the revenue sales of this product, not all of that's going to be based on because of inflation, but actual additional use.

是的。然後，隨著市場繼續增長，系統中已經內置了這些——各州轉向成人使用，容量將用於處理產品使用量的增加。正如我們所指出的，到 2030 年，該產品的銷售收入預計將翻一番，並非所有這一切都基於通貨膨脹，而是基於實際的額外使用。

Our next question comes from Andrew Rosivach from Wolfe Research.

我們的下一個問題來自沃爾夫研究中心的安德魯·羅西瓦奇。

Andrew. So I apologize, I'm piling on with another tenant credit question. Here's kind of maybe a way to frame it. I think the reason why my peers and I keep asking is these publicly traded names, we look at the credit math -- something simple, just look at the market cap, some of these names are under $200 million. Some of them are under $100 million.

安德魯。所以我很抱歉，我正在處理另一個租戶信用問題。這可能是一種構建它的方法。我認為我和我的同事一直問的原因是這些公開交易的名字，我們看信用數學——很簡單，只要看看市值，其中一些名字低於 2 億美元。其中一些不到 1 億美元。

And maybe to frame it, a lot of the guys that you're hearing, we also cover retail REITs, and they'll often talk about a credit loss reserve that the companies just kind of put in their guides. And have you guys ever thought of or would you potentially throw out when you look at your watchlist of tenants, what might be an appropriate credit watchlist -- credit reserve to put in your model for the next 3 or 6 months?

也許為了框架它，你聽到的很多人，我們也涵蓋零售房地產投資信託基金，他們經常會談論公司只是將其放入其指南中的信用損失準備金。你們有沒有想過，或者當您查看租戶觀察列表時，您可能會拋棄什麼可能是合適的信用觀察列表——未來 3 或 6 個月放入您的模型中的信用準備金？

I mean I think that we're reporting record revenues, we're reporting revenues that have increased significantly year-over-year. We've a deep dive in all of our tenants. We're watching our tenants. We're doing what it's necessary to make sure that the tenants continue to operate well and pay their rent.

我的意思是，我認為我們正在報告創紀錄的收入，我們報告的收入同比大幅增長。我們對所有租戶進行了深入調查。我們正在監視我們的租戶。我們正在採取必要措施，確保租戶繼續良好運營並支付租金。

We don't have a defined credit -- loss reserve because we don't believe that, that's an appropriate way to look at it. We'll take whatever situation, disclose it transparently to everybody, and everybody can focus in on the actual loss, if there is going to be one, from any one of those specific situations, which we think we haven't -- luckily, we haven't had to announce anything for a long period of time.

我們沒有明確的信用損失準備金，因為我們不認為這是一個合適的看待它的方式。我們將採取任何情況，透明地向每個人披露，每個人都可以關注實際損失，如果有的話，來自任何一種具體情況，我們認為我們還沒有——幸運的是，我們已經很長一段時間沒有宣布任何事情了。

And we, again, remind everybody of the strength of our tenants and the good -- and the high-quality health of our tenants. So why would we look at a loss reserve? Now, our -- the -- anybody who underwrites the company -- our company, can certainly use whatever metric they want and underwriting the information that we transparently and fully have disclosed.

我們再次提醒大家我們租戶的實力和良好的品質以及租戶的高質量健康。那麼我們為什麼要考慮損失準備金呢？現在，我們的——任何承保公司——我們公司的人，當然可以使用他們想要的任何指標，並承保我們透明、充分披露的信息。

I know I'm kind of throwing out an idea out of the blue. One -- just two other things. When you're 97% collected, what kind of payable period would that be, like 60 days, 90 days, before they would be outside of the 97%?

我知道我有點突然拋出了一個想法。一——還有另外兩件事。當您收到 97% 的款項時，在超出 97% 之前，付款期限是多少，例如 60 天、90 天？

That's all current. That's current pay. They're currently -- they paid the rent.

這就是當前的全部。這是現在的工資。他們目前——他們支付了租金。

They paid August...

他們支付了八月...

On time. They paid the rent on time.

準時。他們按時付了房租。

August, on time. Okay. And then one other, your construction loan, is that -- does that loan operate -- that's on the balance sheet, does that operate as a [PICC] in kind?

八月，準時。好的。然後另一項，你的建築貸款，是——這筆貸款是否運作——在資產負債表上，它是否以[人保財險]的形式運作？

There -- Andrew, this is Ben. They're making cash payments as well towards that loan as they're wrapping up construction there.

那裡——安德魯，這是本。當他們完成那裡的建設時，他們也會支付現金以及貸款。

Got it. Okay. So that's -- what's the cash payment, the rate they're paying now?

知道了。好的。那麼，他們現在支付的現金支付率是多少？

That's a private company and -- details of which we have not disclosed. But we are very happy with the progress that we made on construction and the payments that we've received and feel very good about that, going forward.

那是一家私營公司，我們尚未透露其詳細信息。但我們對建設取得的進展和收到的付款感到非常滿意，並對未來的發展感到非常滿意。

We have a question from Scott Fortune from ROTH MKM.

我們有來自 ROTH MKM 的 Scott Fortune 的問題。

Let me summarize it this way differently, maybe I can ask Ben because as Chief Investment Officer, you're talking with a lot of these tenants. It seems to getting beyond the major concern of the tenants, as Alan and Paul have indicated, right?

讓我以不同的方式總結一下，也許我可以問本，因為作為首席投資官，你正在與很多這樣的租戶交談。正如艾倫和保羅所指出的，這似乎超出了租戶的主要關注點，對吧？

We still -- it'll be helpful to get federal legislation from that standpoint. But most of the tenants have extended debt, they've made meaningful cuts to their OpEx and CapEx. And we're expecting to see significant cash flow generation here. And that should bode well for the industry as we're seeing green shoots, kind of the fundamentals start to stabilize and improve.

我們仍然——從這個角度來看，聯邦立法將會有所幫助。但大多數租戶都延長了債務，他們大幅削減了運營支出和資本支出。我們預計這裡會產生大量現金流。這對這個行業來說應該是個好兆頭，因為我們看到了萌芽，基本面開始穩定和改善。

But I just want to get a sense, Ben, from your discussions with your strong -- these large MSO operators have solid balance sheet and potential green shoots coming here, are you discussing like new states like Maryland and New Jersey, where there's limited -- or you have more opportunities there to grow with them? And part of this discussion, too, is that there's still a very highly illicit market out there that needs to be converted to the regulated side, which there's not enough supply for that.

但我只是想了解一下，Ben，從你與你的強者的討論中得到一個感覺- 這些大型MSO 運營商擁有穩健的資產負債表和潛在的新芽來到這裡，你是否正在討論像馬里蘭州和新澤西州這樣的新州，那裡的資源有限 - - 或者你有更多機會與他們一起成長？此次討論的一部分還在於，仍然存在一個非常高度非法的市場，需要轉換為受監管的市場，但供應不足。

But just your sense been in talking to the operators and tenants, their health overall and kind of some new opportunities that you're talking with them, obviously cautious and still a challenging year, but looking into 2024 potentially.

但就你在與運營商和租戶交談時的感覺而言，他們的整體健康狀況以及你正在與他們交談的一些新機會，顯然是謹慎的，仍然是充滿挑戰的一年，但展望2024 年是有可能的。

Yes. Scott, sure. So yes, we do talk to all of our tenants on a regular basis. We are seeing the green shoots that you mentioned, whether that's pricing stabilization and even increasing in wholesale pricing in markets like Michigan, where they have started to crack down on the illicit market. The adult-use rollout in states like Missouri or Maryland, many of our tenants have exposure to those markets.

是的。斯科特，當然。所以，是的，我們確實定期與所有租戶交談。我們看到了你提到的萌芽，無論是價格穩定，還是密歇根等市場批發價格的增加，他們已經開始打擊非法市場。在密蘇里州或馬里蘭州等州推出成人使用產品，我們的許多租戶都接觸過這些市場。

As we mentioned before, we are being very selective and patient in terms new opportunities. We think that's the right thing to do, given current market conditions. But all -- I would say, all of our tenants are -- they do feel the same way, and they see opportunities in a lot of these markets. And you have tremendous potential in a state like Pennsylvania, Florida, potentially converting to adult-use market.

正如我們之前提到的，我們對新機會非常有選擇性和耐心。考慮到當前的市場狀況，我們認為這是正確的做法。但我們所有的租戶——我想說，我們所有的租戶——他們確實有同樣的感覺，並且他們在很多這樣的市場中看到了機會。在賓夕法尼亞州、佛羅里達州等州，您擁有巨大的潛力，有可能轉向成人使用市場。

We usually see 2 to 3x revenue increase when something like that happens. So I think there'll be some great opportunities in those states and elsewhere, going forward. And we will be there to support our tenants, if they're looking to expand in those markets.

當類似的事情發生時，我們通常會看到收入增加 2 到 3 倍。因此，我認為這些州和其他地方未來將會有一些巨大的機會。如果我們的租戶希望在這些市場上擴張，我們將隨時為他們提供支持。

I appreciate the color. And then one last question for me, bigger picture, can you provide a little color on kind of the broader real estate market overall? Obviously, we've seen an acceleration in the volatility of interest rates. You have a strong balance sheet and various options that remain cautious here towards potentially raising capital. But what are you looking for to kind of address and capitalizing on these kind of new accretive opportunities that you would see?

我很欣賞它的顏色。然後對我來說最後一個問題，更大的前景，你能提供一些關於更廣泛的房地產市場整體情況的信息嗎？顯然，我們已經看到利率波動加速。您擁有強大的資產負債表和各種選擇，對潛在的籌集資金保持謹慎。但是，您正在尋找什麼來解決和利用您將看到的這些新的增值機會呢？

And what do you need to see kind of more interest rate stabilization, more -- further fundamentals of the industry or meaningful green shoots to come about? Kind of just your sense and thoughts of looking at the individual positive investment opportunities that present themselves and the ability to deploy cash into these opportunities from that standpoint overall?

您需要什麼才能看到更多的利率穩定、更多的行業基本面或有意義的新芽的出現？您對個人積極投資機會的看法和想法，以及從總體角度將現金配置到這些機會的能力？

All right, Scott. I wish I could answer that. I wish I had the clearest crystal ball. And if I did, I certainly wouldn't be sitting here, I'd be on some island with -- on a big yacht or something. I mean, no, we don't have -- we don't -- our crystal ball is as fuzzy as everybody else's.

好吧，斯科特。我希望我能回答這個問題。我希望我有最清晰的水晶球。如果我這樣做，我肯定不會坐在這裡，我會在某個島上——在一艘大遊艇或其他東西上。我的意思是，不，我們沒有——我們沒有——我們的水晶球和其他人的一樣模糊。

We would like to see the broader macro economy continue to stabilize. They -- we would like to see inflation to be brought under control, and we'd love to see interest rates perhaps start coming back down, which would drive the broader economy, which, as you know, if you -- the broader economy is being increasing, then consumers would have greater confidence and spend more. And if consumers have greater confidence and spend more, one of the things that consumers may do is be clients of our tenants, and that's what we would like to see.

我們希望看到更廣泛的宏觀經濟繼續穩定。他們——我們希望看到通脹得到控制，我們希望看到利率可能開始回落，這將推動更廣泛的經濟，正如你所知，如果你——更廣泛的經濟增加的話，消費者就會有更大的信心並花更多的錢。如果消費者有更大的信心並花更多的錢，消費者可能做的一件事就是成為我們租戶的客戶，這就是我們希望看到的。

And this concludes our question-and-answer session. I would like to turn the conference back over to Alan Gold for any closing remarks. Please, Mr. Gold.

我們的問答環節到此結束。我想將會議轉回艾倫·戈爾德（Alan Gold）發表閉幕詞。拜託，戈爾德先生。

And certainly, thank you all for joining us on the call today. I really want to thank the entire IIPR team for their tremendous work and for a fantastic quarter. And with that, thank you all for joining, and we'll sign off.

當然，感謝大家今天加入我們的電話會議。我衷心感謝整個 IIPR 團隊所做的巨大工作以及精彩的季度。至此，感謝大家的加入，我們就結束了。

The conference has concluded. Thanks for attending today's presentation. You may now disconnect.

會議結束了。感謝您參加今天的演講。您現在可以斷開連接。