Innovative Industrial Properties Inc (IIPR) 2024 Q2 法說會逐字稿

Good day, and welcome, to the Innovative Industrial Properties second quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Brian Wolfe, General Counsel. Please go ahead.

美好的一天，歡迎參加創新工業地產 2024 年第二季財報電話會議。（操作員說明）請注意此事件正在被記錄。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。

Thank you for joining the call presenting today 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.

感謝您參加今天的電話會議，執行主席艾倫·戈爾德 (Alan Gold)；保羅‧史密瑟斯 (Paul Smithers)，總裁兼執行長；大衛‧史密斯，財務長；凱瑟琳‧黑斯廷斯，營運長；和首席投資長 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，實際結果可能因以下因素而存在重大差異：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.

請參閱本公司向 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，無論是由於新資訊、未來事件或其他原因。

In addition, on today's call, we will 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.

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 中找到這些資訊以及與最直接可比較的 GAAP 財務指標的調整表。

I will now hand the call over to Alan. Alan?

我現在將電話轉交給艾倫。艾倫？

Thank you, Brian, and welcome everyone. Q2 was another solid quarter for IIP, generating $80 million in total revenues and $2.29 in AFFO per share. That performance enabled us to sequentially increase our Q2 common stock dividend by 4.4% to $1.90, continuing our track record of increasing our dividend every year since our inception in 2016.

謝謝你，布萊恩，歡迎大家。第二季 IIP 又表現強勁，總營收為 8,000 萬美元，每股 AFFO 為 2.29 美元。這項業績使我們能夠將第二季普通股股利連續增加 4.4% 至 1.90 美元，延續了自 2016 年成立以來每年增加股利的記錄。

We achieved these results without the full impact of the rents for new leases that we executed in late 2023 and year to date in addition to certain pre-leased properties under development where construction needs to be completed.

我們取得了這些成果，但並未受到我們在 2023 年底和年初至今執行的新租賃的租金的全面影響，此外還有某些正在開發中、需要完成建設的預租物業。

Ben and Catherine will provide further updates on our progress here. On the investment front, in June, we announced our newest acquisition and long-term lease with AYR Wellness for a Florida property, which will undergo redevelopment for use as a regulated cannabis cultivation facility with an expected total investment upon completion of $43 million. AYR is an existing tenant partner of ours in Ohio, and we are excited to expand our long-term partnership with them

本和凱瑟琳將在這裡提供有關我們進展的進一步更新。在投資方面，6 月，我們宣布與 AYR Wellness 收購佛羅裡達州的房產並進行長期租賃，該房產將進行重新開發，用作受監管的大麻種植設施，竣工後預計總投資為 4300 萬美元。艾爾是我們在俄亥俄州的現有租戶合作夥伴，我們很高興能夠擴大與他們的長期合作夥伴關係

As we have reiterated in the past, we are really pleased with our capital position, especially in light of the macroeconomic environment impacting real estate companies in the cannabis industry. Our total available liquidity exceeded $210 million as of quarter end, including another upsizing capacity under our revolving credit facility in Q2 to $50 million, and fully funds remaining development commitments we have along with providing ample dry power for additional strategic investments.

正如我們過去所重申的那樣，我們對我們的資本狀況非常滿意，特別是考慮到影響大麻產業房地產公司的宏觀經濟環境。截至季末，我們的可用流動資金總額超過2.1 億美元，包括第二季循環信貸安排下的另一項產能擴大至5,000 萬美元，並為我們剩餘的開發承諾提供充分資金，同時為額外的策略投資提供充足的乾動力。

Additionally, we have one of the lowest levered balance sheets in the read industry at 11% debt to total gross assets, no variable-rate debt, no debt maturities until May 2026, and David will provide more detail as well as our financial results and capital position for the quarter.

此外，我們擁有閱讀行業槓桿率最低的資產負債表之一，債務佔總資產的11%，沒有可變利率債務，2026 年5 月之前沒有債務到期日，David 將提供更多詳細資訊以及我們的財務業績和本季的資本狀況。

From a regulatory perspective, all eyes continue to be focused on a potential rescheduling of cannabis from Schedule 1 to Schedule 3 under the Controlled Substance Act. Paul will discuss our thoughts in more detail on this rescheduling process and state level dynamics that we are seeing in addition to some green shoots that we're seeing regarding a potential strengthening of capital availability for cannabis operators.

從監管角度來看，所有人的目光都繼續集中在《管制物質法》下大麻從附表 1 到附表 3 的潛在重新安排。保羅將更詳細地討論我們對這一重新安排過程和州一級動態的想法，此外我們還看到一些關於大麻運營商資本可用性潛在加強的萌芽。

I will now turn the call over to Paul to discuss market dynamics and regulatory developments. Paul?

我現在將電話轉給保羅，討論市場動態和監管發展。保羅？

Thanks, Alan. Market developments, as we have noted for some time now from a state market perspective, we continue to see divergence in performance and dynamics with new markets experiencing high growth, while some mature markets become increasingly competitive, especially after the extended period of price compression and the challenges in competing with the illicit markets that we have highlighted in past calls.

謝謝，艾倫。市場發展，正如我們從國家市場的角度注意到的那樣，我們繼續看到表現和動態的差異，新市場經歷了高速增長，而一些成熟市場的競爭日益激烈，特別是在長期的價格壓縮和我們在過去的呼籲中強調了與非法市場競爭的挑戰。

For example, as we noted in our last call, 2023 saw strong rollouts for adult-use sales in Missouri and Maryland, both of which also benefited from cross border purchasing by residents in neighboring states with either a medical use only program or no program at all.

例如，正如我們在上次電話會議中指出的那樣，2023 年密蘇裡州和馬裡蘭州的成人用品銷售強勁，這兩個州也受益於鄰近州居民的跨境購買，這些州要么僅限於醫療用途的計劃，要么沒有計劃。

In fact, from July, 2023 through June, 2024, Maryland's first year total adult-use cannabis sales topped $1.1 billion and Missouri's annual regulated cannabis sales for 2023 totaled over $1.3 billion. Ohio, which legalized adult-use in November began issuing operational licenses for adult-use cannabis cultivation last month. Ohio was expected to be one of the fastest growing markets in the near future and follows on the heels of very successful adult-use introductions in Missouri and Maryland.

事實上，從 2023 年 7 月到 2024 年 6 月，馬裡蘭州第一年成人用大麻銷售額總額超過 11 億美元，密蘇裡州 2023 年年度管制大麻銷售額總額超過 13 億美元。俄亥俄州於 11 月將成人使用合法化，上個月開始頒發成人使用大麻種植的經營許可證。繼密蘇裡州和馬裡蘭州非常成功地推出成人用品之後，俄亥俄州預計將在不久的將來成為成長最快的市場之一。

As we have discussed on other calls, while New York has struggled since adoption of its adult-use program, we are seeing some level of turnaround in the New York regulated market. With the increased pace of licensed dispensary openings for the adult-use program, an increase in enforcement on stores operating illicitly.

正如我們在其他電話中討論的那樣，雖然紐約自採用成人使用計劃以來一直在苦苦掙扎，但我們看到紐約監管市場出現了一定程度的改善。隨著成人使用計畫的許可藥局開設速度的加快，對非法經營商店的執法力度也加大了。

Regulated sales in New York have increased from about $150 million for all of 2023 to over $260 million in the first six months of 2024. While this progress and the associated increase in regulated sales as welcome, this still represents just a fraction of the NYS Office of Cannabis Management's projection for the regulated cannabis industry in New York to generate $4.2 billion in revenue annually with 63,000 jobs.

紐約的監管銷售額已從 2023 年全年約 1.5 億美元增至 2024 年前六個月的超過 2.6 億美元。儘管這一進展和受監管銷售的相關成長值得歡迎，但這仍然僅代表紐約州大麻管理辦公室對紐約受監管大麻產業每年創造 42 億美元收入和 63,000 個就業機會的預測的一小部分。

With regard to state level legislative developments, I would also like to provide a further update from our prior call on two other states that are in the running for adoption of adult-use programs in the near term, Florida and Pennsylvania.

關於州一級的立法進展，我還想提供我們先前對另外兩個正在競選近期採用成人使用計劃的州（佛羅裡達州和賓夕法尼亞州）的呼籲的進一步更新。

In Florida, we continue to monitor support levels for Amendment three, which is expected to appear on the November ballot to legalize adult-use cannabis. While the threshold for approval of the measure is 60% recent polling from Florida politics and Fox News has support above that threshold. And just last month, the Libertarian Party of Florida announced its support of the initiative.

在佛羅裡達州，我們繼續監測第三修正案的支持水平，該修正案預計將出現在 11 月的投票中，以使成人使用大麻合法化。雖然該措施的批准門檻是 60%，但佛羅裡達州政界最近的民調顯示，福克斯新聞的支持率高於該門檻。就在上個月，佛羅裡達自由黨宣布支持這項倡議。

In Pennsylvania, lawmakers have been signaling that a bill to legalize Marijuana could be advanced shortly with an added sense of urgency as more neighboring states markets come online like Ohio. Lawmakers also touted a recent study conducted by advocacy organization, responsible PA in consultation with FTI consulting, which estimated that the state could generate upwards of $1.7 billion to $2.8 billion in adult-use sales in the first year of rollout alone, creating an estimated 26,250 to 44,500 jobs for Pennsylvanians.

在賓州，立法者一直表示，隨著越來越多的鄰州市場（如俄亥俄州）上線，大麻合法化法案可能很快就會推進，並增加了緊迫感。立法者也讚揚了倡導組織、負責PA 與FTI 諮詢公司協商後進行的一項最新研究，該研究估計，僅在推出的第一年，該州就可以為成人用品銷售額帶來17 億至28 億美元的收入，預計將創造26,250 名兒童。

Capital raising and M&A. From a capital raising and M&A perspective, the regulated cannabis industry continues to be challenged that we are seeing some recent encouraging developments. According to Meridian, the regulated cannabis cultivation and retail operators closed on 44 capital raises for approximately $870 million year to date through July 19, with both the number of capital raises, and total amount raised down over 40% from the prior year's period.

資本籌集和併購。從融資和併購的角度來看，受監管的大麻產業繼續面臨挑戰，我們最近看到了一些令人鼓舞的發展。據 Meridian 稱，截至 7 月 19 日，受監管的大麻種植和零售運營商已完成 44 筆融資，融資金額約為 8.7 億美元，融資數量和融資總額均比去年同期下降了 40% 以上。

M&A for regulated operators for that same time period appeared no better with the total number and dollar amount of M&A transactions down 37% and 66% from the prior year's period, respectively. That said, we are seeing signs of more acceptance in the debt markets for MSO refinancing, most notably evidenced by our tenant Ascends recent closing on a private placement of $235 million of senior secured notes due in 2029, representing the first MSO to raise more than $100 million in debt since 2022.

同期受監管業者的併購情況也沒有好轉，併購交易總數和金額分別比去年同期下降了 37% 和 66%。儘管如此，我們看到債務市場對MSO 再融資的接受程度有所提高，最明顯的證據是我們的租戶Ascends 最近完成了2029 年到期的2.35 億美元高級擔保票據的私募，這是第一家籌集超過2022年以來負債1億美元。

Federal legislation. From the federal perspective we're of course tracking closely the DEA's progress for rescheduling cannabis from Schedule 1 to Schedule 3. Process-wise, the DEA received tens of thousands of submissions through late July during the public comment period on its rescheduling proposal. The process from here is hardly clear and a large part up to the discretion of the federal government, which could include DEA responses to certain of these comments and or holding an administrative hearing before any potential final rule is published in the Federal Register.

聯邦立法。從聯邦角度來看，我們當然正在密切追蹤 DEA 將大麻從附表 1 重新安排到附表 3 的進展。從流程來看，截至 7 月下旬，DEA 在其重新安排提案的公眾評議期間收到了數萬份意見書。此後的流程很難明確，很大程度上取決於聯邦政府的自由裁量權，其中可能包括 DEA 對其中某些評論的回應，或在《聯邦公報》發布任何潛在的最終規則之前舉行行政聽證會。

If and when such a final rule is published, it's then subject to a 30-day period for opponents to file suit against the move, which could also serve to significantly delay or altogether prevent the final rule from taking effect. While we remain optimistic on rescheduling, they remain some very significant hurdles, and if rescheduling occurs, there's a great deal of uncertainty as to when that may actually happen. I would like to now turn the call over to Ben to discuss our investment and leasing activity in Q2 in year-to-date. Ben?

如果最終規則公佈，反對者將在 30 天的時間內對此舉提起訴訟，這也可能會大大推遲或完全阻止最終規則的生效。雖然我們對重新安排保持樂觀，但它們仍然存在一些非常重大的障礙，如果重新安排發生，那麼什麼時候真正發生存在很大的不確定性。我現在想將電話轉給 Ben，討論我們今年迄今第二季的投資和租賃活動。本？

Thanks, Paul. We've been very pleased with the activity we have seen in recent quarters, both on new investment opportunities as well as re-leasing of our vacant assets. Year to date, we have retenanted four properties covering $69 million in invested capital and selectively closed on new investments of just over $65 million.

謝謝，保羅。我們對最近幾季的活動感到非常滿意，無論是新的投資機會還是空置資產的重新租賃。今年迄今為止，我們已重新租用四處房產，投資資本達 6,900 萬美元，並選擇性地完成了略高於 6,500 萬美元的新投資。

As we noted on our prior call in April, we committed $6.1 million across two existing projects. We provided an additional allowance to Battle Green in Ohio to complete construction and expand their production capacity in advance of Ohio's adult-use rollout and provided an additional allowance to forefront in Illinois to round out development of our 250,000 square foot production facility.

正如我們在 4 月之前的電話會議中指出的那樣，我們為兩個現有項目承諾了 610 萬美元。我們為俄亥俄州的Battle Green 提供了額外的津貼，以在俄亥俄州成人使用推出之前完成建設並擴大其生產能力，並為伊利諾伊州的前沿提供了額外的津貼，以完成我們250,000 平方英尺生產設施的開發。

And in June, we closed on the acquisition of 145,000 square feet of industrial space on 16 acres in Florida executing a long-term lease with AYR Wellness, a publicly traded MSO with operations across eight states. We acquired the property for $13 million or $90 per square foot and committed an additional $30 million for air to redevelop the main 98,000 square foot industrial building for uses of regulated cannabis cultivation facility.

6 月，我們完成了對佛羅裡達州 16 英畝 145,000 平方英尺工業空間的收購，並與 AYR Wellness（一家在八個州開展業務的上市 MSO）執行長期租賃。我們以 1,300 萬美元或每平方英尺 90 美元的價格收購了該房產，並承諾額外投入 3,000 萬美元用於空氣，以重新開發 98,000 平方英尺的主要工業建築，用於受監管的大麻種植設施。

AYR maintains a strong presence in Florida operating more than 60 dispensaries with 745,000 square feet of production capacity, excluding our property. As Paul discussed, we are closely watching the developments in Florida with regards to the November election and potential adoption of adult-use cannabis. Also in Q2, we closed on the disposition of our property in Los Angeles, which was leased up until the sale for.

AYR 在佛羅裡達州保持著強大的影響力，經營著 60 多家藥房，生產能力達 745,000 平方英尺（不包括我們的房產）。正如保羅所討論的，我們正在密切關注佛羅裡達州有關 11 月選舉和成人使用大麻的潛在採用的事態發展。同樣在第二季度，我們完成了洛杉磯房產的處置，該房產在出售之前一直處於租賃狀態。

Total consideration between the sales price and lease termination fee exceeding the property's net carrying value. This property was never fully built out for cannabis use and the sale provides us additional capital to recycle into other opportunities that we believe will provide superior risk-adjusted returns. We continue to track an active pipeline across markets, actively evaluating opportunities and look forward to executing on new investment opportunities on a very selective, disciplined basis.

銷售價格和租賃終止費之間的總對價超過該房產的帳面淨值。該房產從未完全用於大麻用途，此次出售為我們提供了額外的資本，可以回收其他機會，我們相信這些機會將提供卓越的風險調整回報。我們將繼續追蹤跨市場的活躍管道，積極評估機會，並期待在非常選擇性、嚴格的基礎上執行新的投資機會。

With that, I will turn it over to Catherine. Catherine?

這樣，我就把它交給凱瑟琳。凱瑟琳？

Thanks, Ben. We've made a lot of progress in 2024 year to date on closing out or nearing completion on many of our tenants remaining development projects. From our last call, we highlighted completion of three leased projects totaling $200 million of invested committed capital. Curious 325,000 square foot expansion in New York, 4Front, 250,000 square foot, ground-up development in Illinois and Battle Greens 157,000 square foot ground-up development in Ohio.

謝謝，本。2024 年迄今，我們在關閉或接近完成許多租戶剩餘開發案方面取得了很大進展。在上次電話會議中，我們強調了三個租賃項目的完成，投資承諾資本總額達 2 億美元。紐約的 325,000 平方英尺的擴建、伊利諾伊州的 4Front 250,000 平方英尺的地面開發以及俄亥俄州的 Battle Greens 157,000 平方英尺的地面開發。

In Q2, we completed development of the 23,000 square foot Perez Road development project in California, which is fully leased and operational and just completed the 104,000 square foot cultivation component of our summit building in Michigan in July.

第二季度，我們完成了加州 23,000 平方英尺佩雷斯路開發項目的開發，該項目已完全出租並投入運營，並於 7 月剛剛完成了密西根州峰會大樓 104,000 平方英尺的種植部分。

As you may recall, the 97,000 square foot processing section of that building was previously approved for operation and the entire project is leased. We're also pleased to note that Loom, the new tenant at our Harvest Park facility has received approvals to operate and is now occupying that facility. While we agreed to provide Loom up to $2 million in qualifying infrastructure enhancement to the facility.

您可能還記得，該建築 97,000 平方英尺的加工部分此前已獲準運營，整個項目均已出租。我們也很高興地註意到，我們 Harvest Park 設施的新租戶 Loom 已獲得營運批准，目前正在佔用該設施。我們同意向 Loom 提供高達 200 萬美元的資金，用於增強該設施的合格基礎設施。

We see this new lease as a good example of the general reusability of our facilities that have been built out for cannabis use. The overall layout and build-out of the facility has worked for the replacement tenants we've brought in with very little change to the overall design of the facility. Regarding our portfolio as of June 30, we own 108 properties across 19 states, comprising 9 million rentable square feet, including 722,000 square feet under development or redevelopment.

我們認為這項新租約是我們為大麻用途而建造的設施普遍可重複使用的一個很好的例子。該設施的整體佈局和建築適合我們引入的替代租戶，對設施的整體設計幾乎沒有改變。截至 6 月 30 日，我們在 19 個州擁有 108 處房產，包括 900 萬平方英尺的可出租面積，其中 722,000 平方英尺正在開發或重建。

Of these 108 properties, 104 properties are included in our operating portfolio, which was 95.6% leased at quarter end, with a weighted average remaining lease term of 14.4 years of the four properties under development, redevelopment two were pre-leased at quarter end.

在這108 處房產中，有104 處房產屬於我們的營運投資組合，截至季末已出租率為95.6%，四處正在開發的房產的加權平均剩餘租賃期為14.4 年，重建的兩處房產已於季度末預租。

Our portfolio continues to be well diversified, with no one tenant representing more than 18% of our annualized base rent and no state, representing more than 15% of our annualized base rent. We have relationships with some of the largest and most experienced operators in the industry with our leased operating portfolio comprised of 91% multistate operators and 62% leased to public company tenants. The total amount of capital invested and committed across our operating portfolio equates to $279 per square foot, which we believe remains significantly below replacement costs.

我們的投資組合持續多元化，沒有一個租戶占我們年化基本租金的 18% 以上，也沒有一個州占我們年化基本租金的 15% 以上。我們與業內一些規模最大、經驗最豐富的營運商建立了合作關係，我們的租賃營運組合包括 91% 的跨國營運商和 62% 的租賃給上市公司租戶的營運商。我們的營運投資組合投資和承諾的資本總額相當於每平方英尺 279 美元，我們認為這仍然大大低於重置成本。

And with that, I'll turn it over to David. David?

有了這個，我會把它交給大衛。大衛？

Thank, Catherine. For the second quarter, we generated total revenues of $79.8 million, a 4% increase from Q2 of last year. The increase was primarily driven by activity in prior periods for the acquisition and leasing of new properties, additional funding and building improvements provided to tenants at certain properties that resulted in base rent increases and contractual rental escalations, along with a $3.9 million disposition contingent lease termination fee paid to us concurrently with the sale of our Los Angeles, California property.

謝謝，凱瑟琳。第二季度，我們的總營收為 7,980 萬美元，比去年第二季成長 4%。這一增長主要是由於前期收購和租賃新房產的活動、向某些房產的租戶提供的額外資金和建築改進導致基本租金上漲和合同租金上漲，以及因租約終止而處置的 390 萬美元出售我們加利福尼亞州洛杉磯財產時同時向我們支付的費用。

This increase in total revenues was partially offset by a loss in revenue for properties, we took back possession of since the second quarter of 2023 and $1.3 million in rent received during the quarter, but not recognized in total revenues due to a reclassification of two leases as sales-type leases as of January 1, 2024, as we discussed in depth on last quarter's call.

總收入的增長部分被物業收入損失所抵消，我們自2023 年第二季度以來收回了物業的所有權，並在本季度收到了130 萬美元的租金，但由於兩項租賃的重新分類，未在總收入中確認正如我們在上季度的電話會議上深入討論的那樣，自 2024 年 1 月 1 日起作為銷售型租賃。

Revenues for the quarter were also up sequentially versus the first quarter of this year, primarily relating to the lease termination fee in addition to modest sequential increases in rental revenues and tenant reimbursements. In the second quarter, we sold our property in Los Angeles, California for $9.1 million and recognized a loss on sale of $3.4 million.

該季度的收入也比今年第一季連續增長，主要與租賃終止費以及租金收入和租戶報銷的小幅連續增長有關。第二季度，我們以 910 萬美元的價格出售了位於加州洛杉磯的房產，並確認了 340 萬美元的銷售損失。

However, we also earned a $3.9 million disposition contingent lease termination fee. As a result, the total consideration received on the sale of $13 million exceeded our carrying value of the property as of the end of the first quarter, resulting in a net gain of $0.5 million.

然而，我們也賺了 390 萬美元的或有租約終止處置費。結果，截至第一季末，出售 1,300 萬美元收到的總對價超過了該房產的帳面價值，從而產生了 50 萬美元的淨收益。

As disclosed in our second quarter earnings materials I want to note that given the disposition and contingent nature of the lease termination fee, we subtracted out the net positive impact of a loss on sale of real estate and lease termination fee when arriving at our FFO calculation for the quarter.

正如我們第二季度收益材料中所披露的，我想指出的是，考慮到租賃終止費的處置和或有性質，我們在計算 FFO 時扣除了房地產銷售損失和租賃終止費的淨積極影響對於本季度。

Interest income for the three months ended June 30, 2024 increased by $1.7 million to $4.0 million compared to $2.3 million for the three months ended June 30, 2023. The increase was primarily due to higher cash interest received on our secured construction loan for a property in California, where we are the lender and included a loan maturity extension fee paid to us of $0.3 million in the quarter to extend the maturity date of the loan from June 30 to the end of this year.

截至2024年6月30日止三個月的利息收入增加170萬美元至400萬美元，而截至2023年6月30日止三個月的利息收入為230萬美元。這一增長主要是由於我們作為貸款人在加利福尼亞州的一處房產的擔保建築貸款收到的現金利息增加，其中包括本季度向我們支付的30 萬美元貸款到期延期費，以延長貸款到期日從6月30日起至今年底。

FFO for the second quarter was $65.5 million or $2.29 per share, a 1% increase compared to the second quarter of 2023 and a 4% increase versus the first quarter of 2024 driven primarily by the increase in interest income associated with the construction loan that just discussed.

第二季的 FFO 為 6550 萬美元，即每股 2.29 美元，比 2023 年第二季度增長 1%，比 2024 年第一季度增長 4%，這主要是由於與建築貸款相關的利息收入增加，討論過。

As we noted on our first quarter call, while we expect the re-leasing activity, we achieved year to date to contribute meaningfully to our long-term earnings. The time line to rent stabilization may differ between the properties as there are state and local approvals needed for these transitions additional regulatory requirements to be completed at certain assets and some level of rent abatement is negotiated to allow for a ramping of our new tenant's operations.

正如我們在第一季電話會議上指出的那樣，雖然我們預計會出現轉租活動，但今年迄今為止，我們已經為我們的長期收益做出了有意義的貢獻。不同物業之間的租金穩定時間表可能有所不同，因為這些過渡需要獲得州和地方的批准，某些資產需要完成額外的監管要求，並且經過協商可以進行一定程度的租金減免，以允許我們新租戶的業務擴大。

That being said, we are very pleased with our substantial activity on the re-leasing front Ben has been discussed in detail and happy to see our tenant move receive its approvals for operation at our Harvest Park facility in Michigan. As a result of our significant re-leasing progress to date and consistent earnings, our Board increased our quarterly dividend by 4% to $1.90 per share. The dividend was paid on July 15 to common stockholders of record as of June 28.

話雖這麼說，我們對我們在轉租方面的實質活動感到非常高興，本已經詳細討論了，並且很高興看到我們的租戶搬遷獲得了在密西根州 Harvest Park 工廠運營的批准。由於迄今為止我們的再租賃進展顯著且盈利穩定，我們的董事會將季度股息提高了 4% 至每股 1.90 美元。股利於7月15日支付給截至6月28日在冊的普通股股東。

As Alan noted, our dividend remains covered by our FFO during the quarter with a payout ratio of 83%, which is in line with the Board's targeted payout ratio of 75% to 85% of AFFO. This dividend increase continued our track record of increasing the dividend every year since our inception in 2016.

正如 Alan 指出的那樣，本季我們的股息仍然由 FFO 支付，支付率為 83%，這與董事會設定的 AFFO 75% 至 85% 的目標支付率一致。此次股利增加延續了我們自 2016 年成立以來每年增加股利的記錄。

Our balance sheet remained strong during the quarter with $2.6 billion in total gross assets and our only debt consisting of $300 million in fixed rate unsecured bonds not maturing until May 2026. Furthermore, we continued to maintain REIT industry-leading credit metrics with a net debt to EBITDA less than 1 times debt to gross assets ratio of 11% and a debt service coverage ratio of 17 times.

本季我們的資產負債表依然強勁，總資產為 26 億美元，唯一的債務包括 3 億美元的固定利率無擔保債券，將於 2026 年 5 月到期。此外，我們繼續維持房地產投資信託基金行業領先的信貸指標，淨債務與 EBITDA 的比率低於 1 倍，債務與總資產的比率為 11%，償債覆蓋率為 17 倍。

Moving on to liquidity, we finished the second quarter with over $210 million of total liquidity comprised of cash, short-term investments and availability under our revolving credit facility. As Alan noted, we successfully increased our revolving credit facility during the second quarter to $50 million. With the addition of a New York Headquartered Bank, we are continuing to have dialogue with numerous banks regarding their interest in joining our credit facility to continue to increase the overall capacity.

說到流動性，第二季結束時，我們的流動性總額超過 2.1 億美元，包括現金、短期投資和循環信貸安排下的可用資金。正如艾倫指出的那樣，我們在第二季度成功地將循環信貸額度增加到 5000 萬美元。隨著紐約總部銀行的加入，我們正在繼續與眾多銀行就是否有興趣加入我們的信貸安排進行對話，以繼續提高整體能力。

Finally, we terminated our existing at the Market Equity Offering program and entered into a new ATM program during the second quarter to provide for the issuance from time to time of shares of our common stock and Series A preferred stock. We also took this opportunity to add a four component for our sales of our common stock, allowing us to more precisely match fund our investments with a goal of reducing the overall dilutive impact of future equity raises through the program.

最後，我們終止了現有的市場股票發行計劃，並在第二季簽訂了新的 ATM 計劃，以便不時發行我們的普通股和 A 系列優先股。我們也藉此機會為我們的普通股銷售增加了四個組成部分，使我們能夠更精確地匹配我們的投資資金，以期減少透過該計劃籌集未來股權的整體稀釋影響。

As you can see, we continue to be well positioned for continued growth with a conservative balance sheet, access to multiple capital markets and continued progress on expanding our banking relationships to increase the size of our credit facility.

正如您所看到的，我們透過保守的資產負債表、進入多個資本市場以及在擴大銀行關係以增加信貸額度方面不斷取得進展，繼續為持續成長做好了準備。

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？

Thanks, David. And I'd like to note the following in closing. Our team continues to execute on our plan to maximize the value of our portfolio for the benefit of our stockholders through our leasing investment and disposition activities and to continually evaluate capital options with the goal of maintaining a strong balance sheet and liquidity position. I'm proud of this team's performance and believe this core focus will serve our stockholders well over the long term.

謝謝，大衛。最後我想指出以下幾點。我們的團隊繼續執行我們的計劃，透過租賃投資和處置活動最大限度地提高我們的投資組合價值，為股東謀取利益，並不斷評估資本選擇，以保持強勁的資產負債表和流動性狀況。我為這個團隊的表現感到自豪，並相信這個核心重點將長期為我們的股東服務。

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，可以撥打電話詢問問題嗎？

(Operator Instructions)

（操作員說明）

Tom Catherwood, BTIG.

湯姆·凱瑟伍德，BT​​IG。

Thank you so much. I'll be starting with Paul. Appreciate the commentary on lower year over year capital formation trends in the cannabis sector so far year to date. Typically, CapEx spending for the operators follows capital availability, but in this case, are you seeing any positive movement on the CapEx side driven by new state adult-use program expansions despite tighter capital markets? (multiple speakers)

太感謝了。我將從保羅開始。感謝對今年迄今大麻產業資本形成趨勢年減的評論。通常情況下，運營商的資本支出取決於資本的可用性，但在這種情況下，儘管資本市場趨緊，但您是否看到新的州成人使用計劃擴張所推動的資本支出方面有任何積極的變化？（多個發言者）

Yeah, thanks to your question, Tom. There is a lot of enthusiasm in the industry. I think, as you know built around the rescheduling issue and we talked to our operators and we think that there's a lot of excitement but there is some wait and see about when is rescheduling going to happen, when is the 280-relief going to hit the bottom line? So I think there is a lot of built-up capital that's going to hit the market once there is more clarity on the timing and actually the effect of the 280 relief.

是的，謝謝你的問題，湯姆。業界有很多熱情。我認為，正如您所知，圍繞重新安排問題而建立，我們與我們的運營商進行了交談，我們認為大家很興奮，但對於何時重新安排、280 美元減免何時實施，還有一些等待。底線？因此，我認為，一旦 280 減免的時間和實際效果更加明確，就會有大量的累積資本進入市場。

So I think you're well aware of the schedule and we're pretty pleased, Tom, about where we are today with the rescheduling process. It's gone as quick as we thought it would, but right now it's of course, in the hands of DEA, they received 40,000 comments on the rescheduling over 90% positive. And in fact, a big percentage of those would want them to go further than rescheduling and get it to de-scheduling.

所以我認為你很了解日程安排，湯姆，我們對今天重新安排流程的進展感到非常高興。事情進展得和我們想像的一樣快，但現在當然是在 DEA 手中，他們收到了 40,000 條關於重新安排的評論，其中超過 90% 是積極的。事實上，其中很大一部分人希望他們比重新安排更進一步，並取消安排。

So we're waiting to see what the DEA's going to do next in order and issue the final order and final ruling, which we think could happen, really any day. Once that happens, of course there's a 30-day period, that a lawsuit can be filed by any aggrieved party that wants to do so. So, we're waiting and staying. And we do think, as we've said in prior calls, that once that 280 relief does hit the bottom line.

因此，我們正在等待 DEA 接下來將採取什麼行動，並發布最終命令和最終裁決，我們認為這可能會發生，實際上隨時都會發生。一旦發生這種情況，當然有 30 天的期限，任何願意這樣做的受害方都可以提起訴訟。所以，我們正在等待並留下來。正如我們在之前的電話會議中所說，我們確實認為，一旦 280 美元的減免確實達到了底線。

For people that don't really follow it closely and understand the significance of it, when 280 it goes away, if we get rescheduled to three, I mean, there's a lot of things that operators now can't deduct, such as rent, salaries and wages, utility costs, maintenance and repairs, marketing, advertising, health insurance, all these things add up, of course. And once those things hit the bottom line, we think there's going to be a lot more capital available for CapEx expansion.

對於那些沒有真正密切關注它並理解其重要性的人來說，當280它消失時，如果我們重新安排到3，我的意思是，現在運營商有很多東西不能扣除，比如租金，當然，薪水和工資、公用事業成本、維護和修理、行銷、廣告、健康保險，所有這些東西加起來。一旦這些事情達到底線，我們認為將會有更多的資本可用於資本支出擴張。

Totally fair, and Paul maybe sticking with that item, could there be an impact on rescheduling from either the recent Chevron ruling, or a potential change in administration that might either slow up or completely change the progress when it comes to rescheduling activity.

完全公平，保羅可能會堅持這一點，最近雪佛龍的裁決是否會對重新安排產生影響，或者行政部門的潛在變化可能會減慢或完全改變重新安排活動的進度。

Yes, so let's talk about the, recent Supreme Court case that took away Chevron. I think actually it's a positive, and I know you're going to get people that say no, it's going to complicate. So, for people that aren't following the US Supreme Court rulings closely, what that recent case did is get rid of Chevron doctrine, which says that when there's an ambiguity in a federal statute, the courts leave it up to the administrative body to interpret what the Congress meant.

是的，讓我們來談談最近最高法院審理的雪佛龍案。我認為這實際上是積極的，而且我知道人們會說不，這會讓事情變得複雜。因此，對於那些不密切關注美國最高法院裁決的人來說，最近的案件所做的是擺脫雪佛龍原則，即當聯邦法規存在模糊性時，法院將其留給行政機構來決定。的意思。

In order to get to Chevron, you really have to have an ambiguity. In this case, it would be in the Controlled Substance Act. And I would certainly argue that there was no ambiguity in the CSA, because the CSA explicitly allows the DEA to reschedule controlled substances at their distress. So I don't think you even get to the Chevron.

為了到達雪佛龍，你真的必須有一個模糊性。在這種情況下，它將包含在《管制物質法》中。我當然會爭辯說，CSA 中沒有任何含糊之處，因為 CSA 明確允許 DEA 在遇險時重新安排受管制物質。所以我不認為你能去雪佛龍。

So I don't think it's going to happen. Question about who's President next year, I think is a fair question. And we look, so far, President Trump, former President Trump has not updated his stance that I'm aware of on cannabis. He has always been a supporter of medical cannabis and has supported research. So my thought is when we get rescheduling to three, I expect him to be supportive of it, because it does follow the thought of more support for medical and more research.

所以我認為這不會發生。關於明年誰當總統的問題，我認為這是一個公平的問題。據我所知，到目前為止，川普總統、前總統川普尚未更新他對大麻的立場。他一直是醫用大麻的支持者並支持研究。所以我的想法是，當我們重新安排到三個時，我希望他能夠支持，因為它確實遵循了對醫療和更多研究提供更多支持的想法。

So while yes, he could instruct DEA to undo, I don't think it's going to happen because by then I think it's a political issue. And as we've discussed in prior calls, certainly the overwhelming majority of voters in this country, support medical cannabis. So, it could happen, but I would say not.

因此，雖然他可以指示緝毒局撤銷，但我認為這不會發生，因為到那時我認為這是一個政治問題。正如我們在之前的電話會議中討論的那樣，這個國家絕大多數選民當然支持醫用大麻。所以，它可能會發生，但我會說不會。

Thank you, Paul.

謝謝你，保羅。

And maybe on the last one for me then you'd mentioned pursuing new investments on a highly selective basis. What characteristics does a sale leaseback or follow on investment have to include to meet your underwriting and have these requirements changed at all in recent quarters?

也許在我的最後一篇文章中，您提到了在高度選擇性的基礎上尋求新的投資。售後回租或後續投資必須包括哪些特徵才能滿足您的承保要求？

I think before Ben starts with that, I'd just like to remind not only you Tom, but everybody, but the sale leaseback concept is our basic business model that we've been following since for the last eight years. And it seems to be it has continued to produce what we think are below average risks for above average returns. Now, with that, I'm going to turn it over to Ben to go ahead and describe that what we do in our sale lease by acquisition and underwriting.

我想在本開始之前，我想不僅提醒你，湯姆，而且提醒大家，售後回租概念是我們過去八年來一直遵循的基本商業模式。它似乎繼續產生我們認為低於平均水平的風險，但回報高於平均水平。現在，我將把它交給本，讓他繼續描述我們在銷售租賃中透過收購和承銷所做的事情。

I wouldn't say that our underwriting criteria has necessarily changed over the years. I think we're still highly selective on the types of opportunities in markets we like with tenants we like, as we have been since our inception. I think we're very pleased with the state of the pipeline. We're still seeing the low and mid-teens yields on the opportunities in the pipeline.

我不會說這些年來我們的核保標準必然會改變。我認為我們仍然對我們喜歡的市場中的機會類型和我們喜歡的租戶進行高度選擇性，就像我們自成立以來一直這樣做的那樣。我認為我們對管道的狀態非常滿意。我們仍然看到管道中的機會的收益率處於低位和中位數。

I think we're cautiously optimistic that we will hit our goal of north of $100 million in investment activity this year as we did in 2023. On top of the investment activity that we've seen year-to-date, and very pleased with the leasing activities well, retenanting, $69 million worth of assets year to date, and over $125 million worth of assets over the last three quarters. So between that executing on selective pipeline opportunities feel very good about the state of the pipeline and the portfolio overall.

我認為，我們對今年將像 2023 年那樣實現投資活動超過 1 億美元的目標持謹慎樂觀的態度。除了今年迄今為止我們看到的投資活動之外，我們對租賃活動、再租用活動也非常滿意，今年迄今資產價值 6,900 萬美元，過去三個季度資產價值超過 1.25 億美元。因此，在執行選擇性管道機會之間，對管道和整體投資組合的狀態感覺非常好。

Got. I appreciate those answers. That's it for me. Thanks, everyone.

得到。我很欣賞這些答案。對我來說就是這樣。謝謝大家。

Thanks, Tom.

謝謝，湯姆。

Connor Mitchell, Piper Sandler.

康納米切爾，派珀桑德勒。

Hey, thanks for taking my question. Maybe just continuing on that and really focusing on the tenants. I was just wondering how you guys think about balancing investments with new external tenants and then the existing tenants in terms of additional investment commitment, retenanting, et cetera.

嘿，謝謝你回答我的問題。也許只是繼續這樣做並真正關注租戶。我只是想知道你們如何考慮在額外投資承諾、續約等方面平衡與新外部租戶和現有租戶的投資。

I think that's a really good question. Because it throughout our history, we've spent a great deal of time in capital supporting our existing tenants and being what we believe is a very strong real estate partner for them in this industry.

我認為這是一個非常好的問題。因為在我們的歷史中，我們花了大量的時間在資本上支持我們現有的租戶，並成為他們在這個行業中非常強大的房地產合作夥伴。

And we continue to believe that focusing on our tenants and giving them the greatest chance for success in a very competitive, and as we've discussed a difficult general macroeconomic environment is best. But maybe Ben, you might want to talk about the how we look at new tenants and how we support our existing.

我們仍然相信，關注我們的租戶並為他們提供最大的成功機會，在競爭激烈的情況下，正如我們所討論的，困難的總體宏觀經濟環境是最好的。但也許本，您可能想談談我們如何看待新租戶以及我們如何支持現有租戶。

Alan's describing feel very good about our current tenant roster of our 30 tenants, north of 90% of our revenue comes from multi-state operators, and we really feel that we have some of the best operators in the industry in our portfolio and have continued to support them over the years, while also maintaining a well-diversified portfolio across our tenant base as well as across state markets.

艾倫的描述對我們目前的 30 個租戶名單感到非常滿意，我們 90% 的收入來自多州運營商，我們確實認為我們的投資組合中擁有一些業內最好的運營商，並且我們將繼續多年來為他們提供支持，同時也在我們的租戶群以及各州市場中保持多元化的投資組合。

We, of course, will look at new opportunities to work with new operators as we see fit with management teams that we like, that have strong financials track record of performance in the same kind of rigorous underwriting criteria that we've used historically for our existing tenants.

當然，我們將尋找與新營運商合作的新機會，因為我們認為與我們喜歡的管理團隊合適，他們在我們過去使用的嚴格承保標準中擁有良好的財務績效記錄。

Okay. That's helpful. And then you guys have done a pretty good job of re-leasing some spaces that have come available over the past 12 or 18 months. Just wondering if you could provide an update on any current spaces that are unoccupied and the leasing efforts or possibly like selling efforts of those properties?

好的。這很有幫助。你們在重新租賃過去 12 或 18 個月內可用的一些空間方面做得非常好。只是想知道您是否可以提供有關當前閒置空間以及租賃工作或可能喜歡這些房產的銷售工作的最新資訊？

No, no, I think, before I turn it over to Cath and Ben to provide those details, I do, I really want to compliment again, our team for their unbelievable execution on releasing as many people who've been involved with our company from the inception, there was a great belief that our properties would be very difficult to release, that our, they would be too specialized.

不，不，我想，在我把它交給Cath 和Ben 提供這些細節之前，我確實，我真的想再次讚揚我們的團隊，他們在釋放盡可能多與我們公司有關的人員方面表現得令人們難以置信從一開始，人們就堅信我們的財產將很難發布，我們的財產將過於專業化。

And we continuously, believe that we've underwritten them properly, that we have a very reasonable cost per square foot, given the amount of infrastructure that goes into these facilities. And I think that's proven out with the releasing efforts. Cath, do you want to provide more details?

我們一直相信，我們已經正確地承保了它們，考慮到這些設施的基礎設施數量，我們每平方英尺的成本非常合理。我認為這已經通過發布的努力得到了證明。Cath，您想提供更多詳細資訊嗎？

Yes, thanks Alan. Connor, as Alan was talking about, I think the team is just really pleased with the success of our releasing and the attractiveness of the facilities to those new tenants, really speaks to the general reusability of those facilities. And we plan to bring that same success to the remaining assets that we have, which are really just down to a handful of properties.

是的，謝謝艾倫。康納，正如艾倫所說，我認為團隊對我們發布的成功以及設施對新租戶的吸引力感到非常滿意，這確實說明了這些設施的整體可重用性。我們計劃為我們擁有的剩餘資產帶來同樣的成功，這些資產實際上只是少數財產。

We have 160,000 square feet of cannabis real estate in Pittsburgh, 238,000 square feet of warehouse space in California, and a 12-acre parcel of land in Texas. We also have two small retail properties in Michigan that total about 6,000 square feet. And overall, we're really confident in the talent of our team to continue to position these assets in the future and hope to have additional updates as we work through those.

我們在匹茲堡擁有 16 萬平方英尺的大麻房地產，在加州擁有 238,000 平方英尺的倉庫空間，在德州擁有 12 英畝的土地。我們還在密西根州擁有兩處小型零售物業，總面積約 6,000 平方英尺。總的來說，我們對團隊的才華充滿信心，能夠在未來繼續定位這些資產，並希望在我們完成這些工作時能獲得更多更新。

Okay. Then maybe one more question for me. You guys have had a pretty good handle on correcting any issues or fixing any issues you had with tenants in the system. Just wondering if you could provide an update on maybe a watch list or a tenant credit update you, if anything might be brewing that you guys feel pretty good about the environment?

好的。那也許還有一個問題想問我。你們在糾正任何問題或解決系統中租戶遇到的任何問題方面做得很好。只是想知道您是否可以提供有關監視列表或租戶信用更新的最新信息，是否有任何事情可能正在醞釀，您對環境感覺非常好？

So I think that's the statement that we talk about when we talk about a wash list is that we watch all of our tenants and with 30 tenants. So we have, we think we have that pretty well in hand. We've reminded the audience about the difficult macroeconomic environment and not in general and in particularly in the cannabis industry.

所以我認為，當我們談論清洗名單時，我們所談論的就是我們觀察所有租戶以及 30 名租戶。所以我們認為我們已經掌握得很好了。我們提醒觀眾困難的宏觀經濟環境，而不是總體經濟環境，特別是大麻產業。

And we are still working, for the industry is still working through some of those issues. And we believe that there are tenants that because of supply chain issues or getting up to speed with the changing environment that there will be some difficulties. But in general, we're very -- as Ben and Cath has indicated we're very pleased with the quality and strength of our time.

我們仍在努力，因為該行業仍在解決其中一些問題。我們相信有些租戶會因為供應鏈問題或跟上不斷變化的環境而遇到一些困難。但總的來說，我們非常——正如本和凱絲所表示的那樣，我們對我們這個時代的品質和實力感到非常滿意。

Okay. Appreciate all the colors. Thank you.

好的。欣賞所有的顏色。謝謝。

Scott Fortune, ROTH Capital Partners.

史考特‧福瓊，羅仕資本合夥人。

Good morning, or afternoon, and thanks for the questions. Just to follow up, maybe Cath on the properties you're looking to re-lease RBC regulations and gain those licenses in place that kind of developing in and out? Or is there is a timing kind of still in place where we expect this to happen towards the end of the year, early next year. Just kind of an update on the timing for these turning into higher rent lease revenue moving forward and the progression there with the regulation side of it?

早安，或下午好，謝謝您的提問。跟進一下，也許 Cath 談到您希望重新租賃 RBC 法規並獲得此類開發許可證的房產？或者是否有一個時間安排仍然存在，我們預計這將在今年年底、明年初發生。只是關於這些轉變為更高的租金租賃收入的時間以及監管方面的進展的最新情況嗎？

Scott. Thanks for the question. Perhaps Ben, you might want to address the timing associated with the assets that are already built out as cannabis facilities.

斯科特.謝謝你的提問。也許本，您可能想解決與已建成大麻設施的資產相關的時間表問題。

Yeah, sure. No problem. Scott, again, talking about the leasing activity, which again, we've been very pleased with the over $125 million worth of investments that we've retenant over the last three quarters. And just want to remind everyone that the timelines can vary state-by-state, market-by-market for the any build out that might be required, any licensing that might be required.

是的，當然。沒問題。史考特再次談到租賃活動，我們對過去三個季度保留的價值超過 1.25 億美元的投資感到非常滿意。只是想提醒大家，對於可能需要的任何擴建、可能需要的任何許可，時間表可能因州、市場而異。

So that can take anywhere from a relatively short period of time to 12 plus months, again, depending on the municipality in that particular situation. So knowing that a lot of this activity has happened Q4 last year into the first half of this year, we would expect rent to commence depending on the asset more likely into 2025, late 2024. But it's really an asset-by-asset basis on that.

因此，這可能需要相對較短的時間到 12 個多月的時間，同樣取決於特定情況下的市政當局。因此，鑑於去年第四季到今年上半年發生了許多此類活動，我們預計租金將根據資產開始，更有可能在 2025 年（即 2024 年末）開始。但這其實是基於逐一資產的基礎。

Okay. I appreciate that update. And then then on just a little more color. Obviously, the health of the cannabis industry, as we've seen can be early 2Q reporting, I think very positive from a revenue growth margin expansion. And these operators continue to focus on cash flow generation to operate in this environment without to 280E benefit from that standpoint.

好的。我很欣賞這次更新。然後再加一點顏色。顯然，正如我們在第二季早期報告中看到的那樣，大麻產業的健康狀況，我認為收入成長幅度的擴大非常積極。這些營運商繼續專注於現金流生成，在這種環境下運營，但從這一角度來看，280E 並沒有受益。

We're seeing some M&A pickup here environments. It seems like from some capital is starting to go to work. And but just a question kind of on expanding your portfolio of different states deal with large markets, Ohio coming aboard, you guys were positive on New York saying to ramp up more there in adult-use and then potential capacity as we're seeing a lot of the operators add capacity in Florida. We just backdrop, can you call out states? What were you seeing pickup in discussions or for potential opportunities to be added to the portfolio?

我們在這裡看到一些併購活動的回升。似乎有一些資本開始發揮作用。但只是一個關於擴大不同州的投資組合以應對大型市場的問題，俄亥俄州即將加入，你們對紐約持積極態度，表示要增加更多的成人使用，然後是潛在的容量，因為我們看到了許多運營商在佛羅裡達州增加了產能。我們只是背景，你能說出狀態嗎？您在討論中看到了什麼進展，或者有哪些潛在機會可以添加到投資組合中？

Paul, do you want to address that because I, you've talked about the states that are expecting approvals and moving forward.

保羅，你想解決這個問題嗎？

Sure. Scott, I know you follow this closely, but today could be really kind of a special day in Ohio. And I'm waiting to see if the store is actually open today, if not today, probably tomorrow, when Ohio actually rolls out sales in the adult-use. So that could be a really great example of a new state that's going to do it right? And we're really excited the way, Ohio did it by coke coal licensing the existing medical operators with the adult-use license so they can hit the ground running.

當然。斯科特，我知道您密切關注這一點，但今天在俄亥俄州可能是一個特殊的日子。我正在等著看這家商店今天是否真的開門營業，如果不是今天，可能是明天，屆時俄亥俄州將真正推出成人用品銷售。那麼這可能是一個很好的例子，說明一個新州會做得正確嗎？我們真的很興奮，俄亥俄州透過焦煤許可現有的醫療操作人員獲得成人使用許可證，這樣他們就可以立即投入使用。

So absolutely, Ohio is exciting. I remember, a year ago talking about New York and then we just got kind of disappointed about the rollout, but boy, there's some really positive news coming out of New York with the Governor finally, making some really concrete moves and she had reported that just last month as a result of issuing new licenses.

所以，俄亥俄州絕對是令人興奮的。我記得，一年前談論紐約，然後我們對推出感到有點失望，但是天哪，紐約總督終於帶來了一些非常積極的消息，採取了一些非常具體的行動，她報告說就在上個月，由於頒發了新許可證。

And I think more importantly, as a result of actually pad locking some of the illegal stores that sales have been up as much as 50% in New York City. So, is New York turning around? Boy, it sure looks like it. So we get excited about that, and Florida, we can't really, I think overstate how we think if Florida hits what amazing market that can be. We have talked in detail about the 60% threshold for the vote, and certainly, it's in the news about the opposition is well funded and picking up more, but the polling still remains positive.

我認為更重要的是，由於實際上封鎖了一些非法商店，紐約市的銷售額成長了 50%。那麼，紐約正在扭轉局面嗎？男孩，看起來確實很像。因此，我們對此感到興奮，而佛羅裡達州，我認為我們不能誇大我們對佛羅裡達州是否能進入令人驚嘆的市場的看法。我們已經詳細討論了 60% 的投票門檻，當然，新聞中也提到反對派資金充足，並且獲得更多支持，但民調仍然保持積極。

So we think that's got a good shot of hitting. Pennsylvania, we like Pennsylvania and that's in the legislature right now. And there's some, I think horse trading going on in the legislation in Pennsylvania between the Republicans and the Democrats and the Assembly. The Governor, of course is very pro adult-use. So we think that we will get across the finish line before not too long. So, those states, we think, we continue to be really excited about what's going on there.

所以我們認為這是一個很好的擊球機會。賓州，我們喜歡賓州，它現在已經進入立法機構。我認為賓州的立法中共和黨、民主黨和議會之間正在進行一些討價還價的活動。當然，Governor 非常支持成人使用。所以我們認為不久之後我們就會衝過終點線。因此，我們認為，對於這些州正在發生的事情，我們仍然感到非常興奮。

I appreciate the color. It's going to be needed production in those states as they approve adult-use. And then one last quick one for me, Paul. Obviously, VP Harris is now the Democrat elect. There's been this view that the Democrats look to kind of differentiate by moving forward, cannabis policy ahead of election, and that seems that now that's kind of moving forward on the rescheduling process.

我很欣賞它的顏色。當這些州批准成人使用時，將需要生產它們。然後是我的最後一個快速的，保羅。顯然，副總統哈里斯現在是民主黨當選人。有一種觀點認為，民主黨希望透過在選舉前推進大麻政策來實現差異化，而現在看來，這似乎是在重新安排進程方面取得了進展。

I know you provide an update there, but anything new about VP Harris being on the ticket now that will kind of help get the final draft rule over the finish line here in the coming months ahead of the election? Or just kind of thoughts around that with the new Democratic elect here?

我知道你在那裡提供了最新消息，但是關於副總統哈里斯現在已經在競選名單上的任何新消息將有助於在選舉前的未來幾個月內完成最終草案規則？或者只是對這裡的新民主黨當選人有一些想法？

So it is fun to watch and just this morning, of course, she announced the Minnesota Governor as a running mate, and he has a very strong history of being pro-cannabis, which we are very happy to see, of course. So I think between the two of them, on the Democratic ticket, it's very pro-cannabis.

所以觀看起來很有趣，當然，就在今天早上，她宣布明尼蘇達州州長為競選夥伴，他有支持大麻的悠久歷史，當然，我們很高興看到這一點。所以我認為，在民主黨選票上，他們兩人都非常支持大麻。

And I think, that we will see possibly an acceleration, but certainly stay the course. I cannot see the Democratic ticket with Harris at the top doing anything but supporting the rescheduling and getting it before the voters in November. So, we think it's a positive. And as I talked earlier, the idea about if Trump gets elected, will undo these things, I don't see it. I just think it's too. It'll have too much momentum by then and he won't risk that with the voters. So to answer your question, we're, we think that Harris and her new VP running mate are nothing but a positive for rescheduling.

我認為，我們可能會看到加速，但肯定會堅持到底。我認為以哈里斯為首的民主黨選票除了支持重新安排並在 11 月向選民展示之外，不會做任何事情。所以，我們認為這是正面的。正如我之前所說，如果川普當選，就會消除這些事情，我不認為這一點。我只是覺得也是這樣到那時它的勢頭將會太大，他不會在選民面前冒這個風險。因此，為了回答你的問題，我們認為哈里斯和她的新副總統競選搭檔對重新安排來說只不過是積極的。

Thanks I appreciate all the detail.

謝謝，我很欣賞所有的細節。

Eric Des Lauriers, Craig-Hallum Capital Group.

艾瑞克‧德斯‧勞裡爾斯 (Eric Des Lauriers)，克雷格-哈勒姆資本集團。

Thank you for taking my questions. First one from me, in terms of your pipeline, can you talk about the mix of demand you're seeing from existing tenants versus new tenants? It's nice to see this lease with AYR, of course, but wondering if there's sort of a longer-term natural trend of decreasing demand from existing operators and increasing demand from new tenants.

感謝您回答我的問題。我的第一個問題是，就您的管道而言，您能談談現有租戶與新租戶的需求組合嗎？當然，很高興看到與 AYR 的租賃，但我想知道是否存在一種長期的自然趨勢，即現有營運商的需求減少而新租戶的需求增加。

Just given the relatively fixed number of industrial properties with existing tenants. And sort of the more sell leasebacks you do, the less that remain. How should we think of this longer term and kind of where are you now in this trend?

只是考慮到現有租戶的工業地產數量相對固定。某種程度上，你做的售後回租越多，剩下的就越少。我們應該如何看待這個長期問題以及您現在在這一趨勢中處於什麼位置？

Yes, Ben can take that. But just keep in mind that our opportunities come not only from existing tenants growing in existing markets, but when new markets and new approvals occur, that there's additional demand. With that Ben, why don't you take that question?

是的，本來可以接受。但請記住，我們的機會不僅來自於現有市場中成長的現有租戶，而且當新市場和新批准出現時，就會出現額外的需求。有了那本，為什麼不回答這個問題呢？

Yes, sure, Eric. I mean, I think it is a mix, as you mentioned of our 30 tenants, as we've said, 91% of the revenue comes from multi-state operators. We have a lot of the largest and kind of best-in-class MSOs in our portfolio. So it's natural that there will be follow on opportunities as we continue to support those tenants with their growth initiatives.

是的，當然，埃里克。我的意思是，我認為這是一個混合體，正如您提到的我們的 30 個租戶，正如我們所說，91% 的收入來自多州營運商。我們的產品組合中擁有許多規模最大、同類最佳的 MSO。因此，隨著我們繼續支持這些租戶的成長計劃，自然會出現後續機會。

That said, we are always sourcing additional opportunities. We're very pleased with the state of the pipeline as it is today between a mix of existing opportunities with existing tenants as well as potential new tenants into the portfolio that we are underwriting. And this really goes across markets some established markets as well as some of these that we've been describing on the call.

也就是說，我們一直在尋找額外的機會。我們對目前的管道狀態非常滿意，因為目前我們正在承銷的投資組合中既有現有租戶的現有機會，也有潛在的新租戶。這確實涉及一些市場，包括一些成熟的市場以及我們在電話會議中描述的一些市場。

Long term, I think it will continue to be a mix as we look to balance continuing to support our existing tenants as we've done since our inception. As well as continuing to diversify our tenant base both across tenants and markets as we continue to grow the portfolio.

從長遠來看，我認為這將繼續是一個混合體，因為我們希望保持平衡，繼續支持我們現有的租戶，就像我們自成立以來所做的那樣。隨著我們不斷擴大投資組合，我們也將繼續在租戶和市場上實現租戶基礎的多元化。

That makes sense. And I appreciate that. And my last question, just on New York State. So nice to see the improvement in that market much, as you mentioned, still sort of fraction of its potential. I'm wondering if these improvements are having a material impact on the profitability of some of your tenants there or at least the serviceability of these leases. Obviously, you have sort of two of your largest leases are in New York.

這是有道理的。我很欣賞這一點。我的最後一個問題是關於紐約州的。正如您所提到的，很高興看到該市場的改善，但仍只是其潛力的一小部分。我想知道這些改進是否會對部分租戶的獲利能力或至少對這些租賃的適用性產生重大影響。顯然，你們最大的兩份租約都在紐約。

Just wondering how you view that risk in relation to this current ramp. Seems like if the ramp sort of continues at a slow pace, perhaps there's a possibility that kind of something's got to give. Just sort of wondering how comfortable you are with those leases and how we should think about your willingness to kind of potentially help your tenants through a slow ramp period if they are, in fact still and I'm feeling any pressures? Thank you.

只是想知道您如何看待與當前斜坡相關的風險。看起來，如果斜坡繼續以緩慢的速度增長，也許有可能會發生這種情況。只是想知道您對這些租約是否滿意，以及我們應該如何考慮您是否願意幫助您的租戶度過緩慢的過渡期（如果他們實際上仍然如此並且我感到有壓力的話）？謝謝。

Why don't you, Paul or Ben, I mean, I think, you've talked about how strong the New York market is, but we're not getting any indication of any anybody looking for any rent relief in New York. But go ahead, Paul and Ben.

保羅或本，我的意思是，我認為你們已經談到了紐約市場有多麼強勁，但我們沒有收到任何跡象表明有人在紐約尋求租金減免。但繼續吧，保羅和本。

Yes, this is Paul. Eric, we're very pleased with the performance of our New York tenants. And I think this whole idea when we talk about a 50% jump in sales, that's at the retail level of course, and I think that's going to carry through and really get that demand up. And taking away the illicit market in New York is huge, and that along with issuing these new licenses is such a positive. And I think, as I mentioned, our New York leases are performing very well.

是的，這是保羅。艾瑞克，我們對紐約租戶的表現非常滿意。我認為當我們談論銷售額成長 50% 時，這整個想法當然是在零售層面，我認為這將持續下去並真正提高需求。拿走紐約的非法市場是巨大的，而且發放這些新許可證是一個積極的事情。我認為，正如我所提到的，我們在紐約的租賃表現非常好。

So just with this added positive news, I think it's just more of a positive indicator that the potential for New York market, which is huge, is definitely turned the corner. And it's on its way to realizing just how big that marketing can be and that our tenants are well-positioned to take advantage of that market. So we think they're in a great position.

因此，有了這個額外的積極消息，我認為這更多的是一個積極的指標，表明紐約市場的潛力巨大，肯定已經扭轉局面。它正在逐漸認識到行銷的規模有多大，並且我們的租戶已做好充分利用該市場的準備。所以我們認為他們處於有利地位。

That's great to hear. I appreciate the color. Thank you.

很高興聽到這個消息。我很欣賞它的顏色。謝謝。

Thank you, Eric.

謝謝你，埃里克。

This concludes our question-and-answer session. I would like to turn the conference back over to Alan Gold for any closing remarks. Please go ahead.

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。請繼續。

Thank you, and thank you all for joining us here today. And thank you to the team for your continued hard work and efforts. And with that, we conclude the call. Thank you.

謝謝大家，也謝謝大家今天加入我們。感謝團隊的持續辛勤工作和努力。至此，我們結束通話。謝謝。

This concludes today's conference. Thank you for attending today's presentation. You may now disconnect.

今天的會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。