Innovative Industrial Properties Inc (IIPR) 2024 Q4 法說會逐字稿

Good day and welcome to the Innovative Industrial Properties Inc. fourth quarter 2024 earnings call.

大家好，歡迎參加 Innovative Industrial Properties Inc. 2024 年第四季財報電話會議。

(Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Eli Cantor, Associate Finance. Please go ahead.

（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給財務助理 Eli Cantor。請繼續。

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; and Ben Regin, Chief Investment Officer.

感謝您加入通話。今天出席的有執行主席 Alan Gold；總裁兼執行長保羅史密瑟斯 (Paul Smithers)；大衛‧史密斯 (David Smith)，財務長；以及首席投資長 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.

在我們開始之前，我想提醒大家，今天電話會議中所作的陳述可能被視為《1995 年私人證券訴訟改革法》安全港含義內的前瞻性陳述，實際結果可能因各種風險、不確定性和其他因素而存在重大差異。

Please refer to the documents filed by the company with the SEC, specifically the most recent reports on forms 10k and 10Q, 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.

請參閱公司向美國證券交易委員會提交的文件，特別是最新的 10k 和 10Q 表格報告，其中指出了可能導致實際結果與前瞻性陳述中的結果不同的重要風險因素。無論是由於新資訊、未來事件或其他原因，我們都沒有義務公開更新或修改任何前瞻性聲明。

In addition, on today's call, we will discuss certain non-gap financial information such as FFO, normalized FFO, and AFFO 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 8k filed with the SEC.

此外，在今天的電話會議上，我們將討論某些非差距財務信息，例如 FFO、規範化 FFO 和 AFFO。

I'll now hand the call over to Alan. Alan.

我現在將電話交給艾倫。艾倫。

Thanks, Eli. Good morning, everyone and welcome to our call to discuss our 2024 results and recent activity. The company has continued to execute, generating over $255 million of cash flow from operations and returning over $210 million to shareholders through dividends, continuing our track record of increasing our annual dividends each year since our inception in 2016.

謝謝，Eli。大家早安，歡迎參加我們的電話會議，討論我們的 2024 年業績和最近的活動。公司持續執行，從經營活動中產生了超過 2.55 億美元的現金流，並透過股息向股東返還超過 2.1 億美元，延續了自 2016 年成立以來每年增加年度股息的良好記錄。

On the investment front, we remain highly selective in evaluating opportunities. Deploying over $70 million in capital to acquire two properties and providing additional building infrastructure allowances to enhance our facilities' capacity for our operators.

在投資方面，我們仍然嚴格篩選評估機會。投入超過 7,000 萬美元的資金來收購兩處房產，並提供額外的建築基礎設施補貼，以增強我們的設施為營運商提供的容量。

We also made significant progress in leasing, executing new leases at 6 properties representing 530,000 square feet, or 6% of our total portfolio. Additionally, we further strengthen our liquidity position and strong balance sheet with the upsizing of our credit facility to $87.5 million with four banks now participating.

我們在租賃方面也取得了重大進展，對 6 處房產簽訂了新租約，總面積為 530,000 平方英尺，占我們總投資組合的 6%。此外，隨著我們的信貸額度增加到 8,750 萬美元，並有四家銀行參與，我們進一步加強了流動性狀況和強勁的資產負債表。

For the year we generated total revenues of $308.5 million and AFFO of $256.1 million, continuing our success of generating significant revenue from the regulated cannabis industry. The regulated cannabis industry continues to experience headwinds which we are navigating through with one of the most experienced management teams in the industry.

我們全年的總收入為 3.085 億美元，AFFO 為 2.561 億美元，繼續成功地從受監管的大麻產業創造可觀的收入。受監管的大麻產業繼續遭遇阻力，我們正在與業內最有經驗的管理團隊之一一起應對這種阻力。

As of year end, our total available liquidity exceeded $235 million providing us with ample dry powder to pursue additional strategic investments. We are proud to have strategically positioned ourselves to have one of the lowest levered balance sheets in the reed industry at 11% debt to total gross assets.

截至年底，我們的總可用流動資金超過 2.35 億美元，為我們提供了充足的資金來進行額外的策略投資。我們很自豪能夠在策略上將自己定位為簧片產業中槓桿率最低的公司之一，負債與總資產之比為 11%。

David will provide more detail on our financial results and capital position. Last week we announced that two of our independent directors, David Stecher and Mary Allis Curran, have made the decision to retire from our board and not stand for re-election when their terms expire. David has served on the board since 2017 and Mary since 2020, and we want to thank them both for their service to the company over the years and are in the process of searching for replacement directors.

David 將提供有關我們的財務表現和資本狀況的更多詳細資訊。上週我們宣布，我們的兩位獨立董事 David Stecher 和 Mary Allis Curran 已決定退出董事會，任期屆滿後不再競選連任。大衛自 2017 年起擔任董事會成員，瑪麗自 2020 年起擔任董事會成員，我們要感謝他們多年來為公司做出的貢獻，目前我們正在尋找替代董事。

I also want to take a moment to congratulate Tracie Hager and Kelly Spicher, who were both promoted to Senior Vice President in January. Tracie has managed our asset management department since 2021, and Kelly has provided incredible real estate legal support since 2019.

我還想花點時間祝賀 Tracie Hager 和 Kelly Spicher，他們都在一月份晉升為高級副總裁。Tracie 自 2021 年起管理我們的資產管理部門，Kelly 自 2019 年起提供了令人難以置信的房地產法律支援。

Both are seasoned professionals who have added incredible value, and we are truly fortunate to have such dedicated and talented members on our management team. Before I turn the call over to Paul, I wanted to touch on our resolution with PharmaCann.

他們都是經驗豐富的專業人士，為我們的管理團隊帶來了不可思議的價值，我們非常幸運能有如此敬業和才華橫溢的成員。在我將電話轉給保羅之前，我想先談談我們與 PharmaCann 的解決方案。

We are pleased with the outcome announced last month and believe it reflects our management team's capabilities in navigating challenging situations to the benefit of our shareholders. Paul will provide additional detail on the resolution. Paul.

我們對上個月宣布的結果感到滿意，並相信這反映了我們的管理團隊有能力應對挑戰性並造福股東。保羅將提供有關該決議的更多細節。保羅。

Thanks, Alan. As we noted in our press release last month, we reached a comprehensive resolution to PharmaCann's defaults that included, among other things, PharmaCann recommencing rent payments on 9 of 11 leases in February, a required capital infusion by PharmaCann investors, and a junior secured note issued to IIP.

謝謝，艾倫。正如我們在上個月的新聞稿中指出的那樣，我們針對 PharmaCann 的違約問題達成了一項全面解決方案，其中包括：PharmaCann 在 2 月份重新開始支付 11 份租約中的 9 份的租金、要求 PharmaCann 投資者註入資本，以及向 IIP 發行次級擔保票據。

We are proud of our team's ability to navigate this situation swiftly and believe this is the best path forward to maximize shareholder value. On the regulatory front, with the election behind us and the unified Congress, there is potential for federal reform, including rescheduling and safe banking. Rescheduling efforts to reclassify cannabis from a Schedule 1 drug to Schedule 3 drug were stalled by a DEA administrative law judge canceling the rulemaking hearing that was set to begin in January.

我們為我們的團隊能夠迅速應對這一情況而感到自豪，並相信這是實現股東價值最大化的最佳途徑。在監管方面，隨著選舉的結束和國會的統一，聯邦改革有潛力進行，包括重新安排和安全銀行業務。由於美國緝毒局行政法官取消了原定於 1 月開始的規則制定聽證會，將大麻從第一類藥物重新歸類為第三類藥物的努力被迫擱置。

Since that postponement, President Trump has recently appointed Terence Cole to lead the DEA. President Trump has not released any official policy directive related to rescheduling, but Cole has voiced opposition to legalization efforts. However, President Trump has shown public support for cannabis reform, including for both rescheduling and the approval of do use in Florida, and we remain cautiously optimistic that rescheduling will continue to make progress.

自從延期以來，川普總統最近任命特倫斯·科爾領導緝毒局。川普總統尚未發布任何與重新安排相關的官方政策指令，但柯爾已對合法化努力表示反對。然而，川普總統已公開表示支持大麻改革，包括重新安排和批准在佛羅裡達州使用，我們仍然謹慎樂觀地認為重新安排將繼續取得進展。

We do continue to see growth prospects in the state markets with four states voting on cannabis legislation in 2024. Pennsylvania is exploring adult use cannabis legalization through legislation, and earlier this month, Governor Shapiro's 2025-2026 budget proposes the legalization of adult use cannabis effective July 1, 2025, with sales beginning January 1, 2026.

隨著 2024 年四個州就大麻立法進行投票，我們確實繼續看到州市場的成長前景。賓州正在探索透過立法實現大麻成人用合法化，本月早些時候，州長夏皮羅在 2025-2026 年預算中提出，大麻成人用合法化將於 2025 年 7 月 1 日生效，銷售將於 2026 年 1 月 1 日開始。

In Florida, the Smart and Safe Florida campaign was relaunched in January to put adult use cannabis back on the ballot for the 2026 election after the recent measure received majority support from voters but failed to receive the requisite 60% needed.

在佛羅裡達州，今年 1 月重新啟動了「智慧安全佛羅裡達」運動，旨在將成人用大麻重新納入 2026 年選舉的選票，此前該措施獲得了選民的多數支持，但未能達到所需的 60% 的支持率。

These two states combined generated approximately $3.8 billion in sales in 2024 and are projected to be two of the largest cannabis markets in the US by 2028 according to BDSA. In Minnesota, while regulations for adult use cannabis have yet to be finalized, the OCM began accepting applications for cannabis businesses earlier this month. Additionally, the public comment period for the regulatory framework concluded earlier this month, and the OCM is expected to publish the final rules by the end of Q1 '25.

根據 BDSA 的數據，這兩個州在 2024 年的大麻銷售額總計約為 38 億美元，預計到 2028 年將成為美國最大的兩個大麻市場。在明尼蘇達州，雖然成人用大麻的法規尚未最終確定，但 OCM 已於本月初開始接受大麻業務的申請。此外，監管框架的公眾意見徵詢期已於本月初結束，OCM預計在2025年第一季末發布最終規則。

We look forward to the adult use rollout and are excited for our tenant partners Green thumb and Trulieve. The growth of the overall cannabis industry in the US continues to remain strong, with 41 states having legalized cannabis for medical or recreational use, accounting for 71% of the US population.

我們期待成人用途的推出，並對我們的租戶合作夥伴 Green thumb 和 Trulieve 感到興奮。美國整體大麻產業成長持續保持強勁，其中41個州已將大麻合法化用於醫療或娛樂用途，占美國人口的71%。

BDSA is projecting cannabis sales to increase approximately 10% in 2025 after an estimated 9.8% growth in 2024, with total US cannabis sales of $32.4 billion. Recent data shows that cannabis consumption is also strong, with volumes of 15% in 2024, according to Hoodie Analytics. Additionally, studies have highlighted daily marijuana use surpassed daily alcohol consumption in 2022. These trends reflect the growing acceptance and integration of cannabis, which positions the industry for continued expansion.

BDSA 預計，2024 年大麻銷售額將成長 9.8%，到 2025 年還將成長約 10%，美國大麻總銷售額將達到 324 億美元。根據 Hoodie Analytics 的數據，最近的數據顯示，大麻消費量也很強勁，到 2024 年將成長 15%。此外，研究表明，2022 年每日大麻消費量超過了每日酒精消費量。這些趨勢反映出大麻的接受度和融合度不斷提高，為該產業的持續擴張奠定了基礎。

However, challenges persist, particularly from illicit and gray markets that undermine the regulated industry. While states like California and New York have made incremental progress in enforcement, the illicit market is estimated to be more than 2.5 times the size of the regulated market. Addressing this issue requires further efforts at both the state and federal levels.

然而，挑戰依然存在，特別是來自破壞受監管行業的非法和灰色市場的挑戰。雖然加州和紐約州等州在執法方面取得了逐步進展，但非法市場規模估計仍是受監管市場的 2.5 倍以上。解決這個問題需要州和聯邦層級的進一步努力。

At the state level, we are encouraged by the continued expansion of the New York and Ohio cannabis markets. As of December, New York's adult use cannabis sales surpassed $1 billion since launching in December of 2022, and according to BDSA is projected to reach $2.4 billion of annual sales by 2028. In Ohio, adult use sales exceeded $300 million within the first six months following their launch in August of 2024 and are projected to grow to over $2 billion of annual sales by 2028.

在州一級，紐約和俄亥俄州大麻市場的持續擴張令我們感到鼓舞。截至 12 月，紐約成人用大麻銷售額自 2022 年 12 月推出以來已超過 10 億美元，根據 BDSA 的數據，預計到 2028 年年銷售額將達到 24 億美元。在俄亥俄州，成人用品於 2024 年 8 月推出後的前六個月內銷售額就超過 3 億美元，預計到 2028 年年銷售額將成長到 20 億美元以上。

I'd like to now turn the call over to Ben to discuss our investment and leasing activity, Ben.

現在我想把電話轉給本，討論我們的投資和租賃活動，本。

Thanks Paul. In 2024 we deployed over $70 million across five properties, and in 2025 we have one asset under contract for $7.8 million with closing expected this quarter, subject to diligence and closing conditions.

謝謝保羅。2024 年，我們在五處房產上投入了超過 7000 萬美元，2025 年，我們簽訂了一項價值 780 萬美元的資產合同，預計本季度完成交易，但需經過盡職調查和成交條件。

Also in 2024, we executed leases totaling approximately 530,000 square feet, including a new lease executed in the fourth quarter with Tri-Mountain Pure for 160,000 square feet at our Pittsburgh asset, bringing the property to 100% occupancy.

此外，在 2024 年，我們簽訂了總計約 530,000 平方英尺的租約，其中包括第四季度與 Tri-Mountain Pure 簽訂的位於匹茲堡資產的 160,000 平方英尺的新租約，使該物業的入住率達到 100%。

Tri-Mountain Pure is led by the prior founder of Pure Pen, one of the early Pennsylvania grower processors that sold to True Leaf in November of 2020. Additionally, in Q4 of '24 and the first quarter of this year, we executed two leases totalling 11,000 square feet to non-cannabis tenants in Palm Springs.

Tri-Mountain Pure 由 Pure Pen 的前創始人領導，Pure Pen 是賓夕法尼亞州早期的種植加工商之一，於 2020 年 11 月出售給 True Leaf。此外，2024 年第四季和今年第一季度，我們向棕櫚泉的非大麻租戶簽訂了兩份總計 11,000 平方英尺的租約。

Our 2024 leasing efforts brought our operating portfolio to over 98% leased as of year-end. Our three properties under development consist of one pre-leased asset in California, a 192,000 square foot property in San Bernardino, and a 12-acre parcel of land in San Marcos, Texas. With total available liquidity exceeding $235 million we are well positioned to pursue strategic investments and capitalize on our pipeline.

我們 2024 年的租賃努力使我們的營運組合截至年底的租賃率超過 98%。我們正在開發的三處房產包括位於加州的一處預租資產、位於聖貝納迪諾的一處 192,000 平方英尺的房產以及位於德克薩斯州聖馬科斯的一塊 12 英畝的土地。我們擁有超過 2.35 億美元的總可用流動資金，可以進行策略性投資並充分利用我們的管道。

With that, I'll hand it over to David.

說完這些，我就把它交給大衛。

David. Thank you, Ben. For the year end in 2024, we generated total revenues of $308.5 million compared to $309.5 million for the same period in 2023. The less than 1% decrease in our cash revenues collected was primarily due to certain properties we recaptured or sold since 2023.

大衛。謝謝你，本。截至 2024 年底，我們的總營收為 3.085 億美元，而 2023 年同期為 3.095 億美元。我們的現金收入減少不到 1%，主要是因為我們自 2023 年以來就收回或出售了某些財產。

Adjustments to rent for certain properties or lease amendments and partial payment of rent by certain tenants where we fully utilized our security deposits. Our comparability year over year was also impacted, as we have previously disclosed since the first quarter, by two leases that one amendment changed our lease classification from operating leases to sales type leases starting in January 2024.

在我們充分利用了押金的情況下，對某些房產的租金或租約進行了修改並由某些租戶支付部分租金。正如我們自第一季以來所披露的那樣，我們的同比可比性也受到了兩項租約的影響，其中一項修訂從 2024 年 1 月開始將我們的租賃分類從經營租賃更改為銷售型租賃。

The decrease was partially offset by the $3.9 million disposition contingent lease termination fee that was received in connection with the sale of our property in Los Angeles, California in the second quarter. Amendments to leases for additional improvement allowances at existing properties that resulted in adjustments to rent, revenue from the two new properties we acquired in 2024, and contractual rent escalations on our other existing properties.

這一減少被第二季出售我們位於加州洛杉磯的房產時收到的 390 萬美元處置或有租賃終止費部分抵銷。對現有物業的租約進行修改，以增加改善津貼，從而調整租金、我們在 2024 年收購的兩處新物業的收入以及其他現有物業的合約租金上漲。

As we noted in our press release yesterday, the fourth quarter's results also include $5.7 million of security deposits applied for contractually due rent on properties leased to five tenants, of which $4.3 million related to PharmaCann.

正如我們昨天在新聞稿中指出的那樣，第四季度的業績還包括向五名租戶出租的房產按合約應付租金的 570 萬美元保證金，其中 430 萬美元與 PharmaCann 有關。

AFFO for fourth quarter was $63.4 million or $2.22 per share, a 3% decrease compared to the fourth quarter of 2023, and a 1% decrease versus the third quarter of 2024, with both decreases driven by reduced rent collections for certain tenants.

第四季的 AFFO 為 6,340 萬美元或每股 2.22 美元，與 2023 年第四季相比下降 3%，與 2024 年第三季相比下降 1%，兩次下降都是由於某些租戶的租金減少造成的。

In addition, as it relates to the PharmaCann amendments we announced in January, it results in an approximately $0.16 negative quarterly impact to rent going forward, which could improve with any retenanting activities at the Michigan and Massachusetts properties.

此外，由於它與我們在一月份宣布的 PharmaCann 修正案有關，它將對未來季度租金產生約 0.16 美元的負面影響，但隨著密西根州和馬薩諸塞州物業的任何重新租賃活動，這種情況可能會有所改善。

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 maturing in May 2026. Furthermore, we continue to maintain reed industry leading credit metrics with a net debt to EBITDA of less than 1 times.

本季我們的資產負債表保持強勁，總資產達 26 億美元，唯一的債務是 2026 年 5 月到期的 3 億美元固定利率無擔保債券。此外，我們持續維持業界領先的信用指標，淨債務與 EBITDA 比率不到 1 倍。

Debt to gross assets ratio of 11% and a debt service coverage ratio of nearly 17 times. In the fourth quarter, we added two banks to our revolving credit facility, bringing it to four in total and expanded capacity on that facility by another $37.5 million.

負債與總資產之比率為11%，償債覆蓋率接近17倍。第四季度，我們的循環信貸額度增加了兩家銀行，使總數達到四家，並將該額度的容量再擴大了 3,750 萬美元。

Our total capacity on our revolver now stands at $87.5 million, all of which remains undrawn as of today. With this increased liquidity, we finished the 4th quarter with over $235 million of total liquidity comprised of cash, short-term investments, and availability under a revolving credit facility. Our dialogue continues with additional banks about increasing our overall credit capacity.

我們的循環信貸總容量目前為 8,750 萬美元，截至今日，仍未動用。隨著流動性的增加，我們在第四季結束時擁有超過 2.35 億美元的總流動性，包括現金、短期投資和循環信貸額度下的可用資金。我們繼續與其他銀行進行對話，討論如何提高我們的整體信貸能力。

We continue to be well positioned with a conservative balance sheet, strong liquidity, and continued progress on expanding our banking relationships to increase the size of our credit facility. With that, I will turn it back to Alan. Alan.

我們繼續保持保守的資產負債表、強勁的流動性，並繼續擴大銀行關係以增加信貸規模，從而保持良好的地位。說完這些，我就把話題轉回給艾倫。艾倫。

Thanks, David. I'm proud of what our team accomplished in 2024. We continue to be laser focused on maximizing the value of each property in our portfolio for the benefit of our stockholders, and I see our company as exceptionally well positioned to continue to execute on the business while navigating through the regulated cannabis industry headwinds. As long-term owners of our company, thank you as always for your continued support.

謝謝，大衛。我為我們團隊在 2024 年所取得的成就感到自豪。我們將繼續專注於最大化投資組合中每項資產的價值，以造福我們的股東，我認為我們公司處於非常有利的位置，可以在受監管的大麻行業逆風中繼續開展業務。作為我們公司的長期所有者，一如既往地感謝您的持續支持。

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

現在，我想開始回答大家的提問。接線員，可以打開電話詢問嗎？

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Opearator Instructions) Our first question comes from Tom Catherwood with BTIG. Please go ahead.

（操作員指示）我們的第一個問題來自 BTIG 的 Tom Catherwood。請繼續。

Thank you and good morning, everybody. So first off, kudos on the swift resolution with PharmaCann that was huge, and I know a very big lift. But if we step back and think more broadly about tenant risks in the three cases where you've had to work through issues, and this includes Parallel and Green Peak, the tenant was also facing issues with their lenders.

謝謝大家，早安。首先，我要對 PharmaCann 迅速解決問題表示讚賞，這是一個巨大的進步，我知道這是一個非常大的提升。但如果我們退一步，更廣泛地思考在您必須解決問題的三個案例中的租戶風險，其中包括 Parallel 和 Green Peak，租戶也面臨著與貸方的問題。

How are you thinking about risk for your tenant base over the course of the next year, given that 2026 is an outsized year for debt maturities across the cannabis industry?

鑑於 2026 年是整個大麻產業債務到期額最高的一年，您如何考慮明年租戶群體面臨的風險？

Well, thanks Tom. I think that, first of all, you're talking about something that's going to occur in 2026 and we're, I think this is still February 2025 and we believe that the industry has continued to do show green shoots and to mature.

好吧，謝謝湯姆。我認為，首先，你談論的是 2026 年將要發生的事情，而我們認為現在仍然是 2025 年 2 月，我們相信該行業將繼續展現出綠芽並走向成熟。

And do and perform better and we believe that the broader markets should be in a much better position to be able to deal with the 2026 maturities that many of these tenants do have. But with that we do acknowledge that the earlier the maturity of debt that occurs with our tenants, the more stress that they are seeing, and that is an issue that we are following and watching very closely.

並且做得更好，表現更好，我們相信更廣泛的市場應該處於更好的位置，能夠處理許多租戶所擁有的 2026 年到期債務。但我們確實承認，租戶的債務到期越早，他們面臨的壓力就越大，這是我們正在密切關注和注意的問題。

I appreciate that, Alan, and maybe if I take the flip side to that, could there also exist a scenario where IIT plays a role in helping some of those tenants or operators work through their debt issues, whether it's, sale lease backs, taking down more real estate, effectively injecting fresh capital through your sale lease back process.

艾倫，我很感激這一點，如果我從另一個角度來看，是否也存在這樣一種情況，即 IIT 可以發揮作用，幫助一些租戶或運營商解決他們的債務問題，無論是售後回租，收回更多房地產，還是通過售後回租流程有效地註入新資本。

Well, we're always looking at opportunities and as you know Ben will talk about, we continue to review opportunities and we will do that and we have the privilege of having a very strong balance sheet with less than around 11% debt to total gross assets and giving us the and over $200 million of liquidity.

嗯，我們一直在尋找機會，正如你所知，本將會談到的，我們會繼續審查機會，我們會這樣做，我們有幸擁有非常強勁的資產負債表，負債與總資產之比不到 11%，並為我們提供了超過 2 億美元的流動資金。

Giving us the flexibility to play and to work with tenants that do have interesting opportunities for us and we will look at that, but that's not what we believe we believe the broader industry needs to continue to perform better and which, as Paul described, there are some several green shoots occurring and we believe that the broader debt industry needs to be there for the industry, in general.

讓我們能夠靈活地與租戶合作，這確實為我們提供了一些有趣的機會，我們會考慮這一點，但這不是我們所認為的，我們認為更廣泛的行業需要繼續表現得更好，正如保羅所描述的，有一些綠芽正在出現，我們相信更廣泛的債務行業需要為整個行業服務。

Yeah, appreciate that, Alan. Last one for me, Paul, maybe going back to your comments on rescheduling, do you have a sense of what the next checkpoints are in restarting the hearings that got, postponed or delayed, and, at what point in time do we get a better sense of how the DEA may be approaching a rescheduling?

是的，我很感激，艾倫。保羅，對我來說最後一個問題，也許可以回到你對重新安排的評論，你是否知道在重新開始被推遲或延遲的聽證會時下一個檢查點是什麼，以及，在什麼時候我們才能更好地了解 DEA 可能如何重新安排？

Yeah, I mean, that's a question, Tom. I think the whole industry is waiting to find out, it's, we're in the court system to get the scheduling process back on track. There's really no timeline as to when the administrative judge may make a ruling on what the DEA did or didn't do.

是的，我的意思是，這是一個疑問，湯姆。我認為整個產業都在等待答案，我們正在透過司法系統讓調度過程重回正軌。目前確實沒有時間表表明行政法官何時能夠對 DEA 做了什麼或沒做什麼做出裁決。

It's kind of guesswork on that timeline. It could be stalled indefinitely, or it could be as soon as maybe three to six months. But I think really all eyes are on the White House at this point, Tom, because, with the appointments of Terence Cole as DEA with Pam Bondi as HG with RFK Jor as HHS, we don't have a lot of guidance at those. Hearings where they testified as to what their position will be.

這只是對該時間線的一種猜測。它可能會無限期地停滯，或者最快可能停滯三到六個月。但是湯姆，我認為現在所有人的目光都集中在白宮上，因為特倫斯·科爾被任命為緝毒局局長，帕姆·邦迪被任命為衛生與公眾服務部部長，而我們對此並沒有太多的指導。他們在聽證會上作證說明他們的立場。

We can only look historically at what they've said, but I think if we get a statement from the White House from President Trump that is consistent with his September postings on his Truth Social, where he was very clear that he supported rescheduling, safer banking, and of course legalization in Florida, if we get direction from him. I think the DEA and HHS will fall in line, I think, and we'll get that process back on.

我們只能從歷史的角度來看待他們所說的話，但我認為，如果我們從白宮得到川普總統的聲明，該聲明與他在 9 月的「真相社交」網站上的言論一致，他在那裡明確表示，他支持重新安排、更安全的銀行業務，當然還有佛羅裡達州的合法化，如果我們得到他的指示的話。我認為緝毒局和衛生與公共服務部將會遵守規定，我們將重新開始這項程序。

So I think the smart money is to see what happens from the White House and when that might happen.

因此我認為明智的做法是看看白宮會採取什麼行動以及什麼時候會發生。

Understood. I appreciate all the answers. Thanks everyone.

明白了。我感謝大家的回答。謝謝大家。

Thanks Tom.

謝謝湯姆。

And the next question comes from Aaron Grey with Alliance Global Partners. Please go ahead.

下一個問題來自 Alliance Global Partners 的 Aaron Grey。請繼續。

Hi, good afternoon.

嗨，下午好。

Thank you very much for the questions here. So first question for me, thanks for the increment call in terms of the security deposit.

非常感謝您在這裡提出的問題。所以對我來說第一個問題是，感謝您就押金的增加打電話來。

So, looks like 4.3% of that, 5.7% from PharmaCann. So regarding the other 1.3 and 4 tenants, I know you had mentioned, I believe 3 of them in the prior call, so be relating to those and one more, just anything that you're doing in terms of, working through that with the partial or non-payments and just, how we should anticipate.

因此，其中 4.3% 似乎來自 PharmaCann，5.7% 似乎來自 PharmaCann。因此，關於其他 1.3 和 4 名租戶，我知道您曾經提到過，我相信其中 3 名是在之前的電話會議中提到的，因此請與這些以及另外一名租戶相關，只是您正在做的任何事情，解決部分付款或不付款的問題，以及我們應該如何預期。

The security deposits either going forward if that is being resolved or there might be incremental issues there. So just a broader tenant portfolio on the security deposits being applied there. Thanks.

如果問題得到解決，保證金將繼續支付，否則可能會出現增量問題。因此，那裡適用的押金範圍只是更廣泛的租戶組合。謝謝。

Yeah, no, I think that the way to look at it is that we we're taking each situation as a unique and special situation and drilling down to with the tenants and working with them to get them back to where they where they agreed to be and where we expect them to be and.

是的，不，我認為我們應該把每一種情況都看作是一種獨特的特殊情況，並與租戶進行深入交流，與他們合作，讓他們回到他們同意的地方和我們期望他們回到的地方。

And so that's, I think the best we can deal, we can say with regards to the actual tenants given how the majority of our tenants are private and we have confidentiality agreements with them and so we have to be very careful with what we say, but we are working very closely with those and then Ben, do you have anything further down?

因此，我認為這是我們能做的最好的事情，關於實際租戶，我們可以說的是，考慮到我們的大多數租戶都是私人租戶，我們與他們簽訂了保密協議，所以我們必須非常小心我們所說的話，但我們正在與他們密切合作，然後本，你還有什麼要說的嗎？

I think that's right, Alan, and I think really when you think about tenant health, we're really talking about the health of the industry overall and the green shoots that we're seeing in the cannabis industry that that Paul described, but as Alan mentioned, we have a lot of private tenants, but we are of course watching each of our tenants and working with them very closely.

我認為這是正確的，艾倫，我認為當你考慮到租戶健康時，我們實際上談論的是整個行業的健康狀況以及保羅所描述的大麻行業所出現的綠芽，但正如艾倫提到的，我們有很多私人租戶，但我們當然會關注我們的每一個租戶並與他們密切合作。

Appreciate that color there. Second one for me, just could you provide some color on the pipeline for 2025. You have healthy liquidity, so curious to how you're currently viewing the pipeline translating to committee capital for the year in the current environment that we stand in today, and then also how much that could change either via potential state legalization or federal reform.

欣賞那裡的色彩。對我來說是第二個問題，您能否提供一些有關 2025 年管道的詳細資訊。您的流動性很健康，因此很好奇，在目前環境下，您如何看待當前管道轉化為年度委員會資本的情況，以及透過潛在的州合法化或聯邦改革，這種情況可能發生多大程度的改變。

Yeah, Erin, this is Ben. So As we have for the last year or two, we are continuing to be very opportunistic and very disciplined as it relates to the pipeline. We're seeing a wide variety of opportunities, I believe we have a very strong balance sheet, a very strong liquidity position, around $235 million to capitalize on which of those opportunities we think are best.

是的，艾琳，這是本。因此，正如我們過去一兩年所做的那樣，我們在管道建設方面繼續保持抓住機會和嚴守紀律的態度。我們看到了各種各樣的機會，我相信我們擁有非常強勁的資產負債表，非常強勁的流動性狀況，大約有 2.35 億美元可以利用我們認為最好的機會。

Okay, great, thanks for calling I'll jump back in the queue.

好的，太好了，謝謝您的來電，我會回到隊列中。

Thank you.

謝謝。

And the next question comes from Bill Kirk with Roth Capital Partners. Please go ahead.

下一個問題來自 Roth Capital Partners 的 Bill Kirk。請繼續。

Still, your line might be on mute.

不過，您的線路可能處於靜音狀態。

We're moving on to Eric Des Laurier with Craig-Hallam Capital Group. Please go ahead.

我們接下來將討論 Craig-Hallam Capital Group 的 Eric Des Laurier。請繼續。

Great, thank you for taking my questions. First one, just a bit of a follow up on Aaron's question there. So you mentioned strategic investments a couple of times on the call. Just for clarification, should we be thinking of these as your typical, acquisitions and investments that you've been making, or are you perhaps looking at, perhaps other non-cannabis or other types of investments?

太好了，謝謝你回答我的問題。首先，我只是對 Aaron 的問題進行一點跟進。所以您在電話中幾次提到了戰略投資。只是為了澄清一下，我們是否應該將這些視為您進行的典型收購和投資，或者您可能正在考慮其他非大麻或其他類型的投資？

I think that we're, we have broadened our investment opportunities, but we are primarily focused on the cannabis industry.

我認為我們已經拓寬了投資機會，但我們主要關注的是大麻產業。

We think that there are unique opportunities to invest within the financial side of the cannabis industry, obviously generating real estate related income. And so we're looking at a variety of ways to enhance the revenue the revenue producing aspect of the company using our balance sheet and a very strong balance sheet and our available liquidity.

我們認為，大麻產業的金融方面存在著獨特的投資機會，顯然可以產生與房地產相關的收入。因此，我們正在尋找各種方法來利用我們的資產負債表和非常強勁的資產負債表以及我們可用的流動性來提高公司的收入，提高公司的創收方面。

I appreciate that and could you elaborate on some of the green shoots that you've been referring to in the industry and I guess, overall level of competition in cannabis markets, they've obviously been challenging for some time here wondering if you're seeing a plateauing of sorts or sort of continuing to get perhaps increasingly challenging, but just overall kind of elaboration on the green shoots that you're seeing.

我很感激，您能否詳細說明一下您所提到的行業中的一些綠芽，我想，大麻市場的整體競爭水平，顯然已經具有挑戰性一段時間了，想知道您是否看到了某種平台期，或者是否繼續變得越來越具有挑戰性，但只是對您所看到的綠芽進行總體闡述。

Yeah, hey, this is Paul. I think, we gave some specifics in our prepared remarks, but we start with the projection of a 10% growth for '25, which is not insignificant. Then we look at some of the, state by state analysis, for example, Tennessee just introduced bills for both medical and rec, and that's Tennessee. We haven't seen that.

是的，嘿，這是保羅。我想，我們在準備好的發言中給了一些具體細節，但我們首先預測25年的成長率為10%，這並不小。然後我們來看看各州的分析，例如，田納西州剛剛發布了醫療和娛樂法案，這就是田納西州。我們還沒見過這樣的情況。

We talked about Illinois, breaking a record, a $2 billion dollar record. That's substantial. We look at Governor Shapiro in Pennsylvania who again calls for adult use as part of his budget for 2025. We just saw a recent. A poll in Florida, if the rec vote was held today, it would get 67% support, which of course is over the 60% threshold, so that would pass if today it was held.

我們談到了伊利諾伊州，它打破了一項紀錄，20 億美元的紀錄。這很重要。讓我們來看看賓州州長夏皮羅，他再次呼籲將成人使用作為 2025 年預算的一部分。我們剛剛看到了最近的。佛羅裡達州的一項民意調查顯示，如果今天舉行推薦投票，支持率將達到 67%，這當然超過了 60% 的門檻，所以如果今天舉行投票，支持率就會通過。

We look at other things, we look at with more border enforcement, do we see the possibility of with enforcement we have a decrease in illegal supply crossing the border. Do we see a decrease in in in aliens working in the black market perhaps on the grows, so that may be in effect, then again, state by state we look at good records in New York and Ohio. I did $300 million in its first six months. That was very impressive. We see in New York.

我們研究其他事情，研究加強邊境執法，我們是否看到透過執法減少跨境非法供應的可能性。我們是否看到在黑市上工作的外國人數量有所減少，也許是在種植大麻，所以這可能是有效的，再一次，我們逐個州地查看紐約和俄亥俄州的良好記錄。在頭六個月我就賺了 3 億美元。這真是令人印象深刻。我們在紐約看到。

We see in New York Hit the $1 billion dollar mark. So you know these are all very state specific, but when viewed in the aggregate, it supports what we think is still a pretty robust industry and along with the 10% growth we're pretty optimistic that this industry will continue to grow, it's going to have some headwinds as we discussed, primarily.

我們看到紐約的銷售額突破了10億美元大關。所以你知道這些都是非常特定於州的，但從總體上看，它支持了我們認為仍然是一個相當強勁的行業，並且隨著 10% 的增長率，我們非常樂觀地認為這個行業將繼續增長，正如我們主要討論的那樣，它將面臨一些阻力。

The black market in some of the larger states and you talked about competition, we are seeing the states in the larger states certainly we're seeing some of the less successful growers drop out, and that's market dynamics that we've always talked about for years that we do believe there will be a consolidation in these larger states and that's coming to pass.

您談到了某些較大州的黑市競爭，我們看到在較大的州中，一些不太成功的種植者退出了市場，這就是我們多年來一直在談論的市場動態，我們確實相信這些較大的州將會出現整合，而這正在成為現實。

So. We've always, well, we've tried to put our dollars with the MSOs that we see as the larger growers in these states and the ones that we support. So we think they will continue to do well as the markets grow.

所以。我們一直試圖將資金投入到我們認為是這些州的較大種植者以及我們支持的 MSO 中。因此我們認為，隨著市場的成長，它們將繼續表現良好。

Alright, I appreciate that color, and then last one for me. Regarding the PharmaCann resolution, which I'll also echo my congratulations on the swift resolution there. So, part of that did come with a certainly modest reduction in rents. I'm just wondering if you're getting calls from existing tenants to sort of, follow on with that. I would imagine. Some of them are looking to do so and just, if so, how are you handling those discussions? Is that something that we should perhaps, be on the lookout for of, some of those minor or modest rent reductions to other tenants?

好吧，我很欣賞這個顏色，對我來說這是最後一個了。關於 PharmaCann 決議，我也對決議的迅速通過表示祝賀。因此，部分原因確實在於租金略有下降。我只是想知道您是否接到了現有租戶的電話，以便跟進此事。我可以想像。他們中的一些人正在考慮這樣做，如果是這樣，您將如何處理這些討論？我們是否應該留意對其他租戶進行小幅或適度的租金減免？

It It's an interesting question. It's a very difficult one for us to answer because if we were receiving calls, we wouldn't want to talk about that and if we, but we have said that we are monitoring all of our tenants and we are monitoring all of our tenants and but the thing that we want to make very clear is that that this company.

這是一個有趣的問題。這個問題我們很難回答，因為如果我們接到電話，我們不想談論這個，但我們說過我們正在監視我們所有的租戶，我們正在監視我們所有的租戶，但我們想非常明確的是，這家公司。

Relies on our leases that we do what we say we're going to do and we expect our tenants to live to their agreements and that and that's what we should what we should be focused on.

依靠我們的租約，我們會說到做到，我們希望我們的租戶遵守他們的協議，這就是我們應該關注的。

And, I might also add, I think as we've described in the past that you know that the resolution we reached with PharmaCann was just not, a reduction in rent and taking back properties. Pharmacan has committed to some substantial.

而且，我還要補充一點，我想正如我們過去所描述的那樣，我們與 PharmaCann 達成的解決方案不僅僅是降低租金和收回房產。Pharmacan 已承諾做一些實質的事情。

Policy changes and some financial commitments by their investors, of course the note that we take and other commitments such as not taking any more debt. So you know the fact that there's a fair question, are other tenants going to TRY and get a rent reduction, but If they do, they're going to be met. If they default, we will meet them with the same swiftness that we did with Pharmacan with immediately filing default notices on all those properties, proceeding to eviction.

政策變化和投資者的一些財務承諾，當然還有我們所採取的措施和其他承諾，例如不再承擔任何債務。所以你知道，這是一個合理的問題，其他租戶是否會嘗試減租，但如果他們這樣做，他們就會得到滿足。如果他們違約，我們將以對待 Pharmacan 的同樣迅速的方式處理他們，立即對所有這些房產發出違約通知，並進行驅逐。

And if there's a way to work something out, we will get something to compensate us for the loss of rent. So that's an important point that needs to be stressed, I think, and to have any potential. Tenants to realize that we're not open for business just to cut rents. If there is a rent reduction, there will be something on the back end.

如果有辦法解決問題，我們將獲得一些補償來補償我們的租金損失。所以我認為，這是一個需要強調的重要觀點，而且具有潛力。租戶們要認識到，我們開門營業不只是為了降低租金。如果租金減免的話，後端一定會有一些東西。

That's very helpful thank you for the call.

這非常有幫助，謝謝您的來電。

And the next question comes from Bill Kirk with Roth Capital Partners. Please go ahead.

下一個問題來自 Roth Capital Partners 的 Bill Kirk。請繼續。

Hey, good afternoon, everyone. Sorry for my tech difficulties earlier. I kind of have like a two part, question here. The portfolio today is primarily cultivation properties. How do you see the mix of forward opportunities. Between cultivation and retail assets and then related the kind of the second part is most of the business today is multi-state operators. How do you see kind of the opportunities with the multi-state operators going forward versus maybe some smaller single state operators?

嘿，大家下午好。抱歉，我之前遇到了技術上的問題。我這裡有兩個問題。今天的投資組合主要是種植業。您如何看待未來機會的組合。在種植和零售資產之間，相關的第二部分是當今大多數業務是跨州運營商。與一些規模較小的單一州運營商相比，您如何看待跨州運營商未來的發展機會？

So first of all, we've been very clear that we're focused on the cultivation assets and highly focused on that. We will look at retail assets and our opportunities are primarily focused within the same percentage of our portfolio, again, the cultivation assets, and then. I mean your second your second part of your question had to do with, I'm sorry, what?

首先，我們非常清楚，我們專注於培育資產，並且高度重視這一點。我們將專注於零售資產，我們的機會主要集中在我們投資組合的相同百分比內，再次是培育資產，然後是。我的意思是，你的問題的第二部分與什麼有關？

Multi-state tenants versus single state.

多州租戶與單一州租戶。

Yeah, we've made a Our underwriting criteria has continued to be one of looking at the best, whether they're multi-state or single state, but highly focused on the multi-state operators, and we're going to continue to do that.

是的，我們制定了承保標準，一直是尋找最好的標準，無論是跨州還是單一州，但高度關注跨州運營商，我們將繼續這樣做。

Thank you.

謝謝。

And the next question comes from Alexander Goldfarb with Piper Sandler. Please go ahead.

下一個問題來自派珀桑德勒 (Piper Sandler) 的亞歷山大·戈德法布 (Alexander Goldfarb)。請繼續。

Hey, good morning out there, and, Paul, appreciate your warning to other tenants trying to, pull a PharmaCann, so I'd like the public address. Two questions here. First, you commented on the on the growth of the industry and certainly in your slide deck you talk about 9% CAGR and yet investment since 2020 has declined despite 20+ State, legalizing some sort of medical or recreational, etc.

嘿，早上好，保羅，感謝你對其他試圖拉 PharmaCann 的租戶的警告，所以我想公開演講。這裡有兩個問題。首先，您評論了該行業的成長，當然在您的幻燈片中您談到了 9% 的複合年增長率，但儘管 20 多個州將某種醫療或娛樂活動合法化，但自 2020 年以來的投資卻下降了。

So I, how much over a city do you think is out there like when do you think that this growth. Translates to commensurate renewed interest in investment such that you know we see like 9% investment growth in the space. So when do you think this turns?

那麼，您認為這座城市的成長速度有多快？這意味著人們對投資的興趣將相應重新燃起，我們看到該領域的投資成長率達到 9%。那麼您認為什麼時候會出現這種轉變呢？

I think that the industry still has headwinds as we've described, and those headwinds come from the illicit market and the illicit growers and as that, as Paul alluded to is that is reduced whether through you know border enforcement or other types of enforcement.

我認為，正如我們所描述的，該行業仍然存在阻力，這些阻力來自非法市場和非法種植者，正如保羅所提到的，無論是透過邊境執法還是其他類型的執法，這些阻力都會減少。

I think that's going to allow the industry to have to be able to continue the capital growth within the industry. That's number one. The other real factor is really the safer banking type provision which will allow capital providers to feel more comfortable in providing capital to the to the industry, and that's something that's been talked about and and something that everybody's been looking for a long period of time. So.

我認為這將使該行業能夠繼續實現資本增長。這是第一點。另一個真正的因素實際上是更安全的銀行類型的規定，這將使資本提供者在向行業提供資本時感到更放心，這是人們一直在談論的事情，也是每個人長期以來一直在尋找的事情。所以。

Do I, do we see that in the short term? Not particularly, but we do believe that it is coming in and it will be something very important for the industry.

我們在短期內能看到這一點嗎？不是特別，但我們確實相信它正在到來，而且對於行業來說它將是一件非常重要的事情。

Okay, and then the second question is, again, you guys have always been very vocal about MCO, exposure and, the credit improvement that that provides yet obviously PharmaCann was an MCO that had issues, King's Garden, is another. So my question is MCO really a good metric of credit or are there other things as the business has evolved that you guys are starting to look more towards. That provide greater comfort to you on the credit side that the operator is money good.

好的，然後第二個問題是，你們一直對 MCO、曝光度以及由此帶來的信用改善直言不諱，但顯然 PharmaCann 是一家存在問題的 MCO，King's Garden 是另一家。所以我的問題是 MCO 真的是一個很好的信用指標嗎，或者隨著業務的發展，你們是否開始更加關注其他因素。這在信用方面為您提供了更大的便利，因為運營商的資金狀況良好。

The MSO, the multi-state operator.

MSO，即跨州營運商。

Not MCO sorry MSO sorry.

不是 MCO，對不起，是 MSO，對不起。

That that is an aspect, which is why we have single-state operators that we're very excited about. But it is, it does show the ability for a company to raise a significant amount of capital and to be able to to operate in multiple states does provide a diverse form of diversification that we've looked at and why we have focused on that. We really are looking at the operators themselves and their ability to raise capital and their ability to.

這是一個方面，這就是為什麼我們擁有令我們非常興奮的單一狀態運營商。但它確實表明一家公司有能力籌集大量資金，並且能夠在多個州開展業務，這確實提供了我們研究過的多樣化形式，也是我們關注這一點的原因。我們確實在關注營運商本身以及他們籌集資金的能力和能力。

Have the experience and expertise to grow product and sell product in a very challenging environment and that's what we're looking for.

擁有在極具挑戰性的環境中發展產品和銷售產品的經驗和專業知識，這正是我們所尋求的。

So have you had any reassessments of credit of tenants that before you would have ranked highly and now you're looking at them going jeez, they're current and they're fine, but you know we may want to reduce exposure going forward.

那麼，您是否對租戶的信用進行過重新評估？

I think we're, as I said, we're watching all of our tenants. We're doing deep dives into every single one of our tenants, including the strongest ones and the and the single state operators.

我想，正如我所說的，我們正在關注我們所有的租戶。我們正在深入研究我們的每一位租戶，包括最強大的租戶和單一國家營運商。

Okay, thank you very much.

好的，非常感謝。

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

我們的問答環節到此結束。我想將會議交還給艾倫·戈爾德 (Alan Gold) 做最後發言。

Thank you. And once again, thank you all for joining us today. Thanks, I really want to say thank you to the team for all the hard, smart work we've done over the last year and this last quarter, and with that, we conclude.

謝謝。再次感謝大家今天的出席。謝謝，我真的要對團隊在過去一年和上個季度所做的所有努力和聰明的工作表示感謝，我們就此結束。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。