Innovative Industrial Properties Inc (IIPR) 2025 Q1 法說會逐字稿

Good day, and welcome to the Innovative Industrial Properties Inc first quarter 2025 earnings call. (Operator Instructions) Please note that this event is being recorded.

大家好，歡迎參加 Innovative Industrial Properties Inc 2025 年第一季財報電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to [Eli Kanter Director of Investor Relations]. Please go ahead, sir.

現在我想把會議交給[Eli Kanter 投資者關係總監]。先生，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.

感謝您參加此通話。今天出席的有執行主席 Alan Gold；總裁兼首席執行官保羅·史密瑟斯 (Paul Smithers)；大衛·史密斯（David Smith），首席財務官；以及首席投資官 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. 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.

在我們開始之前，我想提醒大家，今天的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案》安全港所定義的前瞻性陳述。而實際結果可能因各種風險、不確定性和其他因素而有重大差異。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 10-K 和 10-Q 表格報告，其中列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。

We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

我們沒有義務公開更新或修改任何前瞻性聲明，無論由於新資訊、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 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 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 AFFO。您可以在我們昨天發布的收益報告以及向美國證券交易委員會 (SEC) 提交的 8-K 表格中找到此資訊以及與最直接可比較的 GAAP 財務指標的對帳。

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

我現在將電話交給艾倫。艾倫？

Thanks, Eli, and welcome everybody to our first quarter 2025 earnings call.

謝謝，Eli，歡迎大家參加我們的 2025 年第一季財報電話會議。

Before we begin, I would like to thank the entire IIP team for their hard work and dedication. They have truly been committed to protecting the long term value of our portfolio for our shareholders by bringing their special knowledge and experience to this challenging industry. We believe we are uniquely positioned with our strong balance sheet and liquidity to manage through the ongoing uncertainty of the broader macroeconomic environment and the continued challenges in the regulated cannabis market.

在我們開始之前，我要感謝整個 IIP 團隊的辛勤工作和奉獻精神。他們真正致力於將他們的專業知識和經驗帶到這個充滿挑戰的行業，為我們的股東保護我們投資組合的長期價值。我們相信，憑藉強大的資產負債表和流動性，我們擁有獨特的優勢，能夠應對更廣泛的宏觀經濟環境的持續不確定性以及受監管的大麻市場的持續挑戰。

As for the quarter, we generated total revenues of $71.7 million, AFFO of $55.3 million and ended the period with just over $220 million of total liquidity. We delivered these results while navigating a turbulent market environment and advancing the strategic initiative we announced on our last call to strengthen our tenant credit profiles and optimize occupancy across our portfolio.

本季度，我們的總營收為 7,170 萬美元，AFFO 為 5,530 萬美元，期末總流動資金略高於 2.2 億美元。我們在應對動盪的市場環境並推進上次會議上宣布的戰略舉措的同時取得了這些業績，旨在加強我們的租戶信用狀況並優化我們整個投資組合的入住率。

The broader macroenvironment, particularly the ongoing uncertainty around tariffs has weighed on economic forecasts, inflation trends, consumer sentiment and business planning. Against this backdrop, we continue to perform, focusing on optimizing occupancy of our portfolio, opportunistically recycling capital and executing on growth initiatives on a disciplined selective basis.

更廣泛的宏觀環境，特別是圍繞關稅的持續不確定性，對經濟預測、通膨趨勢、消費者情緒和商業規劃產生了壓力。在此背景下，我們將繼續努力，重點優化投資組合的佔用率，適時回收資本，並有紀律地選擇性地執行成長計畫。

Year-to-date, we have acquired a $7.8 million industrial facility in Maryland, sold a cultivation facility in Michigan for $9 million and executed two new leases totaling 211,000 square feet. Now Ben will provide more detail on our investing, leasing and disposition activity. In addition, we strategically undertook steps to strengthen our financial foundation and drive long term shareholder value.

年初至今，我們已在馬裡蘭州收購了價值 780 萬美元的工業設施，以 900 萬美元的價格出售了密西根州的一個種植設施，並簽訂了兩份總面積達 211,000 平方英尺的新租約。現在，本將提供有關我們的投資、租賃和處置活動的更多細節。此外，我們也採取策略性措施來加強我們的財務基礎並推動長期股東價值。

Year-to-date, we repurchased $20 million of our common stock at what we believe are compelling valuations and retired nearly $9 million of debt at a discount. To further enhance our capital structure, we also issued $10 million of preferred equity. These actions underscore our disciplined approach to capital allocation and our commitment to maximizing returns for shareholders. Now David will provide more detail on our financial results and capital position shortly.

年初至今，我們以我們認為極具吸引力的估值回購了價值 2000 萬美元的普通股，並以折扣價償還了近 900 萬美元的債務。為了進一步增強我們的資本結構，我們還發行了 1000 萬美元的優先股。這些舉措凸顯了我們對資本配置的嚴謹態度以及我們致力於為股東實現回報最大化的承諾。現在，David 很快就會提供有關我們的財務業績和資本狀況的更多詳細資訊。

As we announced in March, we are proactively working to refresh a portion of our tenant base to better position our company for sustainable growth and financial performance. As part of this effort, we issued default notices for non-paying tenants and are aggressively pursuing all legal remedies available to enhance the performance of our real estate portfolio. We are encouraged by our progress so far and believe it reflects our management team's ability to navigate complex situations effectively with a focus on protecting shareholder value. We remain confident in the strength of our business and the opportunities that lie ahead. We look-forward to keeping you updated on our continued progress.

正如我們在三月宣布的那樣，我們正在積極更新部分租戶基礎，以便更好地定位我們公司的可持續成長和財務表現。作為這項努力的一部分，我們向未付款的租戶發出了違約通知，並積極尋求一切可用的法律補救措施，以提高我們房地產投資組合的績效。我們對迄今為止的進展感到鼓舞，並相信這反映了我們的管理團隊有效應對複雜情況的能力，並專注於保護股東價值。我們對我們的業務實力和未來的機會仍然充滿信心。我們期待向您通報我們持續取得的進展。

With that, I'll now turn the call over to Paul. Paul?

說完這些，我現在將電話轉給保羅。保羅？

Thanks, Alan.

謝謝，艾倫。

As we noted last quarter, we are taking a strategic and aggressive approach to replacing our defaulted tenants. I'd like to provide some additional color on our progress with each tenant. Shortly after sending out default notices in March, Gold Flora filed for voluntary receivership in the State of California and announced the suspension of trading on CBOE Canada. Stone Blossom Capital has been appointed as the receiver of the company and we are currently in discussions with Stone Blossom about their plan for our properties leased to Gold Flora.

正如我們上個季度所指出的，我們正在採取策略性和積極性的方法來替換違約的租戶。我想提供一些關於我們與每位租戶的進展的額外資訊。今年3月發出違約通知後不久，Gold Flora就向加州申請自願破產管理，並宣布暫停在加拿大芝加哥選擇權交易所的交易。Stone Blossom Capital 已被任命為該公司的接管人，我們目前正在與 Stone Blossom 討論他們對我們出租給 Gold Flora 的房產的計劃。

Also in March, we issued default notices to Tilt Holdings and following the delivery of these notices, TILT made partial payments and satisfaction of their April rent obligations for the two properties we lease to them. We are working in good faith to resolve outstanding rental and other financial obligations under the leases while TILT works to complete the planned divestiture of their plant touching businesses.

此外，在三月份，我們向 Tilt Holdings 發出了違約通知，在收到這些通知後，TILT 已支付了我們出租給他們的兩處房產的部分款項，並履行了 4 月份的租金義務。我們正在真誠地努力解決租約項下未償付的租金和其他財務義務，同時 TILT 致力於完成其工廠相關業務的計劃剝離。

For PharmaCann and 4Front Ventures, we have issued default notices and are actively working with local counsel to aggressively pursue our legal rights under the leases, including evictions. Understanding that each state is different, which impacts the timing and complexity of recovering these properties, we are working diligently through the process and we'll provide updates as we progress.

對於 PharmaCann 和 4Front Ventures，我們已經發出了違約通知，並正在積極與當地律師合作，積極爭取我們在租約下的合法權利，包括驅逐權。我們了解到每個州的情況不同，這會影響恢復這些財產的時間和複雜性，我們正在努力完成這一過程，並將隨著進展提供更新。

On the regulatory front, the States 2.0 Act was introduced in the House last month with bipartisan co-sponsors. As a reminder, this act would make state legal cannabis businesses federally legal and would also eliminate the punitive 280E tax, among other benefits. In addition, during last month's confirmation hearing for Terence Cole, President Trump's nominee to lead the DEA, Cole stated that reviewing the rescheduling of cannabis would be among his top priorities if confirmed. And at the state level, Pennsylvania, Florida and Minnesota are making significant strides in their adult-use cannabis legalization initiatives.

在監管方面，上個月，由兩黨共同提案的《各州2.0法案》在眾議院提出。提醒一下，該法案將使州合法大麻企業在聯邦範圍內合法化，並將取消懲罰性的 280E 稅，以及其他好處。此外，上個月在川普總統提名的美國緝毒局局長特倫斯·科爾的確認聽證會上，科爾表示，如果獲得確認，審查大麻的重新分類將是他的首要任務之一。在州一級，賓州、佛羅裡達州和明尼蘇達州在成人用大麻合法化舉措方面取得了重大進展。

Pennsylvania is exploring legalization of adult use cannabis with Governor Shapiro's budget proposing legalization effective July 1, 2025, with sales anticipated to begin by January 1, 2026. In Florida, the Smart and Safe campaign aims to put adult-use cannabis back on the ballot for the 2026 election after receiving 56% support in last November's election.

賓州正在探索大麻成人使用合法化，州長夏皮羅的預算提議大麻合法化將於 2025 年 7 月 1 日生效，預計 2026 年 1 月 1 日開始銷售。在佛羅裡達州，「智慧與安全」運動在去年 11 月的選舉中獲得了 56% 的支持，旨在將成人用大麻重新納入 2026 年選舉的選票中。

Finally, Minnesota's Office of Cannabis Management progressed its regulatory framework by publishing its final rules in April. With these state-level drivers and continued strong consumer demand, BDSA forecasts U.S. cannabis sales to grow by 7% to $33.5 billion in 2025 and projects a compounded annual growth rate from 2024 to 2029 of 7.2%, reaching $44.4 billion by 2029.

最後，明尼蘇達州大麻管理辦公室於四月發布了最終規則，進一步完善了其監管框架。在這些州級驅動因素和持續強勁的消費者需求的推動下，BDSA 預測美國大麻銷售額到 2025 年將增長 7%，達到 335 億美元，並預計 2024 年至 2029 年的複合年增長率為 7.2%，到 2029 年將達到 444 億美元。

That said, competition from the illicit market, price compression, market maturity and few new adult-use markets may continue to weigh on investor sentiment and operator performance. These market conditions are a key driver of our re-tenanting philosophy of focusing on bringing best-in-class operators to our mission-critical real estate.

話雖如此，來自非法市場的競爭、價格壓縮、市場成熟度以及少數新的成人用品市場可能會繼續影響投資者情緒和營運商業績效。這些市場條件是我們重新租賃理念的關鍵驅動力，即專注於為我們的關鍵任務房地產引入一流的營運商。

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

現在我想將電話轉給本，討論我們的投資、租賃和處置活動。本？

Thanks, Paul.

謝謝，保羅。

For my prepared remarks, I'd like to touch on our portfolio initiatives described by Alan. Leasing, selective investment activity and opportunistic capital recycling. During the first quarter, we acquired a 22,000 square-foot industrial property in Maryland and entered into a long term lease with a private Maryland operator expanding our footprint in the State to approximately 316,000 square feet. And in April, we closed on a $9 million disposition in Michigan for our property previously leased to Emerald Growth and executed a PSA to sell another property in Palm Springs, California. These three transactions illustrate our team's focus on strategic investments and opportunistic capital recycling.

在我的準備發言中，我想談談艾倫描述的我們的投資組合計劃。租賃、選擇性投資活動和機會性資本回收。第一季度，我們在馬裡蘭州收購了一塊 22,000 平方英尺的工業地產，並與馬裡蘭州一家私人營運商簽訂了長期租約，將我們在該州的佔地面積擴大到約 316,000 平方英尺。今年 4 月，我們以 900 萬美元的價格出售了位於密西根州、先前出租給 Emerald Growth 的房產，並簽署了 PSA 協議，出售位於加州棕櫚泉的另一處房產。這三筆交易體現了我們團隊對策略性投資和機會性資本回收的關注。

On the leasing side, over the first four months of the year, we have executed two new leases totaling 211,000 square feet, including a full building lease for our 205,000 square foot property in Warren, Michigan with Berry Green, one of the largest cultivators in Michigan with one of the top-selling brands in the state. We are encouraged with the demand we are seeing for our assets across markets and the leasing progress we have made this year, while also continuing to source attractive new investment opportunities, which we will continue to pursue on a very selective disciplined basis.

在租賃方面，今年前四個月，我們簽署了兩份新租約，總面積達 211,000 平方英尺，其中包括與密西根州最大的種植商之一 Berry Green 簽署的位於密西根州沃倫的 205,000 平方英尺房產的整棟建築租賃協議，Berry Green 擁有密西根州最暢銷的品牌之一。我們對今年各個市場對我們資產的需求以及租賃業務的進展感到鼓舞，同時我們也將繼續尋找有吸引力的新投資機會，並將繼續在非常有選擇性和紀律的基礎上追求這些機會。

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

說完這些，我就把它交給大衛。戴維？

Thank you, Ben.

謝謝你，本。

For the first quarter, we generated total revenues of $71.7 million, a 6.5% decrease from the fourth quarter of last year. The decrease was primarily driven by the tenant defaults we previously disclosed in March. The decline was partially offset by increased revenues from properties we recently-acquired or re-tenanted, additional funding and building improvements that resulted in base rent increases and contractual rental escalations.

第一季度，我們的總營收為 7,170 萬美元，比去年第四季下降 6.5%。下降的主要原因是我們在三月披露的租戶違約情況。這一下降被我們最近收購或重新出租的物業的收入增加、額外資金和建築改進（導致基本租金增加和合約租金上漲）所部分抵消。

During the quarter, we applied $5.8 million of secured deposits for the payment of rent on properties leased to four tenants. Adjusted funds from operations for the first quarter was $55.3 million or $1.94 per share, a decrease of 13% compared to the fourth quarter of 2024, driven primarily by the same factors that drove the decrease in revenue sequentially.

本季度，我們使用了 580 萬美元的擔保存款來支付租賃給四位租戶的房產的租金。第一季調整後營運資金為 5,530 萬美元，即每股 1.94 美元，與 2024 年第四季相比下降 13%，主要原因是導致收入環比下降的相同因素。

Our balance sheet remained solid this quarter, supported by $2.6 billion in gross assets with nearly $2.2 billion of those assets unencumbered. Our only debt consists of $291 million in fixed rate unsecured bonds maturing in May 2026. Furthermore, we continue to operate with conservative credit metrics highlighted by a net-debt to EBITDA of less than one times, debt-to-gross assets ratio of 11% and a debt service coverage ratio of nearly 17 times, which we believe positions us well for long term value creation.

本季我們的資產負債表保持穩健，由 26 億美元的總資產支撐，其中近 22 億美元的資產沒有受到任何限制。我們唯一的債務是 2026 年 5 月到期的 2.91 億美元固定利率無擔保債券。此外，我們繼續採用保守的信用指標運營，其特點是淨債務與 EBITDA 之比不到一倍，債務與總資產之比為 11%，債務償還覆蓋率接近 17 倍，我們相信這有利於我們創造長期價值。

This quarter, we executed on several strategic capital markets transactions to strengthen our financial position. In February, we repurchased $8.8 million of the company's unsecured notes at a discount to par value and year-to-date, the company issued just over 406,000 shares of our Series A preferred stock under our at-the-market equity offering program for $10.1 million in gross proceeds. In addition, with the stock repurchase program we established in March, we have the ability to opportunistically repurchase shares that we view as a clear undervaluation of our stock.

本季度，我們執行了幾項策略資本市場交易，以加強我們的財務狀況。2 月份，我們以低於票面價值的價格回購了該公司價值 880 萬美元的無擔保票據，年初至今，該公司根據市場股票發行計劃發行了略高於 406,000 股 A 系列優先股，總收益為 1010 萬美元。此外，透過我們三月制定的股票回購計劃，我們有能力適時回購我們認為明顯低估的股票。

Since the adoption of our stock repurchase program, we have repurchased 371,538 shares of common stock under this program for a total cost of $20.1 million at a weighted average price of $54.09 per share. Our solid financial position, characterized by strong liquidity and diversified capital markets access, positions us well to navigate the current challenging market environment.

自我們實施股票回購計畫以來，我們已根據該計畫回購了 371,538 股普通股，總成本為 2,010 萬美元，加權平均價格為每股 54.09 美元。我們穩健的財務狀況，具有強大的流動性和多元化的資本市場管道，使我們能夠很好地應對當前充滿挑戰的市場環境。

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

說完這些，我就把話題轉回給艾倫。艾倫？

Thanks, David. As I indicated in my opening comments, I am proud of what our team accomplished this quarter and we are confident in the future. As long-term owners of our company, thank you as always for your continued support.

謝謝，大衛。正如我在開場白中所說，我為我們團隊本季的成就感到自豪，我們對未來充滿信心。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 to questions. Operator, could you please open the call up for questions?

好了，現在我想開始回答問題了。接線生，您能打開電話詢問嗎？

Absolutely. We will now begin the question-and-answer session. (Operator Instructions)

絕對地。我們現在開始問答環節。（操作員指示）

Tom Catherwood, BTIG.

湯姆·卡瑟伍德（Tom Catherwood），BTIG。

Thank you so much and good morning, everybody. Paul, want to touch on - you mentioned working with PharmaCann's towards a resolution, but I assume the 205,000 square feet that you leased in Michigan in April is PharmaCann's facility. Is that right? And have you gotten control of some of their assets already?

非常感謝，大家早安。保羅，我想談談——你提到與 PharmaCann 合作尋求解決方案，但我認為你 4 月在密西根州租賃的 205,000 平方英尺是 PharmaCann 的設施。是嗎？你已經控制了他們的一些資產嗎？

Yes. Hi, Tom. So yes, that is correct. That's a PharmaCann facility, and we're really kind of proud of being able to re-tenant that facility as quickly as we did and put into high-quality tenant.

是的。你好，湯姆。是的，這是正確的。那是一家 PharmaCann 工廠，我們真的很自豪能夠如此迅速地重新出租工廠並引入高品質的租戶。

So we think that is the beginning of a good process and we'll go down the road with the rest of them as necessary. As we mentioned, we are actively pursuing legal remedies. But at the same time there's other potential outcomes, including receiver ships. So we're only really few weeks into this process. And so we think leasing that facility is a really good start for us.

因此，我們認為這是一個良好進程的開始，我們將根據需要與其他人一起繼續推進這一進程。正如我們所提到的，我們正在積極尋求法律補救。但同時也存在其他潛在結果，包括接管船舶。所以我們實際上只進行了幾週的時間。因此我們認為租賃該設施對我們來說是一個非常好的開始。

Got it. And just building on that lease, you've also completed kind of just a significant amount of large block re-leasing in the past 18 months. There's obviously that one's, the PharmaCann's, then there was, I think, 160,000 square feet-in Pittsburgh last quarter. And then another 200,000 square feet-in Michigan at the end of 2023.

知道了。並且，僅基於該租約，您在過去 18 個月內也完成了大量大型地塊的重新租賃。顯然有一家，PharmaCann，我認為上個季度在匹茲堡有 160,000 平方英尺的空間。然後在 2023 年底在密西根州再增加 20 萬平方英尺。

So kind of two questions around that. First, how did these transactions come together? Did you find the tenants or did they find you? And then second, is there anything unique with these tenants in terms of either their strategy or structure or management that makes them different from tenants you were leasing to four or five years ago?

圍繞這一點我有兩個問題。首先，這些交易是如何達成的？是你找到房客了，還是房客找到你了？其次，這些租戶在策略、結構或管理上有什麼獨特之處，與四、五年前租賃的租戶有何不同？

Let me ask Ben to respond to that one.

我請本來回答這個問題。

Yes. Hi, Tom. Yes, I mean to reiterate, you're right, I mean, we're talking nearly 1 million square feet of total leasing activity when you go back to late 2023 with our Michigan deal. The sourcing of the tenants comes in all different ways. We're eight years in and have a lot of great relationships and networking in the industry. We're very confident in the team that we have in place to execute and source these tenants. We're very confident in our plan for the portfolio.

是的。你好，湯姆。是的，我想重申一下，你是對的，我的意思是，當你回到 2023 年底我們在密西根達成的交易時，我們談論的是總租賃活動接近 100 萬平方英尺。租戶的來源有多種多樣的方式。我們已經在這個行業工作了八年，並且擁有許多良好的關係和人脈。我們對現有的團隊執行和尋找這些租戶的能力非常有信心。我們對我們的投資組合計劃非常有信心。

It's great to see that there are still in challenging markets, groups that can make money. You find efficient operators that are performing well, even in Michigan and a Massachusetts and California, in states that are viewed as a little more challenged. And I think they view a tremendous amount of value in our mission-critical real estate. And we've been very encouraged really across the portfolio, the demand we're seeing from these groups.

很高興看到在充滿挑戰的市場中仍然有群體能夠賺錢。你會發現，即使在密西根州、麻薩諸塞州和加州等面臨更大挑戰的州，也有高效率的業者表現良好。我認為他們非常看重我們的關鍵任務房地產。我們整個投資組合中都充滿了來自這些群體的需求，這讓我們感到非常鼓舞。

And Tom, just on following-up on that question, so a lot of these tenants that are struggling today might most likely have an issue with their balance sheet and their financial position, more so than the actual operating business. They're operating - the operating environment while challenging that there - it can be a very good business. But with the historical balance sheet issues that some of them have creates more of a balance sheet issue. And I think that that's what we're discovering and we are being very focused on choosing tenants that have the ability to operate very well and succeed in the future.

湯姆，我只是在跟進這個問題，所以今天陷入困境的許多租戶很可能在資產負債表和財務狀況方面存在問題，而不是實際運營業務方面的問題。他們在運作——儘管營運環境充滿挑戰——但這可能是一項非常好的業務。但由於其中一些公司歷史上存在的資產負債表問題，導致資產負債表問題更加嚴重。我認為這就是我們正在發現的，我們非常注重選擇有能力良好運作並在未來取得成功的租戶。

Got it. Appreciate all those thoughts. And then one last one for me. Since you announced the tenant refresh program at the end of March, a lot has changed as far as tariffs and there's been report out there that a lot of packaging for cannabis operators comes from China. Kind of since that early-April time-frame, have there been any other tenants that you're concerned with their operations or outlook going forward and might have to be included in this refresh program going forward?

知道了。感謝所有這些想法。對我來說還有最後一個。自從您在三月底宣布租戶更新計劃以來，關稅方面發生了很大變化，有報導稱，大麻經營者的許多包裝都來自中國。自四月初以來，是否有其他租戶讓您擔心他們的營運或未來前景，並可能必須納入未來的更新計劃？

Well, as we're monitoring all of our tenants and we believe that there are - there the macro-environment is still challenging and that there could be future issues. But right now, we are fairly confident that we've got our hands around our portfolio and our tenant base and confident that within a short 18 to 36 month period of time, the ship will generally be righted.

嗯，因為我們正在監控我們所有的租戶，我們相信 - 宏觀環境仍然充滿挑戰，未來可能會出現問題。但目前，我們相當有信心，我們已經掌握了我們的投資組合和租戶基礎，並相信在短短的 18 到 36 個月內，情況將會得到糾正。

Understood. Appreciate all the answers. Thanks everyone.

明白了。感謝所有答案。謝謝大家。

Connor Mitchell, Piper Sandler.

康納米切爾、派珀桑德勒。

Hi, good morning. Thanks for taking my question. First, I just want to go back to the space that was leased to Berry Green, the 205,000 square feet of the Michigan property, previously PharmaCann. I guess just kind of following on to some of Tom's questioning. What kind of makes this property unique in that you guys were able to lease it so quickly?

嗨，早安。感謝您回答我的問題。首先，我只想回到租給 Berry Green 的空間，即密西根州的 205,000 平方英尺的房地產，以前是 PharmaCann。我想這只是對湯姆的一些問題的回答。這處房產有何獨特之處，讓你們能夠如此迅速地將其出租？

And then should we expect any others that are in a similar stage or do you think that this is going to be a path that might follow for some of the PharmaCann properties or some of the others that you mentioned might fall under the process of receivership and might be a little bit longer instead?

那麼，我們是否應該期待其他處於類似階段的公司，或者您認為這將是 PharmaCann 部分資產可能遵循的道路，或者您提到的其他一些資​​產可能屬於接管程序，而且可能會持續更長時間？

Yes. Hi, Connor, this is Ben. I can take that. I wouldn't necessarily say it's unique. I mean, I think this follows a pretty strong track record that the team has here of re-tenanting these buildings in Michigan, like we've talked about before. I think we do expect that this will play out, as Alan mentioned, over the next 18 to 36 months as we're bringing new tenants in.

是的。你好，康納，我是本。我可以接受。我並不一定說它是獨一無二的。我的意思是，我認為這遵循了該團隊在密西根州重新租賃這些建築的良好記錄，就像我們之前談到的那樣。我認為，正如艾倫所提到的那樣，我們確實預計這種情況會在未來 18 到 36 個月內發生，因為我們正在引入新的租戶。

But again, we've been very encouraged by the outreach that we've gotten, the inbound interest we've seen really across these buildings in multiple different markets, the groups that we're talking to that I think have the operational expertise and the financial position that we would want in our portfolio. And we feel very good that we've got the right team in place here to execute on our plan for these buildings.

但是，我們再次受到鼓舞，因為我們所獲得的外展服務，我們在多個不同市場中看到的對這些建築的興趣，我們正在與之交談的團體，我認為他們擁有我們投資組合中想要的運營專業知識和財務狀況。我們感到非常高興，因為我們有合適的團隊來執行這些建築的計劃。

Okay. I appreciate that. And then maybe if you could just remind us how much of the rent or security deposits were received and recorded in revenue in the quarter for the tenants that defaulted on payments for you guys viewed as part of the cleaning process that we should kind of think about in a modeling perspective stripping out going forward?

好的。我很感激。然後，也許您能提醒我們，對於拖欠付款的租戶，您們在本季度收到了多少租金或押金，並將其記錄在收入中，這些租金或押金是清潔過程的一部分，我們應該從建模的角度考慮將其剔除嗎？

David, why don't you go-ahead and handle that. But I think that's a really good point that security deposits were used for some rental income in the first quarter and won't be available in the second quarter and beyond.

大衛，你為什麼不繼續處理這個問題呢？但我認為這是一個非常好的觀點，即第一季的部分租金收入使用了保證金，而第二季及以後將不再可用。

Yes. So Connor, on that, I think as we disclosed in our press release, there was $5.8 million of secured deposits applied for the quarter for those defaulted tenants. It is important to note in the case of PharmaCann, 4Front and TILT those security deposits were exhausted. So just over - just over $0.20 a share of impact from that benefit.

是的。康納，關於這一點，我想正如我們在新聞稿中所披露的那樣，本季度我們為那些拖欠租金的租戶申請了 580 萬美元的擔保押金。值得注意的是，在 PharmaCann、4Front 和 TILT 的案例中，這些保證金已被用完。因此，該福利對每股的影響略高於 0.20 美元。

Okay. And then any rents as well, I think for some of these, you may receive January payments, but not February or March?

好的。還有租金，我想對於其中一些，您可能會收到一月份的付款，但不會收到二月份或三月份的付款？

In terms of what we actually collected?

就我們實際收集到的內容而言？

Yes. Just thinking about a modeling perspective going forward, what won't be being received for a quarterly standpoint or even monthly?

是的。僅從未來的建模角度考慮，從季度甚至每月的角度來看，什麼不會被收到？

Yes. We can go into the detail offline, but it was roughly $4.5 million that we collected from the defaulted tenants during the quarter.

是的。我們可以離線詳細說明，但本季我們從違約租戶那裡收取了大約 450 萬美元。

Okay. I appreciate that. And then maybe one more for me. You guys made mention in the release of three leased properties that are still - you're waiting on rent commencement due to approvals that haven't been acquired yet. Just wondering if you could give some color on maybe the markets these are taking places in? And then if this has kind of changed your investment thesis on these markets if the regulatory process, the licensing process is a little bit slower than anticipated and maybe more difficult when you were underwriting the acquisition of the property?

好的。我很感激。然後也許對我來說再多一個。你們在發布中提到，仍有三處租賃房產，由於尚未獲得批准，所以正在等待開始出租。我只是想知道您是否可以介紹一下這些事情發生的市場？那麼，如果監管流程、許可流程比預期的要慢一些，而且在您承銷房產收購時可能更加困難，這是否會改變您對這些市場的投資論點？

Yes. Hi, Connor, this is Ben. Yes. I don't think it changes our view on the markets. I think this is pretty standard across markets and across industries really. I mean, it does take some time for a new operator to get in there, make any improvements they might want to make to the space, ultimately get, sign-off an approval and final licensing. So I think this is all kind of in the normal course of what we would expect for these assets.

是的。你好，康納，我是本。是的。我認為這不會改變我們對市場的看法。我認為這在各個市場和各個行業都是相當標準的。我的意思是，新運營商確實需要一些時間才能進入該領域，對空間進行他們想要的任何改進，最終獲得批准和最終許可。所以我認為這都是我們對這些資產的正常預期。

Okay. That's all for me. Thank you.

好的。對我來說就這些了。謝謝。

Aaron Grey, Alliance Global Partners.

亞倫‧格雷 (Aaron Grey)，Alliance Global Partners。

Hi, thank you. Good afternoon, everyone. So I wanted to talk logistically maybe about like the remedy where you take possession of some of these properties. And I guess what I want to ask is, in the context of not being plant touching, how - when you take possession of the property, how does that - I don't know, influence that listing status with the exchanges or what can you do with the property when you were to take possession that keeps you in compliance with what you need to do?

你好，謝謝。大家下午好。所以我想從邏輯上談談補救措施，例如佔有其中一些財產。我想問的是，在不觸碰工廠的情況下，當您佔有該財產時，這會如何影響交易所的上市狀態，或者當您佔有該財產時您可以對該財產做些什麼以使您遵守需要做的事情？

Hi Bill, It's Paul. So you know, it's really not a problem for us to date. And when we do take possession, of course, we, as a New York Stock Exchange listed company, we do not hold the license. We do not operate the property. So what we've done in the past to ensure a smooth transition is to utilize a MSA management service agreement. So we put a third-party in there to facilitate the transition into a new tenant and facilitate the license transfer.

嗨，比爾，我是保羅。所以你知道，到目前為止這對我們來說真的不是什麼問題。當然，當我們接管時，作為一家紐約證券交易所上市公司，我們並沒有持有許可證。我們不經營該物業。因此，我們過去為確保順利過渡所做的就是利用 MSA 管理服務協議。因此，我們引入了第三方來促進向新租戶的過渡並促進許可證的轉移。

So we have a good process in-place to ensure that we don't cross any lines with our division from not being a plant touching company.

因此，我們制定了良好的流程，以確保我們不會跨越任何界限，因為我們不是一家接觸植物的公司。

That that that that's perfect. That's all I had. Thank you.

那那那那太完美了。這就是我所擁有的一切。謝謝。

Okay, thanks.

好的，謝謝。

Aaron Grey, Alliance Global Partners.

亞倫‧格雷 (Aaron Grey)，Alliance Global Partners。

Hi, good afternoon and thank you for the questions here. So want to piggyback a bit off some of the questions that have been asked on the resolutions. I understand you're limited in what you can discuss because it's still ongoing and there's a lot of puts and takes. But curious in terms of timing of a resolution for these active facilities, is that coming into play?

大家好，下午好，感謝您的提問。因此，我想順便回答一下關於決議的一些問題。我知道你能討論的內容有限，因為事情仍在進行中，還有很多事情需要解決。但令人好奇的是，對於這些現役設施的解決時間，這是否會發揮作用？

I know a lot of times for the existing tenants, they want to keep ongoing operations with the new tenant potentially coming in as well. They'd like to have everything up-to-date and ongoing as well. So curious how that comes into play, especially when you do have a crop with a certain amount of life cycle there and you want to be fresh and going out to be sold for the best amount of cash flow. So just curious if that comes into play in terms of these negotiations and how you're looking to come to resolutions here. Thank you.

我知道很多時候，現有的租戶都希望繼續經營，而新租戶也有可能加入。他們也希望一切都保持最新並且持續進行。很好奇這是如何發揮作用的，特別是當你確實有一種具有一定生命週期的作物，並且你想保持新鮮並出去出售以獲得最佳的現金流。所以我只是好奇這是否會在談判中發揮作用，以及您希望如何達成解決方案。謝謝。

Yes, thanks, Aaron. This is Paul. So yes, you're exactly right that it is much more desirable to have a performing facility with the plants in good shape and growing and all the infrastructure up and running to facilitate a good transfer. So that's always the goal. But that being said, if we're in a receivership situation, it's a little easier because it's structured and we have the control of the receiver to help facilitate the transfer.

是的，謝謝，Aaron。這是保羅。所以是的，您說得完全正確，擁有一個運作良好的設施，其中的植物狀況良好、正在生長，並且所有基礎設施都正常運行，以促進良好的轉移，這是更可取的。所以這始終是我們的目標。但話雖如此，如果我們處於破產管理的情況，事情就會容易一些，因為它是有結構的，而且我們可以控制接管人，以幫助促進轉移。

But if we are in any eviction situation, we are willing and able to take over the property, put it into an MSA like I mentioned and clean it out. But that's kind of a last resort. And even when we're in eviction once we take control, you know, we're typically already in negotiations with a replacement tenant. And so with the cooperation of the departing tenant, we can make that transfer. So as I mentioned, it's always desirable to have the functioning facility in-place on the transfer and that's our goal.

但如果我們處於任何被驅逐的情況，我們願意並且能夠接管該財產，將其放入我提到的 MSA 並將其清理乾淨。但這只是最後的手段。即使我們一旦控制住局面，面臨被驅逐的風險，您知道，我們通常已經與替代租戶進行了談判。因此，在離開的租戶的配合下，我們可以完成轉讓。正如我所提到的，在轉移過程中擁有正常運作的設施總是可取的，這也是我們的目標。

Really appreciate that color. That's helpful. And then second question for me, just as we think about potentially return again on the offensive, I think you said about $220 million of liquidity available in the presentation. Just given the current set of cannabis, I know that remains a focus, but last quarter, I believe you mentioned that you've broadened investment opportunities. So just curious today, any more color you can provide on that? Where are you seeing potential opportunities to deploy some of that liquidity? Thank you.

真的很欣賞那個顏色。這很有幫助。然後對我來說第二個問題是，正如我們考慮可能再次發動攻擊一樣，我認為您在演示中提到了大約 2.2 億美元的可用流動資金。鑑於目前的大麻情況，我知道這仍然是一個重點，但上個季度，我相信您提到您已經擴大了投資機會。所以今天只是好奇，您能提供更多資訊嗎？您認為在哪些方面有潛力部署這些流動性？謝謝。

Yes. So we are continuing to evaluate many opportunities. I think that, that liquidity comes with a cost of capital and we're highly focused on making sure that we are looking at opportunities that can provide us an accretive return-based on our cost of capital. And unfortunately, the environment does have several unique opportunities. And hopefully in the next short three to six month period of time, we can to announce some new investments.

是的。因此我們正在繼續評估許多機會。我認為，流動性伴隨著資本成本，我們高度重視確保我們正在尋找能夠為我們提供基於資本成本的增值回報的機會。不幸的是，環境確實有幾個獨特的機會。希望在接下來的短短三到六個月內，我們能夠宣布一些新的投資。

But in addition to that, we continue to review and analyze unique opportunities within the cannabis industry and still have a pipeline associated with that.

但除此之外，我們還會繼續審查和分析大麻產業內的獨特機會，並且仍有與之相關的管道。

Appreciate the color there. I'll jump back in the queue.

欣賞那裡的色彩。我會重新回到隊列中。

That 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 first and foremost, I'd like to thank you all for joining us here today. And again to thank the team for their hard and great work on this portfolio and stockholders for their continued support. With that, we'll end the call. Thank you.

謝謝。首先，我要感謝大家今天的出席。再次感謝團隊為投資組合所做的辛勤工作以及股東的持續支持。就這樣，我們就結束通話了。謝謝。

The conference has 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。