Innovative Industrial Properties Inc (IIPR) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to the Innovative Industrial Properties second-quarter 2025 earnings conference call. (Operator Instructions)

大家好，歡迎參加創新工業地產 2025 年第二季財報電話會議。（操作員指示）

Please note that this event is being recorded. I would now like to turn the conference over to Eli Kanter, Director of Investor Relations. Please go ahead, sir.

請注意，此事件正在被記錄。現在，我想將會議交給投資者關係總監 Eli Kanter。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. 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.

感謝您參加此通話。今天出席的有執行董事長艾倫·戈爾德 (Alan Gold)、總裁兼首席執行官保羅·史密瑟斯 (Paul Smithers)、首席財務官大衛·史密斯 (David Smith) 和首席投資官本·雷金 (Ben Regin)。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》安全港所定義的前瞻性陳述，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 Form 10-K and 10-Q which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

請參閱公司向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。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. Good morning, and thank you for joining our call. Yesterday, we announced our first expansion outside of the cannabis industry with a strategic investment in IQHQ, a leading private life science REIT. This investment underscores our conviction in the long-term fundamentals of the life science industry and provides IIP a unique opportunity to accretively deploy capital while adding industry and tenant diversification to our portfolio and positioning us to continue driving growth and creating long-term value for our shareholders. IQHQ was founded in 2019 and has raised over $4 billion of equity capital since inception.

謝謝，伊萊。早安，感謝您參加我們的電話會議。昨天，我們宣布首次在大麻產業之外擴張，對領先的私人生命科學房地產投資信託基金 IQHQ 進行策略性投資。這項投資強調了我們對生命科學產業長期基本面的信心，並為 IIP 提供了一個獨特的機會來增值部署資本，同時為我們的投資組合增加了產業和租戶多樣化，並使我們能夠繼續推動成長並為股東創造長期價值。IQHQ 成立於 2019 年，自成立以來已籌集超過 40 億美元的股本。

Its current portfolio, including both operational and under development properties, totals over 5 million square feet with additional pipeline potential, all located in the leading and largest global life science markets in Boston, South San Francisco, San Diego and the Golden Triangle in the UK.

其目前的投資組合包括營運中和開發中的物業，總面積超過 500 萬平方英尺，並具有額外的管道潛力，全部位於波士頓、南舊金山、聖地亞哥和英國金三角等全球領先和最大的生命科學市場。

Within the overall life science real estate market, we anticipate improving fundamentals with new deliveries in 2025 trending down compared to prior years and continued deceleration and construction starts expected in the near term. In addition, life science fundraising in 2025 is on track to be its highest since 2021, further underscoring investors' confidence in the long-term fundamentals of the industry.

在整個生命科學房地產市場中，我們預計基本面將會改善，2025 年的新交付量與前幾年相比呈下降趨勢，並且預計短期內將繼續減速並開始開工。此外，2025 年生命科學融資額預計將達到 2021 年以來的最高水平，進一步凸顯了投資者對該行業長期基本面的信心。

This investment at this entry point positions us to capitalize on these long-term secular tailwinds. The total commitment of $270 million is expected to be highly accretive to AFFO, carrying a blended yield exceeding 14%.

在這個切入點進行的投資使我們能夠利用這些長期的順風。總承諾金額為 2.7 億美元，預計將為 AFFO 帶來巨大增值，混合收益率將超過 14%。

Our investment includes a $100 million investment in IQHQ's revolving credit facility to be funded at closing and future funding of up to $170 million invested in IQHQ preferred stock to be funded over time. We expect to fund these investments with a combination of cash on hand, draws from the company's revolving credit facility and future financing activities.

我們的投資包括對 IQHQ 循環信貸額度的 1 億美元投資（將在交易結束時提供資金）以及未來對 IQHQ 優先股的最高 1.7 億美元投資（將分階段提供資金）。我們預計利用現有現金、公司循環信貸額度和未來融資活動來為這些投資提供資金。

While we continue to evaluate investment opportunities in the cannabis industry, this investment provides complementary growth opportunities to enhance our investment pipeline, including a right of first offer on all future asset sales by IQHQ, providing potential pipeline opportunities on over 5 million square feet of leading life science real estate for IIP.

在我們繼續評估大麻產業的投資機會的同時，這項投資提供了互補的成長機會以增強我們的投資管道，包括 IQHQ 對未來所有資產出售的優先購買權，為 IIP 提供了超過 500 萬平方英尺領先生命科學房地產的潛在管道機會。

Our management team brings decades of experience in the life science industry. Most recently in BioMed Realty, giving us the expertise to leverage our existing platform to drive accretive growth for our shareholders. As we continue to execute on our plan and drive value within our Canada's portfolio, we are excited to announce this return to accretive growth with our investment in IQHQ.

我們的管理團隊在生命科學產業擁有數十年的經驗。最近在 BioMed Realty 的投資為我們提供了專業知識，利用我們現有的平台為股東帶來增值成長。隨著我們繼續執行計劃並推動加拿大投資組合的價值，我們很高興地宣布，我們對 IQHQ 的投資將恢復增值成長。

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. Good morning, everyone. We are very excited about the IQHQ opportunity we announced and the growth potential for IIP. At the same time, we remain proud of our position as a pioneering and leading provider of real estate to the regulated cannabis industry.

謝謝，艾倫。大家早安。我們對宣布的 IQHQ 機會和 IIP 的成長潛力感到非常興奮。同時，我們仍然為自己作為受監管大麻行業先驅和領先的房地產提供者的地位感到自豪。

Although the cannabis industry continues to face challenges, including persistent macroeconomic uncertainty and an unpredictable regulatory backdrop, it is still forecasted to grow at a compounded annual growth rate of approximately 7% from 2024 to 2029, reaching $44 billion by 2029.

儘管大麻產業繼續面臨挑戰，包括持續的宏觀經濟不確定性和難以預測的監管背景，但預計從 2024 年到 2029 年，大麻產業仍將以約 7% 的複合年增長率增長，到 2029 年將達到 440 億美元。

As we noted on our last call, we are focused on optimizing occupancy across our portfolio to strengthen our tenant credit profiles and are actively pursuing all legal remedies available to enhance the performance of our real estate portfolio.

正如我們在上次電話會議上指出的那樣，我們專注於優化整個投資組合的入住率，以加強我們的租戶信用狀況，並積極尋求所有可用的法律補救措施，以提高我們房地產投資組合的績效。

I'd like to provide some additional color on our progress with each tenant. 4Front Ventures filed for bankruptcy protection in Canada and for voluntary receivership in Massachusetts with OPUS Consulting partners appointed as a receiver. In addition, we are in active discussions with the US receiver and bankruptcy trustee regarding the properties and related claims.

我想提供一些關於我們與每位租戶的進展的額外資訊。4Front Ventures 在加拿大申請破產保護，並在馬薩諸塞州申請自願接管，OPUS Consulting 合夥人被指定為接管人。此外，我們正在與美國接管人和破產受託人就財產和相關索賠進行積極討論。

We continue to work closely with outside counsel to protect our legal interest and pursue our rights under the leases. Gold Flora is currently in receivership. We have intervened in the proceeding to actively protect our legal interest and remain in ongoing discussions with the receiver regarding the receivership and sale process.

我們繼續與外部律師密切合作，以保護我們的合法權益並維護我們在租約下的權利。Gold Flora 目前已被接管。我們已介入訴訟程序，積極維護我們的合法權益，並繼續與接管人討論接管和出售流程。

We successfully worked with the receiver to terminate the lease on one asset previously leased to Gold Flora and are actively pursuing re-leasing opportunities. We will continue to monitor the sale process and provide updates as we are able.

我們成功地與接管人合作，終止了先前租賃給 Gold Flora 的一項資產的租約，並且正在積極尋求重新租賃的機會。我們將繼續監控銷售過程並盡可能提供最新資訊。

With respect to PharmaCann, we have commenced formal legal proceedings to regain possession of the remaining properties they continue to occupy, including cultivation facilities located in Illinois, New York, Ohio and Pennsylvania and five retail properties located in Colorado. We are working closely with local counsel to pursue all of our rights and remedies under the leases and related guarantees, including pursuing monetary claims.

對於 PharmaCann，我們已經開始正式的法律程序，以重新獲得他們繼續佔用的剩餘財產，包括位於伊利諾伊州、紐約州、俄亥俄州和賓夕法尼亞州的種植設施以及位於科羅拉多州的五處零售財產。我們正在與當地律師密切合作，尋求租約和相關擔保下的所有權利和補救措施，包括尋求金錢索賠。

These legal processes vary by state and are subject to the time lines of local jurisdictions, which makes it difficult to estimate the timing for recovery of these properties. However, we are diligently working through these processes as efficiently as possible, and we'll provide updates as developments occur.

這些法律程序因州而異，並受當地司法管轄區的時間表約束，因此很難估計收回這些財產的時間。然而，我們正在盡可能有效率地完成這些流程，並將在事態發展時提供更新資訊。

In regards to TILT Holdings, they have made regularly monthly partial rent payments since April and we continue to reserve all of our rights under the leases while working in good faith with TILT to reach a resolution with respect to their outstanding financial obligations in conjunction with the planned divestiture of their plant-touching businesses.

對於 TILT Holdings，他們自 4 月以來每月定期支付部分租金，我們繼續保留租約下的所有權利，同時真誠地與 TILT 合作，就其未償財務義務達成解決方案，併計劃剝離其涉及工廠的業務。

As TILT announced last month, they have entered into a strategic agreement with MariMed in Pennsylvania, where MariMed intends to assume day-to-day management of operations at our Pennsylvania asset commencing in September. We will continue to provide updates on TILT's progress as we are able.

正如 TILT 上個月宣布的那樣，他們已與賓州的 MariMed 達成策略協議，MariMed 打算從 9 月開始負責我們賓州資產的日常營運管理。我們將盡可能繼續提供 TILT 進展的最新資訊。

We are committed to providing updates on all our proceedings and expected timing as we navigate through this process. However, we are still in the early stages. While we are encouraged by drawing bipartisan support for cannabis reform, we continue to operate in a federally constrained environment.

我們致力於在推進這一進程的過程中提供所有進程和預期時間的最新資訊。然而，我們仍處於早期階段。儘管我們很高興獲得兩黨對大麻改革的支持，但我們仍在聯邦政府限制的環境中運作。

Despite nearly 90% of Americans supporting legal medical cannabis according to Pew Research and a majority of Republicans backing reform, meaningful federal action remains elusive. Reclassification to Schedule III would represent a critical first step easing the tax burden on operators and improving access to capital.

儘管皮尤研究中心的調查顯示，近 90% 的美國人支持醫用大麻合法化，且大多數共和黨人支持改革，但聯邦政府仍未採取有意義的行動。重新歸類為第三類將是減輕營運商稅負和改善資本取得的關鍵的第一步。

We continue to see signs of resilience and long-term opportunity in the US cannabis market. Notably, cannabis is outperforming traditional consumer categories and volume growth, outpacing alcohol, tobacco and even beverages like bottled water and energy drinks, underscoring its staying power as a consumer product.

我們繼續看到美國大麻市場復甦和長期機會的跡象。值得注意的是，大麻的表現優於傳統消費類別和銷售成長，超過酒精、菸草甚至瓶裝水和能量飲料等飲料，凸顯了其作為消費品的持久力。

At the state level, we are monitoring adult-use legalization efforts in Florida and Pennsylvania. In Texas, while the medical program remains highly restrictive, Governor Abbott recently signed legislation increasing the number of licenses in the state from 3 to 15, adding qualifying conditions to the program and raising the cap on product potency.

在州一級，我們正在監測佛羅裡達州和賓夕法尼亞州的成人使用合法化工作。在德克薩斯州，儘管醫療計劃仍然受到嚴格限制，但州長阿博特最近簽署了一項法案，將該州的許可證數量從 3 個增加到 15 個，增加了該計劃的資格條件，並提高了產品效力的上限。

We are also very encouraged by the strong sales growth in Maryland, New York and Ohio, where adult-use conversations and an expanding consumer base are driving double-digit increases in sales. One of the most pressing challenges operators face is the persistent and growing threat of the illicit market. This is not just a matter of unlicensed operators undercutting legal businesses.

馬裡蘭州、紐約州和俄亥俄州的強勁銷售成長也令我們感到非常鼓舞，這些地區的成人用品對話和不斷擴大的消費者群體正在推動銷售額實現兩位數成長。營運商面臨的最緊迫挑戰之一是持續且日益嚴重的非法市場威脅。這不僅是無證經營者損害合法企業利益的問題。

It's a deeply entrenched transnational issue. Investigated reporting has highlighted the rise of international organized crime groups that have established a dominant presence in the illegal marijuana trade across the US. These networks not only undermine regulated markets, but are also linked to broader criminal activities, including money laundering, human trafficking and violence.

這是一個根深蒂固的跨國問題。調查報告強調了國際有組織犯罪集團的崛起，這些集團已在美國各地的非法大麻交易中佔據主導地位。這些網路不僅破壞了受監管的市場，還與更廣泛的犯罪活動有關，包括洗錢、人口販賣和暴力行為。

Their operations exploit regulatory gaps, overwhelm local enforcement and jeopardize the safety and reputation of legitimate operators. Just last quarter, California alone seized nearly 185,000 pounds of illegal canvas valued at $500 million. These figures underscore a fraction of the issue and the need for stronger coordinated enforcement efforts at both the state and federal levels.

他們的行動利用監管漏洞，壓倒當地執法部門，並危及合法運營商的安全和聲譽。僅在上個季度，加州就查獲了近 185,000 磅非法帆布，價值 5 億美元。這些數字凸顯了問題的一小部分，以及在州和聯邦層級加強協調執法力度的必要性。

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

現在我想將電話轉給本，討論我們的投資、處置和租賃活動。本？

Thanks, Paul. Despite the challenges of the current environment, we have continued to execute on multiple fronts within our existing portfolio. Year-to-date, we have closed on a $7.8 million acquisition in Maryland, completed two dispositions totaling $10.8 million in Michigan and California and executed two new leases totaling 211,000 square feet also in Michigan and California.

謝謝，保羅。儘管當前環境充滿挑戰，我們仍繼續在現有投資組合的多個方面執行。年初至今，我們已在馬裡蘭州完成了價值 780 萬美元的收購，在密西根州和加利福尼亞州完成了兩筆總額為 1080 萬美元的處置，並在密西根州和加利福尼亞州簽署了兩份總額為 211,000 平方英尺的新租約。

In addition, as Alan touched on, we closed on a new investment with IQHQ, a private life science REIT with large-scale operating and development assets located in transit-rich hubs within the top life science real estate markets in the world. The current portfolio is targeted to encompass over 5 million square feet once all development projects have been completed with meaningful future development potential in the owned pipeline.

此外，正如艾倫所提到的，我們與 IQHQ 完成了一項新的投資，IQHQ 是一家私人生命科學房地產投資信託基金，擁有大型營運和開發資產，位於全球頂級生命科學房地產市場的交通便利的中心地帶。一旦所有開發案完成，目前的投資組合將覆蓋超過 500 萬平方英尺的面積，並且自有管道具有巨大的未來發展潛力。

Our investment into the revolving credit facility and preferred stock will sit senior to all common equity in IQHQ and at a discount to replacement costs of the underlying assets, providing strong risk-adjusted returns. Looking ahead, our overall pipeline remains robust including both cannabis investments and additional opportunities to deploy capital in the life science industry.

我們對循環信貸額度和優先股的投資將優先於 IQHQ 的所有普通股，並且低於標的資產的重置成本，從而提供強勁的風險調整回報。展望未來，我們的整體投資管道仍然強勁，包括大麻投資以及在生命科學產業部署資本的額外機會。

As part of our IQHQ investment, IIP was granted a right of first offer for any future asset sales by IQHQ. As Alan mentioned, this ROFO alone provides for a potential pipeline of future acquisitions exceeding 5 million square feet of Class A premier life science real estate. We will continue to pursue these opportunities selectively, focusing on the highest quality investments with the most attractive risk-adjusted returns for our shareholders.

作為我們對 IQHQ 投資的一部分，IIP 被授予對 IQHQ 未來任何資產出售的優先購買權。正如艾倫所提到的，僅此一項 ROFO 就為未來收購提供了超過 500 萬平方英尺的 A 級優質生命科學房地產的潛在管道。我們將繼續有選擇地尋求這些機會，專注於為股東提供最具吸引力的風險調整回報的最高品質的投資。

We remain confident with the plan we have in place and the experienced management team we have to execute on that plan. And with that, I'll hand it over to David.

我們對現有的計劃以及執行該計劃的經驗豐富的管理團隊充滿信心。說完這些，我就把麥克風交給大衛。

Thank you, Ben. For the second quarter, we generated total revenues of $62.9 million, a 12% decrease from the first quarter of this year. The decrease was primarily driven by the tenant defaults we previously disclosed in March.

謝謝你，本。第二季度，我們的總營收為 6,290 萬美元，比今年第一季下降 12%。下降的主要原因是我們在三月披露的租戶違約情況。

This decline was partially offset by additional funding of building improvements that resulted in base rent increases and contractual rental escalations. Adjusted funds from operations for the second quarter was $48.4 million or $1.71 per share, a decrease of 12% compared to the first quarter of 2025, driven primarily by the same factors affecting revenue.

這一下降被建築改進的額外資金所部分抵消，導致基本租金上漲和合約租金上漲。第二季調整後營運資金為 4,840 萬美元，即每股 1.71 美元，與 2025 年第一季相比下降 12%，主要受影響收入的相同因素影響。

Our balance sheet remains in excellent shape backed by $2.6 billion in primarily unencumbered gross assets. We maintain a simple, low leverage capital structure with only $291 million in fixed rate debt outstanding.

我們的資產負債表仍保持良好狀態，主要由 26 億美元的無抵押總資產支撐。我們維持簡單、低槓桿的資本結構，未償還固定利率債務僅 2.91 億美元。

We also finished the quarter with strong liquidity exceeding $190 million through cash on hand and an undrawn revolver, providing ample financial flexibility to fund future growth including the IQHQ investment we announced yesterday, and we remain committed to maintaining a conservative financial profile highlighted by a low debt to gross assets ratio of 11% and a robust debt service coverage ratio exceeding 15 times.

本季結束時，我們透過庫存現金和未提取的循環信貸額度擁有超過 1.9 億美元的強勁流動性，為未來成長（包括我們昨天宣布的 IQHQ 投資）提供了充足的財務靈活性，並且我們仍然致力於維持保守的財務狀況，突出表現為 11% 的低負債與總資產比率和超過 15 倍的強勁債務償還率。

On the capital markets front, during the quarter, we repurchased 367,000 shares of our common stock at a weighted average price of $53.98 per share for a total cost of $19.8 million, which we accretively funded through the use of cash on hand and preferred stock that we issued during the quarter. In summary, our continued financial strength is evident in our prudent balance sheet management, ample liquidity and disciplined capital allocation.

在資本市場方面，本季度，我們以每股 53.98 美元的加權平均價格回購了 367,000 股普通股，總成本為 1,980 萬美元，我們透過使用庫存現金和本季發行的優先股來增加資金。總而言之，我們持續的財務實力體現在我們審慎的資產負債表管理、充足的流動性和嚴格的資本配置。

As we look ahead, we remain confident that our robust financial position will support ongoing growth and deliver lasting value for our shareholders. With that, we thank you for joining the call, and we'd like to open it up for questions. Operator, could you please open the call for questions?

展望未來，我們仍然相信，我們強勁的財務狀況將支持持續成長並為股東帶來持久的價值。最後，感謝您參加電話會議，我們想開放提問環節。接線生，您能打開電話詢問嗎？

(Operator Instructions)

（操作員指示）

Tom Catherwood with BTIG. Please go ahead.

BTIG 的湯姆·卡瑟伍德 (Tom Catherwood)。請繼續。

Thanks and good morning everybody. So I recognize the benefit the IQHQ investment can have for IIP's earnings and growth. That said, life science real estate still faces challenges and IQHQ is dealt with headwinds of its own. Can you walk us through the real estate investment case specifically for IQHQ, what is the business plan? How is the company overcoming challenges? And why is now the right time to invest in this specific company?

謝謝大家，早安。因此我認識到 IQHQ 投資可以為 IIP 的利潤和成長帶來的好處。話雖如此，生命科學房地產仍然面臨挑戰，IQHQ 也面臨自身的阻力。您能否向我們具體介紹一下IQHQ的房地產投資案例以及商業計劃是什麼？公司如何克服挑戰？為什麼現在是投資這家特定公司的最佳時機？

Tom, we certainly can. But I just want to back up and just remind, we didn't make an investment in the real estate. We made an investment in an operating company that's invested in the life science sector, along with having the opportunity to take advantage of the -- what's going on in the AI industry and the demand from AI software-type companies who are looking for high-quality real estate. Now so again, we didn't invest in life science real estate. We believe from our expertise and historical knowledge that the life science industry, yes, is at an inflection point.

湯姆，我們當然可以。但我只是想回顧並提醒一下，我們沒有對房地產進行投資。我們對一家投資生命科學領域的營運公司進行了投資，同時有機會利用人工智慧產業的發展以及尋求高品質房地產的人工智慧軟體型公司的需求。現在再說一遍，我們沒有投資生命科學房地產。根據我們的專業知識和歷史知識，我們相信生命科學產業確實正處於一個轉折點。

It is -- has a very difficult 3.5, almost four years and those owners of existing life science real estate have had a very difficult time. We believe that there is a -- that the industry is -- has an opportunity to recover, and that recovery has begun.

這是——非常困難的 3.5 年，將近四年，現有生命科學房地產的所有者度過了非常困難的時期。我們相信，該行業有復甦的機會，而且復甦已經開始。

And that valuations are still extremely low, are starting to move in a very positive way. As a financial investment, our investment in IQHQ is -- was very well thought out, very well researched. It follows our, I think, very simple business plan of investing in sale leasebacks in the -- for the cannabis industry.

而且估值仍然非常低，並開始以非常積極的方式發展。作為一項金融投資，我們對 IQHQ 的投資是經過深思熟慮和充分研究的。我認為，它遵循了我們非常簡單的商業計劃，即投資大麻產業的售後回租。

We have made financial investments in a revolving credit facility and future commitments in a preferred -- the preferred series in IQHQ. I mean I think I might -- the capital stack, let me turn that over to Ben to really talk about IQHQ, capital stack and where we fit within that capital stack.

我們已經對循環信貸額度進行了財務投資，並對 IQHQ 的優先系列做出了未來承諾。我的意思是，我想我可能會——資本堆棧，讓我把它交給本來真正談談 IQHQ、資本堆疊以及我們在資本堆疊中的位置。

Yeah, sure. Thanks, Alan. Tom, we believe on top of this being an accretive transaction, as you mentioned, that it is a very safe, secure investment and that we sit in front of the approximately $4 billion in equity that IQHQ has raised since inception.

是的，當然。謝謝，艾倫。湯姆，我們相信，正如您所說，這不僅是一筆增值交易，而且是一項非常安全、可靠的投資，而且我們擁有 IQHQ 自成立以來籌集的約 40 億美元股權。

We believe that our spot in the capital stack represents a material discount to replacement costs. There's the property level debt, and then we are the most secure position behind that within the capital stack, again, ahead of the $4 billion that IQHQ has raised.

我們相信，我們在資本結構中的地位代表重置成本的實質折扣。這是房地產層面的債務，然後我們在資本結構中處於最安全的位置，再次領先 IQHQ 籌集的 40 億美元。

Okay. And then specifically on IQHQ and what this money goes towards and kind of the business plan for them, what does this get them to -- and what was it that attracted you to that? That there's a missing piece where I get the broader recovery in the sector that we're looking for, and we see the green shoots there. But what was it about IQHQ's opportunity specifically that you thought this capital was useful for?

好的。然後具體到 IQHQ，這筆錢的用途和他們的商業計劃，這對他們有什麼幫助——是什麼吸引了你？我發現我們正在尋找的這個行業更廣泛的復甦中還缺少一個環節，而且我們在那裡看到了復甦的跡象。但是您認為這筆資金對於 IQHQ 的機會具體有什麼用處呢？

Yeah, well, -- so specifically because of our inside our unique knowledge and expertise with IQHQ and with the life science industry, we and our due diligence of researching and the markets that they're in, we believe that IQHQ portfolio is well positioned to take advantage of the AI demand and the -- what we believe future demand for the life science industry.

是的，嗯，特別是因為我們對 IQHQ 和生命科學產業的獨特知識和專業技能，以及我們對他們所在市場的盡職調查，我們相信 IQHQ 投資組合能夠充分利用人工智慧的需求和——我們認為未來對生命科學產業的需求。

Now what this capital provides -- this capital, along with other capital that has been provided to IQHQ, gives them the ability to, one, complete their existing developments to complete the lease-up of a very strong and high-quality portfolio that are located in some of the best markets in -- for the life science sector and even for the AI tech boom.

現在，這筆資本與已提供給 IQHQ 的其他資本一起，使他們能夠完成現有的開發，完成位於一些最佳市場的非常強大和高品質的投資組合的租賃——對於生命科學領域甚至人工智慧技術繁榮來說都是如此。

And gives them the ability to do those things and the time to accomplish that goal and provides -- while all that's occurring and while they are succeeding, provides a very attractive accretive return to IIP and IIP shareholders.

並賦予他們做這些事情的能力和時間來實現這一目標，並在所有事情發生和他們取得成功的同時，為 IIP 和 IIP 股東提供非常有吸引力的增值回報。

Got it. I appreciate those details, Alan. And then last one for me. When this investment opportunity arose, how are potential conflicts of interest identified and reviewed to ensure the transaction didn't create risks for IIPR shareholders outside of normal course of business investment risk?

知道了。我很欣賞這些細節，艾倫。這是我的最後一個。當這種投資機會出現時，如何識別和審查潛在的利益衝突，以確保交易不會為 IIPR 股東帶來正常業務投資風險以外的風險？

Well, first, there's an assumption that there were or that conflicts existed. But secondly, the IIP used a very focused and logical methodology to -- by employing a special committee where the committee members had no interest in IQHQ.

首先，假設存在衝突。其次，IIP 採用了一種非常集中且合乎邏輯的方法來——透過設立一個特別委員會，而該委員會的成員對 IQHQ 沒有任何興趣。

And then after that, the special committee reviewed the analysis and the diligence prepared by the team and outside counsel then that was then brought to the Board and then the Board -- that the Board members that had de minimis or no interest in IQHQ, voted on this transaction and unanimously approved it because of its unique way it helps IIP. It is a very accretive transaction. It's a transaction that provides current cash flow to IIP shareholders.

隨後，特別委員會審查了團隊和外部法律顧問準備的分析和盡職調查報告，然後將其提交給董事會，之後董事會——對 IQHQ 幾乎沒有或根本沒有利益的董事會成員就此交易進行了投票，並一致批准了該交易，因為它以獨特的方式幫助了 IIP。這是一項非常具有增值價值的交易。這是一項為 IIP 股東提供當前現金流的交易。

And it diversifies the -- our tenant exposure and our industry exposure at a time when we are looking to access the broader capital markets for a variety of different uses. And it gives us the ability to drive earnings growth in the future.

當我們尋求進入更廣泛的資本市場以實現各種不同用途時，它可以使我們的租戶風險和行業風險多樣化。這使我們有能力推動未來的獲利成長。

Got it, appreciate your answers, Alan. Thanks everyone.

明白了，謝謝你的回答，艾倫。謝謝大家。

Bill Kirk, MKM Partners.

MKM Partners 的 Bill Kirk。

Hey, thank you. Good afternoon everybody. On the IQHQ, I'm trying to think of like the opportunity cost for the capital -- and at current level today, your dividend yield on your stock would be, I think, above 16%. So if you think that dividend level is safe, wouldn't the $270 million get a better return buying back shares versus the estimated 14% in the IQHQ structure?

嘿，謝謝你。大家下午好。關於 IQHQ，我試著思考資本的機會成本——按照今天的水平，我認為您的股票的股息殖利率將超過 16%。因此，如果您認為股息水準是安全的，那麼 2.7 億美元的回購股票不是比 IQHQ 結構中估計的 14% 獲得更好的回報嗎？

Well, that's really easy to say when you look in the rearview mirror. Last week, two weeks ago, IIP shares weren't trading at 16%. So -- and we believe that the market volatility that occurs on a day-to-day basis isn't the way to run your business.

嗯，當你看後視鏡時，這真的很容易說。上週，也就是兩週前，IIP 股票交易價格未達 16%。所以——我們相信，每天發生的市場波動並不是經營業務的方式。

We look at our overall cost of capital and our overall cost of capital includes our access to a variety of different capital from not only our preferred and our debt and our credit facility, but also our common shares and what the expected return our investors are expecting from their common shares.

我們考慮我們的總資本成本，我們的總資本成本包括我們獲得的各種不同資本，不僅包括我們的優先股、債務和信貸額度，還包括我們的普通股以及投資者對其普通股的預期回報。

So on a combination of all that, we believe this to be a very highly accretive transaction especially when you consider that we are using capital that has been sitting and earning 3%, 4% and now has the opportunity to earn in that average of 14%, very accretive.

因此，綜合考慮所有這些因素，我們認為這是一筆增值性非常強的交易，特別是考慮到我們使用的資本過去一直處於閒置狀態，收益率為 3%、4%，現在有機會獲得平均 14% 的收益，增值性非常高。

And then as a follow-up, what's the flexibility on the timing or, I guess, the commitment to the preferred portion of the investment? Like do you have the ability to pick when those tranches are made? Do you have the ability to reduce size, increase size? What's the flexibility there because that 16% isn't rearview mirror anymore, it's today.

然後作為後續問題，時間上的彈性如何，或者我猜，對投資優先部分的承諾如何？例如，您是否有能力選擇何時進行這些分批付款？您是否有能力縮小尺寸、增加尺寸？那裡的靈活性是什麼？因為那 16% 不再是後視鏡，而是今天。

So well -- and what -- and if it's different tomorrow, it could be completely different tomorrow and so on and so forth. But to answer your question, look, we have a great deal of flexibility. We've designed the investment in the Series G to reflect what we believe will be our ability to raise capital over time. David, do you want to elaborate on that?

那麼好吧——那又怎樣——如果明天有所不同，那麼明天可能會完全不同，等等。但要回答你的問題，你看，我們有很大的彈性。我們設計了 G 系列投資來反映我們相信我們隨著時間的推移籌集資金的能力。大衛，你想詳細說明一下嗎？

Yeah. And I think just on the funding. As Alan mentioned, that will occur between now or between now and second quarter of 2027. But back to one of the points of the deal that we noted is we believe with accessing this new real estate market that has been along in the REIT space for a long time, and that will improve our overall access to equity and debt capital as a result of that just because it's non-cannabis new sector. All of you on this call today are familiar, but life science real estate has been around a very long time.

是的。我認為只是資金問題。正如艾倫所提到的，這將發生在現在或從現在到 2027 年第二季之間。但回到我們指出的交易要點之一，我們相信，透過進入這個在房地產投資信託基金領域已經存在很長時間的新房地產市場，這將改善我們獲得股權和債務資本的整體管道，因為它是一個非大麻新領域。今天參加電話會議的所有人都很熟悉，但生命科學房地產已經存在很久了。

Okay, thank you guys. Thank you for the call.

好的，謝謝大家。謝謝您的來電。

Aaron Grey, Alliance Global.

亞倫·格雷，Alliance Global。

I thank you for the time and the questions here. Just sticking on the question with IQHQ. So regarding the decision there to diversify some capital away from cannabis, can you maybe speak to how that decision came as it relates to the dividend, right? So we know the dividend has been a hot topic for you guys as it relates to the AFFO and you mentioned how this really helps to accelerate some of the earnings that you'll be able to generate.

感謝您抽出時間並提出問題。只是堅持 IQHQ 的問題。那麼關於將部分資本從大麻中分散出去的決定，您能否談談這個決定是如何與股息相關的，對嗎？因此，我們知道股息一直是你們熱議的話題，因為它與 AFFO 有關，並且您提到了這如何真正幫助加速您能夠產生的一些收益。

So how that timing came into play, and particularly through the lens of uncertainty regarding some of the defaults that you've had with some of the cannabis properties and when those earnings will come back?

那麼，這個時機是如何發揮作用的，特別是從您對一些大麻資產違約的不確定性以及這些收益何時會回來的角度來看？

I mean, I think that's a really good question because I think as Paul has noted many times, we -- over the last 18, 24 months, we've been evaluating what's been going on within the industry. We have indicated to our shareholders that we've been looking at other investment opportunities outside of the cannabis and -- so we've been strategically evaluating different transactions and opportunities.

我的意思是，我認為這是一個非常好的問題，因為我認為正如保羅多次指出的那樣，在過去的 18 到 24 個月裡，我們一直在評估行業內發生的事情。我們已經向股東表示，我們一直在尋找大麻以外的其他投資機會，因此我們一直在策略性地評估不同的交易和機會。

And this opportunity came about. And it appeared to provide what we were looking for a strategic investment that was of size that had the current income and the overall yield that met our -- what we believed our high cost of capital was and is. And that began the process for us to continue to evaluate it.

而這個機會就來了。它似乎提供了我們所尋求的一項策略性投資，其規模、當前收入和總收益都符合我們的預期——我們認為我們的高資本成本過去和現在都是如此。這為我們繼續評估它開啟了進程。

And as we spend more time doing the diligence, and understanding where we would be in the capital stack and how flexible the investment it became obvious to us that it was something that we should seriously consider. I lost my train of thought or lost the balance of your question because you had another important part of your question. And it was the dividend.

隨著我們花費更多時間進行盡職調查，了解我們在資本結構中的位置以及投資的靈活性，我們顯然意識到這是我們應該認真考慮的事情。我失去了思路或失去了對你問題的平衡，因為你的問題還有另一個重要部分。這就是紅利。

And so we believe that -- and we believe that we needed more time to work through the underlying issues in the cannabis sector in general and specifically those major tenants that have had defaults and then to be able to reposition those assets that we are seeking to have returned to us in a way that it will be to the benefit of IIP and to reaccelerate our revenue growth.

因此，我們相信——我們相信我們需要更多時間來解決整個大麻產業的根本問題，特別是那些違約的主要租戶，然後能夠重新定位那些我們希望返還給我們的資產，使其有利於 IIP 並重新加速我們的收入成長。

As you can see from our -- from what Ben has said, we've already re-leased assets, a couple of assets in Michigan and Pennsylvania and continuing to have great insight as to how to be able to reposition the assets that we will be taking back from those tenants and/or restructuring with those tenants.

正如您從本所說的那樣，我們已經重新租賃了資產，包括密西根州和賓夕法尼亞州的幾項資產，並且繼續對如何重新定位我們將從這些租戶那裡收回的資產和/或與這些租戶進行重組有著深刻的見解。

Thanks for that commentary. That's helpful. Second question for me, just regarding some of the defaults, particularly PharmaCann. I know you gave some color on your prepared remarks. But just you previously noted, right, that they had debt maturing June 2025.

感謝您的評論。這很有幫助。我的第二個問題是關於一些預設值，特別是 PharmaCann。我知道您已經對準備好的發言作了一些說明。但正如您之前所指出的，他們的債務將於 2025 年 6 月到期。

So any color in terms of how specifically that's impacting the process in terms of the communication and how that could evolve given that they did have debt that was coming due two months ago or on June 30.

因此，考慮到他們確實有債務在兩個月前或 6 月 30 日到期，這對溝通過程有何具體影響，以及情況將如何發展，我們對此有何看法？

Thanks.

謝謝。

This is Paul, Aaron. I think right now, we're focused on recovering the assets from PharmaCann. We're very aggressively pursuing our eviction cases. We are getting no indication from PharmaCann that they will be in a position to, anyway, amicably resolve of the debt they owe us and for back rents and future rents.

這是保羅，亞倫。我認為現在我們的重點是從 PharmaCann 收回資產。我們正在積極處理驅逐案件。我們沒有從 PharmaCann 得到任何跡象表明他們能夠友好地解決他們欠我們的債務以及拖欠的租金和未來的租金。

So we're laser focused on recovering those properties and re-leasing to qualified operators. So what happens with PharmaCann's debt coming due is quite frankly, not on our radar.

因此，我們專注於恢復這些資產並重新租賃給合格的營運商。因此，坦白說，PharmaCann 的債務到期時會發生什麼情況並不在我們的考慮範圍內。

Okay, great, thanks, that's helpful. I'll jump back in with you.

好的，太好了，謝謝，這很有幫助。我會和你一起回來。

Thanks Eric.

謝謝埃里克。

Alexandra Goldfarb, Piper Sandler.

亞歷珊卓·戈德法布、派珀·桑德勒。

Hey, good morning out there. So I have a few questions here. First, Alan, obviously, you were clinically involved with IQHQ as a company. I believe you left a few years ago, just trying to understand the opportunity now. You guys are obviously enthusiastic about the rebound of IQHQ. And just want to know what's different now versus when you stepped away from the company a few years ago.

嘿，大家早安。所以我這裡有幾個問題。首先，艾倫，顯然，您在臨床上參與了 IQHQ 公司的工作。我相信你幾年前就離開了，只是想了解現在的機會。你們顯然對 IQHQ 的反彈充滿熱情。我只是想知道現在和幾年前你離開公司時相比有什麼不同。

Well, a few years ago, the things -- I mean, I want to be very careful because it is a private company, and there was a lot going on when I stepped away personally and with the organization itself. Since I've departed that organization, they've made significant changes to the Board, to the governance structure, to management at the company. And all, I think, to the benefit of the potential success for IQHQ.

嗯，幾年前的事情——我的意思是，我想要非常小心，因為這是一家私人公司，當我離開時，我個人和公司本身都發生了很多事情。自從我離開該組織以來，他們對董事會、治理結構和公司管理層做出了重大改變。我認為，這一切都有利於 IQHQ 獲得潛在的成功。

Okay. And then you guys said that you're looking at this as an investment, not operating the assets, but you also mentioned a ROFO to potentially acquiring the assets if they trade -- and presumably, there's a lot of CapEx that's needed to lease up these developments. So a two-parter there. One is, it sounds like you are underwriting the potential of operating these assets. And two, does IQHQ have the capital required to fit these buildings out and lease them up.

好的。然後你們說你們將此視為一項投資，而不是營運資產，但你們也提到了 ROFO，即如果資產交易的話，有可能收購這些資產——並且據推測，租賃這些開發項目需要大量的資本支出。所以這是兩個部分。一是，聽起來您正在承保營運這些資產的潛力。其次，IQHQ 是否有足夠的資金來裝修和出租這些建築？

Well, to the second one, do they have the capital? Yes. They do have the capital, depending on the timing and the size of the tenant and the quality of that tenant and the length of the lease and -- on and on, there's many, many factors that IQHQ have to evaluate.

那麼第二個，他們有資本嗎？是的。他們確實有資本，但這取決於時間和租戶的規模、租戶的品質以及租賃期限等等，IQHQ 必須評估許多因素。

And on the same thing, you're talking about right of first offer, which just gives us the ability to have insight as to when and if they try to sell an asset so that we can make sure that we're protecting our investment in the company. But if indeed, the transaction where we're going to trade at a yield that would be attractive for IIP with a very strong tenant and well leased.

同樣，您談到了優先購買權，這使我們能夠了解他們何時以及是否試圖出售資產，以便我們能夠確保保護我們對公司的投資。但如果確實如此，我們將以對 IIP 有吸引力的收益率進行交易，因為 IIP 擁有非常強大的租戶並且租賃情況良好。

I mean, I think financially, if we had a very attractive, high-yielding strong tenant asset, I would think you would want us to look at it and evaluate it very carefully and see if it make sense for IIP shareholders to capitalize. And I think that's what we would do.

我的意思是，我認為從財務角度來看，如果我們擁有非常有吸引力、高收益的強大租戶資產，我想你會希望我們仔細研究和評估它，看看它是否適合 IIP 股東利用。我認為這就是我們要做的。

Okay. And then the final question is, Paul, at the start of your comments, you talked about the competition in cannabis. Certainly, we know about the illicit market, the gray market, but you mentioned sort of the global cartel market, which, I guess, we all would know, but you mentioned it more prominently big picture, given the debt issues the industry is facing for refinancing over the next 12 months and obviously, this investment in IQHQ, are you saying that your thoughts on future investment in cannabis are no longer what you guys originally thought they would be?

好的。最後一個問題是，保羅，在你開始評論時，你談到了大麻的競爭。當然，我們知道非法市場、灰色市場，但您提到了全球卡特爾市場，我想我們都知道，但您更突出地提到了大局，考慮到該行業在未來 12 個月內面臨的再融資債務問題，顯然還有對 IQHQ 的投資，您是說您對未來大麻投資的想法不再像你們最初想的那樣了？

Or were you just mentioning the global cartel thing as sort of one of the generic headwinds that the industry is facing. I just want to know if it's more of a generic headwind versus, hey, you know what, the business case for cannabis isn't quite what we thought it was a few years ago.

或者您只是提到全球卡特爾問題只是該行業面臨的一般阻力之一。我只是想知道這是否更像是一種一般性的逆風，還是，嘿，你知道嗎，大麻的商業案例並不像我們幾年前想像的那樣。

And therefore, you're going to see -- we're going to see you guys shift more away from cannabis into other sorts of real estate?

因此，您會看到—我們會看到您將更多的業務從大麻轉向其他類型的房地產？

Right. So Alex, I think with regard to the combination about the Chinese [illegal] grows, that's mentioned is just another factor in the overall illicit competition we have for the licensed operators. It's not a game changer, it just hit the news, I think, as far as the ICE raids in California, some of the Chinese issues came up. So that's just another leg. And we are -- I want to make it clear that we are still committed to the cannabis industry.

正確的。所以亞歷克斯，我認為關於中國非法種植的結合，這只是我們對持牌經營者進行整體非法競爭的另一個因素。這不會改變遊戲規則，只是上了新聞而已，我認為，就加州的 ICE 突襲行動而言，出現了一些中國問題。所以這只是另一條腿而已。我想明確表示，我們仍然致力於大麻產業。

We are the leading providers of capital will remain that way. I think we have telegraphed explicitly in our last couple of calls that there's not that many opportunities currently in the cannabis field. So being good stewards of capital, and we felt it was appropriate to look at alternative investments, which we did for quite a while, over a year, we've been evaluating different opportunities.

我們是資本的主要提供者，並將繼續保持這一地位。我認為我們在最近幾次電話會議中已經明確表示，目前大麻領域的機會並不多。因此，作為資本的良好管理者，我們認為考慮另類投資是適當的，我們這樣做了很長一段時間，一年多來，我們一直在評估不同的機會。

That's how we got to the IQHQ opportunity and looked at it extremely objectively and from square one and committed a great deal of diligence used outside counsel and we came to the conclusion unanimously that this was the best opportunity to invest in something outside of cannabis. But we are still believers in the cannabis industry.

就這樣，我們得到了 IQHQ 的機會，我們非常客觀地從零開始審視它，並投入了大量精力，聘請了外部顧問，最後我們一致得出結論，這是投資大麻以外領域的最佳機會。但我們仍然相信大麻產業。

We -- I talked about the projected growth. It is -- as I mentioned, it's outselling other beverage products, it's going. Right now, it's challenged. But rather than just sitting on our hands, we thought it was appropriate and duty owed to our shareholders to use this capital appropriately and accretively. And so that's what we're doing.

我們——我談到了預期的成長。正如我所提到的，它的銷售量比其他飲料產品要好。現在，它正面臨挑戰。但我們認為，與其袖手旁觀，不如合理、增值地使用這些資本，這是對股東的責任。這就是我們正在做的事情。

So is this more of a temporary side -- like not side investment, but temporary non-cannabis investment? Or we should expect more non-cannabis investments?

那麼這更像是一種臨時性的附加投資——不是附加投資，而是臨時性的非大麻投資？或者我們應該期待更多非大麻投資？

Well, I think that at this point, we're going to see how things play out. We have a lot of things left to do, including you work through the assets that we are going to be taking back from some of our tenants and hoping that the industry, the cannabis industry has some positive recovery news, and we're going to work through that first, before we make -- before we go to do anything else differently than what we've already done.

好吧，我認為現在我們來看看事情如何發展。我們還有很多事情要做，包括處理我們將從一些租戶那裡收回的資產，並希望大麻行業有一些積極的復甦消息，在我們採取與我們已經做過的事情不同的行動之前，我們會先解決這個問題。

Okay, thank you very much.

好的，非常感謝。

(Operator Instructions)

（操作員指示）

Merrill Ross, Compass Point.

梅里爾·羅斯，指南針點。

Hi, thank you for taking the questions. As to why you didn't make an investment given your expertise and investment separately in a life sciences property or to a joint venture with IQHQ. Why was this structure of a revolver and a preferred plus warrant more attractive than directly making your own investment?

您好，感謝您回答這些問題。至於為什麼您沒有以您的專業知識和投資分別投資於生命科學產業或與 IQHQ 建立合資企業。為什麼這種循環信貸和優先認股權證結構比直接投資更有吸引力？

So the overall yields of -- or the current yields of life science transactions if they were going to trade and assets that have -- that are well leased. Those yields are significantly -- would be significantly below our current cost of capital and investing in this way allowed us to have a very accretive transaction. And so that's why we went down this path.

因此，如果生命科學交易要進行交易，並且資產租賃良好，那麼總收益率或當前收益率就是如此。這些收益率將大大低於我們目前的資本成本，而且以這種方式進行投資使我們能夠實現非常增值的交易。這就是我們選擇這條路的原因。

And I think because of the how difficult the life science industry right now and the overall operational expertise of operating a life science asset is something that is something that I think is best suited for a company such as IQHQ, we went down this path, and we believe we've structured a very opportunistic and high-quality secure transaction that will provide, I think, a very accretive returns for IIP and IIP shareholders.

我認為，由於目前生命科學行業的困難程度以及運營生命科學資產的整體運營專業知識最適合像 IQHQ 這樣的公司，我們走上了這條道路，我們相信我們已經構建了一個非常機會主義和高質量的安全交易，我認為這將為 IIP 和 IIP 股東帶來非常豐厚的回報。

Thank you, and to follow up, can you disclose the current cash yield on the revolver?

謝謝，接下來，您能否透露一下循環信貸目前的現金收益率？

I mean, the current cash yield on our -- on the investment is north of a 10 -- north of a 10%.

我的意思是，我們目前的投資現金收益率超過 10%——超過 10%。

That excludes the preferred in war.

這排除了戰爭中的優先權。

No, it's a combination of the both.

不，這是兩者的結合。

Thank you. And this will conclude our question-and-answer session. I'd like to turn the conference back over to Alan Gold for any closing remarks.

謝謝。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 I would like to thank our shareholders for their continued support. I thank the team for your good and hard work. And with that, we'll end the call. Thank you.

謝謝。我還要感謝股東們的持續支持。我感謝團隊的出色和辛勤工作。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 your lines at this time.

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路了。