Company: IIPR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038972
Chunk: 98

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 of the Notes due 2026. The effective interest rate including amortization of issuance costs is 6.03%. The following table details our interest expense related to the Notes due 2026 (in thousands):For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Cash coupon$4,004 $4,125 $8,085 $8,250 Amortization of issuance cost362 351 726 697 Capitalized interest(39)(224)(95)(389)Total interest expense$4,327 $4,252 $8,716 $8,558 The following table details the carrying value of our Notes due 2026 (in thousands):June 30, 2025December 31, 2024Principal amount$291,215 $300,000 Unamortized issuance cost(1,354)(2,135)Carrying value$289,861 $297,865 The Operating Partnership may redeem some or all of the Notes due 2026 at its option at any time at the applicable redemption price. If the Notes due 2026 are redeemed prior to February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the Notes due 2026 are redeemed on or after February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date.In February 2025, we made early partial repayments at a discount totaling $8.7 million on the Notes due 2026, reducing the principal balance by $8.8 million. Following the partial repayment, all other terms and conditions of the debt agreement remain unchanged. At June 30, 2025, the outstanding principal balance was $291.2 million and the Company currently does not have sufficient liquidity to satisfy this obligation at maturity. Management has plans to refinance the Notes due 2026 and believes that it will be successful based on the strength of the Company’s investment-grade rated balance sheet, long-term history of generating positive cash flows from operations and track record of success in raising capital. As a result, management