Company: IIPR
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023920
Chunk: 142

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 142
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 tenant reimbursements)$71,697 $74,914 Other25 540 Total revenues71,722 75,454 Expenses:Property expenses7,379 6,709 General and administrative expense8,461 9,562 Depreciation and amortization expense18,391 17,150 Impairment loss on real estate3,527 — Total expenses37,758 33,421 Income from operations33,964 42,033 Interest income1,613 1,784 Interest expense(4,500)(4,389)Net income31,077 39,428 Preferred stock dividends(781)(338)Net income attributable to common stockholders$30,296 $39,090 

Revenues

Rental Revenues. Rental revenues for the three months ended March 31, 2025 decreased by $3.2 million, or 4%, to $71.7 million, compared to $74.9 million for the three months ended March 31, 2024. The decline was primarily driven by a decrease of $4.4 million on properties leased to PharmaCann due to the tenant's default, a decrease of $1.6 million on properties leased to TILT due to the tenant's default, a decrease of $0.7 million related to one property that the Company took back possession of in September 2024, and a decrease of $0.3 million related to one property sold in May 2024. This decline was partially offset by an increase of $2.2 million related to new acquisitions and new leases executed on existing properties that commenced since March 31, 2024, and an increase of $1.6 million primarily driven by contractual rent escalations.

For the three months ended March 31, 2025, we applied $5.8 million of security deposits for payment of rent on properties leased to PharmaCann, Gold Flora, TILT and Sozo. No security deposits were applied for rent during three months ended March 31, 2024.

We have re-leased three properties in which rent commencement is contingent on the tenants obtaining the requisite approvals to operate. As a result, we do not expect to recognize rental revenue from these properties until such events have occurred.

Other Revenues. Other revenues for the three months ended March 31, 2025 and 2024 consist of interest revenue related to leases for property acquisitions that did not satisfy the