Company: IIPR
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001677576-25-000005
Chunk: 153

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 following table summarizes our RSU activity for the nine months ended September 30, 2025. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash 

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and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan:RestrictedStock UnitsWeighted-AverageGrant Date FairValueBalance at December 31, 2024222,502$114.68 Granted73,179$73.18 Forfeited(1)(9,242)$97.39 Balance at March 31, 2025286,439$104.63 Granted2,796$57.23 Balance at June 30, 2025289,235$104.17 Vested and converted to common stock(5,779)$100.10 Forfeited(1)(2,901)$110.88 Balance at September 30, 2025280,555$104.19 (1)Shares that were forfeited to cover employee's tax withholding obligation upon vesting or employee's cessation of employment.The remaining unrecognized compensation cost of $7.0 million for RSU awards is expected to be recognized over an amortization period of 1.8 years as of September 30, 2025.In January 2021 and 2022, we issued 70,795 and 102,641 “target” PSUs, respectively, to a select group of officers, which vest and are settled in shares of common stock based on the Company’s total stockholder return over a performance period beginning on the applicable grant date and ending on December 31, 2023 and 2024, respectively. The PSUs granted in January 2021 and 2022 were forfeited in their entirety on December 31, 2023 and 2024, respectively, pursuant to the terms of the agreements, as the PSUs failed to meet the performance threshold for vesting. Stock-based compensation for market-based PSU awards is based on the grant date fair value of the equity awards and is recognized over the applicable performance period. For the three and nine months ended September 30, 2024, we recognized stock-based compensation expense of $1.7 million and $5.0 million, respectively