Company: IIPR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038972
Chunk: 105

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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,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 (1)Shares that were forfeited upon employee's cessation of employment.The remaining unrecognized compensation cost of $8.5 million for RSU awards is expected to be recognized over an amortization period of 0.6 years as of June 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 six months ended June 30, 2024, we recognized stock-based compensation expense of $1.7 million and $3.3 million, respectively, relating to PSU awards.

11. Commitments and Contingencies

Office Lease. The future contractual lease payments for our office lease and the reconciliation to the office lease liability reflected in other liabilities in our consolidated balance sheet as of June 30, 2025 is presented in the table below (in thousands):YearAmount2025 (six months ending December 31)$263 2026543 202745 2028— 2029— Total future contractual lease payments851 Effect of discounting(38)Office lease liability $813 Improvement Allowances. As of June 30, 2025, we had $11.6 million of commitments related to improvement allowances, which generally may be requested by the tenants at any time up until a date that is near the expiration of the initial term of the applicable lease. 

22

Construction Loan. As of June 30, 2025, we had $0.2