Company: IIPR
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001677576-25-000005
Chunk: 75

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 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, relating to PSU awards.

12. 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 September 30, 2025 is presented in the table below (in thousands):YearAmount2025 (three months ending December 31)$132 2026543 202745 2028— 2029— Total future contractual lease payments720 Effect of discounting(28)Office lease liability $692 Improvement Allowances. As of September 30, 2025, we had $7.8 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.

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Life Science Investments. As of September 30, 2025, we had $165.0 million remaining on our commitment to