Company: IIPR
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023920
Chunk: 36

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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,588,02228,461,986Net income attributable to common stockholders per share:Basic$1.05 $1.37 Diluted$1.03 $1.36 

9. Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.Level 2—Includes other inputs that are directly or indirectly observable in the marketplace.Level 3—Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions.The following table presents the carrying value and approximate fair value of financial instruments at March 31, 2025 and December 31, 2024 (in thousands):

18

At March 31, 2025At December 31, 2024Carrying ValueFair ValueCarrying ValueFair ValueInvestments(1)$5,258 $5,258 $5,000 $5,000 Investments as cash equivalents(2)$17,997 $17,987 $45,714 $45,714 Notes due 2026(3)$289,499 $285,015 $297,865 $289,077 Construction loan(4)$22,800 $29,241 $22,800 $28,245 Notes receivable(5)$16,786 $16,786 $16,786 $16,786 (1)At March 31, 2025 and December 31, 2024 , investments consisting of short-term certificates of deposit with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at cost which approximates fair value using Level 2 inputs.(2)Investments as cash equivalents include investments of obligations of the U.S. government with an original maturity at the time of purchase of 90 days or less are classified as held-to-maturity, stated at amortized cost and valued using Level 1 inputs. Investments as cash equivalents also include