Company: IIPR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038972
Chunk: 30

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 amortization(3,024)(2,594)In-place lease intangible assets, net$6,955 $7,385 Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our consolidated statements of income was $0.2 million in each of the three months ended June 30, 2025 and 2024, and $0.4 million in each of the six months ended June 30, 2025 and 2024. The weighted-average remaining amortization period of the acquired in-place leases was 8.3 years, and the estimated annual amortization of the value of the acquired in-place leases as of June 30, 2025 is as follows (in thousands):YearAmount2025 (six months ending December 31)$430 2026860 2027860 2028860 2029860 Thereafter3,085 Total$6,955 Above-Market LeaseThe above-market lease and related accumulated amortization included in other assets, net on our consolidated balance sheets as of June 30, 2025 and December 31, 2024 is as follows (in thousands):June 30, 2025December 31, 2024Above-market lease$1,054 $1,054 Accumulated amortization(325)(279)Above-market lease, net$729 $775 The above-market lease is amortized on a straight-line basis as a reduction to rental revenues over the remaining lease term of 8.0 years. In each of the three and six months ended June 30, 2025 and 2024, the amortization of the above-market lease was $23,000 and $46,000, respectively. 

15

Lease AmendmentsIn January 2025, we entered into lease amendments with PharmaCann with respect to nine of its leases for properties located in New York, Illinois, Pennsylvania, Ohio, and Colorado. Those lease amendments reduced cumulative total base rent from $2.8 million per month to $2.6 million per month, with cash rent payments commencing February 1, 2025, and provided for pro-rata replenishment of security deposits over thirty-six months commencing February 1, 2027. We also entered into lease amendments with PharmaCann with respect to two of its leases for cultivation properties in Michigan and Massachusetts. Those amendments provide that monthly base rent of $1.3 million