Company: IIPR
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001677576-25-000005
Chunk: 66

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 will increase to a range of 6.0% to 6.5% based on such debt rating.

19

In connection with the issuance of the Notes due 2026, we recorded $6.8 million of issuance costs, which are being amortized using the effective interest method and recognized as non-cash interest expense over the term of the Notes due 2026. The effective interest rate including amortization of issuance costs is 6.03%. The following table details our interest expense related to the Notes due 2026 (in thousands):For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024Cash coupon$4,004 $4,125 $12,089 $12,375 Amortization of issuance cost368 357 1,094 1,054 Capitalized interest(43)(127)(138)(516)Total interest expense$4,329 $4,355 $13,045 $12,913 The following table details the carrying value of our Notes due 2026 (in thousands):September 30, 2025December 31, 2024Principal amount$291,215 $300,000 Unamortized issuance cost(986)(2,135)Carrying value$290,229 $297,865 The Operating Partnership may redeem some or all of the Notes due 2026 at its option at any time at the applicable redemption price. If the Notes due 2026 are redeemed prior to February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the Notes due 2026 are redeemed on or after February 25, 2026, the redemption price will be equal to 100% of the principal amount of the Notes due 2026 being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date.In February 2025, we made early partial repayments at a discount totaling $8.7 million on the Notes due 2026, reducing the principal balance by $8.8 million. Following the partial repayment, all other terms and conditions of the debt agreement remain unchanged. At September 30, 2025, the outstanding principal balance was $291.2 million and