Company: IIPR
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023920
Chunk: 29

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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Includes expected rentable square feet at completion of construction at the property.(2)$0.6 million was allocated to land and $7.2 million was allocated to building and improvements.Acquired In-Place Lease Intangible AssetsIn-place lease intangible assets and related accumulated amortization as of March 31, 2025 and December 31, 2024 is as follows (in thousands): March 31, 2025December 31, 2024In-place lease intangible assets$9,979 $9,979 Accumulated amortization(2,809)(2,594)In-place lease intangible assets, net$7,170 $7,385 

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Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our condensed consolidated statements of income was $0.2 million in each of the three months ended March 31, 2025 and 2024. The weighted-average remaining amortization period of the acquired in-place leases was 8.5 years, and the estimated annual amortization of the value of the acquired in-place leases as of March 31, 2025 is as follows (in thousands):YearAmount2025 (nine months ending December 31)$645 2026860 2027860 2028860 2029860 Thereafter3,085 Total$7,170 Above-Market LeaseThe above-market lease and related accumulated amortization included in other assets, net on our condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 is as follows (in thousands):March 31, 2025December 31, 2024Above-market lease$1,054 $1,054 Accumulated amortization(302)(279)Above-market lease, net$752 $775 The above-market lease is amortized on a straight-line basis as a reduction to rental revenues over the remaining lease term of 8.2 years. For both the three months ended March 31, 2025 and 2024, the amortization of the above-market lease was $23,000. 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