# EDGAR Filing Document

**Accession Number:** 0001677576
**File Stem:** 0001104659-23-026347
**Filing Date:** 2023-2
**Character Count:** 85478
**Document Hash:** 70c4dbba46cf6c0b02e0ccb609a26d07
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-026347.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001104659-23-026347

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 38

**CONFORMED PERIOD OF REPORT**: 20230227

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INNOVATIVE INDUSTRIAL PROPERTIES INC
- **CENTRAL INDEX KEY:** 0001677576
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **IRS NUMBER:** 812963381
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37949
- **FILM NUMBER:** 23678306

**BUSINESS ADDRESS:**
- **STREET 1:** 1389 CENTER DRIVE
- **STREET 2:** SUITE 200
- **CITY:** PARK CITY
- **STATE:** UT
- **ZIP:** 84098
- **BUSINESS PHONE:** (858) 997-3332

**MAIL ADDRESS:**
- **STREET 1:** 1389 CENTER DRIVE
- **STREET 2:** SUITE 200
- **CITY:** PARK CITY
- **STATE:** UT
- **ZIP:** 84098

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INNOVATIVE GREENHOUSE PROPERTIES INC
- **DATE OF NAME CHANGE:** 20160620

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 27, 2023**

**Innovative Industrial Properties, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Maryland** | **001-37949** | **81-2963381** |
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission**<br> **File No.)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

**1389 Center Drive, Suite 200**

**Park City, Utah 84098**

**(Address of principal executive offices, including zip code)**

**Registrant's telephone number, including area code: (858) 997-3332**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Securities Registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, par value $0.001 per share** | **IIPR** | **New York Stock Exchange** |
| **Series A Preferred Stock, par value $0.001 per share** | **IIPR-PA** | **New York Stock Exchange** |

---

**Item 2.02 Results of Operations and Financial Condition.**

On February 27, 2023, Innovative Industrial Properties, Inc. (the "Company") issued a press release regarding its financial results for the fourth quarter and year ended December 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On February 27, 2023, the Company posted on its website, www.innovativeindustrialproperties.com, certain supplemental financial information for the fourth quarter and year ended December 31, 2022, which is attached hereto as Exhibit 99.2 and is incorporated by reference herein.

The information contained in this Current Report, including Exhibits 99.1 and 99.2 referenced herein, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

**Item 9.01 Financial Statements and Exhibits.**

(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description of Exhibit** |
| [99.1](tm237998d1_ex99-1.htm) | [Press release issued by Innovative Industrial Properties, Inc. on February 27, 2023.](tm237998d1_ex99-1.htm) |
| [99.2](tm237998d1_ex99-2.htm) | [Innovative Industrial Properties, Inc. Supplemental Financial Information for the quarter ended December 31, 2022.](tm237998d1_ex99-2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: February 28, 2023 | INNOVATIVE INDUSTRIAL PROPERTIES, INC. | INNOVATIVE INDUSTRIAL PROPERTIES, INC. |
|  | By: | /s/ Catherine Hastings |
|  | Name: | Catherine Hastings |
|  | Title: | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1** 

**Innovative Industrial Properties Reports Fourth Quarter and Full-Year 2022 Results**

*FY 2022 Total Revenues, Net Income Attributable to Common Stockholders and AFFO Increased 35%, 36% and 34% Year-over-Year, Respectively* 

SAN DIEGO, CA – February 27, 2023 – Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today results for the fourth quarter and year ended December 31, 2022.

**Full Year 2022** 

&nbsp;&nbsp;&nbsp;&nbsp;· Generated total revenues of approximately $276.4 million, net income attributable to common stockholders of approximately $153.0 million
and adjusted funds from operations ("AFFO") of approximately $233.7 million, representing increases of 35%, 36% and 34% over
2021, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;· Recorded $5.52 of net income attributable to common stockholders per diluted share and $8.45 of AFFO per diluted share.

&nbsp;&nbsp;&nbsp;&nbsp;· Declared dividends to common stockholders totaling $7.10 per share, a 24% increase over 2021.

&nbsp;&nbsp;&nbsp;&nbsp;· Invested approximately $394 million (excluding transaction costs), including nine acquisitions of properties located in seven states
and twelve lease amendments to provide funding of qualifying real estate infrastructure improvements at properties in seven states, expanding
IIP's footprint to 110 properties totaling 8.7 million rentable square feet in 19 states at year end.

**Fourth Quarter 2022** 

&nbsp;&nbsp;&nbsp;&nbsp;· Generated total revenues of approximately $70.5 million in the quarter, representing a 20% increase from the prior year's fourth
quarter.

&nbsp;&nbsp;&nbsp;&nbsp;· Recorded net income attributable to common stockholders of approximately $41.2 million for the quarter, or $1.46 per diluted share,
and AFFO of approximately $59.6 million, or $2.12 per diluted share.

&nbsp;&nbsp;&nbsp;&nbsp;· Paid a quarterly dividend of $1.80 per common share on January 13, 2023 to stockholders of record as of December 30, 2022, equal to
an annualized dividend of $7.20 per share. The common stock dividends declared for the twelve months ended December 31, 2022, of $7.10
per common share represent an increase of $1.38, or 24%, over dividends declared for the twelve months ended December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;· Amended IIP's leases with Gold Flora, LLC in California, 4Front Ventures Corp. in Illinois and Holistic Industries Inc. (Holistic)
in Massachusetts to provide an additional $3.5 million, $19.9 million and $2.0 million for funding of qualifying real estate infrastructure
improvements at those properties, respectively, representing an aggregate of $25.4 million, with corresponding adjustments to base rent
at each property.

&nbsp;&nbsp;&nbsp;&nbsp;· Sold a Pennsylvania industrial property leased to a subsidiary of Maitri Holdings, LLC for $23.5 million, excluding transaction costs
(approximately $461 per square foot), recognizing a gain on sale of the property of approximately $3.6 million.

**Year-to-Date 2023**

&nbsp;&nbsp;&nbsp;&nbsp;· Acquired a 58,000 square foot operational cannabis cultivation facility in Pennsylvania in a long-term sale-leaseback transaction
with a subsidiary of TILT Holdings Inc. for a purchase price of $15.0 million (excluding transaction costs).

&nbsp;&nbsp;&nbsp;&nbsp;· Amended IIP's leases with Ascend Wellness Holdings Inc. in New Jersey, PharmaCann Inc. in New York and Goodness Growth Holdings
Inc. in New York to provide an additional $15.0 million, $15.0 million and $4.0 million for funding of qualifying real estate infrastructure
improvements at those properties, respectively, representing an aggregate of $34.0 million, with corresponding adjustments to base rent
at each property. Also added cross-default provisions to all leases with each tenant.

&nbsp;&nbsp;&nbsp;&nbsp;· Amended the construction loan for the development of a regulated cannabis cultivation and processing facility in California for which
IIP is the lender, to provide for, among other things: (1) the additional capital commitment of the borrower into the project of $1.0
million; (2) IIP's agreement to fund up to an additional $4.5 million into the project, making IIP's total potential investment
in the project $23.0 million; (3) an increase in the interest rate and monthly payment of accrued interest; (4) an extension of the loan
term to December 31, 2023; and (5) the provision of additional collateral from the borrower for the loan.

&nbsp;&nbsp;&nbsp;&nbsp;· Executed definitive agreements to sell a portfolio of properties in California leased to affiliates of Medical Investor Holdings,
LLC (Vertical) for $16.2 million (excluding transaction costs), which includes secured seller financing with the buyer of the property
for that amount (interest only, payable monthly). The transaction is subject to continued diligence and customary closing conditions,
and may not close on the terms described or at all.

&nbsp;&nbsp;&nbsp;&nbsp;· Kings Garden Inc. (Kings Garden) paid rent for February of approximately $825,000 (including approximately $64,000 of pro-rata reimbursement
for taxes and insurance) on the four properties it continues to occupy, and indicated it is in discussions for a potential merger or sale
of assets.

&nbsp;&nbsp;&nbsp;&nbsp;· Rent collection for IIP's operating portfolio was 92% for the month ending February 28, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Under the previously disclosed amendments with Holistic at IIP's Michigan and California properties, approximately $413,000
of security deposits were applied for payment of rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o No security deposits were applied for previously disclosed rent defaults of Green Peak Industries Inc. (Green Peak) at one property
in Michigan and an affiliate of SH Parent, Inc. (Parallel) at one property in Pennsylvania. IIP retains total security deposits of approximately
$1.0 million and $1.7 million, respectively, for these leases as of today.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Parallel defaulted in February on its obligation to pay rent at one property in Texas under development. IIP has funded only $8.2
million (0.4% of IIP's total invested/committed capital) of the $27.4 million original commitment as of today. No security deposit
was applied for this lease default in February and IIP retains approximately $393,000 of security deposit for this lease as of today.

**Balance Sheet Statistics (as of December 31, 2022)**

&nbsp;&nbsp;&nbsp;&nbsp;· 12% debt to total gross assets, with approximately $2.6 billion in total gross assets.

&nbsp;&nbsp;&nbsp;&nbsp;· Total quarterly fixed cash interest obligation of approximately $4.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;· No secured debt.

&nbsp;&nbsp;&nbsp;&nbsp;· No debt maturities until May 2026, other than $6.4 million principal amount of 3.75% Exchangeable Senior Notes in 2024 (the Exchangeable
Senior Notes).

&nbsp;&nbsp;&nbsp;&nbsp;· Debt service coverage ratio of 15.5x (calculated in accordance with the Company's 5.50% Unsecured Senior Notes due 2026).

**Property Portfolio Statistics (as of December 31, 2022)**

&nbsp;&nbsp;&nbsp;&nbsp;· Total property portfolio comprises 110 properties across 19 states, with approximately 8.7 million rentable square feet (including
approximately 1.6 million rentable square feet under development / redevelopment), consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Operating portfolio: 108 properties, representing approximately 8.3 million rentable square feet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Construction in progress: two properties (not leased) and an expansion project at a property where Kings Garden continues to occupy
the property, which collectively are expected to comprise approximately 395,000 rentable square feet upon completion of development.

&nbsp;&nbsp;&nbsp;&nbsp;· Operating portfolio:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 100% leased (triple-net).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weighted average lease length: 15.3 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Total invested / committed capital per square foot: $272.

&nbsp;&nbsp;&nbsp;&nbsp;· By invested / committed capital:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o No tenant represents more than 14% of the total portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o No state represents more than 16% of the total portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Multi-state operators (MSOs) represent 85% of the operating portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Public company operators represent 55% of the operating portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Industrial (cultivation and/or processing), retail (dispensing) and combined industrial/retail represents 90%, 3% and 7% of operating
portfolio, respectively.

**Financial Results**

For the three months ended December 31, 2022, IIP generated total revenues of approximately $70.5 million, compared to approximately $58.9 million for the same period in 2021, an increase of 20%. The increase was driven primarily by the acquisition and leasing of new properties, additional real estate infrastructure allowances provided to tenants at certain properties that resulted in adjustments to base rent, and contractual rental escalations at certain properties, partially offset by the previously disclosed defaults of tenants for which IIP did not receive or record revenue. During the three months ended December 31, 2022, IIP collected 94% of contractual rents and did not collect rents totaling approximately $4.7 million (including approximately $4.3 million of contractual base rents and property management fees and approximately $384,000 for tenant reimbursements for property insurance premiums and property taxes) from four tenants: Kings Garden (California), affiliates of Medical Investor Holdings, LLC (Vertical) (California), Green Peak (Michigan) and an affiliate of Parallel (Pennsylvania). Total revenues for the three months ended December 31, 2022 and 2021 included approximately $3.0 million and $1.9 million, respectively, of tenant reimbursements for property insurance premiums and property taxes.

For the year ended December 31, 2022, IIP generated total revenues of approximately $276.4 million, compared to approximately $204.6 million for 2021, an increase of 35%. The increase was driven primarily by the acquisition and leasing of new properties, additional real estate infrastructure allowances provided to tenants at certain properties that resulted in adjustments to base rent, and contractual rental escalations at certain properties, partially offset by the previously disclosed defaults of tenants for which IIP did not receive or record revenue. During the twelve months ended December 31, 2022, IIP collected 97% of contractual rents and did not collect rents totaling $8.6 million (including $8.2 million of contractual base rents and property management fees and $440,000 for tenant reimbursements for property insurance premiums and property taxes) from four tenants: Kings Garden (California), Vertical (California), Green Peak (Michigan) and an affiliate of Parallel (Pennsylvania). Total revenues for the years ended December 31, 2022 and 2021 included approximately $10.1 million and $4.4 million, respectively, of tenant reimbursements for property insurance premiums and property taxes.

For the three months ended December 31, 2022, IIP recorded net income attributable to common stockholders and net income attributable to common stockholders per diluted share of approximately $41.2 million and $1.46, respectively; funds from operations (FFO) (diluted) and FFO per diluted share of approximately $53.9 million and $1.92, respectively; normalized FFO, which adds back to FFO acquisition-related expense, litigation-related expense and financing expense during the three months ended December 31, 2022 (Normalized FFO), and Normalized FFO per diluted share of approximately $55.0 million and $1.95, respectively; and AFFO and AFFO per diluted share of approximately $59.6 million and $2.12, respectively.

For the year ended December 31, 2022, IIP recorded net income attributable to common stockholders and net income attributable to common stockholders per diluted share of approximately $153.0 million and $5.52, respectively; FFO (diluted) and FFO per diluted share of approximately $211.3 million and $7.64, respectively; Normalized FFO and Normalized FFO per diluted share of approximately $214.9 million and $7.77, respectively; and AFFO and AFFO per diluted share of approximately $233.7 million and $8.45, respectively.

For all periods presented, FFO (diluted), Normalized FFO, AFFO and FFO, Normalized FFO and AFFO per diluted share include the dilutive impact of the assumed full exchange of the Exchangeable Senior Notes for shares of common stock.

IIP paid a quarterly dividend of $1.80 per common share on January 13, 2023 to stockholders of record as of December 30, 2022, equal to an annualized dividend of $7.20 per share. IIP's AFFO payout ratio for the three months ended December 31, 2022 was 85% (calculated by dividing the common stock dividend declared per share by IIP's AFFO per common share – diluted for the quarter). The common stock dividends declared for the twelve months ended December 31, 2022, of $7.10 per common share represent an increase of $1.38, or 24%, over dividends declared for the twelve months ended December 31, 2021.

FFO, Normalized FFO and AFFO are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to FFO, Normalized FFO and AFFO and definitions of terms are included at the end of this release.

**Supplemental Information**

Supplemental financial information is available in the Investor Relations section of the IIP's website at <u>www.innovativeindustrialproperties.com</u>.

**Teleconference and Webcast** 

Innovative Industrial Properties, Inc. will conduct a conference call and webcast at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) on Tuesday, February 28, 2023 to discuss IIP's financial results and operations for the fourth quarter and full-year ended December 31, 2022. The call will be open to all interested investors through a live audio webcast at the Investor Relations section of IIP's website at www.innovativeindustrialproperties.com, or live by calling 1-877-328-5514 (domestic) or 1-412-902-6764 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call. The complete webcast will be archived for 90 days on IIP's website. A telephone playback of the conference call will also be available from 12:00 p.m. Pacific Time on Tuesday, February 28, 2023 until 12:00 p.m. Pacific Time on Tuesday, March 7, 2023, by calling 1-877-344-7529 (domestic), 855-669-9658 (Canada) or 1-412-317-0088 (international) and using access code 8194683.

**About Innovative Industrial Properties**

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at <u>www.innovativeindustrialproperties.com</u>.

*This press release contains statements that IIP believes to be "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward-looking statements. When used in this press release, words such as IIP "expects," "intends," "plans," "estimates," "anticipates," "believes" or "should" or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.*

 

**Innovative Industrial Properties, Inc.**

**Consolidated Balance SheetS**

**(Unaudited)**

(In thousands, except share and per share amounts)

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| **Assets** |  |  |
| Real estate, at cost: |  |  |
| &nbsp;&nbsp;Land | $139953 | $122386 |
| &nbsp;&nbsp;Buildings and improvements | 1305306 | 979417 |
| &nbsp;&nbsp;Tenant improvements | 705322 | 620301 |
| &nbsp;&nbsp;Construction in progress | 54106 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total real estate, at cost | 2204687 | 1722104 |
| &nbsp;&nbsp;Less accumulated depreciation | (138405) | (81938) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net real estate held for investment | 2066282 | 1640166 |
| Construction loan receivable | 18021 | 12916 |
| Cash and cash equivalents | 87122 | 81096 |
| Restricted cash | 1450 | 5323 |
| Investments | 200935 | 324889 |
| Right of use office lease asset | 1739 | 1068 |
| In-place lease intangible assets, net | 9105 | 9148 |
| Other assets, net | 30182 | 9996 |
| &nbsp;&nbsp;Total assets | $2414836 | $2084602 |
| **Liabilities and stockholders' equity** |  |  |
| Exchangeable senior notes, net | $6380 | $32232 |
| Notes due 2026, net | 295115 | 293860 |
| Tenant improvements and construction funding payable | 29376 | 46274 |
| Accounts payable and accrued expenses | 10615 | 7718 |
| Dividends payable | 50840 | 38847 |
| Rent received in advance and tenant security deposits | 58716 | 52805 |
| Other liabilities | 1901 | 1167 |
| &nbsp;&nbsp;Total liabilities | 452943 | 472903 |
| Stockholders' equity: |  |  |
| Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, $15,000 liquidation preference ($25.00 per share), 600,000 shares issued and outstanding at December 31, 2022 and December 31, 2021 | 14009 | 14009 |
| Common stock, par value $0.001 per share, 50,000,000 shares authorized: 27,972,830 and 25,612,541 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 28 | 26 |
| Additional paid-in capital | 2065248 | 1672882 |
| Dividends in excess of earnings | (117392) | (75218) |
| &nbsp;&nbsp;Total stockholders' equity | 1961893 | 1611699 |
| &nbsp;&nbsp;Total liabilities and stockholders' equity | $2414836 | $2084602 |

---

**Innovative Industrial Properties, Inc.**

**Consolidated STATEMENTS OF INCOME**

**For the Three Months and Years Ended December 31, 2022 and 2021**

**(Unaudited)**

(In thousands, except share and per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;Rental (including tenant reimbursements) | $69923 | $58943 | $274377 | $204551 |
| &nbsp;&nbsp;Other revenue | 538 |  | 1982 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 70461 | 58943 | 276359 | 204551 |
| **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;Property expenses | 3288 | 1826 | 10520 | 4443 |
| &nbsp;&nbsp;General and administrative expense | 10232 | 6450 | 38520 | 22961 |
| &nbsp;&nbsp;Depreciation and amortization expense | 16302 | 12205 | 61303 | 41776 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 29822 | 20481 | 110343 | 69180 |
| &nbsp;&nbsp;Gain on sale of real estate | 3601 |  | 3601 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations | 44240 | 38462 | 169617 | 135371 |
| &nbsp;&nbsp;Interest and other income | 1784 | 72 | 3195 | 397 |
| &nbsp;&nbsp;Interest expense | (4518) | (6212) | (18301) | (18086) |
| &nbsp;&nbsp;Loss on exchange of Exchangeable Senior Notes |  | (3692) | (125) | (3692) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | 41506 | 28630 | 154386 | 113990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividends | (338) | (338) | (1352) | (1352) |
| Net income attributable to common stockholders | $41168 | $28292 | $153034 | $112638 |
| Net income attributable to common stockholders per share: |  |  |  |  |
| &nbsp;&nbsp;Basic | $1.47 | $1.18 | $5.57 | $4.69 |
| &nbsp;&nbsp;Diluted | $1.46 | $1.14 | $5.52 | $4.55 |
| Weighted-average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;Basic | 27938804 | 23941930 | 27345047 | 23903017 |
| &nbsp;&nbsp;Diluted | 28160261 | 26263585 | 27663169 | 26261155 |

---

**Innovative Industrial Properties, Inc.**

**Consolidated FFO, NORMALIZED FFO AND AFFO**

**For the Three Months and Years Ended December 31, 2022 and 2021**

**(Unaudited)**

(In thousands, except share and per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net income attributable to common stockholders | $41168 | $28292 | $153034 | $112638 |
| &nbsp;&nbsp;Real estate depreciation and amortization | 16302 | 12205 | 61303 | 41776 |
| &nbsp;&nbsp;Gain on sale of real estate | (3601) |  | (3601) |  |
| FFO attributable to common stockholders (basic) | 53869 | 40497 | 210736 | 154414 |
| &nbsp;&nbsp;Cash and non-cash interest expense on Exchangeable Senior Notes | 72 | 1880 | 546 | 7517 |
| FFO attributable to common stockholders (diluted) | 53941 | 42377 | 211282 | 161931 |
| &nbsp;&nbsp;Acquisition-related expense |  | 7 | 110 | 26 |
| &nbsp;&nbsp;Financing expense | 249 |  | 367 |  |
| &nbsp;&nbsp;Litigation-related expense | 779 |  | 3010 |  |
| &nbsp;&nbsp;Loss on exchange of Exchangeable Senior Notes |  | 3692 | 125 | 3692 |
| Normalized FFO attributable to common stockholders (diluted) | 54969 | 46076 | 214894 | 165649 |
| &nbsp;&nbsp;Stock-based compensation | 4312 | 2192 | 17507 | 8616 |
| &nbsp;&nbsp;Non-cash interest expense | 321 | 298 | 1255 | 715 |
| &nbsp;&nbsp;Above-market lease amortization | 23 | 4 | 92 | 4 |
| AFFO attributable to common stockholders (diluted) | $59625 | $48570 | $233748 | $174984 |
| FFO per common share – diluted | $1.92 | $1.61 | $7.64 | $6.17 |
| Normalized FFO per common share – diluted | $1.95 | $1.75 | $7.77 | $6.31 |
| AFFO per common share – diluted | $2.12 | $1.85 | $8.45 | $6.66 |
| Weighted average common shares outstanding – basic | 27938804 | 23941930 | 27345047 | 23903017 |
| &nbsp;&nbsp;Restricted stock and RSUs | 117831 | 98093 | 116046 | 96174 |
| &nbsp;&nbsp;PSUs |  | 81414 |  | 81414 |
| &nbsp;&nbsp;Dilutive effect of Exchangeable Senior Notes | 103626 | 2142148 | 202076 | 2180550 |
| Weighted average common shares outstanding – diluted | 28160261 | 26263585 | 27663169 | 26261155 |

---

FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (NAREIT). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to net income, computed in accordance with accounting principles generally accepted in the United States (GAAP), excluding gains (or losses) from sales of property, depreciation, amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures.

Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO and FFO per share to be supplemental measures of a REIT's performance because they provide an understanding of the operating performance of IIP's properties without giving effect to certain significant non-cash items, primarily depreciation expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. IIP believes that by excluding the effect of depreciation, FFO and FFO per share can facilitate comparisons of operating performance between periods. IIP reports FFO and FFO per share because these measures are observed by management to also be the predominant measures used by the REIT industry and industry analysts to evaluate REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and publications about REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share.

IIP computes Normalized FFO by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that management believes are infrequent and unusual in nature and/or not related to IIP's core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to assist in their evaluation of IIP's operating performance across multiple periods and in comparison to the operating performance of other companies, because it removes the effect of unusual items that are not expected to impact IIP's operating performance on an ongoing basis. Normalized FFO is used by management in evaluating the performance of its core business operations. Items included in calculating FFO that may be excluded in calculating Normalized FFO include certain transaction-related gains, losses, income or expense or other non-core amounts as they occur.

Management believes that AFFO and AFFO per share are also appropriate supplemental measures of a REIT's operating performance. IIP calculates AFFO by adjusting Normalized FFO for certain non-cash items.

For all periods presented, FFO (diluted), Normalized FFO, AFFO and FFO, Normalized FFO and AFFO per diluted share include the dilutive impact of the assumed full exchange of the Exchangeable Senior Notes for shares of common stock.

For the three and twelve months ended December 31, 2022, the performance share units ("PSUs") granted to certain employees were not included in dilutive securities as the performance thresholds for vesting of the PSUs were not met as measured as of December 31, 2022. For the three and twelve months ended December 31, 2021, 81,414 shares issuable upon vesting of PSUs granted to certain employees in January 2021 were dilutive, as the performance thresholds for vesting of these PSUs were met as measured as of December 31, 2021.

IIP's computation of FFO, Normalized FFO and AFFO may differ from the methodology for calculating FFO, Normalized FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such REITs. Further, FFO, Normalized FFO and AFFO do not represent cash flow available for management's discretionary use. FFO, Normalized FFO and AFFO should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of IIP's financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of IIP's liquidity, nor is it indicative of funds available to fund IIP's cash needs, including IIP's ability to pay dividends or make distributions. FFO, Normalized FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of IIP's operations.

Company Contact:

Catherine Hastings

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

## Exhibit 99.2

**Exhibit 99.2**

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Innovative Industrial Properties Fourth Quarter 2022 Supplemental Financial Information

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Innovative Industrial Properties 2 Overview Forward - Looking Statements 3 Company Overview 4 Financial Information Quarterly Performance Summary 5 Balance Sheet 6 Net Income 7 FFO, Normalized FFO, and AFFO Reconciliation 8 Historical Net Income 9 Historical FFO, Normalized FFO, and AFFO Reconciliation 10 Statements of Cash Flows 11 Portfolio Data Capital Commitments and Dispositions 12 Leasing Summary 13 Top Tenants Overview 14 Property List 15 – 17 Capitalization Senior Capital and Debt Summary 18 Capitalization 19 Definitions 20 – 21 Analyst Coverage 22 Senior Management Team and Board of Directors 23 **Table of Contents**

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Innovative Industrial Properties 3 Forward - Looking Statements This Supplemental Financial Information Package include "forward - looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995 , Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended) that are subject to risks and uncertainties . In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward - looking statements . Likewise, our statements regarding anticipated growth in our funds from operations and anticipated market and regulatory conditions, our strategic direction, our dividend rate and policy, demographics, results of operations, plans and objectives are forward - looking statements . Forward - looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events . Forward - looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them . We do not guarantee that the transactions and events described will happen as described (or that they will happen at all) . You can identify forward - looking statements by the use of forward - looking terminology such as "believes", "expects", "may", "will", "should", "seeks", "approximately", "intends", "plans", "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases . You can also identify forward - looking statements by discussions of strategy, plans or intentions . The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward - looking statements : rates of default on leases for our assets ; concentration of our portfolio of assets and limited number of tenants ; the estimated growth in and evolving market dynamics of the regulated cannabis market ; the demand for regulated cannabis facilities ; inflation dynamics ; our ability to improve our internal control over financial reporting, including our inability to remediate an identified material weakness, and the costs and the time associated with such efforts ; the impact of pandemics on us, our business, our tenants, or the economy generally ; war and other hostilities, including the conflict in Ukraine ; our business and investment strategy ; our projected operating results ; actions and initiatives of the U . S . or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal under federal law ; availability of suitable investment opportunities in the regulated cannabis industry ; our understanding of our competition and our potential tenants' alternative financing sources ; the expected medical - use or adult - use cannabis legalization in certain states ; shifts in public opinion regarding regulated cannabis ; the potential impact on us from litigation matters, including rising liability and insurance costs ; the additional risks that may be associated with certain of our tenants cultivating, processing and/or dispensing adult - use cannabis in our facilities ; the state of the U . S . economy generally or in specific geographic areas ; economic trends and economic recoveries ; our ability to access equity or debt capital ; financing rates for our target assets ; our level of indebtedness, which could reduce funds available for other business purposes and reduce our operational flexibility ; covenants in our debt instruments, which may limit our flexibility and adversely affect our financial condition ; our ability to maintain our investment grade credit rating ; changes in the values of our assets ; our expected portfolio of assets ; our expected investments ; interest rate mismatches between our assets and our borrowings used to fund such investments ; changes in interest rates and the market value of our assets ; the degree to which any interest rate or other hedging strategies may or may not protect us from interest rate volatility ; the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters ; our ability to maintain our qualification as a real estate investment trust for U . S . federal income tax purposes ; our ability to maintain our exemption from registration under the Investment Company Act of 1940 ; availability of qualified personnel ; and market trends in our industry, interest rates, real estate values, the securities markets or the general economy . The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance . In addition, we discussed a number of material risks in our most recent Annual Report on Form 10 - K and subsequent Quarterly Reports on Form 10 - Q . Those risks continue to be relevant to our performance and financial condition . Moreover, we operate in a very competitive and rapidly changing environment . New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward - looking statements . Any forward - looking statement made by us speaks only of the date on which we make it . We undertake no obligation to publicly update or revise any forward - looking statements, whether as a result of new information, future events or otherwise, except as may be required by law . Stockholders and investors are cautioned not to unduly rely on such forward - looking statements when evaluating the information presented in our filings and reports . Market and industry data are included in this presentation . We have obtained substantially all of this information from internal studies, public filings, other independent published industry sources and market studies prepared by third parties . We believe these internal studies, public filings, other independent published industry sources and market studies prepared by third parties are reliable . However, this information may prove to be inaccurate . No representation or warranty is made as to the accuracy of such information . All amounts shown in this report are unaudited . This Supplemental Financial Information Package is not an offer to sell or solicitation to buy securities of Innovative Industrial Properties, Inc . Any offers to sell or solicitations to buy securities of Innovative Industrial Properties, Inc . shall be made only by means of a prospectus approved for that purpose .

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Innovative Industrial Properties 4 Company Snapshot State Diversification (1) Pennsylvania 15.9% Massachusetts 13.1% Illinois 13.1% Michigan 12.3% California 9.4% New York 7.3% Florida 7.1% New Jersey 3.8% Maryland 3.8% Colorado 3.6% Other 10.6% Total 100% Company Overview Innovative Industrial Properties, Inc. (NYSE "IIPR") is an internally managed real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized properties leased to experienced, state - licensed operators for their regulated cannabis facilities. Note : As of December 31 , 2022 , values in thousands except for share count, $/PSF, or otherwise noted . 1) Based on "Total Committed / Invested Capital" . Refer to "Definitions" for additional details . 2) Refer to "Capitalization" and "Definitions" for additional details . 3) Reflects annualized common stock dividend paid on January 13 , 2023 of $1 . 80 per share . The decision to declare or pay dividends is in the sole discretion of our board of directors in light of conditions then existing, and there can be no assurance that a dividend will be declared or paid for any time period in any amount . 4) Refer to "Definitions" for additional details . 5) Includes approximately 1 . 2 million square feet under development or redevelopment . Market Capitalization (2) $2,835,046 Operating Portfolio (108 Properties) (4) Current Annualized Dividend ($) (3) $7.20 / share Total Rentable Square Feet (5) 8,320 Total Portfolio (4) Total Committed Invested Capital per Square Foot $272 Total Committed / Invested Capital (1) $2,334,421 % Leased 100% Total Properties 110 Weighted Average Lease Term 15.3 Years

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Innovative Industrial Properties 5 2022 2021 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Total Revenues $70,461 $70,883 $70,511 $64,504 $58,943 General and administrative expense $10,232 $10,804 $8,707 $8,777 $6,450 General and administrative expense / total revenues 15% 15% 12% 14% 11% Net income attributable to common stockholders $41,168 $37,278 $39,876 $34,712 $28,292 Net income attributable to common stockholders – diluted ("EPS") $1.46 $1.32 $1.42 $1.32 $1.14 Funds from operations attributable to common stockholders – diluted ("FFO") (1) $53,941 $53,250 $55,177 $48,914 $42,377 FFO per common share – diluted (1) $1.92 $1.89 $1.97 $1.86 $1.61 Normalized FFO attributable to common stockholders – diluted ("Normalized FFO") (1) $54,969 $55,391 $55,407 $49,127 $46,076 Normalized FFO per common share – diluted (1) $1.95 $1.97 $1.98 $1.87 $1.75 Adjusted funds from operations attributable to common stockholders – diluted ("AFFO") (1) $59,625 $60,109 $60,178 $53,836 $48,570 AFFO per common share – diluted (1) $2.12 $2.13 $2.15 $2.04 $1.85 Common stock dividend per share (2) $1.80 $1.80 $1.75 $1.75 $1.50 AFFO Payout Ratio (3) 85% 85% 81% 86% 81% Total Committed / Invested Capital (4) $2.3B $2.3B $2.4B $2.1B $2.0B % Leased – Operating Portfolio (5) 100% 100% 100% 100% 100% Rent Collection % / Quarter – Operating Portfolio (6) 94% 96% 99% 99% 99% Quarterly Performance Summary Note : Dollars in thousands except for $/share or otherwise noted . 1) Refer to "FFO, Normalized FFO, and AFFO Reconciliation" and "Definitions" for additional details . 2) Reflects quarterly common stock dividend declared in the quarter . 3) Calculated by dividing the common stock dividend declared per share by AFFO per common share – diluted . 4) Dollars in billions, refer to "Definitions" for additional details . 5) Refer to "Definitions" for additional details . 6) Rent collection for Q 3 2022 includes approximately $2 . 2 million of security deposits applied in connection with Kings Garden Inc . 's lease defaults for nonpayment of rent, and rent collection for Q 4 2022 includes approximately $541 , 000 of security deposits applied for payment of rent for the company's lease with Sozo Health, Inc . Refer to "Definitions" for additional details . $1.85 $2.04 $2.15 $2.13 $2.12 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 AFFO (1) $1.75 $1.87 $1.98 $1.97 $1.95 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 Normalized FFO (1) $58,943 $64,504 $70,511 $70,883 $70,461 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 Total Revenues

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Innovative Industrial Properties 6 December 31, December 31, (In thousands, except share and per share amounts) 2022 2021 Assets Real estate, at cost: Land $139,953 $122,386 Buildings and improvements 1,305,306 979,417 Tenant improvements 705,322 620,301 Construction in progress 54,106 - Total real estate, at cost 2,204,687 1,722,104 Less accumulated depreciation (138,405) (81,938) Net real estate held for investment 2,066,282 1,640,166 Construction loan receivable 18,021 12,916 Cash and cash equivalents 87,122 81,096 Restricted cash 1,450 5,323 Investments 200,935 324,889 Right of use office lease asset 1,739 1,068 In-place lease intangible assets, net 9,105 9,148 Other assets, net 30,182 9,996 Total assets $2,414,836 $2,084,602 Liabilities and stockholders' equity Exchangeable Senior Notes, net $6,380 $32,232 Notes due 2026, net 295,115 293,860 Tenant improvements and construction funding payable 29,376 46,274 Accounts payable and accrued expenses 10,615 7,718 Dividends payable 50,840 38,847 Rent received in advance and tenant security deposits 58,716 52,805 Other liabilities 1,901 1,167 Total liabilities 452,943 472,903 Stockholders' equity: Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, $15,000 liquidation preference ($25.00 per share), 600,000 shares issued and outstanding at December 31, 2022 and December 31, 2021 14,009 14,009 Common stock, par value $0.001 per share, 50,000,000 shares authorized: 27,972,830 and 25,612,541 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively 28 26 Additional paid-in capital 2,065,248 1,672,882 Dividends in excess of earnings (117,392) (75,218) Total stockholders' equity 1,961,893 1,611,699 Total liabilities and stockholders' equity $2,414,836 $2,084,602 Balance Sheet

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Innovative Industrial Properties 7 For the Three Months Ended For the Years Ended December 31, December 31, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Revenues: Rental (including tenant reimbursements) $69,923 $58,943 $274,377 $204,551 Other 538 - 1,982 - Total revenues 70,461 58,943 276,359 204,551 Expenses: Property expenses 3,288 1,826 10,520 4,443 General and administrative expense 10,232 6,450 38,520 22,961 Depreciation and amortization expense 16,302 12,205 61,303 41,776 Total expenses 29,822 20,481 110,343 69,180 Gain on sale of real estate 3,601 - 3,601 - Income from operations 44,240 38,462 169,617 135,371 Interest and other income 1,784 72 3,195 397 Interest expense (4,518) (6,212) (18,301) (18,086) Loss on exchange of Exchangeable Senior Notes - (3,692) (125) (3,692) Net income 41,506 28,630 154,386 113,990 Preferred stock dividends (338) (338) (1,352) (1,352) Net income attributable to common stockholders $41,168 $28,292 $153,034 $112,638 Net income attributable to common stockholders per share: Basic $1.47 $1.18 $5.57 $4.69 Diluted $1.46 $1.14 $5.52 $4.55 Weighted-average shares outstanding: Basic 27,938,804 23,941,930 27,345,047 23,903,017 Diluted 28,160,261 26,263,585 27,663,169 26,261,155 Net Income

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Innovative Industrial Properties 8 For the Three Months Ended For the Years Ended December 31, December 31, (In thousands, except share and per share amounts) 2022 2021 2022 2021 Net income attributable to common stockholders $41,168 $28,292 $153,034 $112,638 Real estate depreciation and amortization 16,302 12,205 61,303 41,776 Gain on sale of real estate (3,601) - (3,601) - FFO attributable to common stockholders (basic) 53,869 40,497 210,736 154,414 Cash and non-cash interest expense on Exchangeable Senior Notes 72 1,880 546 7,517 FFO attributable to common stockholders (diluted) 53,941 42,377 211,282 161,931 Acquisition-related expense - 7 110 26 Financing expense 249 - 367 - Litigation-related expense 779 - 3,010 - Loss on exchange of Exchangeable Senior Notes - 3,692 125 3,692 Normalized FFO attributable to common stockholders (diluted) 54,969 46,076 214,894 165,649 Stock-based compensation 4,312 2,192 17,507 8,616 Non-cash interest expense 321 298 1,255 715 Above-market lease amortization 23 4 92 4 AFFO attributable to common stockholders (diluted) $59,625 $48,570 $233,748 $174,984 FFO per common share – diluted $1.92 $1.61 $7.64 $6.17 Normalized FFO per common share – diluted $1.95 $1.75 $7.77 $6.31 AFFO per common share – diluted $2.12 $1.85 $8.45 $6.66 Weighted average common shares outstanding – basic 27,938,804 23,941,930 27,345,047 23,903,017 Restricted stock and restricted stock units ("RSUs") 117,831 98,093 116,046 96,174 Performance share units ("PSUs") - 81,414 - 81,414 Dilutive effect of Exchangeable Senior Notes 103,626 2,142,148 202,076 2,180,550 Weighted average common shares outstanding – diluted 28,160,261 26,263,585 27,663,169 26,261,155 FFO, Normalized FFO, and AFFO Reconciliation

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Innovative Industrial Properties 9 2022 2021 (In thousands, except share and per share amounts) 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Revenues: Rental (including tenant reimbursements) $69,923 $70,345 $69,995 $64,114 $58,943 Other 538 538 516 390 - Total revenues 70,461 70,883 70,511 64,504 58,943 Expenses: Property expenses 3,288 2,823 2,427 1,982 1,826 General and administrative expense 10,232 10,804 8,707 8,777 6,450 Depreciation and amortization expense 16,302 15,900 15,233 13,868 12,205 Total expenses 29,822 29,527 26,367 24,627 20,481 Gain on sale of real estate 3,601 - - - - Income from operations 44,240 41,356 44,144 39,877 38,462 Interest and other income 1,784 773 581 57 72 Interest expense (4,518) (4,513) (4,504) (4,766) (6,212) Loss on exchange of Exchangeable Senior Notes - - (7) (118) (3,692) Net income 41,506 37,616 40,214 35,050 28,630 Preferred stock dividends (338) (338) (338) (338) (338) Net income attributable to common stockholders $41,168 $37,278 $39,876 $34,712 $28,292 Net income attributable to common stockholders per share: Basic $1.47 $1.33 $1.42 $1.35 $1.18 Diluted $1.46 $1.32 $1.42 $1.32 $1.14 Weighted-average shares outstanding: Basic 27,938,804 27,938,568 27,850,561 25,620,253 23,941,930 Diluted 28,160,261 28,157,934 28,036,690 26,340,224 26,263,585 Historical Net Income

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Innovative Industrial Properties 10 2022 2021 (In thousands, except share and per share amounts) 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Net income attributable to common stockholders $41,168 $37,278 $39,876 $34,712 $28,292 Real estate depreciation and amortization 16,302 15,900 15,233 13,868 12,205 Gain on sale of real estate (3,601) - - - - FFO attributable to common stockholders (basic) 53,869 53,178 55,109 48,580 40,497 Cash and non-cash interest expense on Exchangeable Senior Notes 72 72 68 334 1,880 FFO attributable to common stockholders (diluted) 53,941 53,250 55,177 48,914 42,377 Acquisition-related expense - 15 - 95 7 Financing expense 249 14 104 - - Litigation-related expense 779 2,112 119 - - Loss on exchange of Exchangeable Senior Notes - - 7 118 3,692 Normalized FFO attributable to common stockholders (diluted) 54,969 55,391 55,407 49,127 46,076 Stock-based compensation 4,312 4,379 4,437 4,379 2,192 Non-cash interest expense 321 316 311 307 298 Above-market lease amortization 23 23 23 23 4 AFFO attributable to common stockholders (diluted) $59,625 $60,109 $60,178 $53,836 $48,570 FFO per common share – diluted $1.92 $1.89 $1.97 $1.86 $1.61 Normalized FFO per common share – diluted $1.95 $1.97 $1.98 $1.87 $1.75 AFFO per common share – diluted $2.12 $2.13 $2.15 $2.04 $1.85 Weighted average common shares outstanding – basic 27,938,804 27,938,568 27,850,561 25,620,253 23,941,930 Restricted stock and RSUs 117,831 118,567 82,387 110,457 98,093 PSUs - - - 102,333 81,414 Dilutive effect of Exchangeable Senior Notes 103,626 100,799 103,742 507,181 2,142,148 Weighted average common shares outstanding – diluted 28,160,261 28,157,934 28,036,690 26,340,224 26,263,585 Historical FFO, Normalized FFO, and AFFO Reconciliation

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Innovative Industrial Properties 11 For the Years Ended December 31, (In thousands) 2022 2021 Cash flows from operating activities Net income $154,386 $113,990 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 61,303 41,776 Loss on exchange of Exchangeable Senior Notes 125 3,692 Gain on sale of real estate (3,601) - Other non-cash adjustments 185 95 Stock-based compensation 17,507 8,616 Amortization of discounts on short-term investments (2,246) (340) Amortization of debt discount and issuance costs 1,349 2,851 Changes in assets and liabilities Other assets, net (3,506) (3,687) Accounts payable, accrued expenses and other liabilities 2,717 3,102 Rent received in advance and tenant security deposits 5,911 18,652 Net cash provided by operating activities 234,130 188,747 Cash flows from investing activities Purchases of investments in real estate (150,090) (287,585) Proceeds from sale of real estate 23,500 - Funding of draws for tenant improvements and construction (373,878) (374,541) Funding of construction loan and other investments (21,683) (16,068) Deposits in escrow for acquisitions (250) (625) Purchases of short-term investments (388,800) (569,772) Maturities of short-term investments 515,000 864,498 Net cash used in investing activities (396,201) (384,093) Cash flows from financing activities Issuance of common stock, net of offering costs 351,960 - Gross proceeds from issuance of Notes due 2026 - 300,000 Payment of deferred financing costs from issuance of Notes due 2026 - (6,855) Payment of inducement and transaction costs relating to inducement of the Exchangeable Senior Notes - (1,696) Dividends paid to common stockholders (183,943) (130,954) Dividends paid to preferred stockholders (1,352) (1,352) Taxes paid related to net share settlement of equity awards (2,441) (3,384) Net cash provided by financing activities 164,224 155,759 Net increase (decrease) in cash, cash equivalents and restricted cash 2,153 (39,587) Cash, cash equivalents and restricted cash, beginning of year 86,419 126,006 Cash, cash equivalents and restricted cash, end of year $88,572 $86,419 Supplemental disclosure of cash flow information: Cash paid during the period for interest $17,247 $14,381 Supplemental disclosure of non-cash investing and financing activities: Accrual for draws for tenant improvements and construction funding $29,376 $46,274 Deposits applied for acquisitions 25 200 Accrual for common and preferred stock dividends declared 50,840 38,847 Exchange of Exchangeable Senior Notes for common stock 26,682 109,040 Operating lease liability for obtaining right of use asset 1,017 192 Statements of Cash Flows

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Innovative Industrial Properties 12 Current Quarter Rentable Purchase Additional Existing Total Total State Closing / Execution Square Feet Price (1) Commitment Investment (1) Investment Investment / PSF (2) Amendments Massachusetts Oct-22 55 - $2,000 $17,750 $19,750 $359 Illinois Nov-22 250 - 19,900 50,250 70,150 281 California Nov-22 201 - 3,500 60,000 63,500 316 Total / Wtd. Avg. 506 - $25,400 $128,000 $153,400 $303 Rentable Sale Total State Closing / Execution Square Feet Price (1) Sale / PSF Dispositions Pennsylvania Nov-22 51 $23,500 $461 Total / Wtd. Avg. 51 $23,500 $461 Capital Commitments and Dispositions Fourth Quarter Capital Commitments and Dispositions Two Year Capital Commitment History Note : Values in thousands except for $/PSF . 1) Excludes transaction costs . 2) Calculated as IIP's total investment divided by the rentable square feet . 3) Excludes changes in future commitments to fund improvements for Construction in Progress properties . $114,675 $131,850 $164,315 $132,657 $66,908 $92,238 $21,500 - $20,395 $45,100 $43,000 $43,400 $40,800 $147,161 - $25,400 $135,070 $176,950 $207,315 $176,057 $107,708 $239,399 $21,500 $25,400 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022(3) 4Q2022(3) Acquisitions Amendments

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Innovative Industrial Properties 13 # of Rentable Square Feet Annualized Base Rent Year Leases # % $% 2023 - - - - - 2024 - - - - - 2025 - - - - - 2026 - - - - - 2027 - - - - - 2028 - - - - - 2029 1 120 1% $2,043 1% 2030 2 153 2% $5,494 2% 2031 6 183 2% $5,374 2% 2032 1 3 0% $106 0% Thereafter 94 7,689 95% $244,754 95% Total 104 8,148 100% $257,771 100% Note : Square footage and dollars in thousands . 1) As a % of annualized base rent for Operating Portfolio . See "Definitions" for additional details . Excludes properties that Kings Garden continues to occupy pursuant to confidential, conditional settlement agreement reported by IIP on its current report on Form 8 - K filed with the SEC on September 16 , 2022 . Leasing Summary - - - - - - 1% 2% 2% 0% 95% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Thereafter Lease Expiration Schedule as of December 31, 2022 (1) No Expiring Leases Until 2029

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Innovative Industrial Properties 14 IIP Portfolio 3rd Quarter 2022 (3) Tenant Information Total Invested Capital (1) Investment # of Adjusted Market MSO #Tenant $% Square Feet (2) / Square Feet Leases Revenue EBITDA (4) Capitalization (5) / SSO (6) 1PharmaCann $306,172 13.1% 688 $445 11 Private Co. Private Co. Private Co. MSO 2Parallel 203,050 8.7% 895 227 4 Private Co. Private Co. Private Co. MSO 3Ascend Wellness (AWH) 199,050 8.5% 624 319 4 $111 $28 $217 MSO 4Green Thumb Industries 176,800 7.6% 664 266 3 261 84 2,094 MSO 5Curaleaf 175,047 7.5% 578 303 8 340 84 3,090 MSO 6Columbia Care 147,834 6.3% 588 251 21 133 21 299 MSO 7Trulieve 146,503 6.3% 740 198 6 301 99 1,410 MSO 8Holistic Industries 121,900 5.2% 333 366 5 Private Co. Private Co. Private Co. MSO 9Cresco Labs 120,845 5.2% 379 319 5 210 42 546 MSO 10 4Front Ventures (7) 119,150 5.1% 488 244 4 32 9 147 MSO Top 10 Tenants Total $1,716,351 73.5% 5,977 $287 71 Top Tenants Overview 1) Total Portfolio representation . Dollars in thousands, see "Definitions" for additional details . 2) Square feet in thousands . 3) Dollars in millions, based on each company's public securities filings and earnings release, available at www . sec . gov, www . sedar . com, or each company's respective website, for the quarter ended September 30 , 2022 . 4) Adjusted EBITDA is a non - GAAP financial measure utilized in the industry . For definitions and reconciliations of Adjusted EBITDA to net income, see each company's public securities filings, available at www . sec . gov or www . sedar . com . 5) Dollars in millions, per S&P Capital IQ Pro as of 12 / 31 / 2022 . 6) "MSO" means the tenant (or guarantor) conducts cannabis operations in more than one state . "SSO" means the tenant (or guarantor) conducts cannabis operations in a single state . 7) Includes one property acquired in January 2022 for $16 . 0 million which did not satisfy the requirements for sale - leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our consolidated balance sheet .

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Innovative Industrial Properties 15 Square Feet Invested / Committed Capital $ Date % Under Dev. Total $/ #Tenant State City Acquired Leased In Place (1) / Redev. (2) Total Invested Committed Total $ Square Feet Industrial 1PharmaCann New York Hamptonburgh 12/19/2016 100% 74 151 225 $80,562 $27,938 $108,500 $482 2PharmaCann Michigan Warren 10/9/2019 100% 205 - 205 83,045 550 83,595 408 3PharmaCann Massachusetts Holliston 5/31/2018 100% 58 - 58 30,500 - 30,500 526 4PharmaCann Illinois Dwight 10/30/2019 100% 66 - 66 28,000 - 28,000 424 5PharmaCann Pennsylvania Scott Township 8/7/2019 100% 56 - 56 28,000 - 28,000 500 6PharmaCann Ohio Buckeye Lake Village 3/13/2019 100% 58 - 58 20,000 - 20,000 345 7Parallel Pennsylvania Pittsburgh 5/13/2021 100% 239 - 239 67,750 - 67,750 283 8Parallel Florida Lakeland 9/18/2020 100% 220 - 220 56,400 - 56,400 256 9Parallel Florida Wimauma 3/11/2020 100% 373 - 373 51,500 - 51,500 138 10Ascend Wellness (AWH) Illinois Barry 12/21/2018 100% 166 - 166 71,000 - 71,000 428 11Ascend Wellness (AWH) Massachusetts Athol 4/2/2020 100% 199 - 199 63,900 - 63,900 321 12Ascend Wellness (AWH) New Jersey Franklin 2/10/2022 100% 80 34 114 39,500 500 40,000 351 13Ascend Wellness (AWH) Michigan Lansing 7/2/2019 100% 145 - 145 24,150 - 24,150 167 14Green Thumb Industries Pennsylvania Danville 11/12/2019 100% 300 - 300 94,600 - 94,600 315 15Green Thumb Industries Illinois Oglesby 3/6/2020 100% 266 - 266 50,000 - 50,000 188 16Green Thumb Industries Ohio Toledo 1/31/2020 100% 98 - 98 32,200 - 32,200 329 17Curaleaf Pennsylvania Chambersburg 12/20/2019 100% 74 105 179 49,800 11,840 61,640 344 18Curaleaf Illinois Litchfield 10/30/2019 100% 127 - 127 40,000 - 40,000 315 19Curaleaf New Jersey Blue Anchor 7/13/2020 100% 123 - 123 35,000 - 35,000 285 20Curaleaf Massachusetts Webster 9/1/2022 100% 104 - 104 21,500 - 21,500 207 21Curaleaf North Dakota Fargo 12/20/2019 100% 33 - 33 12,190 - 12,190 369 22Columbia Care Pennsylvania Saxton 5/20/2019 100% 270 - 270 42,891 109 43,000 159 23Columbia Care Virginia Richmond 1/15/2020 100% 82 - 82 19,750 - 19,750 241 24Columbia Care New Jersey Vineland 7/16/2020 100% 50 - 50 11,820 - 11,820 236 25Columbia Care Colorado Denver 10/30/2018 100% 58 - 58 11,250 - 11,250 194 26Columbia Care Colorado Denver 12/14/2021 100% 18 - 18 9,917 - 9,917 551 27Columbia Care Colorado Denver 12/14/2021 100% 12 - 12 3,276 - 3,276 273 28Trulieve Massachusetts Holyoke 7/26/2019 100% 150 - 150 43,500 - 43,500 290 29Trulieve Florida Alachua 1/22/2021 100% 295 - 295 41,650 - 41,650 141 30Trulieve Maryland Hancock 8/13/2021 100% 115 - 115 28,901 614 29,515 257 31Trulieve Florida Quincy 10/23/2019 100% 120 - 120 17,000 - 17,000 142 32Trulieve\* Nevada Las Vegas 7/12/2019 100% 43 - 43 9,600 - 9,600 223 33Trulieve Arizona Cottonwood 4/27/2022 100% 17 - 17 5,238 - 5,238 308 34Holistic Industries Maryland Capitol Heights 5/26/2017 100% 72 - 72 33,719 31 33,750 469 35Holistic Industries Pennsylvania New Castle 6/10/2020 100% 108 - 108 23,629 2,021 25,650 238 36Holistic Industries Massachusetts Monson 7/12/2018 100% 55 - 55 19,234 516 19,750 359 37Cresco Labs Michigan Marshall 4/22/2020 100% 115 - 115 32,000 - 32,000 278 38Cresco Labs Illinois Kankakee 10/22/2019 100% 51 - 51 25,496 104 25,600 502 39Cresco Labs Illinois Joliet 10/22/2019 100% 39 - 39 20,950 - 20,950 537 40Cresco Labs Ohio Yellow Springs 1/24/2020 100% 50 - 50 12,927 618 13,545 271 414Front Ventures Illinois Matteson 8/3/2021 100% - 250 250 47,326 22,824 70,150 281 424Front Ventures Washington Olympia 12/17/2020 100% 114 - 114 17,500 - 17,500 154 434Front Ventures\*\* Massachusetts Holliston 1/28/2022 100% 57 - 57 16,000 - 16,000 281 444Front Ventures Massachusetts Georgetown 12/17/2020 100% 67 - 67 15,500 - 15,500 231 45Green Peak (Skymint) Michigan Windsor 4/16/2021 100% 97 104 201 50,894 12,106 63,000 313 46Green Peak (Skymint) Michigan Dimondale 8/2/2018 100% 56 - 56 15,799 - 15,799 282 47Goodness Growth (f/k/a Vireo Health) New York Perth 10/23/2017 100% 40 324 364 52,766 10,294 63,060 173 48Goodness Growth (f/k/a Vireo Health) Minnesota Otsego 11/8/2017 100% 89 - 89 9,710 - 9,710 109 Note : Subtotals and Totals include fractional amounts . Square footage and dollars in thousands except for $/PSF . "Industrial" reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space . Data as of December 31 , 2022 . \*Harvest Health & Recreation Inc . , which is a subsidiary of Trulieve Inc . , executed a lease guaranty in favor of IIP for tenant's obligations at the property . \*\*The acquisition of the property did not satisfy the requirements for sale - leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our consolidated balance sheet . 1) Existing square footage for properties where there is no active development or redevelopment . 2) Estimated square footage upon completion of development or redevelopment . Property List

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Innovative Industrial Properties 16 Square Feet Invested / Committed Capital $ Date % Under Dev. Total $/ #Tenant State City Acquired Leased In Place (1) / Redev. (2) Total Invested Committed Total $ Square Feet 49Gold Flora California Desert Hot Springs 10/15/2021 100% 131 70 201 $61,984 $1,516 $63,500 $316 50Jushi Pennsylvania Scranton 4/6/2018 100% 145 - 145 45,800 - 45,800 316 51Kings Garden California North Palm Springs 5/12/2020 100% 70 - 70 17,500 - 17,500 250 52Kings Garden California Palm Springs 4/16/2019 100% 56 - 56 15,000 - 15,000 268 53Kings Garden California Palm Springs 4/16/2019 100% 24 - 24 6,309 - 6,309 263 54Kings Garden California Palm Springs 4/16/2019 100% 22 - 22 5,788 - 5,788 263 55Calyx Peak Missouri Smithville 9/17/2021 100% 83 - 83 27,721 529 28,250 340 56Temescal Wellness Massachusetts North Adams 5/26/2021 100% 71 - 71 26,181 619 26,800 377 57Maryland Cultivation Processing (MCP) Maryland Hagerstown 4/13/2022 100% 84 - 84 25,000 - 25,000 298 58The Pharm Arizona Willcox 12/15/2017 100% 358 - 358 20,000 - 20,000 56 59Texas Original Texas Bastrop 6/14/2022 100% - 85 85 13,586 8,414 22,000 259 60Medical Investor Holdings (Vertical) California Needles 9/11/2019 100% 46 - 46 10,100 - 10,100 220 61Medical Investor Holdings (Vertical) California Needles 8/29/2019 100% 20 - 20 4,841 - 4,841 242 62Medical Investor Holdings (Vertical) California Needles 8/29/2019 100% 7 - 7 1,471 - 1,471 210 63Medical Investor Holdings (Vertical) California Needles 8/29/2019 100% 6 - 6 888 - 888 148 64Sacramento CA (Undisclosed Tenant) California Sacramento 2/8/2019 100% 43 - 43 12,710 - 12,710 296 65Emerald Growth Michigan Harrison Township 6/7/2019 100% 45 - 45 10,000 - 10,000 222 66AYR Wellness Ohio Akron 5/14/2019 100% 11 - 11 3,550 - 3,550 323 Industrial Subtotal / Wtd. Avg. 100% 6,526 1,123 7,649 $1,926,271 $101,141 $2,027,412 $265 Retail 67PharmaCann Colorado Commerce City 2/21/2020 100% 5 - 5 $2,300 - $2,300 $460 68PharmaCann Colorado Aurora 12/14/2021 100% 2 - 2 1,558 116 1,674 837 69PharmaCann Colorado Berthoud 12/14/2021 100% 6 - 6 1,307 99 1,406 234 70PharmaCann Colorado Mancos 12/14/2021 100% 4 - 4 1,148 - 1,148 287 71PharmaCann Colorado Pueblo 2/19/2020 100% 3 - 3 1,049 - 1,049 350 72Curaleaf North Dakota Dickinson 12/14/2021 100% 5 - 5 2,045 - 2,045 409 73Curaleaf North Dakota Devils Lake 12/14/2021 100% 4 - 4 1,614 - 1,614 404 74Curaleaf Pennsylvania Bradford 12/14/2021 100% 3 - 3 1,058 - 1,058 353 75Columbia Care Colorado Denver 12/14/2021 100% 4 - 4 7,338 - 7,338 1,834 76Columbia Care Colorado Pueblo 12/14/2021 100% 6 - 6 4,878 - 4,878 813 77Columbia Care Colorado Aurora 12/14/2021 100% 5 - 5 4,229 - 4,229 846 78Columbia Care Colorado Glenwood Springs 12/14/2021 100% 4 - 4 4,187 - 4,187 1,047 79Columbia Care Colorado Fort Collins 12/14/2021 100% 5 - 5 3,977 - 3,977 795 80Columbia Care Colorado Aurora 12/14/2021 100% 4 - 4 3,601 - 3,601 900 81Columbia Care New Jersey Vineland 7/16/2020 100% 4 - 4 2,165 - 2,165 541 82Columbia Care Colorado Aurora 12/14/2021 100% 5 - 5 1,991 - 1,991 398 83Columbia Care Colorado Englewood 12/14/2021 100% 4 - 4 1,778 - 1,778 445 84Columbia Care Colorado Trinidad 12/14/2021 100% 9 - 9 1,728 - 1,728 192 85Columbia Care Colorado Silver Plume 12/14/2021 100% 4 - 4 1,444 - 1,444 361 86Columbia Care Colorado Black Hawk 12/14/2021 100% 4 - 4 1,321 - 1,321 330 87Columbia Care Colorado Edgewater 12/14/2021 100% 5 - 5 1,089 - 1,089 218 88Columbia Care Colorado Sheridan 12/14/2021 100% 2 - 2 890 - 890 445 89Green Peak (Skymint) Michigan East Lansing 10/25/2019 100% 3 - 3 3,372 28 3,400 1,133 90Green Peak (Skymint) Michigan Lansing 11/4/2019 100% 14 - 14 2,225 - 2,225 159 91Green Peak (Skymint) Michigan Flint 11/4/2019 100% 6 - 6 2,180 - 2,180 363 92Green Peak (Skymint) Michigan Bay City 11/4/2019 100% 4 - 4 1,740 - 1,740 435 93Green Peak (Skymint) Michigan Traverse City 11/25/2019 100% 2 - 2 1,272 - 1,272 636 94Green Peak (Skymint) Michigan Newaygo 11/8/2019 100% 2 - 2 995 - 995 498 95The Pharm Arizona Phoenix 9/19/2019 100% 2 - 2 2,500 - 2,500 1,250 Property List (Continued) Note : Subtotals and Totals include fractional amounts . Square footage and dollars in thousands except for $/PSF . "Industrial" reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space . Data as of December 31 , 2022 . 1) Existing square footage for properties where there is no active development or redevelopment . 2) Estimated square footage upon completion of development or redevelopment .

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Innovative Industrial Properties 17 Square Feet Invested / Committed Capital $ Date % Under Dev. Total $/ #Tenant State City Acquired Leased In Place (1) / Redev. (2) Total Invested Committed Total $ Square Feet 96Schwazze Colorado Ordway 12/14/2021 100% 2 - 2 $400 - $400 $200 97Schwazze Colorado Rocky Ford 12/14/2021 100% 13 - 13 400 - 400 31 98Schwazze Colorado Las Animas 12/14/2021 100% 2 - 2 400 - 400 200 99Verano Pennsylvania Harrisburg 3/23/2022 100% 3 - 3 2,750 - 2,750 917 Retail Subtotal / Wtd. Avg. 100% 150 - 150 $70,927 $242 $71,170 $474 Industrial / Retail 100 Parallel Texas San Marcos 3/10/2021 100% - 63 63 $8,231 $19,169 $27,400 $435 101 Columbia Care Colorado Denver 12/14/2021 100% 33 - 33 8,206 - 8,206 249 102 Holistic Industries Michigan Madison Heights 9/1/2020 100% 63 - 63 27,934 566 28,500 452 103 Holistic Industries California Los Angeles 7/23/2019 100% 35 - 35 13,977 273 14,250 407 104 Cresco Labs Massachusetts Fall River 6/30/2020 100% 124 - 124 24,806 3,944 28,750 232 105 TILT Holdings Massachusetts Taunton 5/16/2022 100% 104 - 104 40,000 - 40,000 385 106 Sozo Michigan Warren 5/14/2021 100% 85 - 85 17,071 159 17,230 203 107 Schwazze Colorado Pueblo 12/14/2021 100% 8 - 8 2,165 - 2,165 271 108 Kaya Cannabis Colorado Denver 12/14/2021 100% 6 - 6 1,299 - 1,299 217 Industrial / Retail Subtotal / Wtd. Avg. 100% 458 63 521 $143,688 $24,111 $167,800 $322 Operating Portfolio Total / Wtd. Avg. 100% 7,134 1,186 8,320 $2,140,887 $125,495 $2,266,382 $272 Construction In Progress (3) 109 Under Development California San Bernardino 11/16/2020 - - 192 192 $35,729 - $35,729 $186 110 Under Development California Cathedral City 3/25/2022 - - 23 23 8,158 - 8,158 355 (4) Under Development California Palm Springs 2/5/2021 - - 180 180 24,152 - 24,152 134 Construction In Progress Subtotal / Wtd. Avg. - - 395 395 $68,039 - $68,039 $172 Total Portfolio / Wtd. Avg. 97% 7,134 1,581 8,715 $2,208,926 $125,495 $2,334,421 $268 State Subtotal / Wtd. Avg. 1 Pennsylvania 100% 1,198 105 1,303 $356,277 $13,970 $370,247 $284 2 Massachusetts 100% 989 - 989 $301,121 $5,079 $306,200 $310 3 Illinois 100% 715 250 965 $282,773 $22,927 $305,700 $317 4 Michigan 100% 842 104 946 $272,677 $13,409 $286,086 $302 5 California 69% 460 465 925 $218,607 $1,789 $220,396 $238 6 New York 100% 114 475 589 $133,328 $38,232 $171,560 $291 7 Florida 100% 1,008 - 1,008 $166,550 - $166,550 $165 8 New Jersey 100% 257 34 291 $88,485 $500 $88,985 $306 9 Maryland 100% 271 - 271 $87,620 $645 $88,265 $326 10 Colorado 100% 233 - 233 $83,125 $215 $83,340 $358 11 Ohio 100% 217 - 217 $68,677 $618 $69,295 $319 12 Texas 100% - 148 148 $21,817 $27,583 $49,400 $334 13 Missouri 100% 83 - 83 $27,721 $529 $28,250 $340 14 Arizona 100% 377 - 377 $27,737 - $27,737 $74 15 Virginia 100% 82 - 82 $19,750 - $19,750 $241 16 Washington 100% 114 - 114 $17,500 - $17,500 $154 17 North Dakota 100% 42 - 42 $15,849 - $15,849 $377 18 Minnesota 100% 89 - 89 $9,710 - $9,710 $109 19 Nevada 100% 43 - 43 $9,600 - $9,600 $223 Property List (Continued) Note : Subtotals and Totals include fractional amounts . Square footage and dollars in thousands except for $/PSF . "Industrial" reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space . Data as of December 31 , 2022 . 1) Existing square footage for properties where there is no active development or redevelopment . 2) Estimated square footage upon completion of development or redevelopment . 3) Refer to "Definitions" for additional details . 4) Represents parcel under development that is part of the lease with Kings Garden (# 52 , Kings Garden – Palm Springs) .

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Innovative Industrial Properties 18 Interest Rate / Quarter End Preferred Rate / Maturity / Wtd. (In thousands, except share and per share amounts) December 31, 2022 Wtd. Avg. Rate Avg. Maturity Unsecured debt: Exchangeable Senior Notes $6,436 3.75% 1.1 Years Notes due 2026 300,000 5.50% 3.4 Years Total Unsecured Debt $306,436 5.46% 3.4 Years Gross Debt $306,436 5.46% 3.4 Years Series A Preferred Stock: Redemption price per share $25.00 Shares outstanding 600,000 Total Preferred Equity $15,000 9.00% Total Senior Capital $321,436 5.63% Debt Maturity Schedule Senior Capital and Debt Summary $6.4 Million $300.0 Million 2023 2024 2025 2026 2027 Thereafter Exchangeable Senior Notes Notes Due 2026 Senior Capital Overview

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Innovative Industrial Properties 19 Quarter End December 31, 2022 Cash and Investments Cash and cash equivalents $87,122 Restricted cash 1,450 Investments 200,935 Cash and Investments $289,507 Cash Not Available for Investment: Short term liabilities (1) $61,455 Tenant improvements and construction funding payable (2) 29,376 Tenant security deposits 50,763 Construction commitments (1) 96,567 Construction loan commitments (1) 479 Cash Not Available for Investment $238,640 Cash Available for Investment $50,867 Senior Capital: Gross Debt $306,436 Total Preferred Equity 15,000 Total Senior Capital (3) $321,436 Equity Market Capitalization: Stock Price as of 12/31/2022 $101.35 Shares outstanding 27,972,830 Equity Market Capitalization $2,835,046 Covenant (4) December 31, 2022 Debt / Total Gross Assets <60% ~12% Secured Debt <40% 0% Unencumbered Total Gross Assets / Unsecured Debt >150% ~834% Debt Service Coverage Ratio >1.5x 15.5x Egan Jones Credit Rating BBB+ Note : Dollars in thousands, except for $/share . 1) Refer to "Definitions" for additional details . 2) As reported on the company's quarterly filing for the particular period . 3) See "Senior Capital and Debt Summary" for details . 4) Calculated in accordance with the indenture governing the Notes due 2026 , included in the Current Report on Form 8 - K filed with the Securities and Exchange Commission on May 25 , 2021 . Capitalization

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Innovative Industrial Properties 20 Definitions • Adjusted Funds From Operations ("AFFO"): Management believes that AFFO and AFFO per share are appropriate supplemental measures of a REIT's operating performance. We calculate AFFO by adjusting Normalized FFO for certain non - cash items. • Annualized Base Rent ("ABR"): ABR is calculated by multiplying rental payments (defined as the contractually due base rents and property management fees for the last month in the quarter), by twelve. • Cash and Investments: Calculated as cash and cash equivalents, restricted cash, and investments (each as reported on the company's condensed consolidated balance sheets for the particular period). • Construction Commitments: Calculated as remaining contractual commitments to fund draws to tenants and sellers related to development and redevelopment activities at properties. • Construction in Progress ("CIP"): Defined as non - operating assets under development that are not leased and not ready for their intended use. Note that CIP as defined for purposes of this Supplemental Financial Information Package is different than "construction in p rog ress" as reported on the company's condensed consolidated balance sheets for the particular period. • Construction Loan Commitments: Calculated as the remaining amount that may be funded pursuant to a construction loan agreement with a developer executed in June 2021, pursuant to which we agreed to lend up to $18.5 million for the development of a regulated c ann abis cultivation and processing facility in California. • Exchangeable Senior Notes: 3.75% E xchangeable Senior Notes due 2024. • Funds From Operations ("FFO"): FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's ope rating performance equal to net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, depre cia tion, amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and join t v entures. Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management be lie ves FFO and FFO per share to be supplemental measures of a REIT's performance because they provide an understanding of the operat ing performance of our properties without giving effect to certain significant non - cash items, primarily depreciation expense. Histo rical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably ov er time. However, real estate values instead have historically risen or fallen with market conditions. We believe that by excluding the effect of depreciation, FFO and FFO per share can facilitate comparisons of operating performance between periods. We report FFO and FFO per share because th ese measures are observed by management to also be the predominant measures used by the REIT industry and by industry analysts to ev aluate REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and pub lic ations about REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share. • GAAP: Accounting principles generally accepted in the United States.

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Innovative Industrial Properties 21 Definitions (Continued) • Gross Debt: Calculated as the sum of the principal amount outstanding of the Notes due 2026 and Exchangeable Senior Notes. • Normalized Funds From Operations ("Normalized FFO"): We compute normalized funds from operations ("Normalized FFO") by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in n atu re and/or not related to our core real estate operations. Exclusion of these items from similar FFO - type metrics is common within the equi ty REIT industry, and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to ass ist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of other compa nie s, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. Normali zed FFO is used by management in evaluating the performance of our core business operations. Items included in calculating FFO that may be ex clu ded in calculating Normalized FFO include certain transaction - related gains, losses, income or expense or other non - core amounts as the y occur. • Notes due 2026 : 5.50% Unsecured Senior Notes due 2026. • Operating Portfolio: All properties that (a) are leased or (b) are not leased but ready for their intended use. • Rent Collection: Calculated as actual base rent and property management fees collected over contractual billed base rent and property management fees. Includes security deposits applied for payment of rent. • Series A Preferred: 9.00% Series A Cumulative Redeemable Preferred Stock, $0.001 par value per share. • Short - Term Liabilities: Calculated as dividends payable, accounts payable and accrued expenses (each as reported on the company's condensed consolidated balance sheets for the particular period). • Total Committed / Invested Capital: Includes (1) total investments in properties (consisting of purchase price and construction funding and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburs e c ertain tenants and sellers for completion of construction and improvements at the properties. Excludes an $18.5 million commitment from us t o a developer for construction of a regulated cannabis cultivation and processing facility in California. • Total Portfolio: All properties, including CIP and operating portfolio, as of quarter end. • Total Preferred Equity: Calculated by multiplying the total Series A Preferred shares outstanding by the $25 redemption price per share. • Total Senior Capital: Calculated as the sum of Gross Debt and the redemption value of the Series A Preferred Stock. • % Leased: The weighted average percentage of the Operating Portfolio, which excludes CIP, that is leased as of the period ended.

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Innovative Industrial Properties 22 Analyst Coverage Analyst Research Firms Contact Information Tom Catherwood BTIG Email: tcatherwood@btig.com Phone: 212 - 738 - 6140 Merrill Ross Compass Point Research and Trading Email: mross@compasspointllc.com Phone: 202 - 534 - 1392 Eric Des Lauriers Craig - Hallum Capital Group LLC Email: eric.deslauriers@craig - hallum.com Phone: 617 - 275 - 5177 Aaron Hecht JMP Securities Email: ahecht@jmpsecurities.com Phone: 415 - 835 - 3963 John Massocca Ladenburg Thalmann Email: jmassocca@ladenburg.com Phone: 212 - 409 - 2543 Alexander Goldfarb Piper Sandler Email: alexander.goldfarb@psc.com Phone: 212 - 466 - 7937 Scott Fortune Roth Capital Partners Email: sfortune@roth.com Phone: 949 - 720 - 7163 Investor Relations Email: ir@iipreit.com Phone: 858 - 997 - 3332

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Innovative Industrial Properties 23 Senior Management Team and Board of Directors Senior Management Name Title Alan Gold Executive Chairman Paul Smithers President, Chief Executive Officer and Director Catherine Hastings Chief Financial Officer and Treasurer Ben Regin Chief Investment Officer Brian Wolfe Vice President, General Counsel and Secretary Andy Bui Vice President, Chief Accounting Officer Tracie Hager Vice President, Asset Management Kelly Spicher Vice President, Real Estate Counsel Board of Directors Name Title Alan Gold Executive Chairman Paul Smithers President, Chief Executive Officer and Director Gary Kreitzer Vice Chairman (Independent) David Stecher Director (Independent) Scott Shoemaker, MD Director (Independent) Mary Allis Curran Director (Independent)