Innovative Industrial Properties Announces Tax Treatment of 2022 Distributions

Rhea-AI Summary

Innovative Industrial Properties (IIPR) announced the tax treatment of its 2022 distributions, revealing a total distribution of $8.60 per share, with $7.03 allocable to 2022 and $6.93 being taxable ordinary dividends. Notably, the distribution with the record date of December 30, 2022, consists of a split-year distribution, with $0.33 allocated to 2022 and $1.47 to 2023. The company incurred no foreign taxes in 2022, indicating tax efficiency. Shareholders are advised to consult their tax advisors regarding their individual tax implications from these distributions. IIPR focuses on managing properties for regulated cannabis operations.

Positive

• Total distribution of $8.60 per share, with $7.03 allocable to 2022.
• $6.93 categorized as taxable ordinary dividends.
• No foreign taxes incurred in 2022, enhancing tax efficiency.

Negative

• Split-year distribution complicates tax reporting for shareholders.

SAN DIEGO--(BUSINESS WIRE)-- Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) today announced the tax treatment of its 2022 distributions as follows:

Security Description: Common Stock
CUSIP: 45781V101
Ticker Symbol: IIPR

Record Date	Payable Date	Total Distribution Per Share	Allocable to 2022	Taxable Ordinary Dividend	Return of Capital	Long-Term Capital Gain	Unrecaptured Section 1250 Gain(1)	Section 199A Dividend(2)
12/31/2021	01/14/2022	$1.500000	$1.400000	$1.380013	$0.000000	$0.019987	$0.011723	$1.380013
03/31/2022	04/14/2022	$1.750000	$1.750000	$1.725016	$0.000000	$0.024984	$0.014653	$1.725016
06/30/2022	07/15/2022	$1.750000	$1.750000	$1.725016	$0.000000	$0.024984	$0.014653	$1.725016
09/30/2022	10/14/2022	$1.800000	$1.800000	$1.774302	$0.000000	$0.025698	$0.015072	$1.774302
12/30/2022	01/13/2023	$1.800000	$0.330000	$0.325289	$0.000000	$0.004711	$0.002763	$0.325289
	Totals	$8.600000	$7.030000	$6.929636	$0.000000	$0.100364	$0.058864	$6.929636

Security Description: 9.00% Series A Cumulative Redeemable Preferred Stock
CUSIP: 45781V200
Ticker Symbol: IIPR PR A

Record Date	Payable Date	Total Distribution Per Share	Allocable to 2022	Taxable Ordinary Dividend	Return of Capital	Long-Term Capital Gain	Unrecaptured Section 1250 Gain(1)	Section 199A Dividend(2)
03/31/2022	04/14/2022	$0.562500	$0.562500	$0.554469	$0.000000	$0.008031	$0.004710	$0.554469
06/30/2022	07/15/2022	$0.562500	$0.562500	$0.554469	$0.000000	$0.008031	$0.004710	$0.554469
09/30/2022	10/14/2022	$0.562500	$0.562500	$0.554469	$0.000000	$0.008031	$0.004710	$0.554469
12/30/2022	01/13/2023	$0.562500	$0.562500	$0.554469	$0.000000	$0.008031	$0.004710	$0.554469
	Totals	$2.250000	$2.250000	$2.217876	$0.000000	$0.032124	$0.018840	$2.217876

(1)		These amounts are a subset of, and included in, Long-Term Capital Gain amounts.
(2)		These amounts are a subset of, and included in, Taxable Ordinary Dividend amounts.

The common stock distribution with a record date of December 30, 2022 will be a split-year distribution, with $0.33 allocable to 2022 for federal income tax purposes and $1.47 allocable to 2023 for federal income tax purposes.

As previously disclosed by IIP on January 31, 2022 in its press release announcing the tax treatment of 2021 dividends, the common stock distribution with a record date of December 31, 2021 was a split-year distribution, with $0.10 allocable to 2021 for federal income tax purposes and $1.40 allocable to 2022 for federal income tax purposes, and the 9.00% Series A Cumulative Redeemable Preferred Stock distribution with a record date of December 31, 2021 was allocable entirely to 2021 for federal income tax purposes.

IIP did not incur any foreign taxes in 2022. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of IIP’s distributions.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial 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 www.innovativeindustrialproperties.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005783/en/

Catherine Hastings

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

Source: Innovative Industrial Properties, Inc.

FAQ

What is the total distribution amount for IIPR in 2022?

Innovative Industrial Properties announced a total distribution of $8.60 per share for 2022.

How much of IIPR's distribution is allocable to 2022?

Of the total distribution, $7.03 is allocable to 2022.

What is the taxable ordinary dividend amount for IIPR shareholders?

IIPR reported that $6.93 of the distribution is classified as taxable ordinary dividends.

When is the record date for IIPR's distribution?

The record date for IIPR's distribution is December 30, 2022.

Did Innovative Industrial Properties incur any foreign taxes in 2022?

No, IIP did not incur any foreign taxes in 2022.

What advice did IIPR give to shareholders regarding tax treatment of distributions?

IIPR advised shareholders to consult their personal tax advisors about the specific tax treatment of their distributions.