Innovative Industrial Properties Responds to Short-Seller Report

Rhea-AI Summary

Innovative Industrial Properties, Inc. (IIPR) acknowledges a recent short-seller report containing inaccurate claims regarding its business model and operational understanding. The company asserts that the report incorrectly represents the necessary infrastructure enhancements for cannabis cultivation facilities and misunderstands its underwriting processes. IIPR emphasizes that reimbursements are exclusively for verified improvements, not as loans for different purposes. IIPR believes the report lacks merit and has chosen not to engage further aside from clarifying these points.

SAN DIEGO--(BUSINESS WIRE)-- 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, today announced that it is aware of a short-seller report released earlier today, that contains numerous false and misleading statements about IIP. Similar to a short-seller report previously issued in 2020, this short-seller report is flawed and demonstrates a basic lack of understanding of commercial real estate generally, the regulated cannabis industry and IIP’s straightforward, simple business model.

In particular, it is IIP’s opinion that this short-seller fails to have any comprehension of the scope of significant infrastructure improvements that are needed for the transformation of a standard industrial building to a mission-critical facility with the enhanced environmental controls and other building systems necessary for regulated cannabis cultivation and processing. In addition, the writers do not understand the process that IIP employs for underwriting those improvements, and that any IIP reimbursements relate only to verified, qualified improvements to the buildings for these purposes, and never as funding for any type of “loan” to be utilized for any other purpose.

Given the flawed nature and disinformation contained in this short-seller report, other than the clarification set forth above, the short-seller report’s content does not warrant a response from IIP.

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.

Innovative Industrial Properties Forward-Looking Statements

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,” “anticipate,” “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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220414005821/en/

Catherine Hastings

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

Source: Innovative Industrial Properties, Inc.

FAQ

What was the recent short-seller report about Innovative Industrial Properties (IIPR)?

The report contained false and misleading statements regarding IIP's business model and the infrastructure needed for cannabis cultivation.

How did Innovative Industrial Properties (IIPR) respond to the short-seller report?

IIPR stated that the report is flawed and fails to understand the regulated cannabis industry and its business model, choosing not to engage further aside from clarifying misconceptions.

What does Innovative Industrial Properties (IIPR) focus on in its business?

IIPR specializes in the acquisition, ownership, and management of industrial properties leased to licensed operators in the regulated cannabis industry.

When did Innovative Industrial Properties (IIPR) elect to be taxed as a real estate investment trust?

IIPR elected to be taxed as a real estate investment trust starting with the year ended December 31, 2017.