INNOVATIVE INDUSTRIAL PROPERTIES INC 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act, designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. As required by Rule 13a-15(b) and 15d-15(b) promulgated under the Exchange Act, our management has evaluated, under supervision of the audit committee of the board of directors and with the participation of our principal executive and principal financial officers, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of December 31, 2024. Based on that evaluation, our principal executive and financial officers concluded that our disclosure controls and procedures were effective as of December 31, 2024 (the end of the period covered by this Annual Report). Management’s Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f), designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Under the supervision and with the participation of our management, including our principal executive and principal financial officers, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our principal executive officer and principal financial officer concluded that our internal controls over financial reporting, as of December 31, 2024, were effective. BDO USA, P.C. has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting, which appears in this Annual Report on Form 10-K. Changes in Internal Control Over Financial Reporting There have been no changes in our system of internal control over financial reporting during the quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Limitations on Controls Our system of internal control over financial reporting was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with accounting principles generally accepted in the United States. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate . 80 Table of Contents Report of Independent Registered Public Accounting Firm Stockholders and Board of Directors Innovative Industrial Properties, Inc. Park City, Utah Opinion on Internal Control over Financial Reporting We have audited Innovative Industrial Properties, Inc.’s (the “Company’s”) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO criteria”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria. ​ We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule, and our report dated February 21, 2025 expressed an unqualified opinion thereon. ​ Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Item 9A, “Management’s Report on Internal Control over Financial Reporting.” Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audit of internal control over financial reporting in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. ​ Definition and Limitations of Internal Control over Financial Reporting ​ A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. ​ Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ​ /s/ BDO USA, P.C. San Diego, California February 21, 2025 81 Table of Contents ​ ITEM 9B. OTHER INFORMATION (b) Rule 10b5-1 Trading Plans ​ During the three months ended December 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement,” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. ​ ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSEPCTIONS Not applicable. ​ PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information concerning our directors, executive officers and corporate governance required by Item 10 will be included in the Proxy Statement to be filed relating to our 2025 Annual Meeting of Stockholders and is incorporated herein by reference. Pursuant to instruction G(3) to Form 10-K, information concerning audit committee financial expert disclosure set forth under the heading “Information Regarding the Board — Committees of the Board — Audit Committee” will be included in the Proxy Statement to be filed relating to Innovative Industrial Properties, Inc.’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. Pursuant to instruction G(3) to Form 10-K, information concerning compliance with Section 16(a) of the Exchange Act concerning our directors and executive officers set forth under the heading entitled “General Section 16(a) Beneficial Ownership Reporting Compliance” will be included in the Proxy Statement to be filed relating to Innovative Industrial Properties, Inc.’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ​ Information About our Executive Officers and Directors ​ Our executive officers as of February 21, 2025, along with their positions and offices held with the Company, are as follows: ​ ​ ​ ​ Name Position Alan Gold ​ Executive Chairman and Director Paul Smithers ​ President, Chief Executive Officer and Director David Smith ​ Chief Financial Officer and Treasurer ​ In addition to Messrs. Gold and Smithers, our directors as of February 21, 2025, and their principal occupations or current employment are as follows: ​ ​ ​ ​ Name Position Gary Kreitzer ​ Retired Executive Vice President and General Counsel; Co-Founder of three publicly traded REITs Mary Curran ​ Retired Executive Vice President and Corporate Banking Chief Risk Officer MUFG Union Bank, N.A., Member of the Board of Directors of Banc of California, Inc. and Hunter Industries, Inc. Scott Shoemaker ​ Practicing orthopedic surgeon for Kaiser Permanente David Stecher ​ Managing Director at CapAcquity LLC ​ 82 Table of Contents Code of Ethics and Code of Conduct We have adopted a written Code of Business Conduct and Ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Our Code of Business Conduct and Ethics is posted on our website (www.innovativeindustrialproperties.com). We do not incorporate the information on our website into this Annual Report on Form 10-K and you should not consider any such information that can be accessed through our website as part of this Annual Report. We intend to disclose any amendments to certain provisions of our Code of Business Conduct and Ethics, or any waivers of those provisions, as required by the listing rules of the New York Stock Exchange, the rules and regulations of the SEC and applicable law on our website promptly following the date of such amendment or waiver. ITEM 11. EXECUTIVE COMPENSATION The information concerning our executive compensation required by Item 11 will be included in the Proxy Statement to be filed relating to our 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ​ ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information concerning the security ownership of certain beneficial owners and management, our equity compensation plans and related stockholder matters required by Item 12 will be included in the Proxy Statement to be filed relating to our 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ​ ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information concerning certain relationships and related transactions and director independence required by Item 13 will be included in the Proxy Statement to be filed relating to our 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ​ ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information concerning our principal accountant fees and services required by Item 14 will be included in the Proxy Statement to be filed relating to our 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ​ ​ 83 Table of Contents PART IV ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULE (a)(1) and (2) Financial Statements and Schedule: Please refer to the Index to Consolidated Financial Statements included under Part II, Item 8, Financial Statements and Supplementary Data. (3) Exhibits Exhibit Number Description of Exhibit 3.1 Second Articles of Amendment and Restatement of Innovative Industrial Properties, Inc. (including Articles Supplementary Classifying Innovative Industrial Properties, Inc.’s 9.00% Series A Cumulative Redeemable Preferred Stock).(1) 3.2 ​ Articles Supplementary to the Second Articles of Amendment and Restatement of Innovative Industrial Properties, Inc. (including Articles Supplementary Classifying Innovative Industrial Properties, Inc.’s 9.00% Series A Cumulative Redeemable Preferred Stock).(2) 3.3 Third Amended and Restated Bylaws of Innovative Industrial Properties, Inc.(3) 4.1 Form of Certificate for Common Stock.(4) 4.2 Indenture, dated as of February 21, 2019, among IIP Operating Partnership, LP, as issuer, Innovative Industrial Properties, Inc. and the subsidiaries of IIP Operating Partnership, LP, as guarantors, Argent Institutional Trust Company, as trustee (as successor-in-interest to GLAS Trust Company LLC), and Securities Transfer Corporation, as registrar (as successor-in-interest to GLAS Trust Company LLC), including the Form of Note representing IIP Operating Partnership, LP’s 3.75% Exchangeable Senior Notes due 2024.(5) 4.3 ​ Indenture, dated as of May 25, 2021, among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP, the Subsidiary Guarantors set forth on the signature page thereto, Argent Institutional Trust Company, as trustee (as successor-in-interest to GLAS Trust Company LLC), and Securities Transfer Corporation, as registrar (as successor-in-interest to GLAS Trust Company LLC), including the form of 5.50% Senior Note due 2026.(6) 4.4* ​ Innovative Industrial Properties, Inc. Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, as amended. 10.1 Agreement of Limited Partnership of IIP Operating Partnership, LP.(8) 10.2+ 2016 Omnibus Incentive Plan.(8) 10.3+ Form of Restricted Stock Award Agreement for Officers.(9) 10.4+ Form of Restricted Stock Award Agreement for Directors.(9) 10.5+ Form of Restricted Stock Unit Award Agreement.(10) 10.6+ Form of 2021 Performance Share Unit Award Agreement.(11) 10.6+ ​ Form of 2022 Performance Share Unit Award Agreement.(12) 10.7+ Form of Indemnification Agreement between Innovative Industrial Properties, Inc. and each of its Directors and Officers.(4) 10.8+ Severance and Change of Control Agreement dated as of January 18, 2017 among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP and Alan Gold.(13) 10.9+ Severance and Change of Control Agreement dated as of January 18, 2017 among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP and Paul Smithers.(13) 10.10+ Severance and Change of Control Agreement dated as of January 18, 2017 among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP and Brian Wolfe.(13) 10.11+ Severance and Change of Control Agreement dated as of June 7, 2017 among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP and Catherine Hastings.(14) 10.12+ ​ Severance and Change of Control Agreement dated as of March 29, 2023 among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP and David Smith.(15) 10.13+ Director Compensation Policy.(11) 10.14+ Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan.(16) 84 Table of Contents 10.15 ​ Registration Rights Agreement, dated as of May 25, 2021, among Innovative Industrial Properties, Inc., IIP Operating Partnership, LP, the Subsidiary Guarantors set forth on the signature page thereto and BTIG, LLC, as representative of the initial purchasers.(6) 19.1 * ​ Innovative Industrial Properties, Inc. Insider Trading Compliance Program. 21.1* ​ List of Subsidiaries of Innovative Industrial Properties, Inc. 23.1* ​ Consent of Independent Registered Public Accounting Firm. 31.1* ​ Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2* Certifications of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1* Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 97.1 ​ Innovative Industrial Properties, Inc. Compensation Recovery Policy.(17) 101.INS* XBRL Instance Document. 101.SCH* XBRL Taxonomy Extension Schema Document. 101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF* XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB* XBRL Taxonomy Extension Label Linkbase Document. 101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document. 104* ​ Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101). * Filed herewith. + Indicates management contract or compensatory plan. (1) Incorporated by reference to Innovative Industrial Properties, Inc.’s Quarterly Report on Form 10-Q filed with the SEC on August 6, 2020. (2) Incorporated by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on May 24, 2024. (3) Incorporated by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on December 8, 2022. (4) Incorporated by reference to Innovative Industrial Properties, Inc.’s Registration Statement on Form S-11, as amended (File No. 333-214148), filed with the SEC on November 17, 2016. (5) Incorporated herein by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on February 21, 2019. (6) Incorporated herein by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on May 25, 2021. (7) Incorporated by reference to Innovative Industrial Properties, Inc.’s Registration Statement on Form S-11, as amended (File No. 333-214148), filed with the SEC on October 17, 2016. (8) Incorporated by reference to Innovative Industrial Properties, Inc.’s Registration Statement on Form S-8 (File No. 333-214919), filed with the SEC on December 6, 2016. (9) Incorporated by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on January 6, 2020. (10) Incorporated by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on January 15, 2021. (11) Incorporated by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on January 12, 2022. (12) Incorporated herein by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on January 24, 2017. (13) Incorporated herein by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on June 8, 2017. (14) Incorporated herein by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on March 30, 2023. (15) Incorporated herein by reference to Innovative Industrial Properties, Inc.’s Current Report on Form 8-K filed with the SEC on November 18, 2019. (16) Incorporated by reference to Innovative Industrial Properties, Inc.’s Quarterly Report on Form 10-Q filed with the SEC on August 3, 2023. (17) Incorporated by reference to Innovative Industrial Properties, Inc.’s Annual Report on Form 10-K filed with the SEC on February 27, 2024. ​ ITEM 16. FORM 10-K SUMMARY None. ​ ​ 85 Table of Contents 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. ​ ​ ​ ​ INNOVATIVE INDUSTRIAL PROPERTIES, INC. ​ ​ ​ By: /s/ Paul Smithers ​ Paul Smithers ​ President, Chief Executive Officer and Director ​ (Principal Executive Officer) ​ ​ ​ By: /s/ David Smith ​ David Smith ​ Chief Financial Officer and Treasurer ​ (Principal Financial Officer) ​ ​ ​ ​ By: /s/ Andy Bui ​ Andy Bui ​ Vice President, Chief Accounting Officer ​ (Principal Accounting Officer) ​ ​ ​ ​ Dated February 21, 2025 ​ ​ Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated. ​ ​ ​ ​ ​ ​ Name Capacity Date ​ ​ ​ ​ ​ /s/ Alan Gold ​ Executive Chairman ​ February 21, 2025 Alan Gold ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Gary Kreitzer ​ Vice Chairman ​ February 21, 2025 Gary Kreitzer ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Mary Curran ​ Director ​ February 21, 2025 Mary Curran ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Paul Smithers ​ President, Chief Executive Officer and ​ February 21, 2025 Paul Smithers ​ Director ​ ​ ​ ​ ​ ​ ​ /s/ Scott Shoemaker ​ Director ​ February 21, 2025 Scott Shoemaker ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ David Stecher ​ Director ​ February 21, 2025 David Stecher ​ ​ ​ ​ ​ ​ ​ ​ 86 Table of Contents INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Innovative Industrial Properties, Inc. (a) Financial Statements: ​ Report of Independent Registered Public Accounting Firm ( BDO USA, P.C. ; San Diego, California ; PCAOB ID # 243 ) ​ F-2 ​ Consolidated Balance Sheets as of December 31, 2024 and 2023 ​ F-4 ​ Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 ​ F-5 ​ Consolidated Statemen ts of Stockholders’ Equity for the years ended December 31, 2024, 2023 and 2022 ​ F-6 ​ Consolidated Statements of Cash Flows for the years ended D ecember 31, 2024, 2023 and 2022 ​ F-7 ​ Notes to Consolidated Financial Statements ​ F-8 ​ (b) Financial Statement Schedule: ​ ​ Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2024 ​ F-30 ​ ​ ​ F-1 Table of Contents Report of Independent Registered Public Accounting Firm Stockholders and Board of Directors Innovative Industrial Properties, Inc. Park City, Utah Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Innovative Industrial Properties, Inc. (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 , in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and our report dated February 21, 2025 expressed an unqualified opinion thereon. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. Real Estate Acquisitions - Fair Value of Assets Acquired As described in Note 6 to the consolidated financial statements, the Company completed two real estate property acquisitions, which totaled approximately $18.6 million during the year ended December 31, 2024. As described in Note 2 to the consolidated financial statements, the assets acquired are initially measured based upon their relative fair values. The Company may engage third-party valuation specialists to assist in the estimation of the fair value of land by reviewing comparable sales within the same submarket and/or region, and the estimation of the fair value of buildings and F-2 Table of Contents improvements as if the property was vacant utilizing a direct capitalization approach and a current replacement costs approach and takes into consideration other relevant market data. ​ We identified the estimation of the fair values used in the allocation of the land and buildings and improvements acquired for the two 2024 property acquisitions as a critical audit matter. The principal considerations for our determination included significant judgments used to evaluate certain assumptions used in the fair values of land and buildings and improvements acquired, including the comparable sales of land, and current replacement cost of the buildings and improvements for the two real estate asset acquisitions. Auditing these elements involved a high degree of auditor judgment and subjectivity due to the nature and extent of audit effort required to address these matters, including the extent of specialized skill or knowledge needed. ​ The primary procedures we performed to address this critical audit matter included: ​ ● Utilizing personnel with specialized knowledge and skills in valuation to assist in the evaluation of the fair values used in the allocation of land and buildings and improvements acquired, including the comparable sales of land, and current replacement cost of the buildings and improvements taking into consideration the comparison of these assumptions to market data. ​ ​ /s/ BDO USA, P.C. We have served as the Company’s auditor since 2016. San Diego, California February 21, 2025 ​ ​ F-3 Table of Contents Innovative Industrial Properties, Inc. Consolidated Balance Sheets (In thousands, except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, December 31, Assets ​ 2024 ​ 2023 Real estate, at cost: ​ ​ ​ ​ ​ ​ Land ​ $ 146,772 ​ $ 142,524 Buildings and improvements ​ 2,230,807 ​ 2,108,218 Construction in progress ​ 62,393 ​ 117,773 Total real estate, at cost ​ 2,439,972 ​ 2,368,515 Less accumulated depreciation ​ ( 271,190 ) ​ ( 202,692 ) Net real estate held for investment ​ 2,168,782 ​ 2,165,823 Construction loan receivable ​ ​ 22,800 ​ ​ 22,000 Cash and cash equivalents ​ 146,245 ​ 140,249 Restricted cash ​ ​ — ​ ​ 1,450 Investments ​ 5,000 ​ 21,948 Right of use office lease asset ​ ​ 946 ​ ​ 1,355 In-place lease intangible assets, net ​ ​ 7,385 ​ ​ 8,245 Other assets, net ​ 26,889 ​ 30,020 Total assets ​ $ 2,378,047 ​ $ 2,391,090 ​ ​ ​ ​ ​ ​ ​ Liabilities and stockholders’ equity ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ Exchangeable Senior Notes, net ​ $ — ​ $ 4,431 Notes due 2026, net ​ ​ 297,865 ​ ​ 296,449 Building improvements and construction funding payable ​ ​ 10,230 ​ ​ 9,591 Accounts payable and accrued expenses ​ 10,561 ​ 11,406 Dividends payable ​ 54,817 ​ 51,827 Rent received in advance and tenant security deposits ​ 57,176 ​ 59,358 Other liabilities ​ 11,338 ​ 5,056 Total liabilities ​ 441,987 ​ 438,118 Commitments and contingencies (Notes 6 and 11) ​ ​ Stockholders’ equity: ​ ​ Preferred stock, par value $ 0.001 per share, 50,000,000 shares authorized: 9.00 % Series A cumulative redeemable preferred stock, liquidation preference of $ 25.00 per share, 1,002,673 and 600,000 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively ​ 23,632 ​ 14,009 Common stock, par value $ 0.001 per share, 50,000,000 shares authorized: 28,331,833 and 28,140,891 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively ​ 28 ​ 28 Additional paid-in capital ​ 2,124,113 ​ 2,095,789 Dividends in excess of earnings ​ ( 211,713 ) ​ ( 156,854 ) Total stockholders’ equity ​ 1,936,060 ​ 1,952,972 Total liabilities and stockholders’ equity ​ $ 2,378,047 ​ $ 2,391,090 ​ See the accompanying notes to the consolidated financial statements. ​ F-4 Table of Contents Innovative Industrial Properties, Inc. Consolidated Statements of Income (In thousands, except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2024 2023 2022 Revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ Rental (including tenant reimbursements) ​ $ 306,936 ​ $ 307,349 ​ $ 274,377 Other ​ 1,581 ​ 2,157 ​ 1,982 Total revenues ​ 308,517 ​ 309,506 ​ 276,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses: ​ ​ ​ Property expenses ​ 28,472 ​ 24,893 ​ 10,520 General and administrative expense ​ 37,444 ​ 42,832 ​ 38,520 Depreciation and amortization expense ​ 70,807 ​ 67,194 ​ 61,303 Total expenses ​ 136,723 ​ 134,919 ​ 110,343 Gain (loss) on sale of real estate ​ ​ ( 3,449 ) ​ ​ — ​ ​ 3,601 Income from operations ​ 168,345 ​ 174,587 ​ 169,617 Interest income ​ 10,988 ​ 8,446 ​ 3,195 Interest expense ​ ​ ( 17,672 ) ​ ​ ( 17,467 ) ​ ​ ( 18,301 ) Gain (loss) on exchange of Exchangeable Senior Notes ​ ​ — ​ ​ 22 ​ ​ ( 125 ) Net income ​ 161,661 ​ 165,588 ​ 154,386 Preferred stock dividends ​ ( 1,804 ) ​ ( 1,352 ) ​ ( 1,352 ) Net income attributable to common stockholders ​ $ 159,857 ​ $ 164,236 ​ $ 153,034 Net income attributable to common stockholders per share (Note 8): ​ ​ ​ Basic ​ $ 5.58 ​ $ 5.82 ​ $ 5.57 Diluted ​ $ 5.52 ​ $ 5.77 ​ $ 5.52 Weighted-average shares outstanding: ​ ​ ​ ​ ​ ​ Basic ​ 28,226,402 ​ 27,977,807 ​ 27,345,047 Diluted ​ 28,530,650 ​ 28,255,797 ​ 27,663,169 ​ See accompanying notes to the consolidated financial statements. ​ F-5 Table of Contents Innovative Industrial Properties, Inc. Consolidated Statements of Stockholders’ Equity (In thousands, except share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares of ​ ​ ​ Additional Dividends in Total ​ ​ Series A ​ Series A ​ Shares of ​ Common ​ Paid-In- ​ Excess of ​ Stockholders' ​ ​ Preferred Stock ​ Preferred Stock ​ Common Stock ​ Stock ​ Capital ​ Earnings ​ Equity Balance, December 31, 2021 ​ 600,000 ​ $ 14,009 ​ 25,612,541 ​ $ 26 ​ $ 1,672,882 ​ $ ( 75,218 ) ​ $ 1,611,699 Adjustment to opening balance upon adoption of ASU 2020-06 (Note 2) ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 1,340 ) ​ ​ 728 ​ ​ ( 612 ) Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 154,386 ​ ​ 154,386 Exchange of Exchangeable Senior Notes ​ — ​ ​ — ​ 413,166 ​ ​ — ​ ​ 26,682 ​ ​ — ​ ​ 26,682 Net proceeds from sale of common stock ​ — ​ ​ — ​ 1,932,813 ​ ​ 2 ​ ​ 351,958 ​ ​ — ​ ​ 351,960 Preferred stock dividend ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 1,352 ) ​ ​ ( 1,352 ) Common stock dividend ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 195,936 ) ​ ​ ( 195,936 ) Issuance of unvested restricted stock, net of forfeitures ​ — ​ ​ — ​ 14,310 ​ ​ — ​ ​ ( 2,441 ) ​ ​ — ​ ​ ( 2,441 ) Stock-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 17,507 ​ ​ — ​ ​ 17,507 Balance, December 31, 2022 ​ 600,000 ​ ​ 14,009 ​ 27,972,830 ​ ​ 28 ​ ​ 2,065,248 ​ ​ ( 117,392 ) ​ ​ 1,961,893 Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 165,588 ​ ​ 165,588 Exchange of Exchangeable Senior Notes ​ — ​ ​ — ​ 32,200 ​ ​ — ​ ​ 1,964 ​ ​ — ​ ​ 1,964 Net proceeds from sale of common stock ​ — ​ ​ — ​ 101,061 ​ ​ — ​ ​ 9,564 ​ ​ — ​ ​ 9,564 Preferred stock dividend ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 1,352 ) ​ ​ ( 1,352 ) Common stock dividend ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 203,698 ) ​ ​ ( 203,698 ) Issuance of unvested restricted stock, net of forfeitures ​ — ​ ​ — ​ 34,800 ​ ​ — ​ ​ ( 568 ) ​ ​ — ​ ​ ( 568 ) Stock-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 19,581 ​ ​ — ​ ​ 19,581 Balance, December 31, 2023 ​ 600,000 ​ ​ 14,009 28,140,891 ​ ​ 28 ​ ​ 2,095,789 ​ ​ ( 156,854 ) ​ ​ 1,952,972 Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 161,661 ​ ​ 161,661 Exchange of Exchangeable Senior Notes ​ — ​ ​ — ​ 28,408 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Net proceeds from sale of preferred stock ​ 402,673 ​ ​ 9,623 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 9,623 Net proceeds from sale of common stock ​ — ​ ​ — ​ 123,224 ​ ​ — ​ ​ 11,757 ​ ​ — ​ ​ 11,757 Preferred stock dividend ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 1,804 ) ​ ​ ( 1,804 ) Common stock dividend ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 214,716 ) ​ ​ ( 214,716 ) Issuance of unvested restricted stock, net of forfeitures ​ — ​ ​ — ​ 39,310 ​ ​ — ​ ​ ( 750 ) ​ ​ — ​ ​ ( 750 ) Stock-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 17,317 ​ ​ — ​ ​ 17,317 Balance, December 31, 2024 ​ 1,002,673 ​ $ 23,632 28,331,833 ​ $ 28 ​ $ 2,124,113 ​ $ ( 211,713 ) ​ $ 1,936,060 ​ ​ See accompanying notes to the consolidated financial statements. ​ F-6 Table of Contents Innovative Industrial Properties, Inc. Consolidated Statements of Cash Flows (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2024 2023 2022 Cash flows from operating activities ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 161,661 ​ $ 165,588 ​ $ 154,386 Adjustments to reconcile net income to net cash provided by (used in) operating activities ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 70,807 ​ 67,194 ​ 61,303 Loss (gain) on exchange of Exchangeable Senior Notes ​ ​ — ​ ​ ( 22 ) ​ ​ 125 Loss (gain) on sale of real estate ​ ​ 3,449 ​ ​ — ​ ​ ( 3,601 ) Other non-cash adjustments ​ ​ 103 ​ ​ 111 ​ ​ 185 Stock-based compensation ​ 17,317 ​ 19,581 ​ 17,507 Amortization of discounts on investments ​ ( 506 ) ​ ( 3,198 ) ​ ( 2,246 ) Amortization of debt discount and issuance costs ​ ​ 1,669 ​ ​ 1,371 ​ ​ 1,349 Changes in assets and liabilities ​ ​ ​ ​ ​ ​ Other assets, net ​ 126 ​ 352 ​ ( 3,506 ) Accounts payable, accrued expenses and other liabilities ​ 6,002 ​ 3,924 ​ 2,717 Rent received in advance and tenant security deposits ​ ( 2,182 ) ​ 642 ​ 5,911 Net cash provided by (used in) operating activities ​ 258,446 ​ 255,543 ​ 234,130 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities ​ ​ ​ Purchases of investments in real estate ​ ( 18,666 ) ​ ( 34,906 ) ​ ( 150,090 ) Proceeds from sale of real estate asset ​ ​ 9,100 ​ ​ — ​ ​ 23,500 Funding of draws for improvements and construction ​ ( 63,084 ) ​ ( 150,088 ) ​ ( 373,878 ) Funding of construction loan and other investments ​ ​ ( 800 ) ​ ​ ( 3,979 ) ​ ​ ( 21,683 ) Deposits in escrow for acquisitions ​ ​ — ​ ​ — ​ ​ ( 250 ) Purchases of short-term investments ​ ( 45,110 ) ​ ( 111,872 ) ​ ( 388,800 ) Maturities of short-term investments ​ 62,564 ​ 294,057 ​ 515,000 Net cash provided by (used in) investing activities ​ ( 55,996 ) ​ ( 6,788 ) ​ ( 396,201 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities ​ ​ ​ Issuance of common stock, net of offering costs ​ 11,757 ​ 9,564 ​ 351,960 Issuance of preferred stock, net of offering costs ​ ​ 9,623 ​ ​ — ​ ​ — Principal payment on Exchangeable Senior Notes ​ ( 4,436 ) ​ — ​ — Payment of deferred financing costs ​ ​ ( 567 ) ​ ​ ( 561 ) ​ ​ — Dividends paid to common stockholders ​ ( 211,953 ) ​ ( 202,711 ) ​ ( 183,943 ) Dividends paid to preferred stockholders ​ ​ ( 1,578 ) ​ ​ ( 1,352 ) ​ ​ ( 1,352 ) Taxes paid related to net share settlement of equity awards ​ ​ ( 750 ) ​ ​ ( 568 ) ​ ​ ( 2,441 ) Net cash provided by (used in) financing activities ​ ​ ( 197,904 ) ​ ​ ( 195,628 ) ​ ​ 164,224 Net increase (decrease) in cash, cash equivalents and restricted cash ​ 4,546 ​ 53,127 ​ 2,153 Cash, cash equivalents and restricted cash, beginning of year ​ 141,699 ​ 88,572 ​ 86,419 Cash, cash equivalents and restricted cash, end of year ​ $ 146,245 ​ $ 141,699 ​ $ 88,572 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of cash flow information: ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid during the year for interest, net of interest capitalized ​ $ 16,051 ​ $ 16,125 ​ $ 17,247 Supplemental disclosure of non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrual for current-period additions to real estate ​ $ 9,722 ​ $ 8,385 ​ $ 29,376 Deposits applied for acquisitions ​ ​ — ​ ​ 250 ​ ​ 25 Accrual for common and preferred stock dividends declared ​ ​ 54,817 ​ ​ 51,827 ​ ​ 50,840 Reclassification from other assets to real estate held for investment ​ ​ 3,152 ​ ​ — ​ ​ — Exchange of Exchangeable Senior Notes for common stock ​ ​ — ​ ​ 2,000 ​ ​ 26,682 Operating lease liability for obtaining right of use asset ​ ​ — ​ ​ — ​ ​ 1,017 ​ See accompanying notes to the consolidated financial statements. ​ F-7 Table of Contents Innovative Industrial Properties, Inc. Notes to Consolidated Financial Statements 1. Organization As used herein, the terms “we”, “us”, “our”, or the “Company” refer to Innovative Industrial Properties, Inc., a Maryland corporation, and any of our subsidiaries, including IIP Operating Partnership, LP, a Delaware limited partnership (our “Operating Partnership”). We are an internally-managed real estate investment trust (“REIT”) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. We have acquired and intend to continue to acquire our properties through sale-leaseback transactions and third-party purchases. We have leased and expect to continue to lease our properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including structural repairs, maintenance, real estate taxes and insurance. We were incorporated in Maryland on June 15, 2016. We conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT structure, in which our properties are owned by our Operating Partnership, directly or through subsidiaries. We are the sole general partner of our Operating Partnership and own, directly or through subsidiaries, 100 % of the limited partnership interests in our Operating Partnership. Information with respect to rentable square footage is unaudited. ​ 2. Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements Basis of Presentation. The consolidated financial statements include all of the accounts of the Company, the Operating Partnership and all of our wholly owned subsidiaries, are presented in accordance with U.S. generally accepted accounting principles. Federal Income Taxes. We believe that we have operated our business so as to qualify to be taxed as a REIT for U.S. federal income tax purposes. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our taxable net income, we generally will not be required to pay federal corporate income taxes on such income. The income taxes recorded on our consolidated statements of income represent amounts paid for city and state income and franchise taxes and are included in general and administrative expenses in the accompanying consolidated statements of income. Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates and assumptions. The most significant estimates and assumptions made include determination of lease accounting and fair value of acquisition of real estate properties. Reportable Segment . We have aggregated our properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities, including the fact that they are operated using consistent business strategies. Our chief operating decision maker (“CODM”) reviews financial information for our entire consolidated operations when making decisions related to assessing our operating performance. See Note 12 “Segment Information” for additional information. Acquisition of Real Estate Properties. Our investment in real estate is recorded at historical cost, less accumulated depreciation. Upon acquisition of a property, the tangible and intangible assets acquired and liabilities assumed are initially measured based upon their relative fair values. We estimate the fair value of land by reviewing comparable sales within the same submarket and/or region. We estimate the fair value of buildings and improvements as if the property was vacant utilizing a direct capitalization approach and take into consideration current replacement costs and other relevant market rate information and may engage third-party valuation specialists. Acquisition costs are capitalized as incurred. All of our acquisitions to date were recorded as asset acquisitions. F-8 Table of Contents The fair value of acquired in-place leases is derived based on our assessment of estimated lost revenue and costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased. The amounts recorded for acquired in-place leases are reflected as in-place lease intangible assets, net on the consolidated balance sheets and are amortized on a straight-line basis as a component of depreciation and amortization expense over the remaining term of the applicable leases. The fair value of the above-market component of an acquired in-place operating lease is based upon the present value (calculated using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining non-cancellable lease term and (ii) our estimate of the rents that would be paid using fair market rental rates and rent escalations at the date of acquisition measured over the remaining non-cancellable term of the lease. The amount recorded for one above-market operating lease is included in other assets, net on the consolidated balance sheets and is amortized on a straight-line basis as a reduction of rental income over the remaining term of the applicable lease. Certain acquisitions of real estate did not satisfy the requirements for sale-leaseback accounting and therefore as of December 31, 2024 and 2023, acquisitions of $ 16.8 million and $ 20.0 million, respectively, have been recognized as notes receivable and are included in other assets, net on our consolidated balance sheets. During the year ended December 31, 2024, a $ 3.2 million acquisition of real estate which previously did not satisfy the requirements for sale-leaseback accounting was reclassified to real estate held for investment as the requirements for sale-leaseback accounting were satisfied. Sale of Real Estate. When a real estate asset is sold, we evaluate the provisions of Accounting Standards Codification (“ASC”) 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”) to determine whether the asset is within the scope of ASC 610-20, including an evaluation of whether the asset being sold is a nonfinancial asset and whether the buyer has gained control of an asset within the scope of ASC 610-20. In assessing whether the buyer has gained control of the asset, we must determine whether the contract criteria in ASC 606, Revenue from Contracts with Customers (Topic 606) have been met, including 1) the parties to the contract have approved the contract and the contract has commercial substance, 2) we can identify each party’s rights regarding the asset to be transferred, 3) we can identify the payment terms for the asset to be transferred, and 4) it is probable that we will collect substantially all of the consideration to which we will be entitled in exchange for the asset to be transferred. If all of the contract criteria have been met, the carrying amount of the applicable asset is derecognized with a corresponding gain or loss from the sale recognized in our consolidated statements of income. If the contract criteria are not all met, the asset transferred is not derecognized and we continue to report the asset in our consolidated balance sheet. See Note 6 “Investments in Real Estate - Property Dispositions” for further information. Cost Capitalization and Depreciation. We capitalize costs (including interest) associated with development and redevelopment activities and improvements when we are considered to be the accounting owner of the resulting assets. The development and redevelopment activities may be funded by us pursuant to the lease. We are generally considered the accounting owner for such improvements that are attached to or built into the premises, which are required under the lease to be surrendered to us upon the expiration or earlier termination of the lease. Typically, such improvements include, but are not limited to, ground up development, and enhanced HVAC, plumbing, electrical and other building systems. Amounts capitalized are depreciated on a straight-line basis over the estimated useful lives determined by management. We depreciate buildings and improvements based on our evaluation of the estimated useful life of each specific asset, not to exceed 40 years . For the years ended December 31, 2024, 2023 and 2022, we recognized depreciation expense of $ 69.9 million, $ 66.3 million and $ 60.5 million, respectively, which are included in depreciation and amortization expense in our consolidated statements of income. We depreciate office equipment and furniture and fixtures on a straight-line basis over the estimated useful lives ranging from three to seven years . We depreciate the leasehold improvements at our corporate office on a straight-line basis over the shorter of the estimated useful lives or the remaining lease term. Depreciation expense relating to our corporate assets is included in general and administrative expense in our consolidated statements of income. Determining whether expenditures meet the criteria for capitalization and the assignment of depreciable lives requires management to exercise significant judgment. Project costs that are clearly associated with the acquisition and development or redevelopment of a real estate project, for which we are the accounting owner, are capitalized as a cost of that project. Expenditures that meet one or more of the following criteria generally qualify for capitalization: F-9 Table of Contents ● the expenditure provides benefit in future periods; and ● the expenditure extends the useful life of the asset beyond our original estimates. We define redevelopment properties as existing properties for which we expect to spend significant development and construction costs that are not reimbursements to tenants for improvements at the properties. When existing properties are determined to be redevelopment properties, the net carrying value of the buildings and improvements are transferred to construction in progress while the redevelopment activities are in process. Costs capitalized to construction in progress related to redevelopment properties are transferred to buildings and improvements at historical cost of the properties as the redevelopment project or phases of projects are placed in service. Provision for Impairment. On a quarterly basis, we review current activities and changes in the business conditions of all of our properties prior to and subsequent to the end of each quarter to determine the existence of any triggering events or impairment indicators requiring an impairment analysis. If triggering events or impairment indicators are identified, we review an estimate of the future undiscounted cash flows for the properties. Long-lived assets are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. No impairment losses were recognized during the years ended December 31, 2024, 2023 and 2022. Revenue Recognition. Our leases are triple-net leases, an arrangement under which the tenant maintains the property while paying us rent. We recognize revenue for each of the leases at our properties that are classified as operating leases on a cash basis due to the uncertain regulatory environment in the United States pertaining to the regulated cannabis industry, the limited operating history of certain tenants and the resulting uncertainty of collectability of lease payments from each tenant over the duration of the lease term. We evaluate a number of factors in our initial and ongoing assessments of collectability of lease payments for each tenant on a lease-by-lease basis, including evaluations of each tenant’s financial performance, liquidity and overall credit profile, availability and terms of capital for each tenant needed to conduct operations or refinance existing obligations, utilization rates by property and lease duration. We also consider current market conditions, impact of federal, state and local taxation and regulatory burdens and reasonable and supportable forecasts of future economic conditions. Additionally, for operating leases, contractually obligated reimbursements from tenants for recoverable real estate taxes, insurance and operating expenses are included in rental revenues in the period when such costs are reimbursed by the tenants. Contractually obligated real estate taxes that are paid directly by the tenant to the tax authorities are not reflected in our consolidated financial statements. ​ For the years ended December 31, 2024, 2023 and 2022, rental revenue included the application of $ 7.7 million, $ 8.7 million and $ 2.7 million of security deposits for contractual rent with certain tenants. Construction Loan. We executed a construction loan agreement with a developer, pursuant to which we agreed to lend up to $ 23.0 million for the development of a regulated cannabis cultivation and processing facility in California. We have an option to purchase the property, and may execute a negotiated lease with an affiliate of the developer or with another third party, if we determine to exercise our purchase option. In February 2023, we amended the construction loan to provide for, among other things, an extension of the loan term to December 31, 2023. Interest on the loan accrued through March 31, 2023, with monthly payments of interest commencing April 1, 2023. In December 2023, we further amended the construction loan to extend the loan term to June 30, 2024, with an option for the borrower to extend the loan term to December 31, 2024 upon satisfaction of certain conditions and payment of an extension fee. The borrower exercised this extension option in June 2024. In November 2024, we further amended the construction loan to extend the F-10 Table of Contents loan term to June 30, 2025 upon satisfaction of certain conditions and payment of an extension fee. As of December 31, 2024 and 2023, we had funded $ 22.8 million and $ 22.0 million, respectively, of the construction loan. Interest income on the construction loan is recognized on a cash basis. ​ Cash and Cash Equivalents . We consider all highly-liquid investments with original maturities of 90 days or less to be cash equivalents, which is comprised of short-term money market funds, obligations of the U.S. government and certificates of deposit with an original maturity at the time of purchase of less than or equal to 90 days. Restricted Cash. Restricted cash relates to cash held in escrow accounts for future draws for improvements for tenants in accordance with certain lease agreements. Investments . Investments consist of short-term obligations of the U.S. government and certificates of deposit with an original maturity at the time of purchase of greater than 90 days. Investments in obligations of the U.S. government are classified as held-to-maturity and stated at amortized cost. Investments in certificates of deposit are classified as held-to-maturity and stated at cost. Exchangeable Notes. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models, and convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. We adopted ASU 2020-06 on January 1, 2022 and recognized a cumulative-effect adjustment of approximately $ 728,000 to the opening balance of retained earnings and derecognized approximately $ 1.3 million of the remaining equity component relating to the outstanding principal balance of our Exchangeable Senior Notes at the date of adoption. The Exchangeable Senior Notes matured in February 2024. Deferred Financing Costs. The deferred financing costs relating to our Exchangeable Senior Notes and Notes due 2026 are included as a reduction in the net book value of the related liability on our consolidated balance sheets. These costs are amortized as non-cash interest expense using the effective interest method over the life of the related obligations. Deferred financing costs relating to our Revolving Credit Facility are included in other assets, net on our consolidated balance sheets. These costs are being amortized on a straight-line basis and recognized as non-cash interest expense over the remaining term of the Revolving Credit Facility. Stock-Based Compensation. Stock-based compensation for equity awards is based on the grant date fair value of the equity awards and is recognized over the requisite service or performance period. If awards are forfeited prior to vesting, we reverse any previously recognized expense related to such awards in the period during which the forfeiture occurs and reclassify any non-forfeitable dividends and dividend equivalents previously paid on these awards from retained earnings to compensation expense. Forfeitures are recognized as incurred. Certain equity awards are subject to vesting based upon the satisfaction of various market conditions. Forfeiture of share awards with market-based restrictions does not result in a reversal of previously recognized share-based compensation expense. F-11 Table of Contents Lease Accounting. We account for our leases under ASC 842, Leases , and have elected the practical expedient not to separate certain non-lease components from the lease component if the timing and pattern of transfer are the same for the non-lease component and associated lease component, and the lease component would be classified as an operating lease if accounted for separately. We also elected the short-term lease exception for lessees for leases that are less than 12 months. As lessee, we recognized a liability to account for our future obligations and a corresponding right-of-use asset related to our corporate office lease, which ends in January 2027 and contains annual escalations. We measured the lease liability based on the present value of the future lease payments (excluding the extension option that we are not reasonably certain to exercise), discounted using the estimated incremental borrowing rates of 7.25 % and 5.5 % , which were the interest rates that we estimated we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments at initial commencement in December 2019 and upon an amendment in November 2021, respectively. Subsequently, the lease liability is accreted by applying a discount rate established at the lease commencement date to the lease liability balance as of the beginning of the period and is reduced by the payments made during the period. The right-of-use asset is measured based on the corresponding lease liability. We did not incur any initial direct leasing costs and any other consideration exchanged with the landlord prior to the commencement of the lease. Subsequently, the right-of-use asset is amortized on a straight-line basis during the lease term. For each of the years ended December 31, 2024, 2023 and 2022, we recognized office lease expense of $ 0.5 million, which are included in general and administrative expense in our consolidated statements of income. For the years ended December 31, 2024, 2023 and 2022, amounts paid and classified as operating activities in our consolidated statements of cash flows for the office lease were $ 0.5 million, $ 0.5 million and $ 0.4 million, respectively. As lessor, for each of our real estate transactions involving the leaseback of the related property to the seller or affiliates of the seller, we determine whether these transactions qualify as sale and leaseback transactions under the accounting guidance. For these transactions, we consider various inputs and assumptions including, but not necessarily limited to, lease terms, renewal options, discount rates, and other rights and provisions in the purchase and sale agreement, lease and other documentation to determine whether control has been transferred to the Company or remains with the lessee. A transaction involving a sale leaseback will be treated as a purchase of a real estate property if it is considered to transfer control of the underlying asset from the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control and will be classified as a sales-type lease if control of the underlying asset is transferred to the lessee. Otherwise, the lease is treated as an operating lease. These criteria also include estimates and assumptions regarding the fair value of the leased facilities, minimum lease payments, the economic useful life of the facilities, the existence of a purchase option, and certain other terms in the lease agreements. The lease accounting guidance requires accounting for a transaction as a financing in a sale leaseback when the seller-lessee is provided an option to purchase the property from the landlord at the tenant’s option. Substantially all of our leases continued to be classified as operating leases and we continue to record revenue for each of our properties on a cash basis. Our tenant reimbursable revenue and property expenses continue to be presented on a gross basis as rental revenues and as property expenses, respectively, on our consolidated statements of income. Property taxes paid directly by the lessee to a third party continue to be excluded from our consolidated financial statements. Lease amendments are evaluated to determine if the modification grants the lessee an additional right-of-use not included in the original lease and if the lease payments increase commensurate with the standalone price of the additional right-of-use, adjusted for the circumstances of the particular contract. If both conditions are present, the lease amendment is accounted for as a new lease that is separate from the original lease. In January 2024, the lease modifications for two of our leases to extend the initial term of each lease changed the lease classification from operating lease to sales-type lease that did not satisfy all the criteria for recognition as a completed sale. Accordingly, we continue to recognize the underlying assets within net real estate held for investment and all lease payments received, as well as any future lease payments, will be recognized as a deposit liability and will be included in other liabilities on our consolidated balance sheets until certain criteria are met. As of December 31, 2024, we have received lease payments of $ 4.9 million that have been included in other liabilities on our consolidated balance sheets. The underlying assets’ land and building and improvements had a gross carrying value of $ 4.1 million and $ 28.9 million, respectively, and accumulated depreciation of $ 3.5 million as of December 31, 2024. Our leases generally contain options to extend the lease terms at the prevailing market rate or at the expiring rental rate at the time of expiration. Certain of our leases provide the lessee with a right of first refusal or right of first offer in the event we market the leased property for sale. F-12 Table of Contents Recent Accounting Pronouncements . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, measures of segment profit and loss, and disclosures of how the CODM uses the reported measure(s) of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources . The ASU also requires a public entity that has a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. We adopted ASU 2023-07 for the year ending December 31, 2024 which resulted in incremental disclosures relating to reportable segment within the footnotes to our consolidated financial statements. ​ In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The amendments in ASU 2024-03 require entities to provide enhanced disclosures related to certain expense categories included in income statement captions. Under ASU 2024-03, entities are required to disaggregate, in a tabular format, expense captions presented on the face of the income statement — excluding earnings or losses from equity method investments — if they include any of the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (or other amounts of depletion expense). For any remaining items within each relevant expense caption, entities must provide a qualitative description of the nature of those expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We expect to adopt this ASU on January 1, 2027. While the adoption is not expected to have an impact on our consolidated financial statements, it is expected to result in incremental disclosures within the footnotes to our consolidated financial statements. ​ Concentration of Credit Risk . As of December 31, 2024, we owned 109 properties located in 19 states. The ability of any of our tenants to honor the terms of their leases is dependent upon the economic, regulatory, competition, natural and social factors affecting the community in which that tenant operates. The following tables set forth the five tenants in our portfolio that represented the largest percentage of our total rental revenues for the years ended December 31, 2024, 2023 and 2022, including tenant reimbursements: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ December 31, 2024 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann Inc. ("PharmaCann") 11 ​ 17 % Ascend Wellness Holdings, Inc. ("Ascend") 4 ​ 11 % Green Thumb Industries, Inc. ("Green Thumb") 3 ​ 8 % Holistic Industries, Inc. ("Holistic") 5 ​ 7 % Curaleaf Holdings, Inc. ("Curaleaf") ​ 8 ​ 7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue PharmaCann 11 ​ 15 % Ascend ​ 4 ​ 10 % Green Thumb 3 ​ 8 % SH Parents, Inc. ("Parallel") (1) 4 ​ 7 % Curaleaf ​ 8 ​ 7 % ​ F-13 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ December 31, 2022 ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Rental ​ Leases Revenue ​ PharmaCann 11 ​ 14 % Parallel (1) ​ 4 ​ 10 % Ascend 4 ​ 9 % Green Thumb ​ 3 ​ 7 % Trulieve Cannabis Corp. ("Trulieve") 6 ​ 7 % (1) We regained possession of two properties previously leased to Parallel in Texas and Pennsylvania in 2023. ​ In each of the tables above, these leases include leases with affiliates of each entity, for which the entity has provided a corporate guaranty. As of December 31, 2024, our largest property was located in New York and accounted for 5.5 % of our net real estate held for investment. No other properties accounted for more than 5 % of our net real estate held for investment as of December 31, 2024. As of December 31, 2023, our largest property was located in New York and accounted for 5.4 % of our net real estate held for investment. No other properties accounted for more than 5 % of our net real estate held for investment as of December 31, 2023. We have deposited cash with financial institutions that is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 . As of December 31, 2024, we had cash accounts in excess of FDIC insured limits. We have not experienced any losses in such accounts. ​ 3. Common Stock As of December 31, 2024, the Company was authorized to issue up to 50,000,000 shares of common stock, par value $ 0.001 per share, and there were 28,331,833 shares of common stock issued and outstanding. ​ In January 2023, we entered into new equity distribution agreements with four sales agents, pursuant to which we may offer and sell from time-to-time through an “at-the-market” offering program (the “Prior ATM Program”) up to $ 500.0 million in shares of our common stock. In May 2024, we terminated the Prior ATM Program and entered into new equity distribution agreements with four sales agents , pursuant to which we may offer and sell from time to time through an “at-the-market” offering program (the “ATM Program”), including on a forward basis, shares of our common stock and 9.00 % Series A Cumulative Redeemable Preferred Stock, $ 0.001 par value per share (the “Series A Preferred Stock”) , up to an aggregate offering price of $ 500.0 million . See Note 4 “Preferred Stock” for information regarding the sale of Series A Preferred Stock under the ATM Program. During the years ended December 31, 2024, 2023 and 2022, we sold 123,224 shares, 101,061 shares and 117,023 shares of our common stock pursuant to the Prior ATM Program for net proceeds of $ 11.8 million, $ 9.6 million and $ 21.1 million, respectively. In April 2022, we issued 1,815,790 shares of common stock in an underwritten public offering, including the exercise in full of the underwriters’ option to purchase an additional 236,842 shares, resulting in net proceeds of approximately $ 330.9 million. During the year ended December 31, 2022, we issued 413,166 shares of our common stock upon exchange by holders of approximately $ 26.9 million of outstanding principal amount of our Exchangeable Senior Notes. During the year ended December 31, 2023, we issued 32,200 shares of our common stock upon exchange by holders of $ 2.0 million of outstanding principal amount of our Exchangeable Senior Notes. F-14 Table of Contents During the year ended December 31, 2024, we issued 28,408 shares of our common stock related to the exchange premium upon exchange by holders of $ 4.3 million of outstanding principal amount of our Exchangeable Senior Notes. ​ 4. Preferred Stock As of December 31, 2024, the Company was authorized to issue up to 50,000,000 shares of preferred stock, par value $ 0.001 per share, and there were issued and outstanding 1,002,673 shares of 9.00 % Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”). The Company may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $ 25.00 per share, plus all accrued and unpaid dividends on such Series A Preferred Stock up to, but excluding the redemption date. Holders of the Series A Preferred Stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. During the year ended December 31, 2024, we sold 402,673 shares of our Series A Preferred Stock pursuant to the ATM Program for net proceeds of $ 9.6 million. ​ ​ ​ F-15 Table of Contents 5. Dividends The following table describes the dividends declared by the Company during the years ended December 31, 2024, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Dividend Dividend Declaration Date ​ Security Class ​ Per Share ​ Period Covered ​ Paid Date ​ Amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 14, 2022 ​ Common stock ​ $ 1.75 ​ January 1, 2022 to March 31, 2022 ​ April 14, 2022 ​ $ 45,830 March 14, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2022 to April 14, 2022 ​ April 14, 2022 ​ $ 338 June 15, 2022 ​ Common stock ​ $ 1.75 ​ April 1, 2022 to June 30, 2022 ​ July 15, 2022 ​ $ 49,101 June 15, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2022 to July 14, 2022 ​ July 15, 2022 ​ $ 338 September 15, 2022 ​ Common stock ​ $ 1.80 ​ July 1, 2022 to September 30, 2022 ​ October 14, 2022 ​ $ 50,503 September 15, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2022 to October 14, 2022 ​ October 14, 2022 ​ $ 338 December 15, 2022 ​ Common stock ​ $ 1.80 ​ October 1, 2022 to December 31, 2022 ​ January 13, 2023 ​ $ 50,502 December 15, 2022 ​ Series A preferred stock ​ $ 0.5625 ​ October 15, 2022 to January 14, 2023 ​ January 13, 2023 ​ $ 338 March 15, 2023 ​ Common stock ​ $ 1.80 ​ January 1, 2023 to March 31, 2023 ​ April 14, 2023 ​ $ 50,725 March 15, 2023 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2023 to April 14, 2023 ​ April 14, 2023 ​ $ 338 June 15, 2023 ​ Common stock ​ $ 1.80 ​ April 1, 2023 to June 30, 2023 ​ July 14, 2023 ​ $ 50,742 June 15, 2023 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2023 to July 14, 2023 ​ July 14, 2023 ​ $ 338 September 15, 2023 ​ Common stock ​ $ 1.80 ​ July 1, 2023 to September 30, 2023 ​ October 13, 2023 ​ $ 50,742 September 15, 2023 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2023 to October 14, 2023 ​ October 13, 2023 ​ $ 338 December 15, 2023 ​ Common stock ​ $ 1.82 ​ October 1, 2023 to December 31, 2023 ​ January 12, 2024 ​ $ 51,489 December 15, 2023 ​ Series A preferred stock ​ $ 0.5625 ​ October 15, 2023 to January 14, 2024 ​ January 12, 2024 ​ $ 338 March 15, 2024 ​ Common stock ​ $ 1.82 ​ January 1, 2024 to March 31, 2024 ​ April 15, 2024 ​ $ 51,957 March 15, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ January 15, 2024 to April 14, 2024 ​ April 15, 2024 ​ $ 338 June 14, 2024 ​ Common stock ​ $ 1.90 ​ April 1, 2024 to June 30, 2024 ​ July 15, 2024 ​ $ 54,253 June 14, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ April 15, 2024 to July 14, 2024 ​ July 15, 2024 ​ $ 338 September 13, 2024 ​ Common stock ​ $ 1.90 ​ July 1, 2024 to September 30, 2024 ​ October 15, 2024 ​ $ 54,253 September 13, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ July 15, 2024 to October 14, 2024 ​ October 15, 2024 ​ $ 564 December 13, 2024 ​ Common stock ​ $ 1.90 ​ October 1, 2024 to December 31, 2024 ​ January 15, 2025 ​ $ 54,253 December 13, 2024 ​ Series A preferred stock ​ $ 0.5625 ​ October 15, 2024 to January 14, 2025 ​ January 15, 2025 ​ $ 564 ​ ​ F-16 Table of Contents 6. Investments in Real Estate Acquisitions The Company made the following acquisitions during the year ended December 31, 2024 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rentable ​ Initial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Purchase ​ Transaction ​ ​ ​ ​ Property Market Closing Date Feet (1) Price Costs Total Ocala ​ Florida ​ June 7, 2024 ​ 145,000 ​ $ 13,000 ​ $ 26 ​ $ 13,026 (2) 108 Western Maryland Parkway ​ Maryland ​ October 2, 2024 ​ 23,000 ​ ​ 5,570 ​ ​ 70 ​ ​ 5,640 ​ Total ​ ​ 168,000 ​ $ 18,570 ​ $ 96 ​ $ 18,666 (3) (1) Includes expected rentable square feet at completion of construction of certain properties. (2) The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $ 30.0 million. (3) $ 2.8 million was allocated to land and $ 15.9 million was allocated to building and improvements. ​ Acquired In-Place Lease Intangible Assets In-place lease intangible assets and related accumulated amortization as of December 31, 2024 and 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 December 31, 2023 In-place lease intangible assets ​ $ 9,979 ​ $ 9,979 Accumulated amortization ( 2,594 ) ​ ( 1,734 ) In-place lease intangible assets, net ​ $ 7,385 ​ $ 8,245 ​ Amortization of in-place lease intangible assets classified in depreciation and amortization expense in our consolidated statements of income was $ 0.9 million, $ 0.9 million and $ 0.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. The remaining weighted-average amortization period of the value of acquired in-place leases was 8.8 years, and the estimated annual amortization of the value of the acquired in-place leases as of December 31, 2024 is as follows (in thousands): ​ ​ ​ ​ ​ Year Amount 2025 ​ $ 860 2026 ​ ​ 860 2027 ​ 860 2028 ​ 860 2029 ​ 860 Thereafter ​ 3,085 Total ​ $ 7,385 ​ Above-Market Lease The above-market lease and related accumulated amortization included in other assets, net on our consolidated balance sheets as of December 31, 2024 and 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 December 31, 2023 Above-market lease ​ $ 1,054 ​ $ 1,054 Accumulated amortization ( 279 ) ​ ( 187 ) Above-market lease, net ​ $ 775 ​ $ 867 ​ F-17 Table of Contents The above-market lease is amortized on a straight-line basis as a reduction to rental revenues over the remaining lease term of 8.5 years. For all three years ended December 31, 2024, 2023 and 2022, the amortization of the above-market lease was $ 0.1 million. As of December 31, 2024, the amortization for each of the next five years is $ 0.1 million and $ 0.3 million thereafter. Lease Amendments In January 2024, we entered into lease amendments with subsidiaries of 4Front Ventures Corp. (“4Front”) at the four properties we lease to them in Illinois, Massachusetts and Washington, extending the term of each lease. We amended the Illinois lease to reduce base rent through September 30, 2024, defer the payback of the security deposit applicable to the lease (with the security deposit being subject to future pro-rata monthly payback), and increase the base rent for the remainder of the term commencing November 1, 2024. In February 2024, we amended our lease and development agreement with PharmaCann at one of our New York properties, increasing the construction funding commitment by $ 16.0 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. We also amended the lease to extend the term. In April 2024, we amended our lease with a subsidiary of Battle Green Holdings LLC at one of our Ohio properties to provide an additional improvement allowance of $ 4.5 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property. ​ In April 2024, we amended the lease with a subsidiary of 4Front at one of our Illinois properties to provide an additional improvement allowance of $ 1.6 million, which also resulted in a corresponding adjustment to the base rent for the lease at the property and increased the annual base rent escalations for the remainder of the lease term. ​ New Leases ​ In January 2024, we executed a new lease with a tenant at one of our retail properties in Michigan. In March 2024, we executed a new long-term lease with a subsidiary of Gold Flora Corporation (“Gold Flora”) at our property located at 63795 19th Avenue in Palm Springs, California (the “19 th Ave. Lease”). In April 2024, we executed a new long-term lease with Lume Cannabis Co. at our property located at 10070 Harvest Park in Dimondale, Michigan. ​ In May 2024, we executed a new long-term lease with a subsidiary of Gold Flora at our property located at 19533 McLane Street in Palm Springs, California (the “McLane Lease”). ​ The commencement date under each of the 19 th Ave. Lease and McLane Lease is conditioned upon, among other things, the tenant’s receipt of approvals to conduct cannabis operations by the requisite state and local authorities. ​ Capitalized Costs ​ Including all of our properties, during the year ended December 31, 2024, we capitalized costs of $ 63.7 million relating to improvements and construction activities at our properties. Property Dispositions In November 2022, we sold one of our Pennsylvania properties that was leased to a subsidiary Maitri Holdings, LLC for $ 23.5 million, excluding transaction costs, and recognized a gain on sale of the property of approximately $ 3.6 million. In March 2023, we sold the portfolio of four properties in California previously leased to affiliates of Medical Investor Holdings, LLC (“Vertical”) for $ 16.2 million (excluding transaction costs) and provided a secured loan for $ 16.1 million to the buyer of the properties. The loan matures on February 29, 2028 with two options to extend the maturity for twelve months , conditional in each instance on the payment of an extension fee and at least $ 0.5 million of the principal balance. The loan is interest only and payments are payable monthly in advance. The transaction did not qualify for recognition as a completed sale under GAAP since not all of the criteria were met. Accordingly, we have not derecognized the assets transferred on our consolidated balance sheets. All consideration received, as well as any future F-18 Table of Contents payments, from the buyer will be recognized as a deposit liability and will be included in other liabilities on our consolidated balance sheets until such time the criteria for recognition as a sale have been met. As of December 31, 2024, we received interest payments of $ 2.4 million. In addition, as we have not met all of the held-for-sale criteria, land and building and improvements with gross carrying values of $ 3.4 million and approximately $ 13.9 million, respectively, and accumulated depreciation of $ 2.0 million as of December 31, 2024, remain on the consolidated balance sheets, and the buildings and improvements continue to be depreciated. In May 2024, we sold a property in Los Angeles, California for $ 9.1 million (excluding closing costs) to a third-party buyer. Concurrently with the sale, pursuant to a separate agreement previously executed between us and the tenant, the tenant paid us a lease termination fee of $ 3.9 million and paid for the closing and other costs incurred by us in connection with the sale of the property. In connection with this sale, during the year ended December 31, 2024, we recognized a disposition-contingent lease termination fee of $ 3.9 million, which is included in rental revenue (including tenant reimbursements) on our consolidated statements of income, and a loss on sale of real estate of $ 3.4 million. Future Contractual Minimum Rent Future contractual minimum rent (including base rent and property management fees) to be received on our leases as of December 31, 2024 for future periods is summarized as follows (in thousands): ​ ​ ​ ​ ​ Year Contractual Minimum Rent 2025 ​ $ 311,157 2026 ​ ​ 323,281 2027 ​ 331,954 2028 ​ 338,995 2029 ​ 348,298 Thereafter ​ 3,643,029 Total ​ $ 5,296,714 ​ Future contractual minimum rent includes payments to be received on two sale-type leases, which will be recognized as a deposit liability and will be included in other liabilities on our consolidated balance sheet until certain criteria are met (see Note 2 “Lease Accounting” for further details). ​ 7. Debt Exchangeable Senior Notes As of December 31, 2023, our Operating Partnership had outstanding $ 4.4 million of principal amount of 3.75 % Exchangeable Senior Notes due 2024 (the “Exchangeable Senior Notes”). The Exchangeable Senior Notes were senior unsecured obligations of our Operating Partnership, were fully and unconditionally guaranteed by us and our Operating Partnership’s subsidiaries and were exchangeable for cash, shares of our common stock, or a combination of cash and shares of our common stock, at our Operating Partnership’s option, at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. The Exchangeable Senior Notes paid interest semiannually at a rate of 3.75 % per annum and matured on February 21, 2024. The effective interest rate including amortization of issuance costs was 4.53 %. During the year ended December 31, 2024, we issued 28,408 shares of our common stock and paid $ 4.3 million in cash upon exchange by holders of $ 4.3 million principal amount of Exchangeable Senior Notes and paid off the remaining $ 0.1 million principal amount at maturity in February 2024, in accordance with terms of the indenture for the Exchangeable Senior Notes. During the year ended December 31, 2023, we issued 32,200 shares of our common stock upon exchanges by holders of $ 2.0 million of outstanding principal amount of our Exchangeable Senior Notes. For the year ended December 31, 2023, we recognized a gain on the exchange totaling $ 22,000 , resulting from the difference between the fair value and carrying value of the debt as of the date of the exchange. The issuance of the shares pursuant to the exchanges resulted in a net non-cash increase to our additional paid-in capital account of $ 2.0 million for the year ended December 31, 2023. F-19 Table of Contents During the year ended December 31, 2022, we issued 413,166 shares of our common stock upon exchanges by holders of $ 26.9 million of outstanding principal amount of our Exchangeable Senior Notes. For the year ended December 31, 2022, we recognized a loss on the exchange totaling approximately $ 0.1 million resulting from the difference between the fair value and carrying value of the debt as of the date of the exchange. The issuance of the shares pursuant to the exchanges resulted in a non-cash increase to our additional paid-in capital account of $ 26.7 million for the year ended December 31, 2022. The following table details our interest expense related to the Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ 2024 ​ 2023 2022 Cash coupon ​ $ 24 ​ $ 182 ​ $ 452 Amortization of issuance cost ​ 5 ​ ​ 37 ​ ​ 94 Capitalized interest ​ ​ ( 1 ) ​ ​ ( 7 ) ​ ​ — Total interest expense ​ $ 28 ​ $ 212 ​ $ 546 ​ ​ The following table details the carrying value of our Exchangeable Senior Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 December 31, 2023 Principal amount $ — $ 4,436 Unamortized issuance cost — ​ ( 5 ) Carrying value $ — $ 4,431 ​ Accrued interest payable for the Exchangeable Senior Notes was $ 49,000 as of December 31, 2023 and is included in accounts payable and accrued expenses on our consolidated balance sheets. Notes due 2026 On May 25, 2021, our Operating Partnership issued $ 300.0 million aggregate principal amount of its 5.50 % Senior Notes due 2026 (the “Notes due 2026”). The Notes due 2026 are senior unsecured obligations of our Operating Partnership, are fully and unconditionally guaranteed by us and rank equally in right of payment with all of the Operating Partnership’s existing and future senior unsecured indebtedness, including the Exchangeable Senior Notes which matured in February 2024. However, the Notes due 2026 are effectively subordinated to any of the Company’s, the Operating Partnership’s and the Operating Partnership’s subsidiaries’ future secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes due 2026 will pay interest semiannually at a rate of 5.50 % per year and will mature on May 25, 2026. The terms of the Notes due 2026 are governed by an indenture, dated May 25, 2021, among the Operating Partnership, as issuer, the Company and the Operating Partnership’s subsidiaries, as guarantors, Argent Institutional Trust Company, as trustee (as successor-in-interest to GLAS Trust Company LLC), and Securities Transfer Corporation, as registrar (as successor-in-interest to GLAS Trust Company LLC). The terms of the indenture provide that if the debt rating on the Notes due 2026 is downgraded or withdrawn entirely, interest on the Notes due 2026 will increase to a range of 6.0 % to 6.5 % based on such debt rating. In connection with the issuance of the Notes due 2026, we recorded $ 6.8 million of issuance costs, which are being amortized using the effective interest method and recognized as non-cash interest expense over the term of the Notes due 2026. The effective interest rate including amortization of issuance costs is 6.03 %. The following table details our interest expense related to the Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ 2024 ​ 2023 2022 Cash coupon ​ $ 16,500 ​ $ 16,500 ​ $ 16,500 Amortization of issuance cost ​ ​ 1,416 ​ ​ 1,334 ​ ​ 1,255 Capitalized interest ​ ( 565 ) ​ ​ ( 620 ) ​ ​ — Total interest expense ​ $ 17,351 ​ $ 17,214 ​ $ 17,755 ​ F-20 Table of Contents The following table details the carrying value of our Notes due 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 December 31, 2023 Principal amount $ 300,000 $ 300,000 Unamortized issuance cost ( 2,135 ) ​ ( 3,551 ) Carrying value $ 297,865 $ 296,449 ​ The Operating Partnership may redeem some or all of the notes at its option at any time at the applicable redemption price. If the notes are redeemed prior to February 25, 2026, the redemption price will be equal to 100 % of the principal amount of the notes being redeemed, plus a make-whole premium and accrued and unpaid interest thereon to, but excluding, the applicable redemption date. If the notes are redeemed on or after February 25, 2026, the redemption price will be equal to 100 % of the principal amount of the notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date. The terms of the indenture for the Notes due 2026 require compliance with various financial covenants, including minimum level of debt service coverage and limits on the amount of total leverage and secured debt maintained by the Operating Partnership. Management believes that it was in compliance with those covenants as of December 31, 2024. Accrued interest payable for the Notes due 2026 as of December 31, 2024 and 2023 was $ 2.1 million and is included in accounts payable and accrued expenses on our consolidated balance sheets. Revolving Credit Facility In October 2023, our Operating Partnership entered into a loan and security agreement (the “Loan Agreement”) with a federally regulated commercial bank, as lender and as agent for lenders that become party thereto from time to time, which matures on October 23, 2026. The Loan Agreement provided $ 50.0 million in aggregate commitments for secured revolving loans (the “Revolving Credit Facility”), the availability of which is based on a borrowing base consisting of real properties owned by subsidiaries (the “Subsidiary Guarantors”) of the Operating Partnership that satisfy eligibility criteria set forth in the Loan Agreement. The obligations of the Operating Partnership under the Loan Agreement are guaranteed by the Company and the Subsidiary Guarantors, and are secured by (i) operating accounts of the Operating Partnership into which lease payments under the real property included in the borrowing base are paid, (ii) the equity interest of the Subsidiary Guarantors, (iii) the real estate included in the borrowing base and the leases and rents thereunder, and (iv) all personal property of the Subsidiary Guarantors. Borrowings under the Revolving Credit Facility bear interest at a variable rate based on the greater of the prime rate and an applicable margin based on deposits with the participating bank(s) and a stipulated interest rate. The Revolving Credit Facility is subject to an unused line of credit fee, calculated in accordance with the Loan Agreement. The Loan Agreement is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants and events of default. The Loan Agreement also allows the Operating Partnership, subject to the satisfaction of certain conditions, to request additional revolving loan commitments up to a specified amount. In November 2024, our Operating Partnership entered into an amendment to the Loan Agreement, pursuant to which the aggregate commitments under the Revolving Credit Facility were increased from $ 50.0 million to $ 87.5 million. There were no amounts outstanding under the Revolving Credit Facility as of December 31, 2024 and 2023. In connection with the Revolving Credit Facility, we recorded $ 0.8 million of issuance costs, which are being amortized on a straight-line basis and recognized as non-cash interest expense over the term of the Revolving Credit Facility. For the year ended December 31, 2024 and 2023, we recognized $ 0.3 million and $ 41,000 of non-cash interest expense related to the Revolving Credit Facility. ​ ​ ​ ​ F-21 Table of Contents The following table summarizes the principal payments on our outstanding indebtedness as of December 31, 2024 (in thousands): ​ ​ ​ ​ Payments Due ​ ​ by Year Amount 2025 ​ $ — 2026 ​ ​ 300,000 2027 ​ ​ — 2028 ​ ​ — 2029 ​ ​ — Thereafter ​ ​ — Total ​ $ 300,000 ​ ​ 8. Net Income Per Share Grants of restricted stock and restricted stock units (“RSUs”) of the Company in share-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per share under the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. Earnings per basic share under the two-class method is calculated based on dividends declared on common shares and other participating securities (“distributed earnings”) and the rights of participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends and dividend equivalents accruing during the period. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding participating securities. Earnings per basic share represents the summation of the distributed and undistributed earnings per share class divided by the total number of shares. Through December 31, 2024, all of the Company’s participating securities received dividends or dividend equivalents at an equal dividend rate per share. As a result, distributions to participating securities have been included in net income attributable to common stockholders to calculate net income per basic and diluted share. The 9,468 shares, 81,169 shares and 202,076 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the years ended December 31, 2024, 2023 and 2022, respectively, and were included in the computation of diluted earnings per share. For the years ended December 31, 2024, 2023 and 2022, the performance share units (“PSUs”) granted to certain employees were not included in dilutive securities as the performance thresholds for the vesting of the PSUs were not met as measured as of the respective dates. (see Note 10 for further discussion of the PSUs). F-22 Table of Contents Computations of net income per basic and diluted share were as follows (in thousands, except share and per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2024 2023 2022 Net income ​ $ 161,661 ​ $ 165,588 ​ $ 154,386 Preferred stock dividends ​ ( 1,804 ) ​ ( 1,352 ) ​ ( 1,352 ) Distribution to participating securities ​ ( 2,254 ) ​ ( 1,482 ) ​ ( 834 ) Net income attributable to common stockholders used to compute net income per share – basic ​ ​ 157,603 ​ ​ 162,754 ​ ​ 152,200 Dilutive effect of Exchangeable Senior Notes ​ ​ 28 ​ ​ 212 ​ ​ 546 Net income attributable to common stockholders used to compute net income per share – diluted ​ $ 157,631 ​ $ 162,966 ​ $ 152,746 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding: ​ ​ ​ Basic ​ 28,226,402 ​ 27,977,807 ​ 27,345,047 Restricted stock and RSUs ​ ​ 294,780 ​ ​ 196,821 ​ ​ 116,046 Dilutive effect of Exchangeable Senior Notes ​ ​ 9,468 ​ ​ 81,169 ​ ​ 202,076 Diluted ​ 28,530,650 ​ 28,255,797 ​ 27,663,169 Net income attributable to common stockholders per share: ​ ​ ​ ​ ​ Basic ​ $ 5.58 ​ $ 5.82 ​ $ 5.57 Diluted ​ $ 5.52 ​ $ 5.77 ​ $ 5.52 ​ ​ ​ 9. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. The following table presents the carrying value and approximate fair value of financial instruments at December 31, 2024 and 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2024 ​ At December 31, 2023 ​ ​ ​ ​ ​ ​ Carrying Value Fair Value Carrying Value Fair Value Investments (1) ​ $ 5,000 ​ $ 5,000 ​ $ 21,948 ​ $ 21,951 Investments as cash equivalents (2) ​ $ 45,714 ​ $ 45,714 ​ $ 15,187 ​ $ 15,029 Exchangeable Senior Notes (3) ​ $ — ​ $ — ​ $ 4,431 ​ $ 7,576 Notes due 2026 (3) ​ $ 297,865 ​ $ 289,077 ​ $ 296,449 ​ $ 278,325 Construction loan (4) ​ $ 22,800 ​ $ 28,245 ​ $ 22,000 ​ $ 27,543 Notes receivable (5) ​ $ 16,786 ​ $ 16,786 ​ $ 20,028 ​ $ 20,028 (1) At December 31, 2024, investments consisting of short-term certificates of deposit with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at cost and valued using Level 2 inputs. At December 31, 2023, investments consisting of short-term obligations of the U.S. government with an original maturity at the time of purchase of greater than 90 days and less than one year are classified as held-to-maturity, stated at amortized cost and valued using Level 1 inputs. At December 31, 2023, the unrecognized gain was $ 78,000 . (2) Investments included in cash and cash equivalents consisting of obligations of the U.S. government with an original maturity at the time of purchase of less than or equal to 90 days are classified as held-to-maturity and valued using Level 1 inputs. F-23 Table of Contents (3) The fair value is determined based upon Level 2 inputs as the Exchangeable Senior Notes and Notes due 2026 were trading in the private market. Th Exchangeable Senior Notes matured in February 2024. (4) The construction loan receivable is categorized as Level 3 and was valued using a yield analysis, which is typically performed for non-credit impaired loans. To determine fair value using a yield analysis, a current price is imputed for the loan based upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk. In the yield analysis, the Company considers the current contractual interest rate, the maturity and other terms of the loan relative to risk of the company and the specific loan. At both December 31, 2024 and 2023, the expected market yields used to determine fair value was 16.25 % . Changes in market yields may change the fair value of the construction loan. Generally, an increase in market yields may result in a decrease in the fair value of the construction loan. Due to the inherent uncertainty of determining the fair value of a loan that does not have a readily available market value, the fair value of the construction loan may fluctuate from period to period. Additionally, the fair value of the construction loan may differ significantly from the value that would have been used had a readily available market existed for such loan and may differ materially from the value that the Company may ultimately realize. (5) Notes receivable relate to certain acquisitions of real estate which did not satisfy the requirements for sale-leaseback accounting (see Note 2 “Acquisition of Real Estate Properties” to our consolidated financial statements for more information). The notes receivable are categorized as Level 3 and were also valued using a yield analysis. At December 31, 2024 and 2023, the weighted average expected market yields used to determine fair values were 20.6 % and 17.2 % , respectively. ​ The carrying amounts of cash equivalents, accounts payable, accrued expenses and other liabilities approximate fair values. ​ 10. Common Stock Incentive Plan Our board of directors adopted our 2016 Omnibus Incentive Plan (the “2016 Plan”), to enable us to motivate, attract and retain the services of directors, employees and consultants considered essential to our long-term success. The 2016 Plan offers our directors, employees and consultants an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2016 Plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 1,000,000 shares. Any equity awards that lapse, expire, terminate, are canceled or are forfeited (including forfeitures in connection with satisfaction of tax withholding obligations of the recipient) are re-credited to the 2016 Plan’s reserve for future issuance. The 2016 Plan automatically terminates on the date which is ten years following the effective date of the 2016 Plan. A summary of the restricted stock activity under the 2016 Plan and related information for the years ended December 31, 2024, 2023 and 2022 is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Restricted ​ Average Grant Date ​ ​ Shares ​ Fair Value Nonvested balance at December 31, 2021 37,767 ​ $ 92.49 Granted 24,456 ​ $ 205.62 Vested ( 18,051 ) ​ $ 91.57 Forfeited (1) ( 10,146 ) ​ $ 69.74 Nonvested balance at December 31, 2022 34,026 ​ $ 181.08 Granted ​ 40,770 ​ $ 105.85 Vested ​ ( 12,115 ) ​ $ 173.37 Forfeited (1) ​ ( 5,970 ) ​ $ 116.31 Nonvested balance at December 31, 2023 56,711 ​ $ 135.46 Granted ​ 46,752 ​ $ 93.26 Vested ​ ( 18,753 ) ​ $ 111.84 Forfeited (1) ​ ( 7,442 ) ​ $ 205.15 Nonvested balance at December 31, 2024 ​ 77,268 ​ $ 108.95 (1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting or employees’ cessation of employment. The remaining unrecognized compensation cost of $ 4.1 million for restricted stock awards is expected to be recognized over a weighted-average amortization period of 1.7 years as of December 31, 2024. The fair value of restricted stock that vested in 2024, 2023 and 2022 was $ 2.6 million, $ 1.7 million and $ 6.9 million, respectively. The following table summarizes our RSU activity for the years ended December 31, 2024, 2023 and 2022. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving F-24 Table of Contents certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Unvested ​ Average Grant Date ​ ​ RSUs ​ Fair Value Balance at December 31, 2021 ​ 60,326 ​ $ 120.24 Granted ​ 23,351 ​ $ 206.45 Balance at December 31, 2022 ​ 83,677 ​ $ 144.30 Granted ​ 66,279 ​ $ 101.40 Balance at December 31, 2023 ​ 149,956 ​ $ 125.34 Granted ​ 72,546 ​ $ 92.64 Balance at December 31, 2024 ​ 222,502 ​ $ 114.68 ​ The remaining unrecognized compensation cost of $ 6.5 million for RSU awards is expected to be recognized over an amortization period of 1.7 years as of December 31, 2024. ​ In January 2021, we initiated the PSU program and issued 70,795 “target” PSUs to a select group of officers, which vest and are settled in shares of common stock (“Award Shares”) based on the Company’s total stockholder return over a period commencing on January 11, 2021 and ending on December 31, 2023 (the “Performance Period”) relative to two different comparator groups of companies. In January 2022, we issued 102,641 “target” PSUs to a select group of officers, which vest and are settled in shares of common stock (referred to herein together with the 2021 PSU Award Shares as the “Award Shares”) based on the Company’s total stockholder return over a period commencing on January 11, 2022 and ending on December 31, 2024 (referred to herein together with the 2021 PSU Performance Period as the “Performance Periods”) relative to two different comparator groups of companies. ​ Stock-based compensation for market-based PSU awards is based on the grant date fair value of the equity awards and is recognized over the applicable performance period. For the year ended December 31, 2024, 2023 and 2022, we recognized stock-based compensation expense of $ 6.7 million, $ 10.7 million and $ 10.7 million, respectively, relating to PSU awards. The PSUs granted in January 2021 were forfeited in their entirety on December 31, 2023 pursuant to the terms of the agreements, as the PSUs failed to meet the performance threshold for vesting. The PSUs granted in January 2022 were forfeited in their entirety on December 31, 2024 pursuant to the terms of the agreements, as the PSUs failed to meet the performance threshold for vesting. 11. Commitments and Contingencies Office Lease. The future contractual lease payments for our office lease and the reconciliation to the office lease liability reflected in other liabilities in our consolidated balance sheet as of December 31, 2024 is presented in the table below (in thousands): ​ ​ ​ ​ ​ Year Amount 2025 ​ $ 526 2026 ​ ​ 543 2027 ​ 45 2028 ​ — 2029 ​ — Total future contractual lease payments ​ 1,114 Effect of discounting ​ ( 66 ) Office lease liability ​ $ 1,048 ​ Improvement Allowances. As of December 31, 2024, we had $ 37.1 million of commitments related to improvement allowances, which generally may be requested by the tenants at any time up until a date that is near the expiration of the initial term of the applicable lease. F-25 Table of Contents Construction Commitments. As of December 31, 2024, we had approximately $ 1.2 million of commitments related to contracts with vendors for improvements at our properties. Construction Loan. As of December 31, 2024, we had $ 0.2 million of commitments related to our construction loan for the development of a regulated cannabis cultivation and processing facility in California. Environmental Matters . We follow the policy of monitoring our properties, both targeted acquisition and existing properties, for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liabilities that would have a material adverse effect on our financial condition, results of operations and cash flow, or that we believe would require disclosure or the recording of a loss contingency. Litigation . Class Action Lawsuits On April 25, 2022, a federal securities class action lawsuit was filed against the Company and certain of its officers. The case was named Michael V. Mallozzi, individually and on behalf of others similarly situated v. Innovative Industrial Properties, Inc., Paul Smithers, Catherine Hastings and Andy Bui, Case No. 2-22-cv-02359, and was filed in the U.S. District Court for the District of New Jersey. The lawsuit was purportedly brought on behalf of purchasers of our common stock and alleges that we and certain of our officers made false or misleading statements regarding our business in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), SEC Rule 10b-5, and Section 20(a) of the Exchange Act. According to the filed complaint, the p laintiff is seeking an undetermined amount of damages, interest, attorneys’ fees and costs and other relief on behalf of the putative classes of all persons who acquired shares of the Company’s common stock between May 7, 2020 and April 13, 2022. On September 29, 2022, an Amended Class Action Complaint was filed under the same Case Number, adding as defendants Alan D. Gold and Benjamin C. Regin, and asserting causes of action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. According to the Amended Class Action Complaint, the plaintiff is seeking an undetermined amount of damages, interest, attorneys’ fees and costs and other relief on behalf of the putative classes of all persons who acquired shares of the Company’s common stock between August 7, 2020 and August 4, 2022. On December 1, 2022, defendants moved to dismiss the Amended Class Action Complaint. On September 19, 2023, the court granted defendants’ motion to dismiss the Amended Class Action Complaint without prejudice. ​ On October 19, 2023, a Second Amended Class Action Complaint was filed under the same Case Number, and asserted causes of action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. According to the Second Amended Class Action Complaint, the plaintiff is seeking an undetermined amount of damages, interest, attorneys’ fees and costs and other relief on behalf of the putative classes of all persons who acquired shares of the Company’s common stock between August 7, 2020 and August 4, 2022. On December 18, 2023, defendants moved to dismiss the Second Amended Class Action Complaint; on February 1, 2024, plaintiff responded with their opposition to defendants’ motion to dismiss the Second Amended Class Action Complaint; and on March 1, 2024, defendants replied to plaintiff’s response. On September 25, 2024, the court granted defendants’ motion to dismiss the Second Amended Class Action Complaint with prejudice. On September 30, 2024, plaintiff filed a notice of appeal of the court’s dismissal of the Second Amended Class Action Complaint with prejudice. On December 9, 2024, plaintiff filed their opening appellate brief with the United States Court of Appeals for the Third Circuit. On January 23, 2025, defendants filed their appellate brief. ​ On January 17, 2025, a second federal securities class action lawsuit was filed against the Company and certain of its officers. The case was named Alain Giraudon, individually and on behalf of others similarly situated v. Innovative Industrial Properties, Inc., Alan D. Gold, Paul E. Smithers, David Smith and Ben Regin, Case No. 1:25-cv-00182-RDB, and was filed in the U.S. District Court for the District of Maryland. The lawsuit was purportedly brought on behalf of purchasers of our common stock and alleges that we and certain of our officers made false or misleading statements regarding our business in violation of Section 10(b) of the Exchange Act, SEC Rule 10b-5, and Section 20(a) of the Exchange Act. According to the filed complaint, the plaintiff is seeking an undetermined amount of damages, interest, attorneys’ fees and costs and other relief on behalf of the putative classes of all persons who acquired shares of the Company’s common stock between February 27, 2024 and December 19, 2024. F-26 Table of Contents ​ It is possible that similar lawsuits may yet be filed in the same or other courts that name the same or additional defendants. We intend to defend the lawsuit vigorously. However, at this time, we cannot predict the probable outcome of this action, and, accordingly, no amounts have been accrued in the Company’s consolidated financial statements. ​ Derivative Action Lawsuits On July 26, 2022, a derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named John Rice, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Andy Bui, Alan Gold, Gary Kreitzer, Mary Curran, Scott Shoemaker, David Stecher, and Innovative Industrial Properties, Inc., Case Number 24-C-22-003312, and was filed in the Circuit Court for Baltimore City, Maryland. The lawsuit asserts putative derivative claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets against the directors and certain officers of the Company. The plaintiffs are seeking declaratory relief, direction to reform and improve corporate governance and internal procedures, and an undetermined amount of damages, restitution, interest, and attorneys’ fees and costs. On September 6, 2022, the defendants in this action filed a Consent Motion to Stay the Proceedings, which was granted on October 11, 2022. On September 28, 2022, a second derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Karen Draper, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Andy Bui, Alan Gold, Gary Kreitzer, Mary Curran, Scott Shoemaker, David Stecher, Defendants, and Innovative Industrial Properties Inc., Nominal Defendant , Case Number 24-C-22-004243, and filed in the Circuit Court for Baltimore City, Maryland. The lawsuit asserts putative derivative claims for breach of fiduciary duty, and seeks actions to reform and improve the Company, and an undetermined amount of damages, restitution, interest, and attorneys’ fees and costs. On October 19, 2022, the parties to both cases filed a Joint Motion to Consolidate Related Shareholder Derivative Actions and to Appoint Lead and Liaison Counsel for plaintiffs, which was granted on December 19, 2022, along with a stay in the lawsuit pending a ruling on the defendants’ motion to dismiss the federal class action lawsuit described above. On April 17, 2023, a third derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Ross Weintraub, derivatively on behalf of Innovative Industrial Properties, Inc. v. Alan Gold, Paul Smithers, Catherine Hastings, Ben Regin, Andy Bui, Tracie Hager, Gary Kreitzer, David Stecher, Scott Shoemaker, Mary Curran, and Innovative Industrial Properties, Inc., Case Number 1:23-cv-00737-GLR, and filed in the United States District Court for the District of Maryland. The lawsuit asserts putative derivative claims for breach of fiduciary duty and violations of Section 14(a) of the Exchange Act, and seeks an undetermined amount of damages, equitable relief, and attorneys’ fees and costs. Defendants in this action filed a Consent Motion to Stay the Proceeding, which was granted on April 17, 2023. On June 5, 2023, a fourth derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Franco DeBlasio, on behalf of Gerich Melenth Nin (GMN) LP, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Alan D. Gold, Tracie J. Hager, Benjamin C. Regin, Andy Bui, Gary A. Kreitzer, David Stecher, Scott Shoemaker, Mary Curran, and Innovative Industrial Properties, Inc., Case Number 1:23-cv-01513-GLR, and filed in the United States District Court for the District of Maryland. On July 19, 2023, the United States Court for the District of Maryland consolidated Case Nos. 1:23-cv-00737-GLR and 1:23-cv-01513-GLR with case number 1:23-cv-00737-GLR as the lead case, and kept the stay in place. The consolidated case remains stayed as Case Number 24-C-22-003312. This derivative action relates to the same allegations as those made in the Mallozzi class action, detailed above. ​ On May 9, 2024, a fifth derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Gary A Gedig, derivatively on behalf of Innovative Industrial Properties, Inc. v. Paul Smithers, Catherine Hastings, Ben Regin, Andy Bui, Tracy Hager, Alan Gold, Gary A. Kreitzer, Mary Curran, Scott Shoemaker, M.D., and David Stecher, and Innovative Industrial Properties, Inc., Civil No. C-24-CV-24-000130, and filed in the Circuit Court for Baltimore City, Maryland. Plaintiff and defendants in this action filed a Joint Stipulation to Stay the Proceedings, which was granted on September 17, 2024. This derivative action also relates to the same allegations as those made in the Mallozzi class action, detailed above. ​ On February 12, 2025, a derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Joshua Steffens, derivatively on behalf of Innovative Industrial Properties, Inc. v. Alan Gold, Paul Smithers, David Smith, Ben Regin, Gary Kreitzer, Gary Stecher, Scott Shoemaker, Mary Allis Curran, and Innovative Industrial Properties, Inc., Case Number 1:25-cv-00456-ABA, and was filed in the United States District Court for the District of Maryland. The lawsuit asserts putative derivative claims for violations of the Exchange Act, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment, waste of corporate assets, and F-27 Table of Contents contribution against the directors and certain officers of the Company. The plaintiffs are seeking an undetermined amount of damages, interest, an accounting and constructive trust, punitive damages, and attorneys’ fees and costs. This derivative action relates to the same allegations as those made in the Giraudon class action, detailed above. ​ On February 13, 2025, a derivative action lawsuit was filed against the Company and certain of its officers and directors. The case was named Joshua Albers, derivatively on behalf of Innovative Industrial Properties, Inc. v. Alan Gold, Paul Smithers, David Smith, Ben Regin, Gary Kreitzer, Gary Stecher, Scott Shoemaker, Mary Allis Curran, and Innovative Industrial Properties, Inc., Case Number 1:25-cv-00469-BAH, and was filed in the United States District Court for the District of Maryland. The lawsuit asserts putative derivative claims for violations of the Exchange Act, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment, waste of corporate assets, and contribution against the directors and certain officers of the Company. The plaintiffs are seeking an undetermined amount of damages, interest, reform, punitive damages, and attorneys’ fees and costs. This derivative action also relates to the same allegations as those made in the Giraudon class action, detailed above. ​ The Company intends to vigorously defend each of these lawsuits. However, at this time, the Company cannot predict the probable outcome of these actions, and, accordingly, no amounts have been accrued in the Company’s consolidated financial statements. ​ We may, from time to time, be a party to other legal proceedings, which arise in the ordinary course of our business. Although the results of these proceedings, claims, inquiries, and investigations cannot be predicted with certainty, we do not believe that the final outcome of these matters is reasonably likely to have a material adverse effect on our business, financial condition, or results of operations. Regardless of final outcomes, however, any such proceedings, claims, inquiries, and investigations may nonetheless impose a significant burden on management and employees and may come with significant defense costs or unfavorable preliminary and interim rulings. Deferred Compensation Plan. In November 2019, we adopted the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Plan”), which allows a select group of management and non-employee directors to defer receipt of their compensation, including up to 80 % of base salary, 100 % of bonus, 100 % of director fees and 100 % of restricted equity awards. The Plan assets are held in a rabbi trust which is consolidated and included in the consolidated financial statements. ​ 12. Segment Information We operate in one reportable segment of acquiring, developing/redeveloping and leasing real estate to tenants on a long-term triple-net basis. All of our revenues are generated in the United States and the CODM manages the business activities on a consolidated basis. The CODM is our President and Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income, which is reported on the consolidated statements of income. The CODM uses net income to evaluate return on investments and determine whether to reinvest profits or to pay dividends. The evaluation is also used to establish management’s compensation. The revenues, expenses (including stock-based compensation) and net income for the reportable segment are the same as those presented on the consolidated financial statements. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. ​ 13. Subsequent Events Lease Amendments ​ In January 2025, we entered into lease amendments with PharmaCann with respect to nine of its leases for properties located in New York, Illinois, Pennsylvania, Ohio, and Colorado. Those lease amendments reduced cumulative total base rent from $ 2.8 million per month to $ 2.6 million per month, with cash rent payments commencing February 1, 2025, and provided for pro-rata replenishment of security deposits over thirty-six months commencing February 1, 2027. We also entered into lease amendments with PharmaCann with respect to two of its leases for cultivation properties in Michigan and Massachusetts. Those amendments provide that monthly base rent of $ 1.3 million for these two properties will be abated in full effective February 1, 2025 and, if the properties have not been transitioned to new tenant(s) by August 1, 2025, we will regain full control over the properties. We applied security deposits held by us pursuant to all of the PharmaCann leases for the payment in full of all defaulted rent for December 2024 and January 2025 and certain penalties. If PharmaCann is not able to refinance its existing senior secured credit facility maturing F-28 Table of Contents June 30, 2025, all modifications to our leases with PharmaCann described above will immediately be null and void and the leases will revert to the terms in effect as of January 1, 2025. ​ Litigation ​ On January 17, 2025, a federal securities class action lawsuit was filed against us and certain of our officers. On February 12, 2025 and February 13, 2025, derivative actions were filed against us and certain of our officers and directors. See Note 11 “Commitments and Contingencies” for a description of these actions. ​ ​ F-29 Table of Contents INNOVATIVE INDUSTRIAL PROPERTIES, INC. SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION As of December 31, 2024 (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Initial Costs ​ ​ ​ ​ Total Costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ​ ​ ​ ​ Building and ​ Subsequent to ​ ​ ​ ​ Building and ​ ​ ​ ​ Accumulated ​ Net Cost ​ ​ Property Property Type (1) State Built/Renovated Land ​ Improvements Acquisition Land Improvements (7) Total Depreciation Basis Year Acquired East Cherry Street ​ Industrial ​ Arizona ​ 1971 / 2016 ​ $ 723 ​ $ 3,995 ​ $ — ​ $ 723 ​ $ 3,995 ​ $ 4,718 ​ $ ( 270 ) ​ $ 4,448 ​ 2022 West Greenhouse Drive ​ Industrial ​ Arizona ​ 1995 / 2017 ​ ​ 398 ​ ​ 14,629 ​ ​ 5,003 ​ ​ 398 ​ ​ 19,632 ​ ​ 20,030 ​ ​ ( 4,889 ) ​ ​ 15,141 ​ 2017 Perez Road ​ Industrial ​ California ​ 1981 / 2024 ​ ​ 734 ​ ​ 5,634 ​ ​ 9,241 ​ ​ 734 ​ ​ 14,875 ​ ​ 15,609 ​ ​ ( 734 ) ​ ​ 14,875 ​ 2022 64125 19th Avenue ​ Industrial ​ California ​ 2019 / 2023 ​ ​ 5,930 ​ ​ 45,081 ​ ​ 12,614 ​ ​ 5,930 ​ ​ 57,695 ​ ​ 63,625 ​ ​ ( 4,647 ) ​ ​ 58,978 ​ 2021 McLane Street ​ Industrial ​ California ​ 2005 / 2019 ​ ​ 1,577 ​ ​ 15,935 ​ ​ 1,327 ​ ​ 1,577 ​ ​ 17,262 ​ ​ 18,839 ​ ​ ( 1,847 ) ​ ​ 16,992 ​ 2020 Inland Center Drive (5) ​ Industrial (4) ​ California ​ 1969 / (2) ​ ​ 3,485 ​ ​ 21,911 ​ ​ 11,413 ​ ​ 3,485 ​ ​ 33,324 ​ ​ 36,809 ​ ​ — ​ ​ 36,809 ​ 2020 63795 19th Avenue (5) ​ Industrial ​ California ​ 2004 / (2) ​ ​ 3,534 ​ ​ 12,852 ​ ​ 19,601 ​ ​ 3,534 ​ ​ 32,453 ​ ​ 35,987 ​ ​ ( 2,250 ) ​ ​ 33,737 ​ 2019 North Anza Road ​ Industrial (4) ​ California ​ 1980 / 2017 ​ ​ 916 ​ ​ 5,406 ​ ​ 11 ​ ​ 916 ​ ​ 5,417 ​ ​ 6,333 ​ ​ ( 946 ) ​ ​ 5,387 ​ 2019 North Anza Road & Del Sol Road ​ Industrial (6) ​ California ​ 1980 / 2017 ​ ​ 840 ​ ​ 4,959 ​ ​ 36 ​ ​ 840 ​ ​ 4,995 ​ ​ 5,835 ​ ​ ( 868 ) ​ ​ 4,967 ​ 2019 1804 Needles Highway (3) ​ Industrial ​ California ​ 1964 / 2019 ​ ​ 174 ​ ​ 715 ​ ​ 1 ​ ​ 174 ​ ​ 716 ​ ​ 890 ​ ​ ( 103 ) ​ ​ 787 ​ 2019 West Broadway (3) ​ Industrial ​ California ​ 1976 / 2019 ​ ​ 289 ​ ​ 1,185 ​ ​ 2 ​ ​ 289 ​ ​ 1,187 ​ ​ 1,476 ​ ​ ( 171 ) ​ ​ 1,305 ​ 2019 3253 Needles Highway (3) ​ Industrial ​ California ​ 2018 / 2019 ​ ​ 949 ​ ​ 3,900 ​ ​ 8 ​ ​ 949 ​ ​ 3,908 ​ ​ 4,857 ​ ​ ( 563 ) ​ ​ 4,294 ​ 2019 3241 & 3247 Needles Highway (3) ​ Industrial ​ California ​ 2020 / 2020 ​ ​ 1,981 ​ ​ 8,138 ​ ​ 16 ​ ​ 1,981 ​ ​ 8,154 ​ ​ 10,135 ​ ​ ( 1,177 ) ​ ​ 8,958 ​ 2019 Sacramento ​ Industrial ​ California ​ 1990 / 2019 ​ ​ 1,376 ​ ​ 5,321 ​ ​ 6,033 ​ ​ 1,376 ​ ​ 11,354 ​ ​ 12,730 ​ ​ ( 2,055 ) ​ ​ 10,675 ​ 2019 Steele Street ​ Industrial ​ Colorado ​ 1967 / 1978 / 2018 ​ ​ 2,101 ​ ​ 9,176 ​ ​ — ​ ​ 2,101 ​ ​ 9,176 ​ ​ 11,277 ​ ​ ( 1,854 ) ​ ​ 9,423 ​ 2018 Washington Street ​ Industrial ​ Colorado ​ 1975 / 2017 ​ ​ 4,309 ​ ​ 4,988 ​ ​ — ​ ​ 4,309 ​ ​ 4,988 ​ ​ 9,297 ​ ​ ( 404 ) ​ ​ 8,893 ​ 2021 West Barberry Place ​ Industrial ​ Colorado ​ 1971 / 2012 ​ ​ 389 ​ ​ 2,478 ​ ​ — ​ ​ 389 ​ ​ 2,478 ​ ​ 2,867 ​ ​ ( 193 ) ​ ​ 2,674 ​ 2021 Hamilton Road ​ Industrial ​ Florida ​ 1982 / 2021 ​ ​ 2,186 ​ ​ 17,371 ​ ​ 36,340 ​ ​ 2,186 ​ ​ 53,711 ​ ​ 55,897 ​ ​ ( 5,305 ) ​ ​ 50,592 ​ 2020 West Lake Drive ​ Industrial ​ Florida ​ 2014 / 2021 ​ ​ 1,071 ​ ​ 34,249 ​ ​ 16,007 ​ ​ 1,071 ​ ​ 50,256 ​ ​ 51,327 ​ ​ ( 7,520 ) ​ ​ 43,807 ​ 2020 NW Highway 441 ​ Industrial ​ Florida ​ 1981 / 2021 ​ ​ 752 ​ ​ 23,064 ​ ​ 17,782 ​ ​ 752 ​ ​ 40,846 ​ ​ 41,598 ​ ​ ( 4,428 ) ​ ​ 37,170 ​ 2021 Ben Bostic Road ​ Industrial ​ Florida ​ 2019 / 2020 ​ ​ 274 ​ ​ 16,729 ​ ​ — ​ ​ 274 ​ ​ 16,729 ​ ​ 17,003 ​ ​ ( 2,740 ) ​ ​ 14,263 ​ 2019 33rd Street & 36th Avenue ​ Industrial ​ Florida ​ 1991 / (2) ​ ​ 2,080 ​ ​ 12,876 ​ ​ 12,362 ​ ​ 2,080 ​ ​ 25,238 ​ ​ 27,318 ​ ​ ( 253 ) ​ ​ 27,065 ​ 2024 East Mazon Avenue ​ Industrial ​ Illinois ​ 1992 / 2020 ​ ​ 201 ​ ​ 17,807 ​ ​ 10,008 ​ ​ 201 ​ ​ 27,815 ​ ​ 28,016 ​ ​ ( 5,147 ) ​ ​ 22,869 ​ 2019 Revolution Road ​ Industrial ​ Illinois ​ 2015 / 2020 ​ ​ 563 ​ ​ 18,457 ​ ​ 51,538 ​ ​ 563 ​ ​ 69,995 ​ ​ 70,558 ​ ​ ( 12,270 ) ​ ​ 58,288 ​ 2018 East 4th Street ​ Industrial ​ Illinois ​ 2015 / 2020 ​ ​ 739 ​ ​ 8,284 ​ ​ 40,998 ​ ​ 739 ​ ​ 49,282 ​ ​ 50,021 ​ ​ ( 7,634 ) ​ ​ 42,387 ​ 2020 Industrial Drive ​ Industrial ​ Illinois ​ 1984 / 2020 ​ ​ 350 ​ ​ 10,191 ​ ​ 29,446 ​ ​ 350 ​ ​ 39,637 ​ ​ 39,987 ​ ​ ( 6,858 ) ​ ​ 33,129 ​ 2019 S US Highway 45 52 ​ Industrial ​ Illinois ​ 2015 / 2019 ​ ​ 268 ​ ​ 11,840 ​ ​ 13,279 ​ ​ 268 ​ ​ 25,119 ​ ​ 25,387 ​ ​ ( 4,207 ) ​ ​ 21,180 ​ 2019 Centerpoint Way ​ Industrial ​ Illinois ​ 2016 / 2019 ​ ​ 2,947 ​ ​ 17,761 ​ ​ 254 ​ ​ 2,947 ​ ​ 18,015 ​ ​ 20,962 ​ ​ ( 2,938 ) ​ ​ 18,024 ​ 2019 Adams Street ​ Industrial ​ Illinois ​ 2024 ​ ​ 6,518 ​ ​ — ​ ​ 65,316 ​ ​ 6,518 ​ ​ 65,316 ​ ​ 71,834 ​ ​ ( 4,222 ) ​ ​ 67,612 ​ 2021 South Street ​ Industrial ​ Maryland ​ 1980 / 2021 ​ ​ 1,861 ​ ​ 14,775 ​ ​ 12,858 ​ ​ 1,861 ​ ​ 27,633 ​ ​ 29,494 ​ ​ ( 3,095 ) ​ ​ 26,399 ​ 2021 Alaking Court ​ Industrial ​ Maryland ​ 2017 / 2017 ​ ​ 2,785 ​ ​ 8,410 ​ ​ 22,765 ​ ​ 2,785 ​ ​ 31,175 ​ ​ 33,960 ​ ​ ( 7,005 ) ​ ​ 26,955 ​ 2017 560 Western Maryland Parkway ​ Industrial ​ Maryland ​ 1996 / 2021 ​ ​ 1,849 ​ ​ 23,441 ​ ​ — ​ ​ 1,849 ​ ​ 23,441 ​ ​ 25,290 ​ ​ ( 1,587 ) ​ ​ 23,703 ​ 2022 108 Western Maryland Parkway ​ Industrial ​ Maryland ​ 1976 / 2024 ​ ​ 729 ​ ​ 4,910 ​ ​ — ​ ​ 729 ​ ​ 4,910 ​ ​ 5,639 ​ ​ ( 29 ) ​ ​ 5,610 ​ 2024 Hopping Brook Road ​ Industrial ​ Massachusetts ​ 2020 / 2020 ​ ​ 3,030 ​ ​ — ​ ​ 27,512 ​ ​ 3,030 ​ ​ 27,512 ​ ​ 30,542 ​ ​ ( 3,942 ) ​ ​ 26,600 ​ 2018 Chestnut Hill Avenue ​ Industrial ​ Massachusetts ​ 1938 / 2021 ​ ​ 2,202 ​ ​ 24,568 ​ ​ 36,965 ​ ​ 2,202 ​ ​ 61,533 ​ ​ 63,735 ​ ​ ( 8,119 ) ​ ​ 55,616 ​ 2020 Worcester Road ​ Industrial ​ Massachusetts ​ 1973 / 2022 ​ ​ 4,063 ​ ​ 16,462 ​ ​ 1,000 ​ ​ 4,063 ​ ​ 17,462 ​ ​ 21,525 ​ ​ ( 967 ) ​ ​ 20,558 ​ 2022 Canal Street/7 North Bridge Street ​ Industrial ​ Massachusetts ​ 1890 / 2021 ​ ​ 694 ​ ​ 2,831 ​ ​ 40,035 ​ ​ 694 ​ ​ 42,866 ​ ​ 43,560 ​ ​ ( 8,023 ) ​ ​ 35,537 ​ 2019 Palmer Road ​ Industrial ​ Massachusetts ​ 1980 / 2018 ​ ​ 1,059 ​ ​ 11,717 ​ ​ 6,977 ​ ​ 1,059 ​ ​ 18,694 ​ ​ 19,753 ​ ​ ( 3,163 ) ​ ​ 16,590 ​ 2018 East Main Street ​ Industrial ​ Massachusetts ​ 1991 / 2019 ​ ​ 2,316 ​ ​ 13,194 ​ ​ — ​ ​ 2,316 ​ ​ 13,194 ​ ​ 15,510 ​ ​ ( 1,508 ) ​ ​ 14,002 ​ 2020 Curran Highway ​ Industrial ​ Massachusetts ​ 1978 / 2021 ​ ​ 2,082 ​ ​ 1,026 ​ ​ 23,685 ​ ​ 2,082 ​ ​ 24,711 ​ ​ 26,793 ​ ​ ( 2,425 ) ​ ​ 24,368 ​ 2021 Hoover Road ​ Industrial ​ Michigan ​ 1940 / 2020 / 2021 ​ ​ 1,237 ​ ​ 17,791 ​ ​ 64,484 ​ ​ 1,237 ​ ​ 82,275 ​ ​ 83,512 ​ ​ ( 10,233 ) ​ ​ 73,279 ​ 2019 F-30 Table of Contents East Hazel Street ​ Industrial ​ Michigan ​ 1929 / 2021 ​ ​ 409 ​ ​ 4,360 ​ ​ 19,297 ​ ​ 409 ​ ​ 23,657 ​ ​ 24,066 ​ ​ ( 3,419 ) ​ ​ 20,647 ​ 2019 Oliver Drive ​ Industrial ​ Michigan ​ 1930 / 1972 / 2021 ​ ​ 1,385 ​ ​ 3,631 ​ ​ 26,755 ​ ​ 1,385 ​ ​ 30,386 ​ ​ 31,771 ​ ​ ( 4,005 ) ​ ​ 27,766 ​ 2020 Davis Highway ​ Industrial ​ Michigan ​ 1999 / 2024 ​ ​ 1,907 ​ ​ 13,647 ​ ​ 56,278 ​ ​ 1,907 ​ ​ 69,925 ​ ​ 71,832 ​ ​ ( 1,386 ) ​ ​ 70,446 ​ 2021 Harvest Park ​ Industrial ​ Michigan ​ 2018 / 2021 ​ ​ 1,933 ​ ​ 3,559 ​ ​ 12,096 ​ ​ 1,933 ​ ​ 15,655 ​ ​ 17,588 ​ ​ ( 3,117 ) ​ ​ 14,471 ​ 2018 Executive Drive ​ Industrial ​ Michigan ​ 1960 / 2020 ​ ​ 389 ​ ​ 6,489 ​ ​ 3,140 ​ ​ 389 ​ ​ 9,629 ​ ​ 10,018 ​ ​ ( 1,771 ) ​ ​ 8,247 ​ 2019 77th Street Northeast ​ Industrial ​ Minnesota ​ 2015 / 2017 / 2019 ​ ​ 427 ​ ​ 2,644 ​ ​ 6,618 ​ ​ 427 ​ ​ 9,262 ​ ​ 9,689 ​ ​ ( 1,953 ) ​ ​ 7,736 ​ 2017 Industrial Drive ​ Industrial ​ Missouri ​ 2022 ​ ​ 753 ​ ​ 787 ​ ​ 26,717 ​ ​ 753 ​ ​ 27,504 ​ ​ 28,257 ​ ​ ( 2,291 ) ​ ​ 25,966 ​ 2021 East Cheyenne Avenue ​ Industrial ​ Nevada ​ 1984 / 2020 ​ ​ 1,088 ​ ​ 2,768 ​ ​ 5,771 ​ ​ 1,088 ​ ​ 8,539 ​ ​ 9,627 ​ ​ ( 1,589 ) ​ ​ 8,038 ​ 2019 Munsonhurst Road ​ Industrial ​ New Jersey ​ 1956 / 2022 ​ ​ 4,987 ​ ​ 30,421 ​ ​ 19,648 ​ ​ 4,987 ​ ​ 50,069 ​ ​ 55,056 ​ ​ ( 4,139 ) ​ ​ 50,917 ​ 2022 South Route 73 ​ Industrial New Jersey 1995 / 2020 ​ 702 ​ 4,857 ​ 29,511 ​ 702 ​ 34,368 ​ 35,070 ​ ( 6,089 ) ​ 28,981 2020 North West Blvd ​ Industrial ​ New Jersey ​ 1962 / 2020 ​ ​ 222 ​ ​ 10,046 ​ ​ 1,580 ​ ​ 222 ​ ​ 11,626 ​ ​ 11,848 ​ ​ ( 1,593 ) ​ ​ 10,255 ​ 2020 Hudson Crossing Drive ​ Industrial New York 2016 / (2) ​ 7,600 ​ 22,475 ​ 101,060 ​ 7,600 ​ 123,535 ​ 131,135 ​ ( 11,102 ) ​ 120,033 2016 County Route 117 ​ Industrial New York 1970 / 2024 ​ 1,593 ​ 3,157 ​ 76,751 ​ 1,593 ​ 79,908 ​ 81,501 ​ ( 6,511 ) ​ 74,990 2017 98th Ave South ​ Industrial North Dakota 2018 / 2020 ​ 191 ​ 9,743 ​ 2,272 ​ 191 ​ 12,015 ​ 12,206 ​ ( 2,000 ) ​ 10,206 2019 Hunts Landing Road ​ Industrial Ohio 2019 / 2019 ​ 712 ​ — ​ 19,309 ​ 712 ​ 19,309 ​ 20,021 ​ ( 2,637 ) ​ 17,384 2019 Jason Street ​ Industrial Ohio 1937 / 2020 ​ 239 ​ 2,688 ​ 29,250 ​ 239 ​ 31,938 ​ 32,177 ​ ( 4,354 ) ​ 27,823 2020 Springs Way ​ Industrial Ohio 2018 / 2020 ​ 235 ​ 10,377 ​ 2,972 ​ 235 ​ 13,349 ​ 13,584 ​ ( 1,903 ) ​ 11,681 2020 East Tallmadge Ave. ​ Industrial Ohio 1954 / 1986 / 2020 ​ 22 ​ 1,014 ​ 2,501 ​ 22 ​ 3,515 ​ 3,537 ​ ( 720 ) ​ 2,817 2019 Boltonfield Street ​ Industrial ​ Ohio ​ 2023 / (2) ​ ​ 1,253 ​ ​ 18,876 ​ ​ 25,278 ​ ​ 1,253 ​ ​ 44,154 ​ ​ 45,407 ​ ​ ( 1,918 ) ​ ​ 43,489 ​ 2023 Scott Technology Park ​ Industrial Pennsylvania 2020 / 2020 ​ 954 ​ — ​ 27,070 ​ 954 ​ 27,070 ​ 28,024 ​ ( 3,106 ) ​ 24,918 2019 New Beaver Avenue ​ Industrial Pennsylvania 1976 / 2021 ​ 6,979 ​ 34,781 ​ 26,107 ​ 6,979 ​ 60,888 ​ 67,867 ​ ( 6,736 ) ​ 61,131 2021 East Market Street ​ Industrial Pennsylvania 1927 / 2017 ​ 1,435 ​ 19,098 ​ 74,306 ​ 1,435 ​ 93,404 ​ 94,839 ​ ( 13,869 ) ​ 80,970 2019 Wayne Avenue ​ Industrial Pennsylvania 1980 / 2024 ​ 1,228 ​ 13,080 ​ 47,359 ​ 1,228 ​ 60,439 ​ 61,667 ​ ( 8,276 ) ​ 53,391 2019 Horton Drive ​ Industrial ​ Pennsylvania ​ 1988 / 2020 ​ ​ 1,353 ​ ​ 11,854 ​ ​ 29,745 ​ ​ 1,353 ​ ​ 41,599 ​ ​ 42,952 ​ ​ ( 5,835 ) ​ ​ 37,117 ​ 2019 Industrial Street ​ Industrial ​ Pennsylvania ​ 1930 / 2020 ​ ​ 941 ​ ​ 7,941 ​ ​ 16,712 ​ ​ 941 ​ ​ 24,653 ​ ​ 25,594 ​ ​ ( 3,348 ) ​ ​ 22,246 ​ 2020 Rosanna Avenue ​ Industrial ​ Pennsylvania ​ 1959 / 2020 ​ ​ 3,540 ​ ​ 5,603 ​ ​ 36,671 ​ ​ 3,540 ​ ​ 42,274 ​ ​ 45,814 ​ ​ ( 6,870 ) ​ ​ 38,944 ​ 2018 Susquehanna Street ​ Industrial ​ Pennsylvania ​ 1968 / 2017 ​ ​ 1,318 ​ ​ 13,708 ​ ​ — ​ ​ 1,318 ​ ​ 13,708 ​ ​ 15,026 ​ ​ ( 702 ) ​ ​ 14,324 ​ 2023 FM 969 ​ Industrial ​ Texas ​ (2) ​ ​ — ​ ​ 11,157 ​ ​ 9,758 ​ ​ — ​ ​ 20,915 ​ ​ 20,915 ​ ​ ( 1,104 ) ​ ​ 19,811 ​ 2022 Decatur Street ​ Industrial ​ Virginia ​ 2019 / 2020 ​ ​ 231 ​ ​ 11,582 ​ ​ 7,936 ​ ​ 231 ​ ​ 19,518 ​ ​ 19,749 ​ ​ ( 4,065 ) ​ ​ 15,684 ​ 2020 Lathrop Industrial Drive SW ​ Industrial ​ Washington ​ 1997 / 2015 ​ ​ 1,826 ​ ​ 15,684 ​ ​ — ​ ​ 1,826 ​ ​ 15,684 ​ ​ 17,510 ​ ​ ( 1,998 ) ​ ​ 15,512 ​ 2020 East Glendale Avenue ​ Retail ​ Arizona ​ 2019 / 2019 ​ ​ 1,216 ​ ​ 811 ​ ​ 501 ​ ​ 1,216 ​ ​ 1,312 ​ ​ 2,528 ​ ​ ( 284 ) ​ ​ 2,244 ​ 2019 Dahlia Street ​ Retail ​ Colorado ​ 2019 / 2019 ​ ​ 179 ​ ​ 2,132 ​ ​ — ​ ​ 179 ​ ​ 2,132 ​ ​ 2,311 ​ ​ ( 260 ) ​ ​ 2,051 ​ 2020 East Colfax Avenue ​ Retail ​ Colorado ​ 1998 / 2020 ​ ​ 244 ​ ​ 307 ​ ​ 916 ​ ​ 244 ​ ​ 1,223 ​ ​ 1,467 ​ ​ ( 116 ) ​ ​ 1,351 ​ 2021 North 2nd Street ​ Retail ​ Colorado ​ 1973 / 2020 ​ ​ 140 ​ ​ 258 ​ ​ 810 ​ ​ 140 ​ ​ 1,068 ​ ​ 1,208 ​ ​ ( 95 ) ​ ​ 1,113 ​ 2021 West Railroad Avenue ​ Retail ​ Colorado ​ 1977 / 2020 ​ ​ 149 ​ ​ 618 ​ ​ 168 ​ ​ 149 ​ ​ 786 ​ ​ 935 ​ ​ ( 92 ) ​ ​ 843 ​ 2021 Southgate Pl ​ Retail ​ Colorado ​ 1998 / 2019 ​ ​ 367 ​ ​ 645 ​ ​ 54 ​ ​ 367 ​ ​ 699 ​ ​ 1,066 ​ ​ ( 95 ) ​ ​ 971 ​ 2020 Wewatta Street ​ Retail ​ Colorado ​ 2015 / 2018 ​ ​ 4,036 ​ ​ 2,417 ​ ​ — ​ ​ 4,036 ​ ​ 2,417 ​ ​ 6,453 ​ ​ ( 192 ) ​ ​ 6,261 ​ 2021 Southgate Place ​ Retail Colorado 2018 / 2018 ​ 942 ​ 3,314 ​ — ​ 942 ​ 3,314 ​ 4,256 ​ ( 289 ) ​ 3,967 2021 South Peoria Court ​ Retail ​ Colorado ​ 1979 / 2016 ​ ​ 938 ​ ​ 2,770 ​ ​ — ​ ​ 938 ​ ​ 2,770 ​ ​ 3,708 ​ ​ ( 241 ) ​ ​ 3,467 ​ 2021 Highway 6 & 24 ​ Retail ​ Colorado ​ 1960 / 2019 ​ ​ 892 ​ ​ 1,996 ​ ​ — ​ ​ 892 ​ ​ 1,996 ​ ​ 2,888 ​ ​ ( 173 ) ​ ​ 2,715 ​ 2021 North College Avenue ​ Retail Colorado 1952 / 2017 ​ 527 ​ 2,952 ​ — ​ 527 ​ 2,952 ​ 3,479 ​ ( 232 ) ​ 3,247 2021 East Quincy Avenue ​ Retail Colorado 2018 / 2018 ​ 659 ​ 2,493 ​ — ​ 659 ​ 2,493 ​ 3,152 ​ ( 207 ) ​ 2,945 2021 East Montview Boulevard ​ Retail Colorado 1952 / 2019 ​ 256 ​ 1,490 ​ — ​ 256 ​ 1,490 ​ 1,746 ​ ( 119 ) ​ 1,627 2021 South Federal Blvd ​ Retail Colorado 1980 / 2017 ​ 193 ​ 1,361 ​ — ​ 193 ​ 1,361 ​ 1,554 ​ ( 106 ) ​ 1,448 2021 Santa Fe Trail ​ Retail Colorado 1948 / 2000 ​ 232 ​ 1,110 ​ — ​ 232 ​ 1,110 ​ 1,342 ​ ( 95 ) ​ 1,247 2021 Water Street ​ Retail Colorado 1930 / 2013 ​ 319 ​ 945 ​ — ​ 319 ​ 945 ​ 1,264 ​ ( 84 ) ​ 1,180 2021 Gregory Street ​ Retail Colorado 1875 / 2014 ​ 101 ​ 1,058 ​ — ​ 101 ​ 1,058 ​ 1,159 ​ ( 80 ) ​ 1,079 2021 West 20th Avenue ​ Retail Colorado 1970 / 2014 ​ 289 ​ 666 ​ — ​ 289 ​ 666 ​ 955 ​ ( 57 ) ​ 898 2021 South Federal Blvd. ​ Retail Colorado 1941 / 2018 ​ 461 ​ 319 ​ — ​ 461 ​ 319 ​ 780 ​ ( 30 ) ​ 750 2021 West 6th Street ​ Retail ​ Colorado ​ 2019 / 2019 ​ ​ 60 ​ ​ 272 ​ ​ — ​ ​ 60 ​ ​ 272 ​ ​ 332 ​ ​ ( 27 ) ​ ​ 305 ​ 2021 Elm Avenue ​ Retail ​ Colorado ​ 1962 / 2020 ​ ​ 21 ​ ​ 311 ​ ​ — ​ ​ 21 ​ ​ 311 ​ ​ 332 ​ ​ ( 33 ) ​ ​ 299 ​ 2021 Bent Avenue North ​ Retail ​ Colorado ​ 2019 / 2019 ​ ​ 49 ​ ​ 284 ​ ​ — ​ ​ 49 ​ ​ 284 ​ ​ 333 ​ ​ ( 28 ) ​ ​ 305 ​ 2021 Coolidge Rd ​ Retail ​ Michigan ​ 2019 / 2019 ​ ​ 1,635 ​ ​ — ​ ​ 1,727 ​ ​ 1,635 ​ ​ 1,727 ​ ​ 3,362 ​ ​ ( 281 ) ​ ​ 3,081 ​ 2019 South Cedar Street ​ Retail ​ Michigan ​ 1957 / 2019 ​ ​ 282 ​ ​ 1,951 ​ ​ — ​ ​ 282 ​ ​ 1,951 ​ ​ 2,233 ​ ​ ( 354 ) ​ ​ 1,879 ​ 2019 West Pierson Road ​ Retail ​ Michigan ​ 1975 / 2019 ​ ​ 122 ​ ​ 2,065 ​ ​ — ​ ​ 122 ​ ​ 2,065 ​ ​ 2,187 ​ ​ ( 372 ) ​ ​ 1,815 ​ 2019 Wilder Road ​ Retail ​ Michigan ​ 1988 / 2019 ​ ​ 49 ​ ​ 1,696 ​ ​ — ​ ​ 49 ​ ​ 1,696 ​ ​ 1,745 ​ ​ ( 308 ) ​ ​ 1,437 ​ 2019 East Front Street ​ Retail (6) ​ Michigan ​ 1992 / 2019 ​ ​ 449 ​ ​ 827 ​ ​ — ​ ​ 449 ​ ​ 827 ​ ​ 1,276 ​ ​ ( 150 ) ​ ​ 1,126 ​ 2019 F-31 Table of Contents South Mason Drive ​ Retail ​ Michigan ​ 1970 / 2019 ​ ​ 25 ​ ​ 973 ​ ​ — ​ ​ 25 ​ ​ 973 ​ ​ 998 ​ ​ ( 176 ) ​ ​ 822 ​ 2019 N Delsea Dr ​ Retail ​ New Jersey ​ 1974 / 2020 ​ ​ 244 ​ ​ 1,928 ​ ​ — ​ ​ 244 ​ ​ 1,928 ​ ​ 2,172 ​ ​ ( 215 ) ​ ​ 1,957 ​ 2020 24th Street East ​ Retail ​ North Dakota ​ 2019 / 2019 ​ ​ 348 ​ ​ 1,368 ​ ​ — ​ ​ 348 ​ ​ 1,368 ​ ​ 1,716 ​ ​ ( 125 ) ​ ​ 1,591 ​ 2021 Highway 2 East ​ Retail ​ North Dakota ​ 1976 / 2019 ​ ​ 120 ​ ​ 1,225 ​ ​ — ​ ​ 120 ​ ​ 1,225 ​ ​ 1,345 ​ ​ ( 116 ) ​ ​ 1,229 ​ 2021 Main Street ​ Retail ​ Pennsylvania ​ 1980 / 2019 ​ ​ 57 ​ ​ 840 ​ ​ — ​ ​ 57 ​ ​ 840 ​ ​ 897 ​ ​ ( 64 ) ​ ​ 833 ​ 2021 South 17th Street ​ Retail ​ Pennsylvania ​ 2021 / 2021 ​ ​ 553 ​ ​ 2,000 ​ ​ — ​ ​ 553 ​ ​ 2,000 ​ ​ 2,553 ​ ​ ( 140 ) ​ ​ 2,413 ​ 2022 Grape Street ​ Industrial/Retail ​ Colorado ​ 1982 / 2018 ​ ​ 1,380 ​ ​ 5,786 ​ ​ — ​ ​ 1,380 ​ ​ 5,786 ​ ​ 7,166 ​ ​ ( 459 ) ​ ​ 6,707 ​ 2021 US 50 Business and Baxter Road ​ Industrial/Retail ​ Colorado ​ 1929 / 2019 ​ ​ 119 ​ ​ 1,652 ​ ​ — ​ ​ 119 ​ ​ 1,652 ​ ​ 1,771 ​ ​ ( 158 ) ​ ​ 1,613 ​ 2021 South Fox Street ​ Industrial/Retail ​ Colorado ​ 1965 / 2014 ​ ​ 297 ​ ​ 829 ​ ​ — ​ ​ 297 ​ ​ 829 ​ ​ 1,126 ​ ​ ( 66 ) ​ ​ 1,060 ​ 2021 West Street ​ Industrial/Retail ​ Massachusetts ​ 1880 / 2021 ​ ​ 650 ​ ​ 7,119 ​ ​ 19,781 ​ ​ 650 ​ ​ 26,900 ​ ​ 27,550 ​ ​ ( 3,316 ) ​ ​ 24,234 ​ 2020 Mozzone Boulevard ​ Industrial/Retail ​ Massachusetts ​ 1975 / 2019 ​ ​ 1,626 ​ ​ 38,406 ​ ​ — ​ ​ 1,626 ​ ​ 38,406 ​ ​ 40,032 ​ ​ ( 2,774 ) ​ ​ 37,258 ​ 2022 Stephenson Highway ​ Industrial/Retail ​ Michigan ​ 2021 / 2021 ​ ​ 6,211 ​ ​ — ​ ​ 22,304 ​ ​ 6,211 ​ ​ 22,304 ​ ​ 28,515 ​ ​ ( 2,397 ) ​ ​ 26,118 ​ 2020 Hoover Road ​ Industrial/Retail ​ Michigan ​ 1951 / 2021 ​ ​ 700 ​ ​ 9,557 ​ ​ 6,988 ​ ​ 700 ​ ​ 16,545 ​ ​ 17,245 ​ ​ ( 1,789 ) ​ ​ 15,456 ​ 2021 Leah Avenue (5) ​ Industrial/Retail ​ Texas ​ (2) ​ ​ 2,222 ​ ​ 1,195 ​ ​ 4,536 ​ ​ 2,222 ​ ​ 5,731 ​ ​ 7,953 ​ ​ — ​ ​ 7,953 ​ 2021 Total ​ ​ ​ ​ ​ $ 146,772 ​ $ 898,030 ​ $ 1,395,170 ​ $ 146,772 ​ $ 2,293,200 ​ $ 2,439,972 ​ $ ( 271,190 ) ​ $ 2,168,782 (1) “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. (2) As of December 31, 2024, all or a portion of the property was under development or redevelopment. (3) These four properties were sold in March 2023 but the transaction did not qualify for recognition as a completed sale under GAAP. As such, the properties remain on the consolidated balance sheets. Refer to Note 6 “Investments in Real Estate” for more information. (4) As of December 31, 2024, we are evaluating alternative non-cannabis uses for the properties, due in part to changes in the zoning of the properties that no longer allow for regulated cannabis cultivation and processing. (5) As of December 31, 2024, these properties were vacant and excluded from our operating portfolio. (6) As of December 31, 2024, these properties were leased to non-cannabis tenants. (7) Building and improvements balance includes Construction in progress. ​ As of December 31, 2024, the aggregate gross cost of the properties included above for federal income tax purposes was $ 2.5 billion, which excludes the four properties that were sold in March 2023 that did not qualify for recognition as a completed sale under GAAP but is recognized as a sale for tax purposes. ​ A reconciliation of historical cost and related accumulated depreciation is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2024 2023 2022 Investment in real estate, at cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at beginning of year ​ $ 2,368,515 ​ $ 2,204,687 ​ $ 1,722,104 Purchases of investments in real estate ​ 18,666 ​ 35,155 ​ 149,317 Additions and improvements, net (1) ​ 66,790 ​ 128,673 ​ 355,633 Sale of real estate investments ​ ​ ( 13,999 ) ​ ​ — ​ ​ ( 22,367 ) Balance at end of year ​ $ 2,439,972 ​ $ 2,368,515 ​ $ 2,204,687 Accumulated Depreciation: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at beginning of year ​ $ ( 202,692 ) ​ $ ( 138,405 ) ​ $ ( 81,938 ) Depreciation expense ​ ( 69,842 ) ​ ( 64,287 ) ​ ( 58,935 ) Sale of real estate investments ​ ​ 1,344 ​ ​ — ​ ​ 2,468 Balance at end of year ​ $ ( 271,190 ) ​ $ ( 202,692 ) ​ $ ( 138,405 ) (1) During the year ended December 31, 2024, a $ 3.2 million acquisition of real estate which previously did not satisfy the requirements for sale-leaseback accounting was reclassified to real estate held for investment as the requirements for sale-leaseback accounting were satisfied. ​ ​ F-32