INNOVATIVE INDUSTRIAL PROPERTIES INC

Innovative Industrial Properties announced that its tenant, Parallel (affiliates of SH Parent, Inc.), defaulted on rent obligations for two Florida properties on July 20, 2026. The total defaulted amount, including base rent, taxes, insurance, and late charges, is approximately $1.6 million. These properties represent 5.7% of the Company's annualized contractual rent. Parallel has ceased cannabis operations and intends to vacate the properties, while Innovative Industrial Properties holds security deposits and reserves all rights.

IIP Operating Partnership, LP, the operating partnership of Innovative Industrial Properties, Inc., issued $402.5 million aggregate principal amount of 6.00% exchangeable senior notes due 2029. This includes $52.5 million from the full exercise of an option by initial purchasers. The notes are senior unsecured obligations of the Operating Partnership, fully and unconditionally guaranteed by the Company, and were offered in a private placement.

Innovative Industrial Properties' operating partnership, IIP Operating Partnership, LP, priced an upsized private offering of $402.5 million in 6.000% exchangeable senior notes due 2029. This amount includes the full exercise of the initial purchasers' over-allotment option. The notes are exchangeable for cash, common stock, or a combination, with an initial exchange price of approximately $69.39 per share. The Operating Partnership plans to use $80.5 million of the net proceeds to repurchase 1,334,106 shares of the Company's common stock and the remainder for general corporate purposes. Additionally, the Company fully repaid its outstanding $282 million of 5.50% Senior Notes due 2026 on May 26, 2026.

Innovative Industrial Properties, Inc. held its annual meeting, where stockholders approved the 2026 Omnibus Incentive Plan, replacing the prior 2016 plan. The new plan authorizes 1,250,000 shares for various awards to eligible participants. Additionally, stockholders re-elected five directors, ratified BDO USA, P.C. as the independent auditor, and approved the advisory vote on executive compensation. They also voted for an annual frequency for future advisory votes on executive compensation.

Innovative Industrial Properties, Inc. entered into a $20 million ATM Advance Agreement with A.G.P./Alliance Global Partners. The loan, bearing 10.0% interest, matures on October 9, 2026, and will be used for general corporate purposes, including repaying existing 5.50% Senior Notes. The company granted the lender a security interest in proceeds from its at-the-market equity offering program.

Innovative Industrial Properties, Inc. announced the closing of four secured term loans totaling $44.9 million with Amalgamated Bank. These loans bear a fixed interest rate of 6.67% and have a five-year term, maturing on June 5, 2031. The company plans to use the proceeds to pay off unsecured notes maturing at the end of May, aiming to extend its debt maturity profile and secure attractively priced capital to support long-term growth.

Innovative Industrial Properties' indirect subsidiaries, IIP-MA 7 LLC and IIP-PA 6 LLC, entered into separate loan agreements with Amalgamated Bank, securing an aggregate of $22.9 million in secured term loans. The loans, bearing a fixed interest rate of 6.67% per annum, are secured by first priority liens on the properties owned by the borrowers and mature on June 5, 2031. Innovative Industrial Properties, Inc. has provided unsecured guaranties for these obligations.

Innovative Industrial Properties, Inc. announced the closing of a $56.5 million secured term loan through its indirect subsidiaries. The loan, maturing on May 5, 2029, bears interest at one-month SOFR plus 5.00% and is secured by equity interests in the borrowing subsidiaries and mortgages on eight properties. The parent company provides an unsecured guaranty, requiring it to maintain minimum Net Worth of $120.0 million and Liquid Assets of $12.0 million. Proceeds are intended to repay unsecured notes maturing later this month, strengthening the balance sheet for future growth.

Innovative Industrial Properties, Inc. reported substantial doubt about its ability to continue as a going concern due to insufficient liquidity to satisfy the $291.2 million Notes due 2026 maturing in May 2026. The company is actively evaluating refinancing or capital raising alternatives. For the first quarter of 2026, net income increased to $32.8 million, while total revenues decreased to $69.0 million. Basic EPS slightly declined to $1.04.

Innovative Industrial Properties reported Q1 2026 results with total revenues of $69.0 million and AFFO of $1.88 per diluted share, both slightly down year-over-year. The company successfully raised $128 million in equity and debt capital year-to-date and executed leases for 389,000 square feet, including properties previously subject to tenant defaults. Management expressed encouragement regarding the pace of leasing activity and steps taken to fortify the balance sheet, while also continuing its strategic investment in IQHQ.