Innovative Industrial Properties, Inc.

Good morning and welcome to Innovative Industrial Property Second Quarter 2020 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Brian Wolf, General Counsel. Please go ahead.

Thank you for joining the call. Presenting today are Alan Gold, Executive Chairman, Paul Smithers, President and Chief Executive Officer, Catherine Hastings, Chief Financial Officer, and Ben Regan, Vice President of Investments. Before we begin, I'd like to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties of the company's business, I refer you to the news release issued yesterday and filed with the SEC on Form 8-K as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. I'll now hand the call over to Alan. Alan?

Thank you, Brian, and welcome, everyone, to our second quarter earnings call. First and foremost, we want to express our deep appreciation to all of our medical professionals, caregivers, and researchers who are on the front lines fighting the coronavirus pandemic we are experiencing across the globe. It has been a trying time over these many months, as we continue to battle this health crisis and its resulting extreme economic disruption. But we are heartened by the advancements our health and science community has made in such a short period of time to understand this disease and formulate highly effective treatment plans for our patients, and what we hope is a highly effective vaccine. As we discussed on our last call in May, the regulated cannabis industry, both medical and adult use, was deemed an essential service by the vast majority of state and local jurisdictions in the United States. And our tenant operators have answered that call, adapting their operations in ways to ensure continued, compassionate, individualized service to their patients and customers and an environment designed to maximize the safety and health of patients, customers, and employees. And to recap, on our investments in support of the tremendous future of this industry, during the second quarter of 2020, we acquired eight properties totaling over 775,000 square feet in five states and amended leases with our existing tenants for additional property improvements. collectively representing over $225 million of investments. These investments were comprised of both follow-on transactions with our existing tenant partners to facilitate their continued expansion, including industry-leading operators Ascend Wellness, Cresco, Holistic, and King's Garden, and new tenant relationships, including Cura Leaf and ColumbiaCare. Ben Regan, our Vice President of Investments, we'll discuss our recent acquisitions in more detail and our overall portfolio. As of today, we own 61 properties in 16 states, totaling 4.5 million square feet, which are over 99% leased on a long-term basis to high-quality licensed cannabis operators. The one property that is not leased in our portfolio is our Los Angeles, California property with a tenant under receivership. As noted in our press release issued yesterday, Holistic Industries, our long-term tenant partner in Massachusetts, Maryland, and Pennsylvania, has entered into a definitive agreement to acquire the operational licenses for this property, and we are optimistic regarding the completion of this transaction and partnering with Holistic again on a long-term basis for this property, though it remains subject to customary closing conditions and final receivership court approval. As we noted in our press release issued yesterday, aside from our Los Angeles property, our tenants have paid 100% of contractually due rent for each of the months of April, May, June, and July, including the three tenants from which we provided temporary rent deferral in Q2. As of today, we have no other tenants under a rent deferral program, which we believe is a testament to the quality of our tenant base and their ability to adapt to this new normal. Reflecting the strength and resilience of our tenant partners, we paid a quarterly common stock dividend of $1.06 per share to stockholders on July 15th, representing a 77% increase over our second quarter 2019 dividend, driven as well by our continued execution on our pipeline of acquisitions. This dividend was also supported by our tremendous 180% plus growth year over year in rental revenue, net income, and AFFO. which to note does not take into account at all the three acquisitions we completed after quarter end, constituting $49 million of additional investments. The COVID-19 pandemic and severe economic disruption constitute the first recession faced by the regulated cannabis industry, and we believe our tenants have adapted exceptionally well to new ways of serving their patients and customers, which Paul will touch on later. On the financing front, I also would like to personally thank all of our stockholders, our long-term company owners, for their steadfast support, providing us over $370 million in gross proceeds over the last three months to support our long-term tenant partners in their continued expansion initiatives, while forging additional partnerships with the top-tier operators in the industry. Catherine will also provide more detail regarding our financial results and capital raising activity. As always, we are focused on continuing to be long-term stewards of your investment in our company and navigating through the immense challenges posed by the health crisis and economic disruption. Despite these challenges, we continue to be strong believers in the resilience and potential of this still quite young industry and being a key real estate capital provider to enable its continued growth for many years to come. With that, I'd like to turn the call over to Paul. Paul?