Innovative Industrial Properties, Inc.

Good day, and welcome to the Innovative Industrial Properties Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. For 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 telephone keypad. 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, David Smith, Chief Financial Officer, Catherine Hastings, Chief Operating Officer, and Ben Regan, Chief Investment Officer. 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. Please refer to the documents filed by the company with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, on today's call, we will discuss certain non-GAAP financial information such as FFO, normalized FFO, and adjusted FFO. You can find this information, together with reconciliations to the most directly comparable GAAP financial measure, in our earnings release issued yesterday, as well as in our 8K filed with the SEC. I'll now hand the call over to Alan. Alan?

Thank you, Brian, and welcome, everyone. Q2 was another solid quarter for IIP, generating $80 million in total revenues and $2.29 in AFFO per share. That performance enabled us to sequentially increase our Q2 common stock dividend by 4.4% to $1.90, continuing our track record of increasing our dividend every year since our inception in 2016. We achieved these results without the full impact of the rents for new leases that we executed in late 2023 and year-to-date, in addition to certain pre-leased properties under development where construction needs to be completed. Ben and Catherine will provide further updates on our progress here. On the investment front, in June, we announced our newest acquisition and long-term lease with Ayer Wellness for a Florida property, which will undergo redevelopment for use as a regulated cannabis cultivation facility with an expected total investment upon completion of $43 million. Ayer is an existing tenant partner of ours in Ohio, and we are excited to expand our long-term partnership with them. As we've reiterated in the past, we are really pleased with our capital position, especially in light of the macroeconomic environment impacting real estate companies in the cannabis industry. Our total available liquidity exceeded $210 million as of quarter end, including another upsizing capacity under our revolving credit facility in Q2 to $50 million, and fully funds any remaining development commitments we have along with providing ample dry power for additional strategic investments. Additionally, we have one of the lowest levered balance sheets in the REIT industry at 11% debt to total gross assets. No variable rate debt. No debt maturities until May 2026. And David will provide more detail as well as our financial results and capital position for the quarter. From a regulatory perspective, all eyes continue to be focused on a potential rescheduling of cannabis from Schedule 1 to Schedule 3 under the Controlled Substance Act. Paul will discuss our thoughts in more detail on this rescheduling process and state-level dynamics that we are seeing, in addition to some green sheets that we are seeing regarding a potential strengthening of capital availability for cannabis operators. And we'll now turn the call over to Paul to discuss market dynamics and regulatory developments. Paul?