Innovative Industrial Properties, Inc.

Good day and welcome to the Innovative Industrial Properties, Inc. Fourth Quarter 2024 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 a touch-tone 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 Eli Cantor, Associate Finance. 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, 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 AFFO. 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? Thanks, Elian.

Good morning, everyone, and welcome to our call to discuss our 2024 results and recent activity. The company has continued to execute, generating over $255 million of cash flow from operations and returning over $210 million to shareholders through dividends, continuing our track record of increasing our annual dividends each year since our inception in 2016. On the investment front, we remain highly selective in evaluating opportunities, deploying over 70 million in capital to acquire two properties, and providing additional building infrastructure allowances to enhance our facility's capacity for our operators. We also made significant progress in leasing, executing new leases at six properties representing 530,000 square feet or 6% of our total portfolio. Additionally, we further strengthened our liquidity position and strong balance sheet with the upsizing of our credit facility to 87 and a half million with four banks now participating. For the year, we generated total revenues of 308.5 million and AFFO of $256.1 million, continuing our success of generating significant revenue from the regulated cannabis industry. The regulated cannabis industry continues to experience headwinds, which we are navigating through with one of the most experienced management teams in the industry. As of year end, our total available liquidity exceeded $235 million. providing us with ample dry powder to pursue additional strategic investments. We are proud to have strategically positioned ourselves to have one of the lowest levered balance sheets in the REIT industry at 11% debt to total gross assets. David will provide more detail on our financial results and capital position. Last week, we announced that two of our independent directors, David Stecker and Mary Curran, have made the decision to retire from our board and not stand for reelection when their terms expire. David has served on the board since 2017 and Mary since 2020, and we want to thank them both for their service to the company over the years and are in the process of searching for replacement directors. I also want to take a moment to congratulate Tracy Hager and Kelly Spiker, who were both promoted to Senior Vice President in January. Tracy has managed our Asset Management Department since 2021, and Kelly has provided incredible real estate legal support since 2019. Both are seasoned professionals who have added incredible value, and we are truly fortunate to have such dedicated and talented members on our management team. Before I turn the call over to Paul, I wanted to touch on our resolution with Pharmakin. We are pleased with the outcome announced last month and believe it reflects our management team's capabilities in navigating challenging situations to the benefit of our shareholders. Paul will provide additional detail on the resolution.