Innovative Industrial Properties, Inc.

Good day, and welcome to the Innovative Industrial Properties, Inc. First Quarter 2025 Earnings Call. All participants will be in a 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 that this event is being recorded. I would now like to turn the conference over to Eli Cantor, Director of Investor Relations. Please go ahead, sir.

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 Reagan, 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, Eli. and welcome everybody to our first quarter 2025 earnings call. Before we begin, I would like to thank the entire IIP team for their hard work and dedication. They have truly been committed to protecting the long-term value of our portfolio for our shareholders by bringing their special knowledge and experience to this challenging industry. We believe we are uniquely positioned with our strong balance sheet and liquidity to manage through the ongoing uncertainty of the broader macroeconomic environment and the continued challenges in the regulated cannabis market. As for the quarter, we generated total revenues of $71.7 million, AFFO of $55.3 million, and ended the period with just over $220 million of total liquidity. We delivered these results while navigating a turbulent market environment and advancing the strategic initiative we announced on our last call to strengthen our tenant credit profiles and optimize occupancy across our portfolio. The broader macro environment, particularly the ongoing uncertainty around tariffs, has weighed on economic forecasts, inflation trends, consumer sentiment, and business planning. Against this backdrop, we continue to perform, focusing on optimizing occupancy of our portfolio, opportunistically recycling capital, and executing on growth initiatives on a disciplined, selective basis. Year to date, we have acquired a $7.8 million industrial facility in Maryland, sold a cultivation facility in Michigan for $9 million, and executed two new leases totaling 211,000 square feet. Now Ben will provide more detail on our investing, leasing, and disposition activity. In addition, we strategically undertook steps to strengthen our financial foundation and drive long-term shareholder value. Year-to-date, we repurchased $20 million of our common stock at what we believe are compelling valuations and retired nearly $9 million of debt at a discount. To further enhance our capital structure, we also issue $10 million of preferred equity. These actions underscore our disciplined approach to capital allocation and our commitment to maximizing returns for shareholders. Now, David will provide more detail on our financial results and capital position shortly. As we announced in March, we are proactively working to refresh a portion of our tenant base to better position our company for sustainable growth and financial performance. As part of this effort, we issued default notices for non-paying tenants and are aggressively pursuing all legal remedies available to enhance the performance of our real estate portfolio. We are encouraged by our progress so far and believe it reflects our management team's ability to navigate complex situations effectively with a focus on protecting shareholder value. We remain confident in the strength of our business and the opportunities that lie ahead. We look forward to keeping you updated on our continued progress. With that, I'll now turn the call over to Paul. Paul?