Innovative Industrial Properties, Inc.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Limited opportunities for locating regulated cannabis facilities based on zoning and permitting requirements imposed at county and city levels, including community support
- Extensive negotiations with local governments for permitting and approvals
- Highly regulated at the state and local levels, including extensive security, fire protection, seed to sale tracking, testing, and other requirements
- Periodic inspections by local fire and safety officials and cannabis authorities to ensure compliance
Mitigation Strategies
- Evaluation of financial projections utilizing existing knowledge of industry dynamics
- Detailed review of financial statements, strategic initiatives, and growth plans
- Experienced management team
- Alignment of management within ownership of the business
- Detailed Background on Management
- Ability to Raise Capital
- Detailed Financial Underwriting
- Guarantees and Security Deposits
- Ongoing Monitoring
- Quarterly reviews and requests for information pertaining to financials and ongoing operations of all properties
- Meetings with tenants to talk through operations and financials
- Evaluation of the macro environment surrounding strategic capital raising in the tenants’ prospective markets
- History of successful capital raising and a cash balance on hand today
- Leases generally subject to parent company guarantees covering operations throughout the United States
- Security deposits with larger deposits for less mature tenants