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Revolutionary Industrial Properties Publicizes Q2 2021 Working, Funding and Capital Markets Exercise

SAN DIEGO–(BUSINESS WIRE)–Revolutionary Industrial Properties, Inc. (IIP), the primary and solely actual property firm on the New York Inventory Trade (NYSE: IIPR) centered on the regulated U.S. hashish trade, introduced at this time its working, funding and capital markets exercise from April 1, 2021 via at this time.

Working Exercise

As of July 6, 2021, IIP owned 72 properties situated in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington, representing a complete of roughly 6.6 million rentable sq. toes (together with roughly 2.2 million rentable sq. toes below growth/redevelopment), which had been 100% leased with a weighted-average remaining lease time period of roughly 16.7 years. As of July 6, 2021, IIP had invested an combination of roughly $1.6 billion (consisting of buy worth and growth and tenant reimbursement commitments funded, however excluding transaction prices) and had dedicated a further roughly $347.8 million to reimburse sure tenants and sellers for completion of development and tenant enhancements at IIP’s properties, which doesn’t embody an $18.5 million mortgage from IIP to a developer for development of a regulated hashish cultivation and processing facility in California.

Funding Exercise

From April 1, 2021 via at this time, IIP made 4 acquisitions for properties situated in Massachusetts, Michigan and Pennsylvania, and executed three lease amendments to supply further tenant enhancements at properties situated in Florida and Pennsylvania. In these transactions, IIP established new tenant relationships with Sozo Firms, Inc. and Temescal Wellness of Massachusetts, LLC, whereas increasing current relationships with Inexperienced Peak Industries LLC (Skymint), Harvest Well being & Recreation Inc., Jushi Holdings Inc. and Parallel. Extra element concerning every transaction is ready forth under:

State

 

Closing Date

 

Rentable

Sq. Ft.(1)

 

Buy

Worth(2)

 

Extra

Funding

 

Whole

Funding

 

Pennsylvania

 

April 1, 2021

 

 

40,000

 

 

N/A

 

 

30,000

 

 

30,000

(3)

Michigan

 

April 16, 2021

 

 

175,000

 

 

15,550

 

 

14,450

 

 

30,000

(4)

Pennsylvania

 

Might 13, 2021

 

 

239,000

 

 

41,750

 

 

26,000

 

 

67,750

(5)

Michigan

 

Might 14, 2021

 

 

85,000

 

 

10,250

 

 

5,750

 

 

16,000

(6)

Massachusetts

 

Might 26, 2021

 

 

70,000

 

 

3,100

 

 

15,000

 

 

18,100

(7)

Florida

 

June 8, 2021

 

 

N/A

 

 

N/A

 

 

8,000

 

 

8,000

(8)

Florida

 

June 18, 2021

 

 

N/A

 

 

N/A

 

 

7,100

 

 

7,100

(9)

 

 

Totals

 

 

609,000

 

$

70,650

 

$

106,300

 

$

176,950

 

___________

(1)

Contains anticipated rentable sq. toes at completion of development for sure properties.

(2)

Excludes transaction prices.

(3)

The quantity pertains to a lease modification which elevated the tenant enchancment allowance below a lease at one in all IIP’s Pennsylvania properties by $30.0 million to a complete of roughly $40.0 million, and in addition resulted in a corresponding adjustment to the bottom hire for the lease on the property. With this extra tenant enchancment allowance, the tenant is anticipated to broaden the power by roughly 40,000 sq. toes and full the buildout of the present 89,000 sq. foot constructing.

(4)

The tenant is anticipated to finish tenant enhancements on the property, for which IIP agreed to supply reimbursement of as much as roughly $14.4 million.

(5)

The tenant is anticipated to finish tenant enhancements on the property, for which IIP agreed to supply reimbursement of as much as $26.0 million.

(6)

The tenant is anticipated to finish tenant enhancements on the property, for which IIP agreed to supply reimbursement of as much as roughly $5.7 million.

(7)

The tenant is anticipated to finish tenant enhancements on the property, for which IIP agreed to supply reimbursement of as much as $15.0 million.

(8)

The quantity pertains to a lease modification which elevated the tenant enchancment allowance below a lease at one in all IIP’s Florida properties by $8.0 million to a complete of $16.2 million, and in addition resulted in a corresponding adjustment to the bottom hire for the lease on the property.

(9)

The quantity pertains to a lease modification which elevated the tenant enchancment allowance below a lease at one in all IIP’s Florida properties by $7.1 million to a complete of roughly $17.9 million, and in addition resulted in a corresponding adjustment to the bottom hire for the lease on the property.

As well as, on June 25, 2021, IIP closed on a development mortgage with a developer for the development of a regulated hashish cultivation and processing facility in California. IIP is anticipated to lend as much as $18.5 million to the developer for the development of an roughly 102,000 sq. foot constructing. Following completion of growth of the property, IIP has an choice to buy the property, and should execute a negotiated lease with an affiliate of the developer or with one other third occasion, if IIP determines to train its buy choice.

Capital Markets Exercise

On Might 25, 2021, IIP, via its working partnership subsidiary (the Working Partnership), issued $300 million combination principal quantity of unsecured senior notes (the Notes). The Notes are the Working Partnership’s basic unsecured and unsubordinated obligations, are totally and unconditionally assured by IIP and the Working Partnership’s subsidiaries, and rank equally in proper of cost with all the Working Partnership’s current and future senior unsecured indebtedness, together with its 3.75% Exchangeable Senior Notes due 2024. The Notes are ruled by an indenture, which incorporates sure covenants.

The sale of the Notes generated web proceeds of roughly $293 million, after deducting the preliminary purchasers’ reductions and commissions and providing bills. The notes bear curiosity at 5.50% each year, payable semi-annually in arrears on Might 15 and November 15 of every yr, till the maturity date of Might 25, 2026. IIP intends to make use of the online proceeds from the providing to put money into specialised industrial actual property belongings that assist the regulated hashish trade which are in step with its funding technique, and for basic company functions.

About Revolutionary Industrial Properties

Revolutionary Industrial Properties, Inc. is a self-advised Maryland company centered on the acquisition, possession and administration of specialised industrial properties leased to skilled, state-licensed operators for his or her regulated hashish amenities. Revolutionary Industrial Properties, Inc. has elected to be taxed as an actual property funding belief, commencing with the yr ended December 31, 2017. Extra info is offered at www.innovativeindustrialproperties.com.

This press launch comprises statements that IIP believes to be “forward-looking statements” throughout the which means of the secure harbor provisions of the Non-public Securities Litigation Reform Act of 1995. All statements apart from historic information are forward-looking statements. When used on this press launch, phrases resembling IIP “expects,” “intends,” “plans,” “estimates,” “anticipates,” “believes” or “ought to” or the unfavorable thereof or related terminology are typically meant to determine forward-looking statements. Such forward-looking statements are topic to dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed in, or implied by, such statements. Traders shouldn’t place undue reliance upon forward-looking statements. IIP disclaims any obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case.

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