Innovative Industrial Properties, Inc. (NYSE: IIPR) has recently closed its initial investment into IQHQ, Inc. The investment totaled $105 million, with $100 million invested into a revolving credit facility and the remainder into shares of preferred stock of IQHQ. Pro forma for this investment, the company’s remaining IQHQ commitments total up to $165 million of preferred stock, to be funded in multiple tranches between the fourth quarter of 2025 and the second quarter of 2027.
This marks IIPR's first investment outside of the cannabis industry, providing diversification to its current portfolio of over $2 billion of real estate. The company anticipates significant earnings accretion from this transaction, and Alan Gold, Executive Chairman of IIP, expressed the company's enthusiasm for continuing to capitalize on the long-term strength of the life science industry and maximizing returns on their existing portfolio.
Additionally, IIPR has secured a commitment from a federally regulated commercial bank for a three-year, $100 million secured revolving credit facility, priced at one-month SOFR + 200 basis points (6.1% based on rates as of September 30, 2025) and secured by the company’s IQHQ investment. The closing of the secured revolving credit facility is expected in the fourth quarter of 2025, subject to negotiation and execution of definitive documentation and customary closing conditions.
This investment and the secured revolving credit facility mark a strategic move for IIPR, reflecting its continued efforts to deploy capital in an accretive way for the benefit of shareholders. This development underscores the company's commitment to maximizing returns and its confidence in the strength of the life science industry. The market has reacted to these announcements by moving the company's shares 2.5% to a price of $56.64. For more information, read the company's full 8-K submission here.
