Innovative Industrial Properties, Inc. (NYSE: IIPR) has announced the closure of a new $100 million secured revolving credit facility with a federally regulated commercial bank. The credit facility has an initial term of 3 years and is secured by the company’s IQHQ investment.
The borrowings under the credit facility will bear interest at a rate equal to the one-month secured overnight financing rate (SOFR) plus a spread of 200 basis points, which equates to 6.1% based on rates as of October 3, 2025. Additionally, the credit facility includes a $35 million "accordion feature" that permits the company to expand the borrowing capacity to a total of $135 million, subject to the addition of other lenders.
The executive chairman of IIP, Alan Gold, highlighted that the successful closing of this credit facility supports the company's investment in the life science industry, leading to improved access to and lower cost of capital. He also emphasized that the credit facility enhances the company's financial flexibility and provides an attractive, accretive investment spread exceeding 800 basis points on the IQHQ investment.
In terms of financial performance, the company's investment spread on the IQHQ investment is noted to exceed 800 basis points, positioning them to capitalize on the long-term strength of the life science industry. This suggests a positive outlook for the company's future growth and financial performance.
The press release does not provide specific comparative metrics from the previous period. As a result of these announcements, the company's shares have moved -0.82% on the market, and are now trading at a price of $54.41. For the full picture, make sure to review INNOVATIVE INDUSTRIAL PROPERTIES INC's 8-K report.
