Innovative Industrial Properties, Inc. (NYSE:IIPR) Q2 2022 Earnings Conference Call August 4, 2022 1:00 PM ET

Company Participants

Brian Wolfe - General Counsel

Alan Gold - Executive Chairman

Paul Smithers - President and Chief Executive Officer

Catherine Hastings - Chief Financial Officer

Ben Regin - Vice President of Investments

Conference Call Participants

Tom Catherwood - BTIG

Harrison Vivas - Cowen

John Massocca - Ladenburg Thalmann

Alexander Goldfarb - Piper Sandler

Operator

Hello, and Welcome to the Innovative Industrial Properties Inc. Q2 2022 Earnings Conference Call [Operator Instructions]. Please note, today's event is being recorded. I now would like to turn the conference over to your host today, Brian Wolfe.

Mr. Wolfe, please go ahead.

Brian Wolfe

Thank you for joining the call. Presenting today are Alan Gold, Executive Chairman; Paul Smithers, President and Chief Executive Officer; Catherine Hastings, Chief Financial Officer; and Ben Regin, Vice President of Investments.

Before we begin, I'd like to remind everyone that statements made during today's conference call maybe 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 adjusted FFO. 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 8-K filed with the SEC.

I'll now hand the call over to Alan. Alan?

Alan Gold

Thank you, Brian and welcome, everyone. I know one of the biggest questions for today's calls has to do with Kings Garden and what happened. To recap, Kings Garden leased six properties. The total base rent of which was approximately $5.5 million for the second quarter or approximately 8% of our base rents collected for the quarter. Of these six properties, four were operational with a ground up expansion project also at one of those properties, which we will call the 19 Street expansion. The other two properties were in development or redevelopment [Adell] Street and Inland Center Dr. On July 13th, Kings Garden defaulted on their lease obligations and on July 14th, we filed an 8-K regarding that default.