Innovative Industrial Properties prices $350 million exchangeable notes

Innovative Industrial Properties Inc. (NYSE: IIPR) priced a private offering of $350 million in 6.0% exchangeable senior notes due 2029, the company announced. The offering was increased from the previously announced $250 million.

The notes will be issued by the company's operating partnership, IIP Operating Partnership LP, and guaranteed by Innovative Industrial Properties. The offering is expected to close on June 15, 2026, subject to customary closing conditions.

Initial purchasers received a 13-day option to buy an additional $52.5 million in notes to cover over-allotments. The notes will be exchangeable for cash, shares of common stock, or a combination at the operating partnership's discretion.

The initial exchange rate is set at 14.4113 shares per $1,000 principal amount of notes, with an exchange price of approximately $69.39 per share. The notes will pay 6.0% interest semiannually and mature on June 15, 2029.

The operating partnership plans to use up to $70 million of net proceeds to repurchase shares from certain note purchasers in private transactions. The remaining proceeds will fund working capital, general corporate purposes, debt repayment, and investments aligned with the company's strategy.

The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The securities have not been registered under federal securities laws.

Innovative Industrial Properties is a real estate investment trust focused on specialized industrial properties and life science real estate.

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