Merrill Ross's questions to INNOVATIVE INDUSTRIAL PROPERTIES (IIPR) leadership • Q2 2025
Question
Merrill Ross asked why the company chose a revolver and preferred stock structure for the IQHQ investment rather than making a direct investment in a life sciences property or forming a joint venture. She also requested the current cash yield on the revolver portion of the investment.
Answer
Executive Chairman Alan Gold explained that the yields on direct, well-leased life science properties are currently significantly below IIP's cost of capital, making the structured investment in IQHQ a more accretive and opportunistic transaction. He stated that the combined current cash yield on the total investment is north of 10%.