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    Merrill Ross • Compass Point Research & Trading, LLC

    Merrill Ross's questions to Innovative Industrial Properties Inc (IIPR) leadership

    Merrill Ross's questions to Innovative Industrial Properties Inc (IIPR) leadership • Q2 2025

    Question

    Merrill Ross of Compass Point Research & Trading LLC asked why IIPR chose a revolver and preferred stock structure for the IQHQ investment instead of a direct property acquisition or JV, and inquired about the investment's cash yield.

    Answer

    Executive Chairman Alan Gold explained that direct acquisitions of quality life science assets would yield significantly less than IIPR's cost of capital. The chosen structure is more accretive and secure, leveraging IQHQ's operational expertise. He confirmed the combined current cash yield on the investment is north of 10%.

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    Merrill Ross's questions to UMH Properties Inc (UMH) leadership

    Merrill Ross's questions to UMH Properties Inc (UMH) leadership • Q1 2025

    Question

    Merrill Ross questioned the strategic rationale and return expectations for acquiring a 100% occupied, age-restricted property with no expansion potential. She also asked for clarification on whether rental homes are included in the properties being refinanced with the GSEs.

    Answer

    President and CEO Samuel Landy and EVP and COO Brett Taft explained the acquisition's value lies in its vacancy decontrol feature, which allows rents to be raised to market rates over time as homes turn over, projecting a yield of 6.5% to 7% within five years. EVP and CFO Anna Chew clarified that for the GSE refinancing, the income from the site under the rental home is included, but the value of the physical rental home itself is not currently being financed.

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    Merrill Ross's questions to Two Harbors Investment Corp (TWO) leadership

    Merrill Ross's questions to Two Harbors Investment Corp (TWO) leadership • Q1 2025

    Question

    Merrill Ross of Compass Point Research & Trading, LLC posed three questions: a request for quantification of the company's 'high liquidity,' details on loan recapture versus flow originations, and the strategic rationale for entering the Ginnie Mae market.

    Answer

    CFO William Dellal confirmed high liquidity levels with significant cash and unused borrowing capacity. President and CEO Bill Greenberg addressed the other points, noting that organic recapture is low due to a small refinanceable population (0.5% of the portfolio) but that bulk and flow channels are used to replenish runoff. He explained the Ginnie Mae entry is for diversification, to access a broader market, and to become a more full-service mortgage originator and servicer.

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