INNOVATIVE

INDUSTRIAL
PROPERTIES
NYSE: IIPR
INNOVATIVEINDUSTRIALPROPERTIES.COM
COMPANY PRESENTATION
POSTED: MARCH 4, 2024

Innovative Industrial Properties 1

FORWARD LOOKING STATEMENTS

This presentation and our associated comments include "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that are subject to risks and uncertainties. In particular, statements pertaining to our capital resources, portfolio
performance and results of operations contain forward-looking statements. Likewise, our statements regarding anticipated growth in our funds from operations and anticipated market and regulatory
conditions, our strategic direction, our dividend rate and policy, demographics, results of operations, plans and objectives are forward-looking statements. Forward-looking statements involve numerous
risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and
we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements
by the use of forward-looking terminology such as "believes“, "expects“, "may“, "will“, "should“, "seeks“, "approximately“, "intends“, "plans“, "estimates" or "anticipates" or the negative of these words and
phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The following factors, among others, could cause actual results and
future events to differ materially from those set forth or contemplated in the forward-looking statements: rates of default on leases for our assets; concentration of our portfolio of assets and limited
number of tenants; the estimated growth in and evolving market dynamics of the regulated cannabis market; the demand for regulated cannabis facilities; inflation dynamics; our ability to improve our
internal control over financial reporting, including our inability to remediate an identified material weakness, and the costs and the time associated with such efforts; the impact of pandemics on us, our
business, our tenants, or the economy generally; war and other hostilities, including the conflicts in Ukraine and Israel; our business and investment strategy; our projected operating results; actions and
initiatives of the U.S. or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal
under federal law; availability of suitable investment opportunities in the regulated cannabis industry; our understanding of our competition and our potential tenants’ alternative financing sources; the
expected medical-use or adult-use cannabis legalization in certain states; shifts in public opinion regarding regulated cannabis; the potential impact on us from litigation matters, including rising liability
and insurance costs; the additional risks that may be associated with certain of our tenants cultivating, processing and/or dispensing adult-use cannabis in our facilities; the state of the U.S. economy
generally or in specific geographic areas; economic trends and economic recoveries; our ability to access equity or debt capital; financing rates for our target assets; our level of indebtedness, which
could reduce funds available for other business purposes and reduce our operational flexibility; covenants in our debt instruments, which may limit our flexibility and adversely affect our financial
condition; our ability to maintain our investment grade credit rating; changes in the values of our assets; our expected portfolio of assets; our expected investments; interest rate mismatches between
our assets and our borrowings used to fund such investments; changes in interest rates and the market value of our assets; the degree to which any interest rate or other hedging strategies may or may
not protect us from interest rate volatility; the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; our ability to maintain our qualification as a
real estate investment trust for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940; availability of qualified personnel;
and market trends in our industry, interest rates, real estate values, the securities markets or the general economy.
The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. In addition, we discussed a number of material risks in our most recent
Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive
and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on
our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Any forward-looking
statement made by us speaks only of the date on which we make it. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. Stockholders and investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented
in our filings and reports.
Market and industry data are included in this presentation. We have obtained substantially all of this information from internal studies, public filings, other independent published industry sources and
market studies prepared by third parties. We believe these internal studies, public filings, other independent published industry sources and market studies prepared by third parties are reliable.
However, this information may prove to be inaccurate. No representation or warranty is made as to the accuracy of such information. All amounts shown in this presentation are unaudited. This is not an
offer to sell or solicitation to buy securities of Innovative Industrial Properties, Inc. Any offers to sell or solicitations to buy securities of Innovative Industrial Properties, Inc. shall be made only by means of
a prospectus approved for that purpose.

Innovative Industrial Properties 2

 WHY IIPR WAS FORMED

Outsized Need for Specialized Real

Capital Estate
U.S. cannabis operators have an outsized
need for capital to fund growth
Founded in 2016 U.S. cannabis operators require mission
critical facilities with specialized buildouts
to optimize environment and conform to
We are the first and only publicly traded company on licensing and zoning requirements
the New York Stock Exchange (NYSE: IIPR) to provide
real estate capital to the regulated cannabis industry

Large and Growing Limited Access to Rapid Adoption of

Industry Financing State Legalization
Regulated cannabis sales estimated to Due to federal prohibition and being a As of November 2023, 40 states and
grow to $43 billion by 2027, almost nascent industry, U.S. cannabis operators Washington, D.C. have legalized cannabis
double 2022 estimated regulated sales of were historically required to fund growth for medical-use, and 24 states and
$26 billion(1) through highly dilutive forms of capital Washington, D.C. have legalized cannabis
absent other forms of financing for adult-use(2)

(1) Source: BDSA Legal Cannabis Market Forecast (October 2023).

(2) Source: 2023 U.S. Cannabis Report, New Frontier Data, National Conference of State Legislatures (www.ncsl.org), MJBizDaily (mjbizdaily.com).

Innovative Industrial Properties 3

 COMPANY VALUE SPOTLIGHT

NNN cannabis REIT

Net Lease
• Large diversified portfolio of over $2.4B of cannabis real estate
Properties • Diversified across 19 states and 30 tenants(1)
• Contractual, annual escalations provide built in cash flow growth

Consistent
History of providing value to shareholders
Track Record
• Consistent dividend and AFFO per share growth
• 54% CAGR in dividend and AFFO per share from ’17-’23(2)
• Low leverage and diversified capital structure
Experienced
REIT Team
Seasoned management team with significant experience across the
REIT space
• Our founder, Alan Gold, has a history of establishing real estate
companies
• Senior management team with long term public REIT experience
Investing in
Cannabis IIP provides direct investment exposure to cannabis with the stability
Real Estate of real estate
• The only NYSE-listed cannabis REIT
• High growth industry with an estimated 11% CAGR over next 5 years(3)
• Exposure to different cannabis markets and tenants
(1) Each “Tenant” represents the parent company of the tenant, for which the parent company has provided a corporate guaranty. A parent company may have multiple tenant subsidiaries across IIP’s properties. Includes two pre-leased tenants. Excludes non-cannabis tenants. Per share amounts are reported on a
diluted basis.
(2) "CAGR" represents compound annualized growth rate for the relevant metric.
(3) See footnote (1) on page 3.

Innovative Industrial Properties 4

OUR BUSINESS MODEL & BENEFITS

Structured long-term cash flows

• Generally, 15-20 year initial lease terms (vs. ~5
years for traditional industrial leases) We work closely with Execute sale-leasebacks
• Leases generally subject to parent company state-licensed and fund improvements
guarantees covering operations throughout the cannabis operators for cultivation,
processing and retail
United States
properties

Strong initial rental yields with

annual escalations

Capital efficient lease structure

• Target leases are generally 100% triple-net Provide non-dilutive Facilitate our tenants’
⚬ No recurring capital expenditures during lease capital growth plans
term
⚬ All property expenses paid by the tenant,
including capital repairs and replacements

Innovative Industrial Properties 5

 IIPR AS OF DECEMBER 31, 2023
102 110 108

# of Properties 65
45
by Year 11

$2.4B 2018 2019 2020 2021 2022 2023

Total
Committed /
Invested 2.4B
Capital (1)
2.3B
2.0B
Capital 1.3B
14.6 Years 108
Weighted Properties Committed by 690.0M
Average Lease (Operating 167.4M
Length (4) Portfolio - 103)(2) Year ($)(1)
2018 2019 2020 2021 2022 2023

29 30
26
18 20
# of Tenants by
$79.2M 8.2M 8
Q4 2023 Rentable Square Year(5)
Total Revenue Feet - Operating
Portfolio(2)
2018 2019 2020 2021 2022 2023

17 19 19 19
$7.28 19 14
Q4 2023 U.S. States
# of States by 9
Annualized Year
Dividend (3)

2018 2019 2020 2021 2022 2023

Note: Data as of December 31, 2023, unless otherwise noted.

(1) Total Committed / Invested Capital includes (1) total investments in properties (consisting of purchase price and improvements reimbursed to tenants, if any, but excluding transaction costs) and (2) total additional commitments to reimburse certain tenants for completion of construction and improvements at the
properties. Excludes a $23.0 million loan commitment from us to a developer for construction of a regulated cannabis cultivation and processing facility in California and a seller-financed note issued to us by the buyer in connection with our disposition of a portfolio of four properties in southern California.
(2) Operating Portfolio is defined as all properties that (a) are leased or (b) are not leased but ready for their intended use. Includes approximately 816,000 square feet under development or redevelopment. Vacancy included three industrial properties, a portion of one industrial property, and three other retail
properties, totaling 284,000 square feet.
(3) Reflects annualized common stock dividend paid on January 12, 2024 of $1.82 per share. The decision to declare or pay dividends is in the sole discretion of our board of directors in light of conditions then existing, and there can be no assurance that a dividend will be declared or paid for any time period in any
amount.
(4) Weighted average lease length calculated by weighting the remaining lease term based on the base rent and management fees, after the expiration of applicable base rent phase-in periods for the Operating Portfolio.
(5) See footnote (1) on page 4.

Innovative Industrial Properties 6

 PORTFOLIO OVERVIEW

IIPR has a geographically diversified portfolio of properties throughout the United States

Public vs. Private(1)(2)

62% Public 38% Private

Operator Type(1)(2)
90% MSO 10% SSO

Property Type(1)

State Diversification(1)
92% 2% 6%
IL PA MA MI NY FL OH NJ CA MD Other Total Industrial(3) Retail Industrial
14.7% 14.1% 13.6% 10.6% 10.2% 8.3% 5.4% 4.6% 4.1% 3.9% 10.5% 100% / Retail

Note: Data as of December 31, 2023, unless otherwise noted.

(1) As a % of Annualized Base Rent (“ABR”). ABR is calculated by multiplying the sum of contractually due base rents and property management fees for the last month in the quarter, by twelve.
(2) “MSO” stands for Multi-State Operator which means the tenant (or guarantor) conducts cannabis operations in more than one state. “SSO” stands for Single-State Operator which means the tenant (or guarantor) conducts cannabis operations in a single state. Excludes non-cannabis tenants that comprise less than 1%
of annualized base rent in the aggregate.
(3) “Industrial” reflects facilities utilized or expected to be utilized for regulated cannabis cultivation, processing and/or distribution activities, which can consist of industrial and/or greenhouse space.

Innovative Industrial Properties 7

 SIX-YEAR FINANCIAL PERFORMANCE
TRACK RECORD

Year Over Year Net Operating Income (NOI)(1)(2) Year Over Year G&A as a % of NOI(1)(3)
G&A
G&A % of NOI
$284,613
$265,839
44.4%
$200,108 22.6%
12.7% 11.5% 14.5% 15.0%

$111,944
$38,520 $42,832
$43,352 $22,961
$9,818 $14,182
$14,342 $6,375

2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023

Year Over Year FFO(2)(4) Year Over Year AFFO(2)(4)

$256,497
$231,430 $233,637
$210,736
$174,958
$154,414

$92,403 $98,078

$30,722 $34,992
$8,262 $9,727

2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
Note: Dollars in thousands.
(1) “Net Operating Income (NOI)” reported as total revenue less property expenses on the company’s consolidated statements of income.
(2) See footnote (2) on page 4.
(3) “G&A” reported as “general and administrative expense” on the company’s consolidated statements of income.
(4) See the company’s applicable periodic reports filed with the SEC for definitions of funds from operations (“FFO”) and adjusted funds from operations ("AFFO") (each a supplemental non-GAAP financial measure) and reconciliation of FFO and AFFO to GAAP net income attributable to common stockholders.

Innovative Industrial Properties 8

 COMPARATIVE
PERFORMANCE

Common Stock Dividend Per Share(1) Net Income Attributable to Common Stockholders Per Share(1)

43%
39%

14% 17%
14% 12% 12% 13%
11% 9%
7% 8%
1% 2%

(1%) (0%) (1%)

(4%)

1-Year CAGR 3-Year CAGR 5-Year CAGR 1-Year CAGR 3-Year CAGR 5-Year CAGR
REIT(2) S&P 500 IIPR REIT(2) S&P 500 IIPR (Diluted)

Historical Rent Collection (Operating Portfolio)(3)

100% 100% 100% 100% 99% 100% 97% 98%

$2.3B $2.4B
$2.0B
Invested Capital
$1.3B
% Rent Collection
$690.0M
$30.0M $73.3M $167.4M

2016 2017 2018 2019 2020 2021 2022 2023

(1) Per S&P Capital IQ Pro latest available data as of February 27, 2024. S&P Capital IQ Pro excludes outliers for each index. See footnote (2) on page 4.
(2) REIT index is made up of constituent data for the FTSE NAREIT U.S. Real Estate Index Series found on the National Association of Real Estate Investment Trusts (“NAREIT”) website, representing publicly traded REITs across the United States.
(3) Calculated as base rent and property management fees collected over contractual base rent and property management fees due for the period. For 2022, rent collection includes 1) security deposits applied for the payment of rent totaling approximately $0.5 million, subject to scheduled repayment, and 2) security
deposits applied in connection with non-payment of rent for defaulting tenants totaling approximately $2.2 million. For 2023, rent collection includes 1) security deposits applied for the payment of rent totaling approximately $5.6 million, subject to scheduled repayment, 2) security deposits applied in connection
with non-payment of rent for defaulting tenants totaling approximately $3.1 million, and 3) approximately $0.7 million of $1.7 million collected in December 2023 from Parallel pursuant to a consent judgment awarded in IIP’s favor and applied to rent due from Parallel for October 2023 at one of IIP’s Pennsylvania
properties (Parallel vacated that property on October 31, 2023).

Innovative Industrial Properties 9

 TOP TEN TENANTS
BY ABR

Top ten tenants represent ~76% of the company’s annualized base rent

IIP Portfolio Third Quarter 2023(3) Tenant Information

Annualized Base Rent (ABR)(1) ABR # of Adjusted Market MSO

# Tenant $ % Square Feet(2) / Square Foot Leases Revenue EBITDA(4) Capitalization(5) / SSO(6)
1 PharmaCann $45,181 15.8% 697 $65 11 Private Co. Private Co. Private Co. MSO
2 Ascend Wellness Holdings 29,651 10.4% 624 $48 4 $141 $30 $201 MSO
3 Green Thumb Industries 21,674 7.6% 664 $33 3 275 83 2,669 MSO
4 Curaleaf 19,941 7.0% 578 $35 8 333 75 3,063 MSO
5 Trulieve 18,807 6.6% 740 $25 6 275 78 965 MSO
6 The Cannabist Company (f/k/a Columbia Care) 17,472 6.1% 588 $30 21 129 20 194 MSO
7 Holistic Industries 17,315 6.1% 333 $52 5 Private Co. Private Co. Private Co. MSO
8 4Front Ventures(7) 16,255 5.7% 488 $33 4 23 3 66 MSO
9 Cresco Labs 16,242 5.7% 379 $43 5 191 49 461 MSO
10 Parallel 15,423 5.4% 593 $26 2 Private Co. Private Co. Private Co. MSO
Top 10 Tenants Total $217,961 76.4% 5,684 $38 69

Note: Data as of December 31, 2023, unless otherwise noted.

(1) Dollars in thousands, see footnote (1) on page 7.
(2) Square feet in thousands.
(3) Dollars in millions, based on each company’s public securities filings and earnings release, available at www.sec.gov, www.sedar.com, or each company’s respective website, for the quarter ended September 30, 2023.
(4) Adjusted EBITDA is a non-GAAP financial measure utilized in the industry. For definitions and reconciliations of Adjusted EBITDA to net income, see each company’s public securities filings, available at www.sec.gov or www.sedar.com.
(5) Dollars in millions, per S&P Capital IQ Pro as of 12/31/2023.
(6) See footnote (2) on page 7.
(7) Includes one property acquired in January 2022 for $16.0 million which did not satisfy the requirements for sale-leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our consolidated balance sheet.

Innovative Industrial Properties 10

 BALANCE SHEET
HIGHLIGHTS

Balance Sheet Statistics Debt Overview

IIP Is One of the Lowest Leveraged Public REITs Exchangeable Senior Notes:
• Remaining $4.4 million 3.75% exchangeable senior notes exchanged or paid off in
full in February 2024

12% Debt to >16x Debt No Material Debt Unsecured Senior Notes:

Total Gross Service Coverage Maturities Until
• Investment Grade Rating BBB+ from Egan Jones, since May 2021
Assets(1) Ratio(1) 2026
• $300.0M of 5.50% unsecured senior notes due May 25, 2026

Capital Structure(2) Debt Maturity Profile(3)

Exchangeable Senior Notes Notes Due 2026
$3.0B

$2.5B

$2.0B
$2.8B in Common Equity
$1.5B
$300.0 Million
$1.0B
$4.4 Million
$0.5B
$15.0M in Preferred Equity 2024 2025 2026 2027 2028 Thereafter
$0.0B $304.4M in Gross Debt

Note: As of December 31, 2023, unless otherwise noted.

(1) Calculated in accordance with the indenture governing the Notes due 2026, included in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2021.
(2) Share price per S&P Capital IQ Pro as of 12/31/2023.
(3) Principal amount shown as provided in the Company’s latest quarterly filing.

Innovative Industrial Properties 11

 LICENSING, ZONING, &
REGULATORY DYNAMICS

Establishing a Cultivation, Processing or Dispensary Facility is a

Multifaceted Process with Significant Hurdles

Licensing Zoning Regulatory

• A regulated cannabis operator must • Limited opportunities for locating • Highly regulated at the state and
obtain proper licensing from the regulated cannabis facilities based local levels, including extensive
state for the facility on zoning and permitting security, fire protection, seed to sale
• Licensing driven by state specific requirements imposed at county and tracking, testing, and other
program requirements, including city levels, including community requirements
limited licensing, costs and applicant support • Periodic inspections by local fire and
requirements for licensing, • Extensive negotiations with local safety officials and cannabis
identification of specific real estate governments for permitting and authorities to ensure compliance
for license approval approvals
• In many states, a highly competitive
process, with highly valued license

Innovative Industrial Properties 12

 UNDERWRITING & MONITORING

Detailed Background Ability to Raise Detailed Financial Guarantees and Ongoing

on Management Capital Underwriting Security Deposits Monitoring

• Experienced • Evaluation of the • Evaluation of • Leases generally • Quarterly reviews

management team macro environment financial subject to parent and requests for
• Alignment of surrounding projections company information
management strategic capital utilizing existing guarantees pertaining to
within ownership raising in the knowledge of covering financials and
of the business tenants’ prospective industry dynamics operations ongoing operations
markets • Detailed review of throughout the of all properties
• History of successful financial United States • Meetings with
capital raising and a statements, tenants to talk
• Security deposits
cash balance on through operations
strategic with larger
hand today and financials
initiatives, and deposits for less
growth plans mature tenants

Innovative Industrial Properties 13

 CANNABIS IS A LARGE
AND GROWING INDUSTRY

Long-Term Growth Outlook US Legal Cannabis Sales

for Cannabis Forecast(1)
$43B

$43B 68% ~15K $26B

Estimated U.S. Cannabis

Legal Population of Dispensaries
Cannabis States with an in the United
Sales by IIP Presence(2) States(3)
2027(1)

2022 2023E 2024E 2025E 2026E 2027E

(1) See footnote (1) on page 3. See footnote (2) on page 4.

(2) Per 2020 US Census Data.
(3) Per Pew Research Center (February 2024).

Innovative Industrial Properties 14

 EXECUTIVE CHAIRMAN
& CO-FOUNDER

Alan Gold has experience starting real estate companies focused on nuanced, regulated industries.

Co-founded Alexandria Real Estate Equities (NYSE: ARE) in

1994 and served as President and a director until 1998
• Invests in office buildings and laboratories leased to
life science and technology companies

Co-founder of BioMed Realty Trust (formerly NYSE: BMR);

served as Chairman and CEO from inception of its predecessor
in 1998 through BMR’s sale in 2016
• Owner and operator of high-quality life science real estate
• Previously publicly traded investment grade REIT

Executive Chairman of IQHQ, Inc. Alan Gold

• Privately-held life science real estate company with
Executive Chairman & Co-Founder
properties in both the U.S. and U.K.

Innovative Industrial Properties 15

 SENIOR MANAGEMENT TEAM

Paul Smithers David Smith Catherine Hastings Ben Regin

President, CEO and Co-Founder CFO and Treasurer COO CIO
• 35+ years of legal and • 20+ years of finance and real • 20+ years of accounting and • 18+ years of real estate and
regulatory experience estate experience real estate experience accounting experience
• Previously co-founded Iso • Former CFO of Aventine • Former VP, Internal Audit of • Former Senior Associate,
Nano International, LLC Property Group, Inc. BioMed Realty Investments and Asset
Management at BioMed Realty

Brian Wolfe Andy Bui Tracie Hager Kelly Spicher

VP, GC, and Secretary VP, Chief Accounting Officer VP, Asset Management VP, Real Estate Counsel
• Former VP, Corporate Legal of • Former Senior Director, • 30+ years of experience in • 20+ years legal experience
BioMed Realty Financial Reporting at BioMed property management representing real estate
• Former attorney at Latham & Realty • Former VP, Property matters
Watkins LLP Management at BioMed Realty • Former attorney at Foley &
Lardner LLP

Innovative Industrial Properties 16