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IIP Invests $105mln in IQHQ, Expected to Boost Earnings.
ByAinvest
Thursday, Oct 2, 2025 4:14 pm ET1min read
Innovative Industrial Properties (IIP) has closed its initial investment of $105 million into IQHQ, a life science real estate platform. The investment was funded through cash on hand and draws from IIP's revolving credit facility. IIP's remaining IQHQ commitments total up to $165 million of preferred stock. This transaction is expected to generate significant earnings accretion for IIP shareholders.
Innovative Industrial Properties, Inc. (NYSE: IIPR), a real estate investment trust (REIT) focused on specialized industrial properties and life science real estate, has closed its initial investment of $105 million into IQHQ, Inc. (IQHQ), a premier life science real estate platform [1]. The investment was funded through cash on hand and draws from IIP's revolving credit facility.The initial investment consisted of a $100 million investment into a revolving credit facility and the remainder in preferred stock of IQHQ. IIP's remaining commitments to IQHQ total up to $165 million of preferred stock, which is expected to be funded in multiple tranches between the fourth quarter of 2025 and the second quarter of 2027 [1].
Alan Gold, Executive Chairman of IIP, commented, "IIPR is pleased to continue to deploy capital in a highly accretive way for the benefit of shareholders. This is our first investment outside of the cannabis industry, providing diversification to our current portfolio of over $2 billion of real estate. We look forward to continuing to capitalize on the attractive, long-term strength of the life science industry and maximizing our returns on our existing portfolio" [1].
In addition to this investment, IIP has received a commitment from a federally regulated commercial bank for a three-year, $100 million secured revolving credit facility. This facility is priced at one-month SOFR + 200 basis points (6.1% based on rates as of September 30, 2025) and is secured by the Company's IQHQ investment [1]. The closing of the Secured Revolving Credit Facility is expected in the fourth quarter of 2025, subject to customary closing conditions [1].
The transaction is expected to generate significant earnings accretion for IIP shareholders, as IIP believes it will enhance the company's overall financial performance and provide shareholders with a higher return on investment [1].
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