イノベーティブ・インダストリアル・プロパティーズ（IIPR）2026年第3四半期決算説明会：AFFOの成長とライフサイエンスの拡大

要点

• 2026年第3四半期の売上高は、バトル・グリーンおよび4フロントからの新規リースと過去の未払い賃料の回収に支えられ、第2四半期の6,330万ドルから6,490万ドルに増加しました。
• AFFOは前四半期比7%増の5,480万ドル（希薄化後1株当たり1.96ドル）となり、前四半期の5,300万ドル（同1.83ドル）から増加しました。賃料回収は1株当たり0.15ドルのプラス要因となりましたが、これには経営陣が一過性であると説明した項目が含まれています。
• イノベーティブ・インダストリアル・プロパティーズは、ライフサイエンス分野に新たに2億7,500万ドルの資金出資をコミットしました。これにはIQHQの優先株3,000万ドルと、エールワイフ・パーク向けの2億4,500万ドルのメザニンローンが含まれます。
• ライフサイエンス分野へのコミットメント総額は約5億4,500万ドルに達しました。経営陣は、全額の資金拠出が完了した時点で、これらの投資が年換算収入の約26%を占めると予測しています。
• 同社は第3四半期中に6物件で計60万4,000平方フィートの新規リース契約を完了し、四半期末後にはさらに27万平方フィートのリース契約を完了しました。年初からの総リース実績は、12物件で約130万平方フィートに達しました。
• 四半期末時点の手元流動性は1億4,200万ドル、純有利子負債対調整後EBITDA比率は2.1倍を維持し、総資産に対する純有利子負債の割合は19%でした。

主要財務データ

事業および業績の動向

ライフサイエンス分野の拡大

イノベーティブ・インダストリアル・プロパティーズは当四半期中、2億7,500万ドルの新たなコミットメントを通じてライフサイエンス・ポートフォリオを拡大しました。最大の取引は、マサチューセッツ州ケンブリッジにある27エーカーのライフサイエンス・キャンパスであるエールワイフ・パークに対する2億4,500万ドルのメザニンローン・コミットメントでした。

このキャンパスには、延べ床面積計39万2,000平方フィートの既存建物3棟と、最大36万4,000平方フィートの追加開発が可能な開発用地2区画が含まれます。既存建物の78%はライラ・サイエンシズに賃貸されています。

IIPRは取引完了時に約1億1,100万ドルを融資しました。残りの1億3,400万ドルは2027年第4四半期にかけて融資される予定です。経営陣は、このローンが期間全体で平均約15.8%の金利を生み出すと予想しています。

IQHQへの当初の2億7,000万ドルのコミットメントと追加の3,000万ドルの優先株投資を含め、IIPRはライフサイエンス分野に計約5億4,500万ドルをコミットしています。経営陣は、ボストン、サンディエゴ、ベイエリアにおいて、IQHQ以外の機会についても検討していると述べました。

大麻関連ポートフォリオのリース状況

第3四半期は同社にとってこれまでで最もリース活動が活発な四半期となりました。IIPRはカリフォルニア州、マサチューセッツ州、ニューヨーク州、オハイオ州、ワシントン州の6物件で計60万4,000平方フィートの新規リース契約を締結しました。

四半期末後にはペンシルベニア州でさらに27万平方フィートのリース契約が完了し、7月以降の総リース実績は87万4,000平方フィートに達しました。年初からの実績は12物件で約130万平方フィートに達し、ポートフォリオ全体の15%に相当します。

同社はさらに44万6,000平方フィートを対象とする合意も締結しています。これには、コロラド州の3物件における7万2,000平方フィートと、以前4フロント・ベンチャーズに賃貸されていた3物件における37万4,000平方フィートが含まれます。これらの取引は引き続きデューデリジェンス、ライセンス取得、および規制当局の承認が条件となっています。

資本配分と手元流動性

四半期末後、IIPRは9.25%シリーズB優先株の公募増資を完了し、5,400万ドルの手取総額を計上しました。この資金は、エールワイフ・パークに対する残りのコミットメントの全部または一部の資金調達、および全般的な企業目的に充当される予定です。

同社はまた、8,750万ドルの回転信用供与枠を90日間延長し、2027年1月までとしました。経営陣は、ライフサイエンス分野への多様化により貸し手の関心が高まり、資金調達手段が拡大したと述べています。

リスクと注目点

• 未払い賃料の回収は第3四半期業績に1株当たり0.15ドルの寄与となりました。経営陣は、ファーマキャン、パラレル、およびバトル・グリーンに関連するいくつかの利益は一過性のものであると指摘しました。
• 決算発表で言及された5社のテナントのうち4社において、保証金が全額使い果たされました。ザ・キャナビスト・カンパニーに関連する一部の物件については、限定的ながら保証金が残っています。
• 現在の空室面積は80万平方フィートをやや上回っており、その約3分の2はフロリダ州にある旧パラレルの2物件に関連しています。
• 経営陣は、新しいテナントの確保からリースの開始、ライセンスの移転、規制当局の承認に至るプロセスには、過去の実績から6〜18か月を要すると述べました。
• 追加の44万6,000平方フィートのリース・パイプラインは条件付きであり、経営陣は合意が正式なリース契約に至る保証はないと警告しました。
• 連邦レベルでの大麻の分類変更の時期と結果は依然として不透明であり、さらなる行政審査の対象となっています。

アナリスト質疑応答の要点

• 再リースのタイムライン：経営陣は、空室となった大麻関連物件の再テナント化には通常6〜18か月を要すると述べました。フロリダ州の2物件については引き続き自信を示しており、年初来の再リース費用は仲介手数料、テナント内装工事費、貸主工事費を含めて1平方フィート当たり10ドル未満に収まっています。
• リース・モメンタムの持続可能性：過去最高のリース実績は、複数の取引が同一四半期に完了したことと、事業拡大を目指す事業者の関心が高まったことの両方を反映しています。経営陣はフロリダ州の物件を主要なリース推進対象として提示しました。
• AFFOの持続性：経営陣は業績見通し（ガイダンス）を提供しませんでした。エールワイフへの投資からの収入寄与は数日分にとどまり第4四半期により大きな影響が見込まれる一方で、第3四半期には一過性の賃料回収が含まれていたことを強調しました。
• IQHQエクスポージャーの更なる拡大：IIPRは別の貸し手からエールワイフのメザニンローンにおける追加の1億5,500万ドルの持分を取得する可能性があります。経営陣は、この判断は利用可能な資金と、その取引がその時点で最善の資金配分となるかどうかに依存すると述べました。
• ライフサイエンスへの集中度：取締役会はIQHQによるその他の優良な案件に対しても前向きな姿勢を維持していますが、経営陣はより広範なライフサイエンス産業全体への分散も意図しています。
• 優先株による資金調達の柔軟性：新しいシリーズB優先株はATM（At-The-Market）プログラムを通じて発行可能であり、永久資本の新たな潜在的調達手段となります。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Hello, everyone. Thank you for joining us, and welcome to the Innovative Industrial Properties, Inc. Q3 2026 Earnings Call. [Operator Instructions]

I will now hand the conference over to Eli Kanter, Director of Finance.

Eli Kanter

Thank you for joining the call. Presenting today are Alan Gold, Executive Chairman; Paul Smithers, President and Chief Executive Officer; David Smith, Chief Financial Officer; and Ben Regin, Chief Investment Officer.

Before we begin, I'd like to remind everyone that some of the statements made during today's conference call, including statements regarding potential lease transactions that are subject of letters of intent, are forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995 and subject to risks and uncertainties. Actual results may differ materially, and we refer you to our SEC filings, specifically our most recent reports on Forms 10-K and 10-Q. For a full discussion of risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, we are not obligated to update or revise any forward-looking statements, whether due to new information, future events or otherwise, except as required by law.

In addition, on today's call, we will discuss certain non-GAAP financial information such as FFO, normalized FFO, AFFO and adjusted EBITDA. You can find this information together with reconciliations to the most directly comparable GAAP financial measures, which is available on the Investor Relations section of our website at www.innovativeindustrialproperties.com, in our earnings release issued yesterday as well as in our 8-K filed with the SEC.

I'll now hand the call over to Alan.

Alan Gold

Thanks, Eli. Good morning, everyone, and thank you for joining our third quarter 2026 earnings call. The third quarter marked another period of significant execution for us, highlighted by the continued expansion of our life science investments, strong leasing activity across our existing portfolio, significant growth in our AFFO per share versus the second quarter and disciplined capital allocation.

Most notably, in September, we entered into a $245 million mezzanine loan commitment as a member of a lender syndicate to IQHQ for Alewife Park, a premier life science campus in Cambridge, Massachusetts, one of the country's leading life science markets. This highly accretive investment builds on our existing relationship with IQHQ and is expected to generate an average interest rate of approximately 15.8% over the term of the loan. Together with our original $270 million commitment to IQHQ and an additional $30 million investment through the preferred equity structure in September, we have now committed approximately $545 million to life sciences. Upon full funding, our life science investments are projected to account for approximately 26% of our total annualized income. We believe the current market environment continues to present compelling opportunities to deploy capital into the life science sector at attractive entry points. Our recent investments reflect both our confidence in the sector's long-term fundamentals and our disciplined approach to expanding our platform. At the same time, our team delivered strong leasing results across our cannabis portfolio. During the quarter, we executed new leases at 6 properties, totaling approximately 604,000 square feet, followed by an additional 270,000 square foot lease subsequent to quarter end. Together, these transactions represent approximately 874,000 square feet of gross leasing activity since the beginning of the third quarter, bringing our total gross leasing activity year-to-date to approximately 1.3 million square feet across 12 properties or 15% of our total portfolio.

Importantly, we continue to see strong interest across our portfolio, reinforcing our confidence in the underlying value of our real estate with an active pipeline of additional transactions. We remain focused on building upon this momentum, driving occupancy and positioning the portfolio for strong long-term performance. We delivered strong quarterly earnings as well with AFFO per share up 7% sequentially to $1.96 per share as we had continued recoveries of past due rents from certain tenants.

On the capital front and subsequent to quarter end, we completed a $54 million public offering of our 9.25% Series B preferred stock. We intend to use the net proceeds to fund all or a portion of our remaining commitment under our Alewife Park mezzanine loan commitment and for general corporate purposes. This transaction further demonstrates our ability to access the capital markets to fund attractive accretive investments and support the continued growth and diversification of our platform. Taken together, we believe these accomplishments underscore our strong management team and ability to deploy capital into accretive investments while actively managing and maximizing the value of our existing portfolio. We believe the combination of our growing life science investments, leasing momentum and financial flexibility positions us for future growth and long-term shareholder value creation.

With that, I'll turn the call over to Paul. Paul?

Paul Smithers

Thanks, Alan. At the federal level, cannabis reform continued to advance. Over the summer, the DEA completed its hearing on the proposed rescheduling of marijuana more broadly from Schedule I to Schedule III. While the proceedings remain subject to further administrative review and the timing and outcome of any final decision remains uncertain, we believe federal reform has the potential to provide meaningful benefits to operators, including improved economics and broader access to traditional sources of capital. We have also seen encouraging investment and M&A activity across the cannabis industry with established operators pursuing expansion in attractive markets, including Pennsylvania, Ohio, New York and Colorado. We believe this activity signals that well-capitalized operators remain committed to strategic growth and are actively investing in markets with strong long-term fundamentals. While financial challenges persist for certain operators, we continue to take decisive action across our portfolio. During the quarter, we regained possession of properties previously leased to Parallel, PharmaCann and The Cannabist Company. These transitions allow us to pursue leasing opportunities, strengthen our tenant base and improve overall portfolio performance.

Turning to the state level. Florida recently approved 22 additional vertically integrated medical cannabis licenses, representing a meaningful expansion of one of the country's largest medical cannabis markets. We believe the addition of new operators creates opportunities for further investment and expansion in the state, including demand for mission-critical real estate. More broadly, regulated cannabis markets continue to reach significant milestones. Massachusetts surpassed $10 billion in cumulative adult-use cannabis sales in September, while California has generated nearly $8.4 billion in cannabis tax revenue since 2018. These achievements underscore the scale and economic significance of established cannabis markets even as operators continue to navigate a challenging environment.

With that, I'll turn the call over to Ben to provide additional details on our portfolio activities.

Ben Regin

Thanks, Paul. Starting with our investment activity, we expanded our life science portfolio this quarter, closing on $275 million in new commitments. We invested an additional $30 million in IQHQ preferred equity and closed on a $245 million mezzanine loan commitment for Alewife Park, our premier life science campus in Cambridge, Massachusetts. Alewife Park is a 27-acre campus comprised of 3 existing buildings totaling 392,000 square feet and 2 pad-ready sites with up to 364,000 square feet of additional development potential. The existing buildings are 78% leased to Lila Sciences, an AI-enabled scientific discovery company. In addition to the approximately $800 million invested in the campus prior to our investment, we believe the quality of the real estate, established tenancy and location within one of the country's leading life science markets provide a strong foundation for accretive investment. Under the terms of our commitment, we funded approximately $111 million at closing, with the remaining $134 million expected to be funded through the fourth quarter of 2027. The loan is expected to generate an average interest rate of approximately 15.8% over the term. The financing will support the completion, tenant improvements, lease-up and stabilization of the campus. We believe the current environment continues to present attractive entry points in life science real estate, specifically for high-quality assets in the core life science markets of Boston, San Diego and the Bay Area. According to JLL, these 3 markets, along with Raleigh-Durham, have seen combined demand increased 44% year-over-year to nearly 8 million square feet in Q1 2026, driven by improved biotech funding conditions and biomanufacturing reshoring. Against this backdrop, we are actively growing our acquisition pipeline, seeing opportunities to invest in high-quality assets in these core markets at attractive risk-adjusted returns.

Turning to leasing. We had our most active quarter to-date with substantial activity across multiple properties and markets. During the third quarter, we executed new leases totaling 604,000 square feet across 6 properties located in California, Massachusetts, New York, Ohio and Washington. That momentum continued into the fourth quarter with an additional 270,000 square foot lease for a property located in Pennsylvania, bringing total leasing activity since July to 874,000 square feet. Beyond these completed transactions, we have a pipeline of additional transactions we believe are progressing toward execution. We have agreements in place covering 3 properties in Colorado, totaling 72,000 square feet, subject to the license transfer and regulatory approval process as well as agreements across 3 properties previously leased to 4Front Ventures totaling another 374,000 square feet. In total, these agreements cover an additional 446,000 square feet beyond the leases already executed. These agreements remain subject to customary due diligence, including licensing and regulatory approvals, and there can be no assurance that these discussions or negotiations will result in executed leases.

With that, I'll turn the call over to David.

David Smith

Thank you, Ben. For the third quarter, we generated total revenues of $64.9 million compared to $63.3 million in the second quarter. Our results benefited from new leases executed across our portfolio and recoveries of past due rents primarily from Battle Green and 4Front, which added $0.15 per share to our results this quarter as detailed in our press release yesterday.

Adjusted funds from operations, or AFFO, for the quarter totaled $54.8 million or $1.96 per diluted share compared to $53 million or $1.83 per diluted share in the prior quarter, driven by the previously mentioned items. We also continue to benefit from our investments in the life science sector. During the quarter, we recognized $10.4 million of interest and dividend income related to our financial investments in IQHQ, contributing to total interest and other income of $14.3 million for the quarter. Our third quarter results only had a few days of benefit from our recent Alewife investment, and we will have a larger beneficial impact on our fourth quarter results.

Turning to capital markets. Subsequent to quarter end, we priced an underwritten public offering of 2.2 million (sic) [ 2.0 million ] shares of our 9.25% Series B preferred stock at $25 per share, representing $54 million in gross proceeds of attractively priced perpetual capital. The proceeds from this offering are intended to support our previously announced mezzanine loan investment in the life science sector while providing additional flexibility to pursue future investment opportunities. We believe this transaction further demonstrates our ability to access multiple sources of capital to support the continued diversification and growth of our platform. Also subsequent to quarter end, we executed a 90-day extension of our existing $87.5 million revolving credit facility, extending its maturity till January of 2027. This extension provides us with additional flexibility to continue to evaluate our financing alternatives and manage our capital structure as we are seeing increased lender interest as a result of our continued diversification into the life science industry. Furthermore, as part of our diversification efforts, we are continuing to obtain increased research coverage and are pleased to welcome Stifel Nicolaus and Huntington Capital Markets to our equity research coverage, bringing the total number of firms covering IIP to 8. We appreciate the continued interest in our company and look forward to engaging with the broader investment community as we execute on our strategy.

Our balance sheet remains strong, supported by $142 million in total liquidity at quarter end, which does not include our recent $50 million preferred raise that further bolstered our total liquidity. We ended the quarter with net-debt-to-adjusted EBITDA of 2.1x, one of the lowest in the REIT industry and net-debt to total gross assets at a strong 19%. We continue to remain focused on maintaining a conservative capital structure and strong liquidity position while selectively pursuing attractive investment opportunities that support our long-term growth.

With that, operator, could you please open the call for questions?

Operator

[Operator Instructions] Your first question is from the line of Aaron Grey with Alliance Global Partners.

質疑応答

Aaron Grey

So first question for me, just regarding some of the facilities that you've taken back possession of. I appreciate the color in terms of the timing for the 4Front properties. But as we think about some of the other properties, PharmaCann, Parallel and [ The Cannabist ] that you have possession of in August and September, how best to think about timing of when you can get those getting re-leased and rent revenue from those?

David Smith

Ben, do you want to take that?

Ben Regin

Yes. Aaron, no problem. Yes. I mean, I think historically, we've seen that can be anywhere from 6 to 18 months between sourcing a new tenant, lease commencement, license transfer, the regulatory process. I think we feel very good about our position and those assets in particular. Of the current vacancy, about 2/3 of that is our 2 Florida assets leased to Parallel or previously leased to Parallel. -- and the Florida market has been performing very well this year. They set a new sales record in July, and we really like where that market is going and feel that those assets are well positioned for future leasing activity as well as, again, we'd like to highlight the capital-efficient nature in which we've been able to retenant these assets. For year-to-date, you're well below $10 a foot, all in for commissions, TIs, landlord work, really everything to retenant these assets.

Aaron Grey

Okay. Great. I appreciate that color. Second question for me. I know last quarter, we talked about diversification split between cannabis and life sciences. But wanted to dive more now in terms of diversification within the life sciences sector specifically and how you think about further opportunities within life sciences and having some diversification versus concentration with existing IQHQ and affiliates?

Alan Gold

Yes. I mean I think that we -- as we started the process of diversification, we've, I think, executed well. We've focused our efforts to date with investments into IQHQ, which we think are investments that are well secured by the positions in which we are in at IQHQ. We believe that, that has given us a very good window into what's going on in the life science industry. And we believe that our diversification will continue and that there are unique opportunities, not only within IQHQ, but within the broader life science industry that we are certainly exploring and look forward to exploring those opportunities in the future.

Operator

Your next question is from the line of Bill Kirk with ROTH Capital Partners.

William Kirk

I guess to start, there's still -- there's a chunk of AFFO that's still coming from defaulted properties, whether it's security deposits or payments that are continuing. So I guess the simple question is, would you expect quarterly AFFO to remain above that $1.90 payout?

Alan Gold

David, why don't you take that?

David Smith

Yes. I think, Bill, as you know, obviously, we had a very strong quarter. I mean AFFO was up 7% sequentially, drove our payout ratio down to 97% for this quarter. So very happy with our results there. In terms of the go forward, obviously, we don't give guidance. I think we have done a, a great job historically of recovering these past due rent payments that are owed to us. And again, that benefited this quarter. I think as you're noting, there were a number of benefits this quarter as we detailed in our press release that will be nonrecurring, including PharmaCann, Parallel and Battle Green benefit as well.

William Kirk

And maybe that segues into a follow-up there. For the Battle Green, there was a change in control there, right, with Vireo. So what should we expect from that one going forward? We can see the payments in the third quarter. But what do those payments maybe look like going forward from those assets?

Ben Regin

Bill, it's Ben. Yes, I mean, we typically don't disclose lease terms on new leases. I mean we really viewed that as we had a defaulted tenant and we were very aggressive in enforcing our rights under the lease and received interest from a new group that wanted to execute a lease for that asset before we were even able to wrap up that legal process. So I thought that was -- really spoke to the quality of the real estate and getting another tenant in there so quickly, and we're very pleased to have Vireo in there and up and running.

William Kirk

I'm going to sneak one last one in. Could you give us a little more detail on the -- I think it was 16 terminated leases. It looks to me like a mix of retail and cultivation. So I guess what type of properties were they? Was it concentrated to a particular tenant or a particular market? And then I'll pass it along.

Ben Regin

Yes. No problem. Yes. So of those, vast majority from a square footage perspective is going to be the cultivation assets. Almost half of that is the 2 Florida assets that we recovered from Parallel. You also had a couple from PharmaCann as well as Battle Green and 4Front. I think it's also important to note that there's a number of those that we already have new leases executed. So that Battle Green example we just talked about, there was a lease that we signed in New York that was the termination of getting PharmaCann out and bringing a new tenant in there. And then the 4Front asset in Washington, where, again, we have a new tenant in there up and running and paying rent already. So again, very pleased with the execution on those.

Operator

Your next question is from the line of Tom Catherwood with BTIG.

William Catherwood

Maybe circling back on Aaron's leasing question. Your Q3 leasing activity was a record. Was the increase more a result of deals that you've been working on for a long time, all reaching a conclusion at once? Or has customer activity accelerated? And if it's the latter, kind of what's driving the change? And how sustainable do you think that demand is?

Ben Regin

Yes. Tom, it's Ben. I think it's a combination of those. I mean real estate transactions are obviously chunky in nature. So we had a number of those all come together in the same quarter. I think we are still pleased with the velocity we've seen in the re-tenanting. And I think that there's some optimism and some increased M&A activity that we've seen and the groups that are out there that are getting back on offense in some of these states where they want to expand and they see the value in the real estate that we have. Going forward, the remaining vacancy currently is a little over 800,000 square feet, and the vast -- 2/3 of that is our 2 Parallel assets in Florida. So that will be our focus. Like we mentioned before, we feel very good about the Florida market setting a new monthly sales record here in July and 20% year-over-year increase in sales in the Florida market. They just issued some new licenses. We feel we're very well positioned with those 2 assets.

William Catherwood

Great. Appreciate that, Ben. And then maybe last one for me, going over to the IQHQ investment and kind of thinking specifically about the preferreds. When you first looked at the original investment with IQHQ and the milestones that would have been associated with the Series G funding, the draws the company would have made, how has the performance compared to your initial underwriting or expectations? And is the incremental $30 million that you put in this quarter tied to better execution or higher costs?

Alan Gold

So I think the -- as we described in the prepared remarks, the life science industry continues to improve. And that -- so that -- and I think IQHQ is benefiting from that increase, including having a stronger -- having more leasing activity, particularly at Alewife, getting it up to 78% and perhaps additional demand there emerging. So we see -- and we see their success in their Redwood City Elco Yards property and even some new leasing activity emerging in the San Diego market. So we're -- they are performing. That's number one. And number two is the additional capital investment was an opportunity that we had that we took advantage of. They had good news, capital needs, and we had capital available that we believe was very well priced and very accretive to IIPR.

Operator

Your next question is from the line of Rob Stevenson with Huntington.

Robert Stevenson

David, I guess to ask the revenue question a little differently. Are there any additional security deposits beyond the $3.8 million you did in the third quarter that you could pull down in the fourth quarter for those tenants that are currently not paying or where the lease is in transition, but not yet commenced, et cetera? Or are you tapped out of the security deposits for those tenants that you listed in the earnings release at this point?

David Smith

Yes, sure. Rob, 4 of the 5 tenants, those are all fully exhausted. We do still have a handful of properties with the cannabis company where we do still have some security deposits on hand.

Robert Stevenson

Okay. That's helpful. And then, Alan, how should we be thinking about the likelihood that you'll acquire the incremental $155 million of the IQHQ mezz loan and sort of what dictates that in your mind?

Alan Gold

Well, not acquire. They will draw on that additional $155 million as they continue to build out the improvements in the -- for the Lila lease. And so we believe that, that will get drawn over time, barring any changes.

Robert Stevenson

So that's in addition to the $134 million that's yet to be drawn? So it's actually $289 million of incremental draw for you guys on that, right? Because it was $245 million with $111 million at closing, and there was $134 million left on that $245 million, and then you had the option to acquire the $155 million from another lender on the same terms.

Alan Gold

I see. I see. I'm sorry, I didn't understand that. Okay. Go ahead. All right. So the opportunity for us to acquire that additional, I think that that's a possibility. It's part of our agreement. It's what we are looking to do. We have to have the available capital available to us to be able to make that determination. And if we determine that, that's the best allocation of capital when that opportunity surfaces, we will certainly look at that. It would be a very accretive transaction should it occur.

Robert Stevenson

Okay. And then I guess just the last one to sort of follow up on that. How is the Board thinking about sort of [ max ] investment in IQHQ at this point as that continues to ratchet up? I mean, are you getting to the point where if you did pull down that extra $155 million that, that would be it? Or is there still the Board thinking that there's still room for incremental investment there?

Alan Gold

I mean if you think about the opportunity, we believe the assets that IQHQ has are of high quality, which is why we made an additional investment in the Alewife transaction. That is just one example of a very high-quality asset that has a tremendous amount of leasing already in place and additional leasing activity. So if there are other opportunities, I think the Board would look, certainly would consider it. We don't think that the -- that our investments are really just investments in IQHQ, but tangentially also investments in the life science industry and are a vehicle for us to diversify from our portfolio, from just the cannabis focus that we had. This diversification that we are doing has increased our access to new lenders and new capital sources. So it's proven to be what the Board had thought it would be, which is a very good move for the company and to give us greater access to capital. And I think that will probably -- if there are other opportunities, we will probably continue to do that given that our diversification desire is higher than where we are sitting right today.

Robert Stevenson

Okay. And then -- I lied, one last one, David. With the new preferred issuance, do you have the opportunity to open that up via an ATM and issue incrementally there? Or is that needed to come back if you wanted to issue additional on that series that you have to do a fully marketed offering?

David Smith

No, we do have the ability to do the ATM on that new Series B. So I think as you're alluding to, we had that capability in our Series A. We had very strong demand and success of raising perpetual capital for that Series A this year. And as you know, the Series B has that ability as well.

Operator

There are no further questions at this time. I will now turn the call back to Alan Gold for closing remarks.

Alan Gold

Thank you. And first of all, I'd like to thank all of those who have joined on the call today and for the very good questions. I'd like to thank our team for their very hard work in this past quarter. And we certainly look forward to the opportunities for IIPR in the future. With that, thank you all, and we'll end the call.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.