Terms

Series

9.00% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

9%

Rate Type

Fixed

Annual Dividend

$2.25

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

February 26, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations, Any Other Class Or Series Of Capital Stock Expressly Designated As Ranking Senior To The Series A Preferred Stock (None Currently Exist); Pari Passu With: Any Future Class Or Series Of Capital Stock Expressly Designated As Ranking On Parity With The Series A Preferred Stock (None Currently Exist); Senior To: All Classes Or Series Of Common Stock, Any Other Class Or Series Of Capital Stock Expressly Designated As Ranking Junior To The Series A Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

Innovative Industrial Properties, Inc. is a REIT offering 9.00% Series A Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference. The preferred stock pays a fixed annual dividend of $2.25 per share ($0.5625 per quarter) on a 360-day year, payable quarterly in arrears on January 15, April 15, July 15, and October 15. The issuer may redeem these shares at any time at $25.00 per share plus accrued unpaid dividends, with 30–60 days' notice. The dividend is cumulative, meaning unpaid amounts accrue and must be paid in full before any distributions can be made to common stockholders or junior preferred shares. The Series A Preferred Stock ranks senior to all common stock and any future junior preferred securities, but junior to all debt obligations of the company and any future senior preferred stock (none currently exist). As a holding company REIT, structural subordination exists to the extent that debt obligations of the Operating Partnership must be satisfied first. The company has no regulatory capital call or Tier 1 capital-loss redemption provision; redemption is entirely at the issuer's discretion. A Change of Control/Delisting provision allows holders to convert into common stock upon a 50%-plus acquisition followed by delisting from major U.S. exchanges—a feature that could deter some takeover attempts. At the $25.00 par price, the effective yield is 9.00% ($2.25 per share annually). Dividends are cumulative and do not qualify for the preferential 15%/20% long-term capital gains rate (QDI) or the corporate dividend-received deduction (DRD), as they are REIT dividends taxed as ordinary income. Record dates are set by the board 10–35 days before each payment date. A dividend stopper restricts the company from paying or declaring dividends on common stock or junior preferred stock, or repurchasing such shares, unless all cumulative unpaid Series A Preferred dividends are current or set aside in full—a structural protection for preferred holders.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full cumulative dividends on the Series A Preferred Stock are not paid or set aside, the company cannot declare, pay, or set apart dividends on common stock or junior preferred stock, and cannot redeem, repurchase, or acquire common stock or junior preferred stock (subject to limited exceptions for REIT-qualification purchases and stock dividends/exchanges into junior stock).

Other Preferreds from Innovative Industrial Properties Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 60 (Average)