This Cannabis REIT Expands Beyond Cannabis, Invests $105 Million In Life Science Platform

Innovative Industrial Properties, Inc. (NYSE: IIPR), a real estate investment trust known for funding cannabis facilities, has taken its first step outside the cannabis sector. The company announced on Wednesday that it has closed an initial $105 million investment in IQHQ, Inc., a life science real estate platform.

The deal includes a $100 million commitment to IQHQ’s revolving credit facility and an additional investment in IQHQ preferred stock. IIP’s initial investment was funded through cash on hand and draws from its revolving credit facility.

The company has pledged up to $165 million more in IQHQ preferred stock to be rolled out in stages between the fourth quarter of 2025 and the second quarter of 2027.

“This is our first investment outside of the cannabis industry, providing diversification to our current portfolio of over $2 billion of real estate,” Alan Gold, executive chairman of IIP, said. He added that the company sees strong long-term opportunities in the life sciences sector.

Simultaneously, IIP announced that it has secured a commitment from a federally regulated commercial bank for a new $100 million secured revolving credit facility.

The three-year facility will bear an interest rate of one-month SOFR plus 200 basis points (6.1% based on rates as of Sept.30, 2025) and will be backed by IIP’s IQHQ investment.

This facility is expected to close later this year, pending final documentation and conditions.

IIPR’s shares traded 2.04% higher at $56.38 per share at the time of writing on Thursday afternoon.