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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "authorName": "Grizzly Reports",
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  "presentationDate": "2020-04-09 00:00:00",
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      "text": "We simply do not see how IIPR buying warehouses and empty land for outrageous mark-ups creates low risk yields over 14%.",
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      "text": "Mr. Gold's role and importance in IIPR as Chairman and key drive since its inception\nIIPR is still a growth stage company requiring full attention of management and board",
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      "text": "IQHQ is by no means a small venture either. The company has already raised almost as much capital as IIPR's total raise to-date in a single private raise, namely $770M of equity capital.",
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      "text": "Executive Chairman Alan Gold has been arguably the key driver and brain behind IIPR since its inception. His resume and credibility have allowed the company to conduct multiple capital raises without any kind of track record.",
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      "text": "Alan Gold has recently started another venture called IQHQ - (Formerly Creative Science Properties). The company focused on life science office developments and Alan Gold is currently a Director and Executive Chairman. Given Alan Gold's profile and selected subsector of his new entity, we have reason to believe Alan's attention is stretched too far.",
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      "text": "We see many striking similarities between IIPR and WeWork. WeWork has recently made headlines through its failed IPO along with the departure of its CEO and founder Adam Neumann.",
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      "text": "Both businesses are flawed real estate models. WeWork had a run on the bank when it couldn't manage to access financing through a public offering. Similarly, we believe there is a high risk for IIPR to get into serious financial issues once investors realize the low quality of IIPR's assets and how dependent the company really is on equity raises.",
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      "text": "IQHQ is already taking on big projects with a $270M purchase of Fenway Office-Medical Property in Boston; This is larger than any other project that IIPR is involved with. The project includes a main 22-story high-rise building, a 12-story mid-rise building, and a shared use automated garage that will be accessible to both buildings. This seems to us far more sophisticated and financially/time/labor-consuming than any of IIPR's projects.",
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      "text": "WeWork and IIPR also have in common that they promise their investors a differentiated business model and high-quality assets. WeWork liked to present itself as a community and technology company. IIPR pretends to have found the holy grail of real estate yields by renting to cannabis operators. We simply do not see how IIPR buying warehouses and empty land for outrageous mark-ups creates low risk yields over 14%. The yield on investment might be initially high, but as we have shown in this report it is extremely risky and in a lot of cases the risks have already materialized (bankrupt tenants, empty land/construction way behind schedule, etc.).",
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      "text": "Both companies are led by a young dynamic/charismatic CEO/founder. While Neumann has already departed as CEO of WeWork Alan Gold is still maintaining his official roles with IIPR. However we can't help but feel that Alan Gold is looking to exit the company given his new extensive side ventures (we comment on this more in the section below).",
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      "text": "6.1 Is Alan Gold Exiting?",
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      "text": "6 The WeWork of Cannabis?",
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