Innovative Industrial Properties Inc. (NYSE: IIPR) entered into a $20 million term loan agreement with A.G.P./Alliance Global Partners on May 22, 2026, according to company filings.

The loan carries a 10% annual interest rate with monthly compounding, increasing to 18% during any default period. The facility matures on October 9, 2026, with weekly interest and principal payments beginning May 29, 2026.

The company plans to use proceeds for general corporate purposes, including repayment of its 5.50% Senior Notes due May 2026. IIPR paid a 1% setup fee on the loan amount.

As collateral, the lender received a security interest in proceeds from IIPR's at-the-market equity offering program and related rights under an existing equity distribution agreement dated May 13, 2025. The company must deposit all sales proceeds from the equity program into a segregated account controlled by the lender.

The agreement includes mandatory prepayment requirements for significant asset sales and events that could adversely affect the company's financial position or market access. IIPR may voluntarily prepay the loan without penalty.

During any default period, the lender gains control over the segregated account and can execute an escrowed placement notice to effect equity sales under the existing program. The lender also receives attorney-in-fact powers that terminate upon full loan repayment.

The loan agreement contains standard operational and financial covenants, including restrictions on additional debt, liens, and modifications to the at-the-market equity program. The company cannot use other equity offering programs while obligations remain outstanding.

Events of default include payment failures, covenant breaches, bankruptcy events, and non-compliance with operating and capital markets requirements specified in the agreement.