Appendix

● IIPR is a publicly traded REIT focused on cannabis, and we are highly skeptical of the company and its management.

● We visited in person dozens of properties, interviewed neighbors, the county clerks, and reviewed related leases. Our findings are shocking: We believe IIPR has accumulated a highly toxic portfolio of low-quality assets.

● In our opinion IIPR either fails to do basic due diligence on its counterparts or is defrauding investors.

● Multiple key lessees are already insolvent or at a high risk of insolvency.

● Even worse, we suspect IIPR of arranging sham transactions to keep its biggest tenant solvent in the short term. We think this scheme has reached its breaking point since IIPR is drowning in unfunded commitments and its tenant ran out of properties to transact with IIPR.

● We have identified a pattern of massive overpayment to inflate the book value of the portfolio, bordering in our opinion on fraud. Our on the ground due diligence corroborates that property improvements can’t possibly justify the incredible markups IIPR paid.

● We estimate that about 38% to 49% of the company’s 2020 rental income is in direct jeopardy or already lost.

● Our cash flow analysis shows that IIPR has many characteristics of a pyramid scheme. We believe the ever-increasing dividend would have to be financed from capital raises or reduced substantially.

● IIPR shares many similarities with WeWork which too recently fell off: A real estate company with a flawed business model led by a young charismatic leader. Both companies are heavily dependent on outside financing. IIPR Executive Chairman Alan Gold is now pursuing new ventures, similar to WeWork’s Neumann.

● Our independent analysis concludes that IIPR’s value per share is even under optimistic assumptions no more than $22.29.

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