Common Stock Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2022

Restricted Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of the activity

A summary of the restricted stock activity under the 2016 Plan and related information for the six months ended June 30, 2022 is included in the table below:

		Weighted-
	Unvested	Average
	Restricted	Grant Date Fair
	Stock	Value
Balance at December 31, 2021	37,767	$	92.49
Granted	21,645	$	215.69
Vested	(16,064)	$	80.47
Forfeited(1)	(9,282)	$	56.94
Balance at March 31, 2022	34,066	$	186.12
Granted	2,811	$	128.11
Vested	(1,987)	$	181.27
Balance at June 30, 2022	34,890	$	181.72

(1) Shares that were forfeited to cover the employees’ tax withholding obligation upon vesting.

RSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of the activity

The following table summarizes our RSU activity for the six months ended June 30, 2022. RSUs are issued as part of the Innovative Industrial Properties, Inc. Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows a select group of management and our non-employee directors to defer receiving certain of their cash and equity-based compensation. RSUs are subject to vesting conditions of the Deferred Compensation Plan and have the same economic rights as shares of restricted stock under the 2016 Plan:

		Weighted-Average
	Restricted	Grant Date Fair
	Stock Units	Value
Balance at December 31, 2021	60,326	$	120.24
Granted	20,853	$	215.84
Balance at March 31, 2022	81,179	$	144.79
Granted	2,498	$	128.11
Balance at June 30, 2022	83,677	$	144.30

PSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of fair value assumptions

The grant date fair values of the PSUs granted in January 2021 and January 2022 were $12.0 million and $20.0 million, respectively. The fair values were calculated using a Monte Carlo simulation pricing model based on the following assumptions:

		2021 PSU Award		2022 PSU Award
	Fair Value Assumptions		Fair Value Assumptions
Valuation date		January 6, 2021		January 7, 2022
Fair value per share on valuation date		$169.51		$194.86
Expected term		3 years		3 years
Expected price volatility		57.64%		55.99%
Risk-free interest rate		0.20%		1.17%
Discount for post vesting restriction		12.44%		12.22%