A timeline of the developments regarding the Audrain and Callaway Community Hospitals’ suspension of services.
The Bank has reported Rs. 32.0 billion Profit After Tax (PAT) for the year ended 31 December 2022 despite of many headwinds caused by the never experienced economic and operational environment prevailed during the year.
Fund Based Income
Despite of never experienced economic and operating environmental challenges prevailed, the net interest income grew by 13.6% to Rs. 126.3 billion contributing 71% to total operating income. The increase in interest rates in line with the upsurge in policy rates and materializing the volume growth resulted 61% growth in interest from loans and advances which denotes 68% of total interest income. Interest income from investments boomed up YoY to Rs. 146.0 billion and the major portion of it derived through Treasury Bills and Bonds.
The upsurge in deposit rates increased the cost of funding, YoY interest expense hiked by 121% and as considerable portion of FDs are reprised by now, during the latter part of this year interest expense moved up by nearly threefold than previous year.
Non- Fund Based Income
As rupee depreciation is around 81% for the period, net exchange gains derived through trading activities and currency conversion represents considerable portion in non-fund based income amounting to Rs. 32.9 billion. Similarly, net fee and commission income also contributed Rs. 16.4 billion with 15% growth as business operations are now normalized and increased number of retail transactions and trade financing activities caused in improvement in related fee income.
As conducive environment was not prevailed in the Share market activities during the year the mark to market losses of Rs. 804.4 million was resulted from equity and unit trust portfolio. However, through trading of equity and Government security the Bank was able to gain Rs. 861.3 million.
Impairment Charges for Loans and Advances and Other Financial Instruments
From January 2022 onwards, impairment provision for loans and advances and investment were provided in compliance with CBSL Directions No.13 and 14 of 2021 on Classification, Recognition and Measurement of Credit Facilities and Financial Assets. Thus, the impairment provision for loans and advances and financial investments were calculated to capture the expected losses associated with the customers or the investment instruments based on the possible consequences in current economic conditions, sector specific risk factors, new policy reforms, present negotiations in foreign and local debt settlements by the Government.
Management overlays were applied to identify the risk elevated industries which results the significant increase in credit risk due to spillover of economic turmoil prevailing the country and exposures to those industries were assessed as underperforming to account for life time credit loss on prudent basis. Further, the Economic Factor Adjustment (EFA) which is used in calculating the expected losses for collectively assessed portfolios were enhanced by capturing the stressed economic condition prevailed at present. Nevertheless, the Individually Significant Customers (ISL customers) were also assessed critically given the high degree of uncertainty and extraordinary circumstances in the short-term and mid-term economic conditions mainly caused by the continuous disruptions to businesses and prudent level of ISL impairment provision were made. (BOC)
AUDRAIN COUNTY – The Audrain County Commission, Audrain County Health Department and the city of Mexico are beginning to look for a consultant to analyze the county’s health care market.
The county faces uncertainty after the closure of the Audrain Community Hospital in March of 2022 when Noble Health suspended all its services at the hospitals in Audrain and Callaway counties.
The consulting firm that is selected will also be conducting a financial feasibility study.
“We’re trying to determine what is financially feasible based on multiple models of health care delivery,” Craig Brace, Audrain County Health Department CEO and administrator, said. “That’s what type of facility, what type of service, what’s the scope and size of what would be financially feasible.”
To select the consulting firm, the city has put out a Requests for Qualifications (RFQs).
“We’re looking for a firm that has the qualifications to perform a comprehensive health care assessment,” Audrain County presiding commissioner Alan Winders said. “They need to be familiar with health care, they need to be familiar with the county, they need to be familiar with reimbursement rates, familiar with Missouri and familiar with rural health care. They need that expertise to determine what is possible and what is sustainable in Audrain County.”
Winders said the county has had a number of health care providers show interest.
“We want the data from this assessment to be available to all of those that are considering making these kinds of investments, to help guide their investment decisions,” Winders said. “And to make sure that we get as much quality health care for the citizens of Audrain County that we can have and that we can sustain.”
Winders doesn’t currently know how much the assessment will cost the county, but says this information will be well worth the dollars.
“It will cost some money, but if that money helps guide an appropriate amount of investment in health care in the community, then it will be money well spent,” Winders said.
The county hopes to receive a good amount of interest, and at least a couple consulting firms to send in their qualifications so the best one can be selected for the job.
“Residents recognize that health care and the right level of health care in the community and in the county is essential,” Brace said. “We want entities to have this data so that they can’t make data-driven decisions so that we can meet the healthcare needs of Audrain County and surrounding areas.”
The RFQ submission deadline is March 9.
Since 2020, the Covid-19 pandemic has had a marked affect on consumer behavior, especially when it comes to outdoor recreation.
After lockdowns kept people indoors for much of the spring and summer in 2020, Americans got outside in droves, with almost 7 million people participating in some kind of outdoor activity, from skiing and snowshoeing to hiking and fishing.
But with March being the second-highest revenue-generating month of the ski season after December, the early closures of resorts in spring 2020 had a devastating effect on the industry.
According to figures from the National Ski Areas Association (NSAA), 93% of ski areas ceased operations early due to the pandemic; as a result, the industry suffered an estimated loss of $2 billion due to the loss of income from not only skiing and snowboarding but also summer conferences, weddings and other large-scale events.
In 2021, however, a confluence of factors led to a surge in growth on the retail sector of the industry, which continued into 2022 and is projected to continue in 2023.
The market size of the sporting goods retail industry (which includes sporting equipment, firearms and hunting equipment, athletic apparel and athletic footwear) measured by revenue is $67.8 billion in 2023, per recent figures from IBISWorld. (It’s important to note IBISWorld figures take into account retail store sales only, excluding online sales.)
The industry has grown 6.7% per year on average in the U.S. between 2018 and 2023, with a marked jump from 2020 to 2021. In fact, the sporting goods industry in the U.S. has increased faster than the economy overall.
Matt Eby, CEO of private equity firm Seawall Capital, attributes the marked rise in outdoor activity participation to numerous pandemic-driven behaviors. Seawall Capital aquired Kent Outoors, a collection of outdoor brands including BOTE and Kona Bicycles, in 2020.
“People had extra time because they weren’t commuting anymore; the work-from-home environment enabled them to pick up new activities that became hobbies,” Eby said. “Hobbies become habits and habits become part of your lifestyle.”
While there’s the potential that “some of those folks fall away,” Eby says, “Covid created some permanent changes in our society, and some of that change is around expectations of work-life balance.”
As Eby notes, when people pick up a new activity, be it mountain biking or snowboarding, most don’t immediately purchase the highest-level equipment and jump right to the most difficult trails.
Someone might buy a fairly simple bike or snowboard set-up and then, over time, upgrade their gear as their ability improves. They progress up the product pyramid, a long buying and replenishment cycle at the base consumer level.
The product pyramid differs by price point and, therefore, the engagement level of the consumer. The top end of the pyramid represents the “hyper-enthusiast,” Eby says, and many of the brands Kent Outdoors represents fall at or just below that level.
“It’s a true lifestyle for them,” Eby said. “You talk about costs—and there’s definitely been cost inflation, nobody’s denying that—but once you’ve already decided you are a mountain biker and you’ve got a brand that you prefer, let’s hope it’s Kona, you have a high willingness to spend for that product, because that product enables to you engage in the lifestyle and activity that you love. It’s very meaningful to you.”
In that way, Eby feels that brands that fall at the mid-top of the product pyramid are fairly insulated from recession or inflation effects. For the consumers who have made their outdoor activity of choice a lifestyle—even those who may have only picked up an activity during the pandemic—they’ve made a “fundamental behavioral” choice to invest in that activity. The spending sacrifices may come in other areas, like vacations or going out to dinner.
Which activities have seen the most growth? Golf equipment, camping gear and snowsports equipment were especially strong categories.
Though it doesn’t fall within outdoor recreation, climbing equipment is one sector of the sporting goods industry overall that has seen tremendous growth after taking a devastating hit during the pandemic. Between March 2020 and June 2021, the U.S. fitness industry as a whole lost $29.2 billion in revenue.
Now, according to a market outlook report from February, the climbing gear market is growing at a compound annual growth rate (CAGR ) of 9.5% during 2021-26. Climbing has appeared to have such particularly strong growth in part because gyms were closed for so long due to the pandemic, so when they reopened, climbers were quick to stock up on gear like shoes and chalk bags.
Climbing equipment has been a “particular strength across the portfolio and categories we track,” Eby said. “Members are now coming back really strong, but because the gyms were closed for a long period of time, you’re seeing rapid increases.”
Snowsports increased 11.7% from 2020 to 2021 and 27.2% on a two-year basis to $683.6 million. Touring (also referred to as uphill skiing or skinning) in particular has become a major driver of outdoor recreation.
In Winter 2020, the Snowsports Industries America (SIA) participation report noted a spike in backcountry/AT (alpine touring) participation of 57%. The 2021–22 NSAA end-of-season survey reported that 62% of U.S. ski areas are currently allow uphill access—a 30% increase from 2012-23, the first year the survey polled resorts on uphill access.
The increase in touring interest has caused brands like Black Crows to adapt their product offerings accordingly.
“It has been something we are looking at and developing products for,” said Tristan Droppert, Black Crows North American Marketing Manager. “Our touring product is unique and has been well-received because it is well-balanced and is designed to perform well on both the uphill and the downhill.”
These changes in product offerings, which are a result of increased interest, also ripple throughout the rest of the industry. Ski areas like Colorado’s Copper Mountain and Aspen Snowmass have actively worked to strengthen their touring offerings, and many are actively adding new terrain to their mountain footprint.
Many ski areas have begun offering either an armband program or an added cost uphill pass amounting to $50-70 for a season, and some include it free with a season pass. Would-be uphillers can also rent this equipment at some resorts.
In the outdoor industry, “innovation is paramount” to get consumers to continue buying product, Eby says. “The best brands in outdoors are the brands that are product-first: build an amazing product that delivers on what the brand promises, delivers performance…but it also has to be new, exciting or innovative.”
What about the folks who are thinking of taking up climbing or skiing (or starting their children in a new activity), but don’t want to buy all the expensive gear until they’re sure it will stick? Rentals are a “relatively small piece of the pie today overall,” Eby says, but if brands and the reailers they work with are smart about how they do them, it can be another avenue for growth.
Action sports icons Travis Rice (freeride snowboarding) and Cam Zink (freeride mountain biking) saw an opportunity for a new initiative in the recreation space. Their idea birthed online gear marketplace SENDY, which allows users to buy, sell and rent outdoor gear anywhere in North America.
Not only does the platform connect adventure-seekers who share a love of the activites, but it reduces the amount of products that find their way into landfills every year and enables people to try out a new activity without a major financial commitment.
SENDY’s early focus is on categories including cycling, hiking and camping, mountain biking, skateboarding, snowboarding, skiing, surfing, climbing, fishing, motocross, paddling, running and wakeboarding.
Because we’ve seen a period of such rapid growth in the outdoor equipment space, it may necessarily appear to slow down soon. But Eby forecasts a powerful force that will kickstart the space once again in the coming decade.
“The Millennial generation has been talked about so much because it’s such a big generation and they’ve entered those prime years where they’re starting to have kids,” Eby, who has two school-aged children, said. “People spend a lot of money on their kids in the outdoors; one of the biggest gifts you can give to your kids is a love of the outdoors, so that is going to be a powerful consumer economic force over the next five to ten years.”
Zink specifically mentioned youth participation in outdoor activites as a selling point for SENDY, as well.
“I reap the benefits for my own kids—with how many sports they do and how fast they grow, we can find more curated, higher-quality gear at the same price or less as they grow,” Zink told me.
With the significant increase in interest in outdoor recreational equipment since the pandemic began, there is a very real chance a lot of this gear ends up in landfills as children grow out of their gear or people give up their newfound pursuits altogether.
Thankfully, this industry growth has dovetailed with consumer demand for sustainability. More than ever, consumers in the outdoor space are also looking for the brands they support to be involved in environmental action.
Responsibility and sustainability are key, but the messaging must be authentic. “You can’t just slap a sticker on a product that says ‘carbon neutral,’” Eby said. “Consumers will see through that.”
As a result, brands like Burton Snowboards and Patagonia recently announced their plans to become carbon neutral across their business by 2025.
If consumers support retailers who have pledged to manufacture sustainably and take advantage of services like SENDY to recycle and reuse old gear rather than trash it, the outdoor spaces that house the activities people have newly fallen in love with since mid-2020 will continue to exist for generations to come to enjoy.
Astroscale’s End-of-Life Services by Astroscale-demonstration (ELSA-d) spacecraft. (Astroscale)
WASHINGTON — A sizable investment of $25 million by Japanese mega-corporation Mitsubishi Electric — plus a planned partnership to support Japanese national security satellite development — will help firm Astroscale scale up its space junk cleanup and on-orbit servicing operations.
“We are on a mission to make on-orbit servicing routine by 2030, and these funds will significantly contribute to further innovative technology development, global expansion and increased capacity to meet the growing demand,” Astroscale founder and CEO Nobu Okada said in a Feb. 27 announcement of a “series G” fundraising round from new investors, totaling $76 million.
Astroscale’s new partnership with Mitsubishi is aimed at “the joint development and manufacturing of sustainably designed satellite buses for Japanese national security constellations,” according to a Feb. 27 joint announcement.
Under the deal, the two firms will build satellite buses “equipped with an Astroscale docking plate, similar to a car tow hook, with a standardized interface. This allows other spacecraft to dock with and move or remove satellites if they are unable to deorbit themselves at the end of their operational lives,” the announcement added.
The investment could also go towards building international growth. On the eve of the 2023 Australian International Airshow & Aerospace and Defence Exposition, a company spokesperson told Breaking Defense that itsplans hopefully will include building a customer base in Australia.
“We are talking to potential partners in Australia and are excited to see their space industry continue to grow,” the spokesperson said.
One of the five “lines of effort” identified by the Australian government’s newish Space Strategy states Australia must “Evolve the Defence Space Enterprise to ensure a coherent, efficient and effective use of the space domain.” On-orbit servicing — such as satellite refueling and repair — is increasingly being eyed by a number of governments world wide as a potential method to increase efficiency and maintain the sustainability of ever-more crowded orbits for the future.
Astroscale currently has operations in Japan, the United Kingdom, Israel, Singapore and has a US subsidiary headquartered in Denver. Astroscale US last November signed a Cooperative Research and Development Agreement (CRADA) with Air Force Research Laboratory to explore the potential for commercial capabilities to help the lab get “rendezvous, proximity and docking” operations technologies into the hands of Space Force Guardians.
The latest cash inflow for the Japanese startup brings the firm’s total funding up to approximately US $376 million since its establishment in 2013, according to the company’s announcement.
On February 10, 2023, through interviews, investigators with the Oxford Police Department discovered that Tresa Grant, 52, of Harmontown, Mississippi, had broken into storage units in the 2500 block of Jeff Davis Extended in January.
Grant was arrested and charged with Commercial Burglary. Grant was taken before a Lafayette County Justice Court judge for her initial bond hearing and issued a $10,000 bond.
The Oxford Police Department would like to thank the Desoto County Sheriff’s Department for locating Grant.
About the Author
Oxford Police Department The Oxford Police Department is housed 715 Molly Barr Road. The department has more than 70 full-time officers and staff and provides a wide range of protection and enforcement services.
The Police Department has a community-oriented policing philosophy and provides around-the-clock patrols. Other services include crime prevention programs, such as Neighborhood Watch and D.A.R.E., as well as specialized units including Mounted Patrol, K-9 Unit, DUI Enforcement and the City Dispatch.
Crime Reports provided to The Local Voice come directly from the Oxford Police Department.
The COVID-19 pandemic has highlighted the importance of vaccines in controlling infectious disease in sub-Saharan Africa and renewed interest in vaccine research and development across the continent.
Yet at the moment, Africa produces just one per cent of its routine vaccines.
“Africa has to build that capacity to produce vaccines,” Ebere Okere, senior technical advisor at the Tony Blair Institute for global change and honorary senior public health advisor of the Africa Centres for Disease Control and Prevention, tells SciDev.Net.
This insufficient capacity to produce vaccines leaves the region dependent on imports for its vaccine needs, and makes it vulnerable to a vaccine crisis during health emergencies.
The COVID-19 pandemic served to ignite conversations between world leaders, researchers and scientists, covering everything from research and innovation to vaccine manufacturing and even the politics of vaccine production.
Yet in November 2022, leaders from Africa and Europe found themselves at loggerheads during a meeting in Brussels, Belgium, over how Africa could begin to develop and manufacture life-saving vaccines.
At the heart of the argument lay lucrative intellectual property rights. The EU had offered to help Africa build vaccine manufacturing plants, but refused to waive intellectual property rights that would give Africans the right to duplicate vaccines and speed up vaccine production.
Immoral
On their side, African leaders argued that in a third year of pandemic, it was immoral to withhold intellectual property rights, when it meant people in Africa had unequal access to life-saving COVID-19 vaccines.
“We are talking about the lives of millions rather than the profitability of a few companies,” South African president Cyril Ramaphosa told a news conference at the time.
While the leaders failed to agree at the February 2022 summit, some concessions were made.
Ursula von der Leyen, president of the European Commission – the EU’s executive arm – said the bloc would be open to more conversations around the waiver, to be led by Ngozi Okonjo-Iweala, the Nigerian director-general of the World Trade Organization.
Vaccine hubs
These talks led to the creation of vaccine manufacturing hubs in Senegal, South Africa, Rwanda, Algeria and Nigeria – most of which are not functional yet.
The hubs are expected to employ the breakthrough vaccine technology behind Pfizer and Moderna’s highly successful COVID-19 jabs, known as messenger RNA (mRNA), to replicate existing vaccines and drive research into the production of new ones. The technology could be aimed at diseases such as tuberculosis, malaria and AIDS.
Yet South Africa’s Ramaphosa has insisted that until there is a removal of “intellectual property barriers”, the “full operationalization of the mRNA hub” will be hampered.
In November last year, Gavi, the 23-year-old vaccine alliance which brings public and private sectors player to create equal access to vaccines for children, pointed out in a report that Africa only produced 0.1 per cent of global vaccines, despite being home to 17 per cent of the world’s population and 58 per cent of vaccine-preventable disease-related deaths in children under five years old.
2040
In April 2021, the African Union Commission and the Africa Centres for Disease Control, made a commitment to develop a framework to reach 60 per cent local manufacturing of Africa’s routine vaccine needs by 2040.
“We are too reliant on a global system that just didn’t actually put us first, for the supply of most of the technology we need for our health system,” Okere tells SciDev.Net.
“So the work that is being developed now … will not only solve the problem of the current pandemic, but will set the foundation for us to have more resilience in our system.”
She says Africa must find a way to engage and convince richer countries and the pharmaceutical industry to access IP waivers
As Ramaphosa suggested in Brussels, at the heart of the politics of vaccine research and production is profits.
Simply put, money over lives. “We are talking about the lives of hundreds of millions of people, rather than the profitability of a few companies,” Ramaphosa said as he asked that Africa be supported to build a sustainable path to vaccine manufacturing.
One solution, according to Deborah King, vaccines research lead at Wellcome, is advance purchase agreements, where governments agree to buy a specific number of jabs ahead of them being produced.
This could be, King argues, a way to get necessary funding to produce vaccines on the continent, while also ensuring profitability for the manufacturers.
Consulting group BCG in a research note on ramping up vaccine manufacturing in Africa also recommends advance purchase agreements.
It adds that African manufacturers should focus on vaccines with “high supply constraints” and “low manufacturing complexity” such as such as the vaccines for rotavirus and meningitis.
“While there is no panacea for the challenges that African vaccine manufacturers face, an extensive vaccine-manufacturing ecosystem is imperative,” the consultancy adds.
“It will improve vaccine-supply security, help to better tackle endemic diseases, and contribute to global pandemic preparedness while also boosting the continent’s socioeconomic development.”
This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.
This article was supported by Global Health Strategies (GHS), an organization which uses advocacy, communications and policy analysis to improve health and wellbeing around the world.
For commercial produce growers, keeping produce free of microbial contamination and reducing foodborne illness is critical to the health and success of their business. To support these efforts, the University of Arkansas System Division of Agriculture will offer a one-day, in-person produce safety training workshop for fruit and vegetable growers.
The all-day training session will take place on March 16 at the Craighead County Extension Office in Jonesboro.
Gaby Sanders, extension food safety program associate for the Division of Agriculture, said the training will provide information on worker health, hygiene and training, soil amendments, wildlife, domesticated animals and land use, agricultural water and postharvest handling and sanitation. The training will also help participants develop a farm food safety plan.
“With the increased need for fresh produce in our communities, it is more important now than ever that good agricultural practices are implemented at every stage of planting, growing and harvesting,” Sanders said.
Sanders said participant engagement and attendance will be monitored at the training. Participants are only eligible for a PSA/AFDO certificate of course completion if they are “present and engaged for all modules of the course.”
Amanda Philyaw Perez, extension associate professor of food systems and food safety specialist, said the training can “equip producers of all sizes, whether for direct to consumer or wholesale markets, with important information to ensure produce is grown safely to reduce the risks of foodborne illness and farm liability.”
Image source: The Motley Fool.
Innovative Industrial Properties (IIPR -4.98%)
Q4 2022 Earnings Call
Feb 28, 2023, 1:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day and welcome to the Innovative Industrial Properties, Inc. Q4 2022 earnings conference call. All participants will be in a listen-only mode. [Operator instructions] After today’s presentation, there will be an opportunity to ask questions.
[Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to Brian Wolfe, general counsel. Please go ahead, sir.
Brian Wolfe — General Counsel
Thank you for joining the call. Presenting today are Alan Gold, executive chairman; Paul Smithers, president and chief executive officer; Catherine Hastings, chief financial officer; and Ben Regin, chief investment officer. Before we begin, I’d like to remind everyone that statements made during today’s conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties, and other factors. Please refer to the documents filed by the company with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, on today’s call, we will discuss certain non-GAAP financial information, such as FFO, normalized FFO, and adjusted FFO. You can find this information, together with reconciliations to the most directly comparable GAAP financial measure, in our earnings release issued yesterday, as well as in our 8-K filed with the SEC. I’ll now hand the call over to Alan.
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Alan?
Alan Gold — Executive Chairman
Thank you, Brian, and welcome, everyone. Today, we are pleased to discuss our results for our seventh full year of operations and our recent activity. As reflected by our total revenue growth of over 35% over 2021, the company performed well in 2022, especially in the context of the significant macroeconomic headwinds experienced across industries and in the regulated cannabis industry in particular. That financial performance drove dividend growth per share of 24% over 2021, totaling $7.10 of dividends declared over the course of 2022.
We also closed on a new acquisition with TILT in Pennsylvania earlier this month, as well as lease amendments for additional real estate improvements at our properties in New Jersey and New York with Ascend, PharmaCann, and Goodness Growth. Ben will provide additional detail on those transactions, and on additional portfolio activity and statistics. As we enter 2023, we continue to see headwinds for the regulated cannabis industry, driven by a number of factors that Paul will touch on in detail. Price compression and restrictive capital markets environment and inflation on inputs and construction costs are driving many companies including larger MSOs to streamline their operations.
This is no doubt a challenging time for the industry we serve. We are steadfast in our belief of the long-term growth prospects and future of the regulated cannabis industry, with longer-term projections still for double-digit growth and certain Eastern states driving growth well in excess of that average with expected introduction of adult use programs in the near future. In fact, notwithstanding the many challenges faced by the cannabis industry in recent months, U.S. legal cannabis sales are projected to grow 14% in 2023.
As we noted in our January 2023 press release, certain tenants are experiencing difficulties and have defaulted on their obligations to pay rent. Paul will discuss the status of those situations. And we are here to answer any questions you have to the extent we can. That said, the vast majority of our tenant base continues to perform, and we expect that these near-term challenges will contribute to driving operators to be more and more efficient.
As with any industry, there will be ebbs and flows and I’m proud of the way our dedicated and experienced team has responded and managed through the challenges that our industry has faced in recent months. I will now turn the call over to Paul to discuss licensing and industry dynamics. Paul?
Paul Smithers — President and Chief Executive Officer
Thanks, Alan. Before I delve into our perspective on market dynamics, I’d like to touch on the properties where tenants have not paid rent. We’re, of course, first and foremost focused on maximizing the value of each of our properties, and having tenants with strong teams that can manage their businesses successfully through the inevitable ups and downs of this industry. We have engaged local counsel and other advisors in these situations, commenced legal proceedings for damages and possession, and are in discussions with applicable regulatory agencies.
We expect each process to be different in both duration and complexity, depending on the nature of the state licensing program, and rules and regulations governing the cannabis licensing, as well as the current and projected state market dynamics. In many states, releasing is a new concept for cannabis licensing authorities, with many programs launched only in recent years. With our veteran team internally, in combination with our advisors across a spectrum of specialties, we are confident in our ability to successfully navigate these situations. We have commenced litigation for recovery of damages and possession against Green Peak at our Summit property in Michigan.
We have also filed two actions against parallel for possession and damages at our Pennsylvania property, as well as an action at our Parallel Texas property, which is in the early stages of the development process. Parallel failed to pay rent on the Texas property for the first time in February, and we commenced an action against them as soon as they defaulted. Each of these situations is highly variable. But as we progress through releasing our properties, we will endeavor to share as much detail as we can.
Green Peak is current on their rent obligations at all other properties that we leased to them and Parallel is current on the two other properties we leased to them in Florida. As for Kings Garden, as we noted in our operational update press release in January, they continue to occupy and pay rented four properties and are exploring a potential merger transaction. Market developments. As we have discussed on past calls, we continue to see price compression on regulated cannabis products with that compression more pronounced in certain states, driven by basically supply/demand dynamics, the relatively uninhibited illicit market, challenging taxation at all levels of government and general macroeconomic conditions.
To give a sense of the magnitude of the change. According to cannabis benchmarks, the volume-weighted average spot price of cannabis in the U.S. for the last week of 2022 was $967 per pound, down nearly 30% from the same period in 2021. As an example of the illicit market issues, it was reported recently that as many as 1,400 shops are operating in New York City alone and illegally selling cannabis products, while only one was actually licensed and opened for adult use at the time the data was released in January.
I think this gives you a sense of the issues surrounding illicit sales and lack of meaningful enforcement and the priority that we believe state and local governments need to place on supporting the regulated cannabis industry with more reasonable taxation and regulation frameworks and by taking meaningful steps in tackling the illicit market. And this is certainly not a New York-specific issue, while the U.S. regulated cannabis market reached an estimated $26 billion in sales in 2021, New Frontier Data estimates the size of the U.S. illicit cannabis market in 2021 was approximately $70 billion, an order of magnitude nearly three times greater than the regulated market.
Capital availability. As we have been reporting for some time now, financial markets have turned restrictive, with the rapid tightening of monetary policy that really accelerated through the back half of last year. The impact of that restrictive environment has not dissipated in any way, especially as it pertains to capital availability for the regulated cannabis industry. Capital raising across the cannabis industry continues to be extremely challenged, with total capital raised in 2022 down over two-thirds compared to 2021 for U.S.
regulated cannabis operators, and the beginning of this year is showing little improvement with capital availability remaining at multiyear lows. Cannabis equity prices as measured by the leading cannabis ETF MSOS were also down over 85% as of year-end 2022 since their February 2021 peak. This dynamic is also evident in M&A activity with transaction volume for 2022 down over 70% versus 2021. As we noted on our prior calls as well, capital availability in the public REIT markets also diminished considerably in 2022 with the decline steepening through the back half of 2022.
U.S. reach raised $41.5 billion in debt and equity in 2022, compared to $133.6 billion in 2021, marking the lowest year since 2009 in the depths of the Great Recession. Inflation and supply chain issues: a continuing theme, as well as the impact of inflation on our operators’ input costs, as well as cost per development projects. While we are seeing some loosening of supply chain issues and some limited relief on pricing, we still see extraordinarily long lead times for certain key inputs in our development projects, in particular, electrical switchgear, which are causing significant delays in project completion.
Of course, these challenges have the effect of requiring the operator to put up more capital to complete the project and/or resulting in delays in revenue generation as projects take longer to complete. In combination with the current environment of limited capital availability, this continues to be a significant obstacle for certain operators. With all of these dynamics in play, cannabis operators across the spectrum have been focused on efficiencies, including rightsizing in certain areas with prevailing market conditions. This includes some of the larger operators who have announced consolidation or reduction in operations in certain states, including layoffs.
State programs. Shifting to adoption of state programs, we continue to see momentum in states that span the political spectrum. In November of last year, Maryland and Missouri both adopted adult use programs by popular vote. Meanwhile, adult-use legislation is progressing to the Minnesota legislature and there are expectations that Ohio, Oklahoma, and Pennsylvania could legalize adult-use cannabis this year.
In Florida, the Smart and Safe Florida organization supporting adoption of an adult-use cannabis program in the state collected sufficient signatures to trigger a review of the proposal by the Florida Supreme Court in anticipation of putting it forth via constitutional amendment for voters in November of next year. Federal legislation. In terms of long-awaited federal legislation, the cannabis industry continues to experience roadblocks in achieving any meaningful progress. The SAFE Banking Act, of course, was blocked again from both the annual defense spending bill and omnibus spending bill in recent months.
With the Congress now divided, with Republicans holding a slim majority in the House, and the Senate majority being Democrat, and with the factions squaring off within each party, we continue to see significant challenges in successfully bringing forth meaningful federal legislation addressing issues of the cannabis industry, even though there is bipartisan support on any of those issues. I’d like to now turn the call over to Ben to discuss our portfolio and investment activity for 2022 and year-to-date 2023. Ben?
Ben Regin — Vice President, Investments
Thanks, Paul. For this call, I’d like to cover certain characteristics of our property portfolio and tenant roster in addition to discussing our investment activity in 2022 and year to date. At year-end, we owned 110 properties across 19 states comprising 8.7 million rentable square feet. As noted on our prior calls of these 110 properties 108 properties are included in our operating portfolio.
No one tenant represents more than 14% of our total invested capital, and no state represents more than 16% of our total invested capital. Multistate operators make up 85% of our total portfolio, and 55% of our operating portfolio is leased to public company tenants. The total amount of capital invested and committed across our operating portfolio equates to $272 per square foot, which we believe remains significantly below replacement costs. To note these statistics do not include our additional investments this month, which I will discuss in some detail.
For fiscal year 2022, we have collected approximately 97% of contractually due base rent and property management fees from our operating portfolio. The Kings Garden defaults in July contributed to a large majority of that 3% of uncollected rent. And as we noted in our update press release issued in January, Vertical; Parallel; one of our properties in Pennsylvania; and Green Peak, one of our properties in Michigan, constituted the remaining balance of uncollected rents in 2022. To recap, for the full year 2022, we acquired nine properties and executed lease amendments to provide funding for improvements at 12 properties, representing a total investment commitment of about $394 million.
As you may know, we also executed on our first property disposition in Q4 of last year, selling a Pennsylvania property that we originally acquired in 2019 and leased to Maitri, a private single-state operator for $23.5 million, or approximately $461 per square foot, which is well above our operating portfolio average of $272 per square foot and above what we originally paid for the property including funded improvements. For this transaction, we recognized a gain on sale of approximately $3.6 million. We also then entered into an agreement to sell our properties previously leased to Vertical in Needles, California earlier this month with seller financing to a third-party that is taking over cannabis operations. This month, we closed on a sale leaseback transaction for a 58,000-square-foot fully operational cannabis facility with TILT in Pennsylvania for $15 million.
We acquired our first property with TILT in Massachusetts in May of last year. Concurrent with our closing of the Pennsylvania transaction this month, TILT refinanced or retired its legacy debt substantially reducing its overall leverage and extending out the maturity on its primary debt obligations to 2026. And last week, we committed an additional $34 million of capital for improvements at three projects, each of which resulted in a corresponding adjustment to base rent that starts immediately. Those include $15 million in additional funding for Ascend at its New Jersey facility, an additional $15 million for PharmaCann at its New York property, an additional $4 million to Goodness Growth at its New York property.
We also negotiated cross-default provisions on all leases for each of those three tenants. As Paul discussed, we initiated litigation proceedings against Parallel at the properties in Pennsylvania and in Texas, and against Green Peak at one of our properties in Michigan. The timing for resolution or releasing of those properties is uncertain, but we will keep you informed as much as we can as we progress. We had committed approximately $158 million to these three properties, which together represent approximately 7% of our total invested and committed capital.
However, Parallel’s Texas property has been under development and is yet to commence Vertical construction with only around $8 million funded to date, including the site acquisition, although they have been paying full rent on the full amount of committed capital to that project since October of 2021. Therefore, approximately $90 million that we previously committed to the Texas project, and approximately $12 million we previously committed to the Michigan project, has not been spent on those projects. In terms of expected additional investment activity, as always, forecasting investment activity in this industry is challenging. As we noted in our last few calls, we expect to continue to be opportunistic with our investments as we focus on the ability to raise capital in terms we determined to be reasonably favorable in light of the opportunities to place that capital.
With that, I’ll turn it over to Catherine. Catherine?
Catherine Hastings — Chief Financial Officer
Thank you, Ben. For 2022 we generated total revenues of $276 million, an increase of 35% over 2021. The increase was driven primarily by the acquisition and leasing of new properties, and additional real estate infrastructure allowances at our existing properties, totaling $394 million in 2022, as well as contractual rent escalations at certain properties, offset by the previously disclosed non-collection of rents primarily associated with the defaulted tenants. Rental revenues for 2022 also included $3.2 million of security deposits applied for payment of rent for leases with Kings Garden in California and Sozo in Michigan, which we previously disclosed.
Although we have the right to draw upon the security deposits that we hold for any of the defaulted properties, we have not yet done so for Parallel or Green Peak. As we detailed in our earnings press release issued yesterday, rent collection for our operating portfolio was 92% for the first two months of 2023, 94% for Q4 of 2022, and 97% for the full year of 2022. In 2022, we recorded net income attributable to common stockholders of $153 million or $5.52 per diluted share. Net income for the year was impacted by $3 million in litigation-related expenses incurred primarily related to Kings Garden and the shareholder lawsuit filed in 2022.
Consistent with Q3, we’ve added back this expense from our calculation of FFO to normalized FFO. Adjusted funds from operations for 2022, which adds back noncash stock-based compensation and noncash interest expense related to our unsecured senior notes to normalized FFO, was $234 million or $8.45 per diluted share. Of course, FFO, normalized FFO, and AFFO all exclude the $3.6 million gain on sale of one of our Pennsylvania properties in Q4, which was previously leased to Maitri. On January 13th, we paid our quarterly dividend of $1.80 per share to common stockholders of record as of December 30th.
The common stock dividends declared in 2022 totaled $7.10 per common share and represented an increase of $1.38 or 24% over dividends declared in 2021. Our board continues to target a dividend payout ratio of 75% to 85% of AFFO. For Q4, our payout ratio for the quarter was 85%. At year-end, we had approximately $2.6 billion in total gross assets, and a total of about 306 million in debt consisting solely of unsecured debt with no maturities this year, or next year, and 300 million of that debt not maturing until May of 2026.
Our debt to total gross assets ratio was 12% at quarter end, and our total fixed cash interest obligation was a little over $4 million per quarter. We’ve maintained investment grade credit rating and have a debt service coverage ratio of over 15 times. And with that, I’ll turn it back to Alan. Alan?
Alan Gold — Executive Chairman
Thanks, Catherine. I’d like to note the following in closing. We are steadfast believers in the long-term growth and success of the regulated cannabis industry. And as with any industry, there will be challenging times that will push industry participants to drive for further efficiency in their operations and strengthen their brands.
We believe our facilities are well-positioned to address those needs, with well-developed, highly controlled environments for production of distinguishing products that are the long-term driving force for brand recognition and the capacity to produce efficiency at scale. And with our experienced team of dedicated professionals and advisors, I’m confident in our ability to successfully navigate the inevitable ups and downs of this industry. As always, we thank you sincerely as long-term owners of our company and for your steadfast support throughout these years. With that, I’d like to open it up for questions.
Operator, can you please open the call up for questions?
Questions & Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator instructions] At this time, we will pass momentarily to assemble our roster. First question comes from Tom Catherwood with BTIG.
Please go ahead.
Tom Catherwood — BTIG — Analyst
Thank you. Good morning, everyone. Alan, appreciate your comments at the outset. And then Ben, you touched on it as well about the complexities of the legal and retenanting process for both Parallel and Green Peak and how that really differs by state.
Can you help us though, understand, maybe the litigation process a bit better? Does eviction come first and then there’s hearings on damages, or the task is intertwined, and therefore it could take even longer for you to potentially get the assets back under your control?
Alan Gold — Executive Chairman
Yeah, I think that’s a very complex question. And since it’s really complex, I’m going to turn it over to Paul because he can handle those.
Paul Smithers — President and Chief Executive Officer
Well, thank you, Alan. So, Tom, so I think you’re getting it. Typically, in jurisdictions when you file unlawful detainer possession, it gets priority. And so that’s what we’re seeing in the three jurisdictions where we have filed in Texas, Pennsylvania, and Michigan.
The possession cases will be heard sooner than the damages cases. And in each of those jurisdictions, they’re separate. So, we have filed in each of those jurisdictions for possession and we do have hearing dates coming up in the next two or three weeks in each of these jurisdictions for possession. So, we do anticipate that we will get a judgment in our favor for possession, and then we will execute immediately to get possession.
So, I want to stress that we have moved as quickly as possible. And we have retained local counsel who are experts in their jurisdictions and the local laws with regard to unlawful detainer eviction. So, we’re very pleased with the speed that we’re able to file these actions and we look forward to getting possession of the assets as soon as possible. Then following those possession cases, come the damages cases.
And those typically follow a more typical timeline and that’s probably 12 to 24 months before we get any resolution on those. So, again, we’re filing those with all due speed and obviously, we’ll keep you advised as those matters develop.
Alan Gold — Executive Chairman
And the company is using all its expertise and diligence to mitigate those damages through a variety of processes, including releasing, reselling, or selling any assets that we can.
Tom Catherwood — BTIG — Analyst
Appreciate it. Really, really helpful to understand that. And then maybe, Cat, along the same topic, you mentioned, not having to apply the security deposits from Parallel and Green Peak to the back rent. Are you restricted on that use or is there a different strategy and approach here?
Alan Gold — Executive Chairman
Again, I think this is a complicated question. And it really has to do with the litigation for possession. Is that right, Paul?
Paul Smithers — President and Chief Executive Officer
Yes. So, it is, and each jurisdiction differs somewhat. But you want to be careful, especially when you’re trying to get possession, you don’t want to complicate the case at all, because some judges will look for a reason not to grant eviction because some jurisdictions are slanted in favor of tenancy, but that’s why we’re being very cautious as to when we do reach the security deposits. But rest assured, the security deposits are 100% in our control.
So, when we feel and local counsel feels appropriate to tap those security deposits, we will.
Tom Catherwood — BTIG — Analyst
Got it. And then you’ve been adding cross-default provisions into your lease amendments over the last — or at least kind of been publicly saying that over the last few quarters. Can you provide some additional insight into how those provisions work and then maybe the portion of your leases that currently include them?
Alan Gold — Executive Chairman
I mean, I think they work well as though if — it’s very simple. If someone defaults on one lease, then they basically have defaulted on all their leases. And so, there’s no picking and choosing which project they may be struggling with. All their leases are at risk, putting the entire company at risk.
And so, when companies enter into those cross-default provisions, they do them very carefully, very consciously, and with a great deal of thought and negotiation. Right now, we believe that we have over 38% of our revenues are subject to cross-default provisions.
Tom Catherwood — BTIG — Analyst
Really helpful. Appreciate that, Alan. And then last one for me. Just going back through the fourth quarter, operating an investment recap that you put out in mid-January, looks like there were roughly $157 million of transactions under PSA or LOI.
So far, Ben, I think you have covered $49 million of transactions that have closed this year. Some of which seem to be kind of above and beyond that original $157 million if I’m reading it. How is your acquisition pipeline sizing up right now? And then what are your thoughts on funding that as we get through 2023?
Alan Gold — Executive Chairman
Go ahead, Ben.
Ben Regin — Vice President, Investments
Yeah. Talking about the pipeline in general obviously, there’s always ebbs and flows. But just as a general comment, there continues to be a tremendous amount of demand for capital in the industry overall. So, we feel that the pipeline is very healthy and we’re being very opportunistic, and thoughtful in our approach as to which of these transactions that we’re evaluating that we ultimately want to move forward with.
Tom Catherwood — BTIG — Analyst
Got it. That’s it for me. Thanks, everyone.
Alan Gold — Executive Chairman
Thanks, Tom.
Ben Regin — Vice President, Investments
Thanks, Tom.
Operator
The next question comes from Connor Mitchell with Piper Sandler. Please go ahead.
Connor Mitchell — Piper Sandler — Analyst
Hi. Thanks for taking my question. So first, obviously, there are a lot of moving pieces here with different tenants and properties, either defaulting or maybe becoming current again. So, would it be possible for you guys just to provide a brief update on the old back rent on situations such as Kings Garden or Sozo in the repayment of the security deposits?
Alan Gold — Executive Chairman
Well. First, we only have kind of like 28, 30 tenants. So, it’s not that complicated. Two, as to Sozo.
Sozo was granted a relief, and we used three months of security deposit. And so, we’ve used the security deposit they placed for that rent, so there’s no back rent owed from Sozo. They do owe — they are going to be required over the next the 12-month period of time to replace that security deposit, and we expect them to do just that. Back rent, I mean, the concept of back rent, I don’t understand, I guess the way you’re thinking about it.
And I’d like to understand the way you’re thinking about it better is I mean, because we’ve collected the rents, the rents that have been collected, those who haven’t collected, they’ve been in default. And then ones are in default are Kings Garden, Green Peak, and Parallel. And as we discussed, we’re pursuing those individual transactions. They represent a total of — what of our total revenue? Do we know? Do we have that? Let’s work on that.
And we’ll get back to you on that percent of our total revenue combined.
Connor Mitchell — Piper Sandler — Analyst
And then regarding Kings Garden, Parallel, they both defaulted on developments. So, I guess, is there any change in how you guys are approaching these investments or whether you’re becoming more cautious about new development investments? And at the same time, how you’re comparing that to the risk profile of funding incremental existing asset expansions and capex in that matter?
Alan Gold — Executive Chairman
Yeah. I mean, I think as we described our pipeline, we’re being opportunistic and cautious in evaluating every transaction. But our business is to provide capital for this industry. And thinking through the way this industry works, new state obtains the permission to go ahead and do medical cannabis, or even adult-use cannabis, that those products, those buildings, those facilities didn’t exist before.
So, there is an absolute need. And that is why we are in existence. And it is the opportunity for us to generate these, what we think are above-average returns for what we still believe is below average risk. And we still have five or six developments that are still being finished.
And they are proceeding very well and there — and we still believe that that is a good business line for us. And that’s how we were able to generate with less than or approximately 17% of our invested capital in 2022, a 35% year-over-year total revenue growth.
Connor Mitchell — Piper Sandler — Analyst
And then maybe just one more for me, regarding the definitive sale agreement for the Vertical product or property, excuse me. It seems are all in California, so I guess, just hoping you guys could give a little bit of insight as to how you’re viewing the California market nowadays compared to other markets. And whether there’s any insight you can provide as to the transaction process and the sale of the Vertical property? Whether it has to do with the previously disclosed defaulted, whether that had an impact?
Alan Gold — Executive Chairman
Well, certainly it had an impact, and it’s certainly we’ve been discussing and talking about Vertical for at least a year plus and we’ve been trying to figure out the best approach to deal with the Vertical transaction and try not to get any more committed to that transaction by providing more capital to it. And so, we’ve been working with the tenant on a variety of bases, including helping them find alternative capital, and they found alternative capital and alternative capital came in. It came in — it was needed, like the facility needed some additional capital to fix some of the things that the previous owner didn’t do probably in the best way. And the new capital, new investor, in order to put the capital in, wanted to own the asset as opposed to be in a long-term sale leaseback transaction.
So, in combination with all that, we came up with what we thought was a very creative way for us to continue to receive I think a very attractive yield on our capital. Allow this new investor to continue to invest in the property and make that a successful opportunity. And then should something untoward continue to happen in that market, we’ll have an asset that is — has additional investment that’s been put in, not by us, and a lower basis and ability to we think continue to recover our investors’ capital and a return on our investors’ capital.
Connor Mitchell — Piper Sandler — Analyst
OK. Very helpful. That’s all for me. Thank you.
Alan Gold — Executive Chairman
All right. And then, next one. OK. Next question, please.
Operator
Sure. The next question comes from Scott Fortune with ROTH Capital. Please go ahead.
Scott Fortune — ROTH Capital Partners — Analyst
Good morning and thanks for all the color. Just sticking on that note, kind of providing color on the tenants or potential buyers out there, they’re looking kind of to take over these California properties or potentially properties in Pennsylvania and Michigan. Kind of we take it that these are known, existing tenants that have followed balance sheets and looking to add production and take market share in these tough markets so they can. Just want to get a sense for the health, or what are you looking for the interest potential releasing or even buying assets? And if you want to get back into the strategy that looking at properties whether to sell out on these tougher markets or continue managing by releasing through [Inaudible]
Alan Gold — Executive Chairman
Well, I mean, I think that goes to the back half of the question, the last question, which is, what’s going on in the California market? California market still is difficult, Paul?
Paul Smithers — President and Chief Executive Officer
Yeah, so Scott, I know you know California well. It still remains a challenge. However, we are certainly aware of and have tenants in the portfolio that know how to navigate the California market. There is money to be made in the California market, if you know how to do it.
So, when we look at the global market in California, it looks — can look bleak, but we do have some positive signs. As you know there’s been some legislative reform in Sacramento with regards to taxation. There’s been more funding for enforcement of the illicit market. So those are all positives.
I mean we’ve also seen some stabilization of the spot market pricing. So, that’s all positive. But it’s still a very big black market in California just as it is in New York, Michigan, and Massachusetts. So, those are the challenges all these large markets do have to face.
But as I mentioned, it’s — if you know how to navigate those challenges, you could be very successful in each of these markets.
Alan Gold — Executive Chairman
And then as to — I think the question revolved around as an example, our Prez development asset that is subject to a letter of intent that — for a lease. And it is continuing to proceed, I think very well. We hope to have a final lease in the near future. And so, we’re very positive about that situation.
As to the other assets, certainly, the Texas asset is an asset that we don’t have control of — over and are going to be in the beginning process, but we do believe the land site is in a quality industrial location. I think it has an Amazon distribution facility nearby. So, there is value there. In addition to the fact that we’ve, I think we’ve collected — based on the structure of that transaction, where we committed over $27 million, but only have spent $8.7 million and have actually collected, what, around 81% of the asset value already in cash flow, not to mention the fact that we still have — if we get control of the asset, we will have the value of the asset to be able to further enhance the return to our shareholders.
We don’t have control over the assets in Michigan or in Pennsylvania. But we believe that there will be a variety of opportunities for us to deal with those assets. Anything else you want to add, Ben or Cat?
Ben Regin — Vice President, Investments
Yeah. Well, I would say, Scott, about your question about how do you get some of these MSOs interested in these challenged markets, we kind of look at it like it’s almost a monopoly board. And these are strategic acquisitions by some of these MSOs that may not have a presence in one of the states, they want a presence, and they’ll look at opportunities through M&A perhaps to get these. So, we’re certainly aware of which players out there are looking for assets in these particular jurisdictions.
So, it’s something we’re working on.
Scott Fortune — ROTH Capital Partners — Analyst
Appreciate all that color. That’s great. And then one last quick one for me. Without providing guidance, obviously, you guys have highlighted the challenges in the near-term macro environment and uncertainty in there.
You’ve gotten away from acquisition more opportunistically. You’re putting up — deploying capital, around $25 million, the last couple of quarters. It looks like $50 million this quarter to date, but fair to kind of project kind of a similar rate moving forward here near term? And just trying to get a sense for when we can see strong demand or what’s key to begin kind of the acquisition levels and kind of picking opportunities to start acquiring again, kind of what are you looking at for the rest into 2023 from those levels?
Alan Gold — Executive Chairman
Yeah. Well, first of all, it’s extremely unfair to put any sort of budget or any sort of commitment, given the fact that we’ve just spent a great deal of time describing how difficult to not only the industry is experiencing capital raising, but also the real estate industry and how interest rates have increased significantly, and our cost of capital has increased significantly. I think we’ve talked about a very strong pipeline, but a pipeline that is conditioned upon us having access to capital. And we’re exploring all sorts of avenues for capital.
We believe that there is secured debt capital out there. We could be looking at that. We could be looking at unsecured debt capital. We have some other unique opportunities that we’re looking at.
And as we move forward down the path of exploring that capital, we will match funds with acquisitions as we’ve done in the past. So, we aren’t going to give any guidance. We aren’t going to give any indication as to how much additional acquisitions that we’re going to do. This management team is highly focused on making sure that rents are collected, that we can recapture any value from transactions where we get the assets back and appropriately deploying capital when we think it makes the most sense.
Scott Fortune — ROTH Capital Partners — Analyst
Yeah. Understood. I’ll jump back in the queue. Thanks, Alan.
Alan Gold — Executive Chairman
Thank you.
Ben Regin — Vice President, Investments
Thanks, Scott.
Operator
Our next question comes from Eric Des Lauriers with Craig-Hallum Capital Group. Please go ahead.
Eric Des Lauriers — Craig-Hallum Capital Group — Analyst
Great. Thank you for taking my questions. So just kind of a high-level one for me. So, as we look out over the past year, it’s clear that price compression risk and regulatory risk have increased.
Looking at New York, I think it’s clear that a flip from medical to adult-use doesn’t always equate to outsized growth for the existing operators. I’m just wondering, on a high level, can you just talk about how these developments have influenced any changes to your capital allocation strategy. Or maybe it’s more any changes to your lease terms? You’ve got some more cross-default provisions in there, as we’ve mentioned? Could you just kind of talk high level, how these developments have influenced any changes to sort of which markets you’re looking at, what kind of operator, just any sort of high-level changes to help us understand sort of how you’re thinking, in response to some of these recent developments would be great? Thank you.
Alan Gold — Executive Chairman
No, I mean, I think the cross-default section is something that we are highly focused on. We haven’t changed, or the length of our leases, we’re still going down that process. We’re still very interested in new markets that have the ability to limit licenses. Even though that’s the case in New York, we can’t force the government to apply the law to everybody.
But we certainly hope that they get the message that it’s an important thing to do. We are being opportunistic, and we are focusing in on the best operators with the greatest amount of capital and certainly have become much, much more cautious with any new start-ups with hoping to grow into their space or grow into their development over time. So, I think that’s the best we can do. We do believe this industry continues to be a very exciting industry.
Even with all what we talked about, with all the cautionary tales, we are still looking at new states such as Oklahoma, Ohio, Minnesota maybe, Kentucky, New Hampshire, maybe even with Pennsylvania having an adult use– and there’s others that we can look at. So, there’s still a great opportunity for us in this industry over the long term. And even revenue — or total revenues for the industry, I think, we’re up 13% or 14% for 2022 and are expected to continue to grow in 2023 and beyond. And so, we are cautiously optimistic on 2023, but certainly very optimistic on the long-term aspects of this industry.
Eric Des Lauriers — Craig-Hallum Capital Group — Analyst
Appreciate that color. And then last one, for me is kind of a follow-up here. When you look at both cap rates, and the sort of annual step up, obviously, we do have pricing down in some markets like 50% year over year, I’m just wondering how you look at both of those, if you see any likelihood of those kinds of softening and perhaps the quarters ahead. If we don’t get any material rebound in prices, I’m just wondering, sort of how you are kind of weighing the sort of pros and cons of more attractive rates for you but putting more pressure on the tenants in a kind of challenging environment here.
Just wondering sort of how you feel about the cap rates and annual step-up, specifically. And, yeah, any comments, that would be great. Thanks.
Alan Gold — Executive Chairman
So just to remind everybody that we enter into sale leaseback transactions. So, we’re more focused on our yields. And our yields continued to be very, I think, accretive to our current cost of capital, which is still very high. And as long as we continue to have the ability to do accretive transactions, I think we are still looking at potentially deploying capital in the future if we can raise capital effectively and cost effectively.
That’s how we’re looking at it. We don’t have the business of buying from existing investors at whatever cap rate that they want. That’s not our business. We believe that cap rates for all real estate asset classes have increased with the U.S.
economy in general increase in rates and cost of capital.
Eric Des Lauriers — Craig-Hallum Capital Group — Analyst
OK. Appreciate the color. Thank you.
Alan Gold — Executive Chairman
Thanks, Eric.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to Alan Gold for any closing remarks.
Alan Gold — Executive Chairman
Thank you. And first, I want to thank the team for all their hard work. I mean, they’ve done a phenomenal job to get us to where we are today, and they still have tremendous challenges and work as we move forward throughout 2023. I also want to, again, thank our stakeholders, our shareholders for their continued support.
And with that, I like to end the call. Thank you, all.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Brian Wolfe — General Counsel
Alan Gold — Executive Chairman
Paul Smithers — President and Chief Executive Officer
Ben Regin — Vice President, Investments
Catherine Hastings — Chief Financial Officer
Tom Catherwood — BTIG — Analyst
Connor Mitchell — Piper Sandler — Analyst
Scott Fortune — ROTH Capital Partners — Analyst
Eric Des Lauriers — Craig-Hallum Capital Group — Analyst
Trepp released the Q4 2022 LifeComps Report which revealed that while there are signs of improvement for commercial mortgage performance, uncertainty remains around the Federal Reserve’s next moves.
NEW YORK, Feb. 28, 2023 /PRNewswire-PRWeb/ — Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets has released the fourth quarter 2022 returns report for its life insurance commercial mortgage index. Instantly download the report here: https://www.trepp.com/instantly-access-q4-2022-life-comps-report
The LifeComps total return index saw an annual rate of -10.1%, with appreciation return being the primary contributor at -14.3%. This is down from the third quarter of 2022 when the total return index was -4.07%. However, things might be looking up because some commercial mortgage loans bottomed out in the fourth quarter. Loans saw slight improvement overall in returns with a positive return of 1.9% in Q4 2022.
Market participants may be wondering if commercial mortgage performance is turning a corner. But as stated in Trepp’s report, performance is largely dependent on the Federal Reserve’s policy.
“In the fourth quarter, the market saw positive news of a possible economic “soft landing,” with strong signs from the labor market as well as indications of disinflation,” said Benqing Shen Director of Product Management at Trepp and report author. “However, if the Fed is more hawkish than people expected at the beginning of 2023, commercial mortgage returns may be negatively impacted.”
The LifeComps Commercial Mortgage Loan Index remains the only published benchmark for CRE mortgages based on actual performance data and cash flow collected from participating life insurance companies. Access our report to see the latest findings from this historic performance index: https://www.trepp.com/instantly-access-q4-2022-life-comps-report
For more information, contact Trepp at press@trepp.com or 212.754.1010. Visit http://www.Trepp.com for more information on LifeComps.
About LifeComps™
The LifeComps™ Commercial Mortgage Loan Index is the only published benchmark for the private commercial mortgage market based on actual mortgage loan cash flow and performance data which has been collected quarterly from participating life insurance companies since 1997. LifeComps provides a quantifiable investment performance index and serves as a benchmark for privately held commercial real estate mortgages.
About Trepp
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).
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SOURCE TREPP INC.
Leave it to Dillon Brooks to make an dramatic entrance ahead of the Memphis Grizzlies‘ game with the Los Angeles Lakers Tuesday night (6:30 p.m., TNT/Bally Sports Southeast).
Brooks arrived at FedExForum in style with a Stone Cold Steve Austin-inspired look. He wore a vest over his bare chest with shorts, an outfit that resembled a higher fashion version of the WWE wrestling legend. Brooks also wore Louis Vuitton glasses, his favorite postgame accessory, along with Louis Vuitton shoes and a Christian Dior belt.
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Brooks is known for his unique fashion sense but this one took the cake as the NBA’s official Twitter account shared it after the Grizzlies posted it. On “Inside the NBA” on TNT, Shaquille O’Neal joked if the Lakers don’t make the playoffs, he’ll wear Brooks’ outfit on the last show of the season.
With Austin being one of WWE’s most admirable characters, the fit means Brooks is extra ready to go in his “villain” mode as the Grizzlies’ fiery two-way standout. Unfortunately, LeBron James won’t play the role of Triple H or The Rock since the Lakers’ superstar forward is out with a foot injury.
But for a city that loves wrestling and basketball, Brooks took his persona to another level ahead of Tuesday’s nationally televised game