Zoned Properties, Inc. announced an amendment to the lease agreement with its significant tenant related to its cultivation facility located in Chino Valley, Arizona. Over $8 Million of capital has been invested by the company's significant tenant at the Chino Valley Cultivation Facility. The company's significant tenant will maintain the master rights to the property and facilities through the remainder of the lease agreement.

Zoned Properties has provided the company's significant tenant with an initial tenant improvement allowance of $500,000 to advance the project toward the next phase of expansion. In exchange for this initial tenant improvement allowance, the base rent rate under the lease agreement will increase from $0.82 per square foot monthly to $0.90 per square foot monthly. Effective March 1st, 2022, operational square footage will increase from 67,312 square feet to 97,312 square feet, and the new base rental payments at the facility will increase 59% from $55,195 per month to $87,580 per month reflecting both the increase in operational square footage and the increase to the base rent rate.

The final completion of this phase of expansion represents a year-over-year annualized base rental revenue increase from $393,600 to $1,050,970, reflecting a 167% increase for the property. The Chino Valley Cultivation Facility also includes an approved master plan for additional future expansion that is construction ready. If completed in its entirety, the additional square footage of operational and rentable building space would increase another 60,000 square feet for a total of 157,312 square feet of operational and rentable space at the facility.

This would equate to an annualized base rental revenue of $1,698,970 plus additional rental payments under the triple-net lease, reflecting an additional 62% increase.