Innovative Industrial Properties Shares Fall 21% After Major Tenant Defaults

Dow Jones12-20 23:26

By Katherine Hamilton

Innovative Industrial Properties shares slid Thursday after the company said one of its tenants defaulted on its leases at 11 properties.

The stock lost almost a quarter of its value to $73.15 in recent trading, and is down 28% this year.

Innovative's tenant PharmaCann, which rents 11 properties owned by the company, defaulted on its obligations to pay rent in December in six of the leases, Innovative said. December rent in those six properties totaled $4.2 million.

PharmaCann paid December rent in full for its other five leases, which total $90,000, but it also defaulted on those leases as a result of the non-payment on the other six.

In total, PharmaCann's rent made up 17% of Innovative's total rental revenues in its third quarter, which ended Sept. 30.

Innovative said it applied security deposits to cover the full amount of the defaulted rent, in addition to late fees and interest. It is continuing discussions with PharmaCann and plans to enforce the leases aggressively, which may include eviction.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 20, 2024 10:26 ET (15:26 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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