Innovative Industrial Properties tumbles after tenant default

Innovative Industrial Properties

15/07/2022 16:14

** Innovative Industrial Properties Inc  IIPR.N  shares down
13.02% at $96.78; stock on track for biggest one-day pct drop
since Feb. 25, 2021
    ** IIPR disclosed in SEC filing https://www.sec.gov/ix?doc=/Archives/edgar/data/1677576/000110465922079917/tm2221054d1_8k.htm
 that tenant Kings Garden Inc defaulted on its obligations to
pay base rent and property management fees for the month of July
under each of its leases, and defaulted on its obligations to
reimburse the IIPR subsidiary for certain insurance premiums at
the properties incurred by as operating expenses 
    ** IIPR touched session low of $95.01, lowest in two years
    ** Among the 8 analysts that cover Innovative Industrial
Properties, the breakdown of recommendations are 7 "strong buy"
or "buy," 1 "hold" and no "sell" or "strong sell" ratings;
median analyst price target of $220 is down from $264 on April
15, per Refinitiv data 
    ** BTIG cut price target on IIPR to $248 from $290
    ** Ladenburg Thalmann analyst John Massocca, who has a
"neutral" rating on the stock, said in a note to clients, "While
this default is significant in its own right, as it should
result in a ~$6.5M reduction to quarterly rental revenue and
opex reimbursements until the default is resolved, it could also
be reflective of the impact of a tougher operating environment
for cannabis cultivators/retailers and therefore may have
implications for the health of other portions of IIPR’s
portfolio."
    ** IIPR shares down 63.1% YTD, vs decline of about 26.2% in
S&P small cap real estate index  .SPSMCR  







 (Reporting by Chuck Mikolajczak)
 ((charles.mikolajczak@tr.com; @ChuckMik;))