REIT Innovative Industrial falls after brokerages downgrade rating

Innovative Industrial Properties

23/12/2024 13:42

** Shares of cannabis REIT Innovative Industrial Properties
 IIPR.N  down 2.3% at $72 premarket
    ** Brokerages Piper Sandler, BTIG and Alliance Global
Partners downgrade rating on stock
    ** IIPR on Friday disclosed that cannabis company
PharmaCann, its largest tenant, defaulted rent on 11 properties
in December
    ** Piper Sandler downgrades to "underweight" from "neutral",
says Q4 won't be impacted due to security deposits but defaults
display need for consolidation in industry; lowers PT to $70
from $118
    ** BTIG downgrades to "neutral" from "buy", says the
defaults raise concerns over the health of U.S. cannabis
industry
    ** Alliance Global Partners downgrades to "neutral" from
"buy", sees company saying it will enforce its rights
"aggressively" as an indication of taking a strong stance
    ** Brokerage notes uncertainty around company's smaller
tenants in difficult markets, sees too much uncertainty on
stock; lowers PT to $75 from $130
    ** One of eight brokerages rate the stock "buy", six "hold"
and one "sell"; median PT is $78 - data compiled by LSEG
    ** Up to last close, stock down 27% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))