REIT Innovative Industrial falls after tenants default on rent

Piper Sandler Companies

31/03/2025 11:40

** Innovative Industrial Properties IIPR.N falls 4.9% to $58.80 premarket

** REIT operator for cannabis facilities says four of its tenants have defaulted on rent payments amid tough cannabis market conditions

** Innovative Industrial to seek more financially viable long-term tenants as replacements

** Company also declares a default related to a $16.1 million loan in the form of a promissory note issued to IIPR by the purchaser of four properties previously leased to Medical Investor Holdings

** Piper Sandler trims PT on REIT to $55 from $60

** "Given the storm clouds are darkening for the cannabis industry and IIPR isn't receiving any credit for its 12% yield, we think reducing the payout is prudent" - Piper Sandler

** Innovative Industrial has slumped nearly 40% in value over past 12 months

(Reporting by Medha Singh)

((medha.singh@thomsonreuters.com))