Shares of Innovative Industrial Properties Inc., a real-estate investment trust focused on the U.S. cannabis industry, fell after the company warned that three of its tenants were in default on some rent payments.
The stock fell more than 15% to $94.05 a share in morning trading. Shares are down about 53% over the past 12 months.
For the month ending Jan. 31, the company had collected 92% of the rent, down from 94% for the three months ended Dec. 31 and from 97% for the full year. The company called out a couple of tenants for missing payments.
As of Jan. 18, SH Parent Inc. was in default on rent payments at one of IIPR’s Pennsylvania properties and Green Peak Industries Inc. was in default on rent payments at one of IIPR’s Michigan properties, which is under construction. Rent was paid in full through the end of the month at all other IIPR properties leased by both tenants.
Medical Investor Holdings LLC were also in default on its rent payments at more than one of IIPR’s California properties.
The company said it has also amended leases at three properties to include cross-default provisions or to extend lease terms in exchange for limited base rent deferrals.
Additionally, IIPR said another tenant, Kings Garden, has said it is exploring a merger, and that it is still paying rent for the four IIPR properties that it leases in California.