Analyst Summary
- PharmaCann defaulted on March rent payments for nine of eleven leases with Innovative Industrial Properties (IIP), impacting properties in New York, Illinois, Pennsylvania, Ohio, and Colorado.
- The defaulted rent totals $2.7 million, including base rent, property management fees, and estimated tax and insurance payments.
- The leases with PharmaCann represented 17% of IIP’s total rental revenues for the year ended December 31, 2024.
- Monthly base rent of $1.3 million for two leases in Michigan and Massachusetts was previously abated in full effective February 1, 2025, per lease amendments.
- IIP is in discussions with PharmaCann and intends to aggressively enforce its rights under the leases, potentially including eviction proceedings.
- The report contains forward-looking statements regarding rent collection, occupancy, and enforcement of rights under the leases, which are subject to risks and uncertainties.