Innovative Industrial Properties (IIP), a provider of real estate capital for the medical cannabis industry, saw its stock stumble after reporting a tenant default.
In an SEC filing, the company said last week a tenant defaulted on its obligations to pay base rent and property management fees for the month of July and defaulted on its obligations to reimburse the company for certain insurance premiums at the properties incurred by IIP.
The company said the tenant’s monetary default under all of the leases was approximately $2.2 million in the aggregate, consisting of approximately $1.8 million of base rent and property management fees for the month of July and approximately $382,000 of insurance premiums.
IIP said it is continuing discussions with the tenant regarding the leases, and has commenced discussions with other operators regarding potential re-leasing of certain properties.
The news caused IIP stock, which trades on the New York Stock Exchange under the ticker symbol "IIPR," to plummet Friday. As of Monday, the stock was at about $92, down from $111.21 at market close on Thursday.