Innovative Industrial Properties’ IIPR stock plunged 13.85% on Friday.
The San Diego-based cannabis company was trading at $95.88 per share around noon. The price continued to hover around there on the heels of a report in which IIPR's Delaware-based subsidiary, IIP-CA 2 LP, claimed that tenant Kings Garden Inc. failed to pay base rent and property management fees for the month of July under each of the leases for a total of six properties owned by IIP-CA 2 LP.
According to a company filing, Kings Garden needs to pay a total of $2.2 million.
With its next earnings release approaching, let’s take a look at IIPR’s recent moves.
- Year-to-date, shares of the cannabis real estate investment trust (REIT) had lost 61%.
- In February, IIPR raised $300 million through a public offering of IIP Operating Partnership LP’s senior notes due 2027.
- Shortly after, the company purchased a New Jersey property for $35.4 million. A subsidiary of Ascend Wellness Holdings Inc. AAWH AAWH agreed to a long-term lease.
- IIPR wrapped up February by revealing revenue growth of 59% year-over-year to $58.9 million in the fourth quarter of fiscal 2021. In addition, earnings per share rose from $0.91 to $1.14.
- In mid-March, the company declared a first quarter 2022 dividend of $1.75 per share of common stock, representing a roughly 17% improvement over its fourth quarter 2021 dividend of $1.50 per share of common stock, and an approximately 33% increase year-over-year.
In weeks after announcing the pricing of an underwritten public offering of 1.58 million shares of its common stock at $190 per share for gross proceeds of approximately $300 million in April, IIPR’s stock lost 40% of its value.
Acquisition Streak Continues, Strong Quarterly Results
Meanwhile, the company continues its acquisition streak with a $25 million acquisition of a Maryland property comprising approximately 84,000 square feet of industrial and greenhouse space.
IIPR also bought a property comprising approximately 104,000 square feet of industrial space in Taunton, Massachusetts for which it paid $40 million.
Concurrent with the closing of the Massachusetts purchase, IIPR entered into a long-term, triple-net lease agreement for the property with a subsidiary of TILT Holdings Inc. TILT TLLTF.
After delivering another round of strong financial results in the first quarter of fiscal 2022, with $64.5 million in revenue, the company announced that it closed on a deal for a property in Texas worth $12 million and entered into a long-term lease with a subsidiary of Texas Original Holdings, LLC.
IIPR wrapped up June by expanding the real estate partnership with Green Thumb Industries Inc. GTBIF, providing it with an additional $55 million in reimbursement for the recently completed development of a 152,000-square-foot industrial building for cultivation and processing.
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