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.
Recent Moves
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.
Benzinga photo. Source: Image from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.