Why Innovative Industrial Properties Stock Fell Today
A bad year for investors in Innovative Industrial Properties (NYSE: IIPR) took a turn for the worse on Friday after the marijuana real estate investment trust (REIT) disclosed the default of a major tenant. Shares of Innovative Industrial fell 13.9% in Friday trading as investors consider the fallout of that revenue going up in smoke.
It's been a tough year for the marijuana sector, and the companies that do business with the sector haven't performed much better. Innovative Industrial lost more than half of its value in the first half of 2022, in part because investors were worried about the health of two of its top 10 tenants.
Those fears were well-founded. Late Thursday, Innovative said one of those tenants, Kings Garden, has defaulted on its obligations to pay base rent and property management fees for the month of July. The dollar amount totaled about $2.2 million, which includes about $1.8 million in rent and fees and about $382,000 worth of insurance premiums.
Source Fool.com
