Innovative Industrial Properties Resolves Lease Defaults with PharmaCann

Innovative Industrial Properties, Inc. (NYSE: IIPR) made an announcement on January 30, 2025, regarding reaching an agreement with PharmaCann Inc. and its affiliates to address existing defaults under leases for eleven properties owned by the Company. This resolution follows the defaults previously disclosed by the Company on December 20, 2024.

Key points of the agreement between PharmaCann and Innovative Industrial Properties include the complete utilization of security deposits by IIP for payment of past-due rent for December 2024 and January 2025, along with associated penalties. The agreement involved amendments to leases for nine properties in multiple states, including New York, Illinois, Pennsylvania, Ohio, and Colorado, focusing on adjustments to security deposits and base rent payments.

Additionally, amendments were made to leases for two cultivation properties in Michigan and Massachusetts, encompassing the transition of these properties to new tenants if necessary by August 1, 2025. In the event of transition failure, IIP will take back control, and PharmaCann’s obligations under these leases will cease.

Acknowledging the modifications, PharmaCann’s investors are injecting additional equity capital, and PharmaCann has issued a secured promissory note to IIP. In consideration of these lease adjustments, PharmaCann is restricted from incurring additional debt without IIP’s approval until full repayment or cancellation of the promissory note.

The implementation of these lease amendments, effective January 28, 2025, shifts the leasing landscape, leaving IIP leasing nine properties across five states to PharmaCann, accounting for nearly $223 million in invested and committed capital.

Innovative Industrial Properties, Inc., a Maryland corporation, focuses on acquiring and managing specialized industrial properties leased to licensed operators for regulated cannabis facilities. The company, functioning as a real estate investment trust, commenced its operation in 2017.

Cautionary statements in the disclosure emphasize investors to treat forward-looking statements with care, given the inherent risks and uncertainties. IIP underlines its intent to update such statements as needed, ensuring accurate representation of its evolving business landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Innovative Industrial Properties’s 8K filing here.

Innovative Industrial Properties Company Profile

Innovative Industrial Properties, Inc is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.