Large cannabis REIT Innovative Industrial Properties (NYSE: IIPR) reported this morning that its largest tenant, PharmaCann, failed to pay rent again. Recall that it had issued a press release on 12/20 that detailed the initial default. Near the end of January, it reported a default resolution, though it warned that the company needed to refinance its senior secured credit facility before June 30th.
In an SEC 8-K filing, IIPR reported that PharmaCann failed to pay rent for March on 9 of its 11 properties. It suggested it may commence eviction proceedings.
IIPR ended 2024 at 66.64 and then traded as low as 62.45. It struggled to get through $75 in February, and it closed at 69.62, up 4.5% year-to-date. This return is far better than the entire cannabis sector, which has declined sharply in 2025. The New Cannabis Ventures Global Cannabis Stock Index has dropped 22.4%. Since November 5th, the GCSI has dropped 38.2%, while IIPR has plunged 47.4%.
We expressed concern about other cannabis REITs in the newsletter on 1/1/25, and this has been the case. Here is the year-to-date performance:
The weakest one, AFC Gamma (NASDAQ: AFCG), cut its dividend sharply last week.
