New York, New York--(Newsfile Corp. - January 21, 2025) - The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Maryland District Court on behalf of those who acquired Innovative Industrial Properties, Inc. ("IIPR" or the "Company") (NYSE: IIPR) securities during the period from February 27, 2024, through December 19, 2024 ("the Class Period"). Investors have until March 18, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On November 6, 2024, IIPR reported its financial results for the third quarter of 2024. Among other items, IIPR reported normalized funds from operations (FFO) per share of $2.02, missing the consensus estimate of $2.03 and declining from $2.09 in the same period in 2023. IIPR also reported revenue of $76.5 million, missing the consensus estimate of $77.5 million and declining from $77.8 million in the same period in 2023. IIPR stated that the year-over-year decrease was due to a $3.0 million decline in contractual rent and property management fees in the third quarter related to properties that IIPR regained possession of since June 2024; a decline of $1.3 million due to rent received but not recognized in rental revenues resulting from the re-classifications of two sales-type leases beginning January 1, 2024; and $1.3 million of contractually due rent and property management fees that were not collected during the current quarter. On this news, the price of IIPR shares declined by $12.93 per share, or approximately 10.51%, from $123.00 per share on November 6, 2024, to close at $110.07 on November 7, 2024.
Then, on December 20, 2024, IIPR announced that on the previous day, PharmaCann Inc. ("PharmaCann") the tenant for eleven properties that IIPR owns and the revenues from which represented 17% of IIPR's total rental revenues for the three and nine months ended September 30, 2024, defaulted on its obligations to pay rent for the month of December under six of its eleven leases (the "Leases"). December rent, including base rent, property management fees, and estimated tax and insurance payments, totaled $4.2 million for these six properties. Further, IIPR stated that it applied security deposits held by IIPRR pursuant to these Leases for the payment in full of the defaulted rent, in addition to late penalties and interest. Finally, the Company revealed that "although PharmaCann paid rent in full under the remaining five Leases totaling $90,000 for the month of December, as a result of cross-default provisions contained in each of the Leases, on December 19, 2024, PharmaCann also defaulted on its obligations under these five Leases, as a result of the non-payment of rent on the other six Leases." On this news, the price of IIPR shares declined by $21.68 per share, or approximately 22.73%, from $95.34 per share on December 19, 2024, to close at $73.66 on December 20, 2024.
The complaint alleges that defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) IIPR was experiencing significant declines in rent and property-management fees in connection with certain customer leases; (2) the foregoing would likely impair the Company's ability to maintain FFO and revenue growth; and (3) accordingly, IIPR's leasing operations were less profitable than the Company had represented to investors.
If you purchased or otherwise acquired IIPR securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters without any cost to you.
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Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website.
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