Kirby McInerney LLP announces the filing of a securities class action on behalf of Innovative Industrial Properties, Inc. Investors By Investing.com
New York, New York–(Newsfile Corp. – January 21, 2025) – Kirby Law Firm (NYSE: ) McInerney LLP announces that a class action has been filed in the U.S. District Court for the District of Maryland on behalf of those who acquired Innovative industrial property (NYSE:), Inc. (“IIPR” or the “Company”) (NYSE: IIPR) securities during the period from February 27, 2024 to December 19, 2024 (the “Class Period”). Investors have until March 18, 2025 to apply to the court to be named 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 was down 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 down from $77.8 million in the same period in 2023. IIPR said the year-over-year decline was due to a $3.0 million drop in contract rent and property management fees in the third quarter related to with properties repossessed by IIPR from June 2024; a decrease of $1.3 million due to rent received but not recognized in rental income resulting from the reclassification of two sales-type leases beginning January 1, 2024; and $1.3 million in contractually due rents and property management fees that were not collected during the current quarter. Following this news, IIPR’s stock price fell $12.93 per share, or approximately 10.51%, from $123.00 per share on November 6, 2024, to close at $110.07 on the 7th. November 2024
Then, on December 20, 2024, the IIPR announced that the previous day, PharmaCann Inc. (“PharmaCann”) was the lessee of eleven properties owned by IIPR and whose revenues represented 17% of IIPR’s total rental revenues for the three and nine months ended September 30, 2024, defaulted on its December rent payment obligations under six of its eleven leases (“Leases”). December rent, including base rent, property management fees and estimated tax and insurance payments, was $4.2 million for these six properties. Furthermore, IIPR stated that it applied the security deposits held by IIPRR pursuant to these Lease Agreements to pay the unpaid rent in full, plus penalties and interest. Finally, the Company disclosed that “although PharmaCann has paid in full the rent under the remaining five Leases totaling $90,000 for the month of December, as a result of the mutual default provisions contained in each of the Leases, on December 19, 2024 . PharmaCann has also defaulted on its obligations under these five Leases, as a result of non-payment of rent for the other six Leases.” Following this news, IIPR’s stock price fell $21.68 per share, or approximately 22.73%, from $95.34 per share on December 19, 2024, to close at $73.66 on the 20th. December 2024
The complaint alleges that, throughout the Lecture Period, the defendants made false and/or misleading statements and/or failed to disclose the following: (1) IIPR had significant declines in rent and property management fees related to certain customer leases; (2) the foregoing would likely impair the Company’s ability to sustain FFO and revenue growth; and (3) accordingly, IIPR’s leasing business was less profitable than the Company represented to investors.
If you have 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 complete the contact form below , to discuss your rights or interests regarding these matters at no cost to you.
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Kirby McInerney LLP is a New York-based law firm specializing 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 on the Kirby McInerney LLP website.
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