This Marijuana Stock Just Shocked Its Investors With a Huge Piece of Good News
One of the worst events that can befall a real estate investment trust (REIT) is the default of a major tenant. That happened at the end of last year to Innovative Industrial Properties (NYSE: IIPR), the most significant specialty marijuana industry REIT on the market. That unpleasant situation saw a major turn for the better as January came to a close, though.The tenant in question was PharmaCann, a privately held cannabis company that (as of Sept. 30) held the No. 1 spot on Innovative's list of numbers of properties rented, at 11. On top of that, it occupied pole position in terms of contribution to the REIT's total revenue, comprising 17% of the tally. PharmaCann's default occurred on Dec. 19, upon its failure to pay $4.2 million in rent for six of those properties. Technically this is a default on all 11, since the company had cross-default provisions baked into its contract with Innovative. Following this the two companies began talks on how to resolve the situation. Continue reading
One of the worst events that can befall a real estate investment trust (REIT) is the default of a major tenant. That happened at the end of last year to Innovative Industrial Properties (NYSE: IIPR), the most significant specialty marijuana industry REIT on the market. That unpleasant situation saw a major turn for the better as January came to a close, though.
The tenant in question was PharmaCann, a privately held cannabis company that (as of Sept. 30) held the No. 1 spot on Innovative's list of numbers of properties rented, at 11. On top of that, it occupied pole position in terms of contribution to the REIT's total revenue, comprising 17% of the tally.
PharmaCann's default occurred on Dec. 19, upon its failure to pay $4.2 million in rent for six of those properties. Technically this is a default on all 11, since the company had cross-default provisions baked into its contract with Innovative. Following this the two companies began talks on how to resolve the situation.
