Why Innovative Industrial Properties Stock Plunged Today

Shares of Innovative Industrial Properties (NYSE: IIPR), the country's leading cannabis real estate investment trust (REIT), were taking a dive today after it announced that PharmaCann, one of its biggest tenants, was defaulting on all 11 of its leases. This morning, IIP said that PharmaCann, the nation's largest privately held and vertically integrated cannabis company, defaulted on its rent obligation in six of its 11 leases. PharmaCann did pay rent for its remaining five leases, which total $90,000 for December, but because of cross-default provisions in the leases, PharmaCann also defaulted on the leases whose rent it had paid.