Innovative Industrial Properties (IIPR) announced on March 28, 2025, that it declared several tenants in default for failure to pay contractual rent in full. These include 4Front Ventures Corp. (four properties, 5.7% of contractual rent as of December 31, 2024), Gold Flora, LLC (three properties, 2.9% of contractual rent), and TILT Holdings Inc. (two properties, 2.2% of contractual rent). The total contractual rent owed as of this date for these defaults amounted to $9.0 million for 4Front, $1.7 million for Gold Flora, and $2.4 million for TILT.
In addition to tenant defaults, IIPR also declared a default on a $16.1 million secured promissory note. This note was issued by the purchaser of four California properties previously leased to Medical Investor Holdings, LLC. The default was triggered by the borrower's failure to pay approximately $0.8 million of interest and reimbursement for taxes, making the principal amount plus accrued interest immediately due.
The company has launched a 'strategic initiative aimed at improving long-term financial performance by seeking to refresh a substantial portion of its tenant base.' This initiative involves aggressively pursuing legal remedies against defaulting tenants and foreclosing on its security interest in the properties securing the defaulted note. These actions underscore the ongoing challenges within the regulated cannabis industry.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.