INVESTOR DEADLINE NEXT WEEK: Innovative Industrial Properties, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - The Innovative Industrial Properties, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding its financial performance and rental income [1][3]. Company Overview - Innovative Industrial Properties is a self-advised Maryland corporation focused on acquiring, owning, and managing specialized properties leased to state-licensed operators for regulated cannabis facilities [2]. Allegations of the Lawsuit - The lawsuit alleges that during the class period, the company made false or misleading statements and failed to disclose significant declines in rent and property-management fees, which would impair its ability to maintain funds from operations (FFO) and revenue growth [3]. - Specific claims include a reported normalized FFO per share of $2.02 for Q3 2024, missing the consensus estimate of$2.03, and a revenue of $76.5 million, which also fell short of the consensus estimate of$77.5 million [4]. - The lawsuit highlights a $3.0 million decline in contractual rent and property management fees due to properties regained since June 2023, and a total of$1.3 million in contractually due rent that was not collected during the quarter [4]. Impact on Stock Price - Following the announcement of disappointing financial results on November 6, 2024, the stock price of Innovative Industrial Properties fell by more than 10% [4]. - On December 20, 2024, the company reported that PharmaCann Inc., a tenant responsible for 17% of its total rental revenues, defaulted on rent obligations, leading to a nearly 23% drop in stock price [5].