Innovative Industrial Properties Announces PharmaCann Resolution and Provides Portfolio Update

Core Viewpoint - Innovative Industrial Properties, Inc. (IIP) has made significant progress in enhancing its real estate portfolio, including resolving litigation with PharmaCann and executing new leases across various properties [1][2]. Portfolio Update - The company executed 122,000 square feet of new leases in March 2026 as part of its strategy to improve portfolio performance and shareholder value [1]. - IIP has resolved all pending litigation with PharmaCann, which includes monetary judgments for lease defaults in New York, Ohio, and Pennsylvania, with properties to be turned over by May 20 and May 26, 2026 [2]. - New lease agreements have been executed for cultivation assets previously leased to PharmaCann, including a 205,000 square foot property in Michigan, a 58,000 square foot property in Massachusetts, and a 66,000 square foot property in Illinois [3]. - Lease agreements have also been executed for properties previously leased by Gold Flora, including a 70,000 square foot property in Palm Springs, a 204,000 square foot property in Desert Hot Springs, and a 56,000 square foot property in Palm Springs [4]. - Tentative agreements have been reached with prospective tenants for four assets leased to 4Front, totaling 250,000 square feet in Illinois, 114,000 square feet in Washington, and 124,000 square feet in Massachusetts, expected to take effect after receivership proceedings [5]. Tenant Defaults - The Cannabist Company defaulted on rent for March 2026 for a Pennsylvania property, totaling $0.6 million, which is 2.7% of IIP's total rental revenues for 2025 [6][7]. - Battle Green Holdings defaulted on rent for March 2026 for its only property in Ohio, totaling $0.8 million, representing 2.9% of IIP's total rental revenues for 2025 [8]. - IIP plans to use security deposits to cover the unpaid rent for both Cannabist and Battle Green properties [6][8].