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Debra BorchardtJanuary 19, 2023
CannabisPlantation-Smudde-13-scaled.jpg?fit=1200%2C800&ssl=1

5min36410

Innovative Industrial Properties, Inc. (IIP)(NYSE: IIPR) announced that its rent collections have dropped from 100% at this time last year to just 92% for the month ending January 31, 2023. The company said it had collected 97% of its rent at the end of December. The company’s stock was plunging by over 14% on the news to lately sell at $94. This is a huge drop from the 52-week high of $211.

The cannabis REIT (Real Estate Investment Trust) outlined the various cannabis companies that have slipped in their rent payments.

Missed Rent Payments

IIP reported that SH Parent, Inc. also known as Parallel was in default on its obligations to pay rent at one of IIP’s Pennsylvania properties (approximately 2.9% of invested/committed capital). However, IIP did note that rent was paid in full through January 31, 2023, on all other IIP properties leased by Parallel.

In addition to Parallel, Green Peak Industries, Inc. (Skymint) was in default on its obligations to pay rent at one of IIP’s Michigan properties under construction (approximately 2.7% of invested/committed capital). However, rent was paid in full through January 31, 2023, on all other IIP properties leased by Skymint.

In California, Affiliates of Medical Investor Holdings, LLC (Vertical) were in default on their obligations to pay rent at IIP’s California properties (approximately 0.7% of invested/committed capital).

Lease Adjustments

IIP also made changes to some lease agreements to include cross-default provisions and/or extend lease terms in exchange for limited base rent deferrals. One California property and one Michigan property leased by Holistic (approximately 1.8% of invested/committed capital in the aggregate) have used security deposits in order to pay the leases. In addition to that, one Missouri property leased by Calyx Peak, Inc. (approximately 1.2% of invested/committed capital) received a 100% base rent deferral through March 31, 2023, with pro-rata payback over the following 12 months and an extended term of the lease, with no other adjustments to lease terms.

There is also trouble with the Kings Garden, which has said it is looking for a merger. For now Kings Garden is paying rent for the four properties in California that it continues to occupy, including rent on the capital invested in the expansion project which is a part of the lease of one of the properties. However, there are two properties that were leased to Kings Garden and it seems the company is trying to get leave. The San Bernardino property (approximately 192,000 rentable square feet), which IIP said it is actively evaluating alternative non-cannabis uses for the property due to market conditions in California and changes in the zoning of the property. The Cathedral City property (approximately 23,000 rentable square feet), which IIP said it has executed a letter of intent to lease the property and is negotiating lease terms with the potential tenant. However, IIP said there can be no assurance that it will lease the property on the terms anticipated, or at all.

Portfolio

IIP says it now owns 110 properties located in 19 states, representing a total of approximately 8.7 million rentable square feet (including approximately 1.9 million rentable square feet under development/redevelopment).  The company states that no tenant represents more than 14% of the total portfolio and no state represents more than 16% of the total portfolio. Parallel accounted for 10% of the company’s rental revenues and PharmaCann accounted for 12%. As Parallel defaulted on its debts, many were wondering if the company was continuing to pay rent on its properties and now that question has been answered. Multi-state operators (MSOs) represent 85% of the operating portfolio and public company operators represent 55% of the operating portfolio.

With regard to the balance sheet, the company stated the following:

  • 12% debt to total gross assets, with approximately $2.6 billion in total gross assets.
  • Total quarterly fixed cash interest obligation of approximately $4.2 million.
  • No secured debt.
  • No debt maturities until May 2026, other than $6.4 million principal amount of 3.75% Exchangeable Senior Notes in 2024.

StaffDecember 19, 2022

3min12340

This story was republished with permission from Crain’s Chicago and written by Corli Jay.

One of the city’s largest cannabis players and Chicago startup hothouse 1871 are teaming up to foster innovation in the cannabis space.

Cresco Labs (OTC: CRLBF) and 1871 announced that Cresco will be what’s being called an anchor partner in the Cannabis Innovation Lab, a venture launched at 1871 with the goal of supporting entrepreneurship in the city’s growing cannabis sector. World Business Chicago, the city’s public-private development arm, is also a sponsor of the program.

Through the partnership with 1871, Cresco will provide technical assistance to new licensees just getting started in cannabis cultivation, new product development, wholesaling and retailing. The effort is designed to boost equity and inclusion in the cannabis industry, key goals of the state of Illinois’ recent move to legalize recreational marijuana sales in the state.

“Part of Cresco Labs’ efforts around social equity have always included . . . providing access to capital or capital to new licensees, and other forms of support and technical assistance,” said Chima Enyia, executive vice president of Seed, Cresco Labs’ social equity initiative. “The whole effort here is to cement Illinois as a hub and as a headquarters, essentially for cannabis and a leader in innovation for cannabis around the country.”

The Cannabis Innovation Lab will help startups and corporations that want to scale their businesses by connecting them with veterans in the industry.

According to the Cannabis Innovation Lab’s website, the weed industry is projected to generate $100 billion by 2030, with Chicago “quickly becoming a place of massive importance for the industry.”

Participants in the 12-week Cannabis Innovation Lab program at 1871, which starts in January, will lead up to a public showcase in April—the Cannabis Innovation Summit—which will feature a pitch contest, panel discussions and opportunities for networking.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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