Innovative Industrial Properties downgraded to Neutral at Alliance Global

Alliance Global Partners analyst Aaron Grey downgraded Innovative Industrial Properties (IIPR) to Neutral from Buy with a price target of $75, down from $130, following the announcement of PharmaCann defaulting on its rent payment in December. PharmaCann is Innovative Industrial’s largest tenant, representing 17% of the company’s ABR in 2024, notes the analyst, who argues that the default on rent by its largest tenant, in combination with uncertainty around some of its smaller tenants in difficult markets, “adds too much uncertainty to the stock at this time.”