Innovative Industrial Properties downgraded to Neutral from Buy at BTIG

BTIG analyst Thomas Catherwood downgraded Innovative Industrial Properties (IIPR) to Neutral from Buy with no price target The firm cites the company’s announcement last week that its largest tenant, multistate operator PharmaCann which accounts for 16.5% of the company’s annualized base rent, had failed to pay December rent at its six cultivation facilities. Innovative Industrial Properties has proven itself adept at removing and backfilling problem tenants as the company has re-leased five properties with 586K sq. ft. over the past 12 months, but the PharmaCann portfolio with 677K sq. ft. of cultivation/production space would be the largest default since the company’s founding, the analyst tells investors in a research note.