Innovative Industrial Properties (NYSE:IIPR) stock is falling on Friday after the company noted that one of its renters is defaulting on payments.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Kings Garden has defaulted on its base rent and property management fees for July. It’s also defaulting on certain insurance premiums for those properties.
Kings Garden rents its properties from a subsidiary of Innovative Industrial Properties. With today’s news, it won’t be paying $1.8 million in base rent and property management fees, as well as $382,000 of insurance premiums. This has Innovative Industrial Properties losing out on roughly $2.2 million.
As noted in the SEC filing, Innovative Industrial Properties is still in discussions with Kings Garden concerning its leases. The company also notes its in talks with other operators for the potential re-leasing of certain properties.
Innovative Industrial Properties is a company that manages properties leased out to marijuana companies. It’s based out of San Diego, Calif, but has properties available across the U.S.
The bad news for IIPR stock comes alongside a positive catalyst for the marijuana industry. Senate Democrats are planning to introduce a marijuana legalization bill as early as next week. The only problem will be getting aid from Republicans to pass the bill. Reports claim there’s already pushback on that matter.
IIPR stock is down 13.4% as of Friday morning.
There’s more recent stock market news traders will want to know about below!
We’ve got all the hottest stock news that traders need to get through Friday! That includes hydrogen stocks on the move, United Maritime Corporation (NASDAQ:USEA) shares rallying, and the news affecting Pinterest (NYSE:PINS) stock today. You can read up on these topics at the following links!
More Friday Stock Market News
- Why Are Hydrogen Stocks PLUG, FCEL, BE Down Today?
- United Maritime (USEA) Stock Nearly Doubles in Major Rally
- Can Billionaire Paul Singer Save Pinterest (PINS) Stock?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
