Large cannabis REIT Innovative Industrial Properties (NYSE: IIPR) reported this morning that its largest tenant, PharmaCann, failed to pay rent again. Recall that it had issued a press release on 12/20 that detailed the initial default. Near the end of January, it reported a default resolution, though it warned that the company needed to refinance its senior secured credit facility before June 30th.

In an SEC 8-K filing, IIPR reported that PharmaCann failed to pay rent for March on 9 of its 11 properties. It suggested it may commence eviction proceedings.

IIPR ended 2024 at 66.64 and then traded as low as 62.45. It struggled to get through $75 in February, and it closed at 69.62, up 4.5% year-to-date. This return is far better than the entire cannabis sector, which has declined sharply in 2025. The New Cannabis Ventures Global Cannabis Stock Index has dropped 22.4%. Since November 5th, the GCSI has dropped 38.2%, while IIPR has plunged 47.4%.

We expressed concern about other cannabis REITs in the newsletter on 1/1/25, and this has been the case. Here is the year-to-date performance:

The weakest one, AFC Gamma (NASDAQ: AFCG), cut its dividend sharply last week.

Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email