Innovative Industrial Properties announced a significant tenant replacement and renewal initiative aimed at enhancing the performance of its real estate portfolio and driving long-term value for shareholders. This initiative focuses on strengthening tenant credit profiles and optimizing occupancy of the Company's properties to align with evolving market demands.
As part of this strategic effort, the Company declared certain of its tenants in default for failure to pay contractual rent in full, as further described below. In addition, the Company declared a default with respect to a loan for $16.1 million aggregate principal amount pursuant to a secured promissory note issued to the Company by the purchaser of four properties previously leased to Medical Investor Holdings, LLC.
The Company, through indirect, wholly owned subsidiaries serving as landlords, previously entered into leases with 4Front Ventures Corp. and its affiliates as tenants for four properties that the Company owns, which represented 5.7% of the Company's contractual rent as of December 31, 2024.
The Company, through indirect, wholly owned subsidiaries serving as landlords, previously entered into leases with Gold Flora, LLC and its affiliates as tenants for three properties that the Company owns, which represented 2.9% of the Company's contractual rent as of December 31, 2024.
The Company declared each of the 4Front Leases, the Gold Flora Leases, and the TILT Leases in default. Contractual base rent, property management fees and estimated tax and insurance payments owed as of March 28, 2025, for each of the 4Front Leases, the Gold Flora Leases, and the TILT Leases, totaled $9.0 million, $1.7 million, and $2.4 million, respectively. The Company will take action to pursue its rights under such leases aggressively, which may include, but is not limited to, commencing eviction proceedings as the Company deems necessary.
For more information:
Gold Flora
www.goldflora.com
4Front Ventures
4frontventures.com
Tilt Holdings
tiltholdings.com