A securities class action has been filed in the USDC – MD., against Innovative Industrial Properties, Inc. (IIPR) (“IIPR” “IIP”or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired IIPR securities between February 27, 2024, and December 19, 2024, both dates inclusive (the “Class Period”).
IIPR is an internally managed REIT purportedly focused on the acquisition, ownership, and management of specialized properties leased to state-licensed operators for their regulated medical-use cannabis facilities.
As a REIT, IIPR’s primary source of income is derived from rental revenue generated by the properties that it acquires. To measure its financial performance, IIPR uses FFO, a metric calculated by adding depreciation, amortization, and losses on sales of property to earnings and then subtracting any gains on sales of property and any interest income. REITs tend to consider FFO to be a more accurate measure of a REIT’s value than net income because it addresses the limitations of traditional accounting methods—particularly regarding depreciation, which can misrepresent the true value of real estate assets—and focuses on the cash flow generated by a REIT’s core operations. As a result, FFO provides investors with a clearer picture of a REIT’s ability to generate revenue and pay dividends.
The Complaint alleges that the Defendants, throughout the Class Period, made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) IIPR was experiencing significant declines in rent and property-management fees in connection with certain customer leases;
(2) the foregoing would likely impair the Company’s ability to maintain FFO and revenue growth;
(3) accordingly, IIPR’s leasing operations were less profitable than the Company had represented to investors; and
(4) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
As a result, IIPR’s stock price fell $21.68 per share, or 22.73%, to close at $73.66 per share on December 20, 2024.
If you purchased IIPR securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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