Alliance Global Raises Innovative Industrial Properties Target to $55 on Improved Tenant Payments
Alliance Global raised Innovative Industrial Properties’ price target to $55 from $50, citing improved visibility into rent collection on defaulted assets. In Q4 the REIT posted FFO per share of $1.78 versus $2.05 year-ago, revenue of $66.66 million and received $3.74 million from Gold Flora plus $0.24 million from PharmaCann.
1. Price Target Hike
Alliance Global analyst Aaron Grey increased the price objective on Innovative Industrial Properties to $55 from $50 while maintaining a Neutral rating. The firm highlighted better visibility into resuming rent collection on previously defaulted properties as the key driver of the revision.
2. Q4 Financial Results
The REIT reported Q4 FFO per share of $1.78, beating estimates by $0.09 but down from $2.05 a year earlier. Revenue totaled $66.66 million, surpassing consensus by $0.73 million but remaining below the $76.74 million recorded in the prior-year quarter.
3. Tenant Payment Recoveries
During the quarter, Innovative Industrial Properties collected $3.74 million from defaulted tenant Gold Flora, contributing $0.13 per share, and $0.24 million from PharmaCann for $0.01 per share. Quarter-to-date payments stood at $1.5 million from Gold Flora and $1.45 million from PharmaCann.
4. Strategic Developments
Management emphasized progress in portfolio diversification and balance sheet strengthening, including a strategic investment in IQHQ and establishment of a $100 million revolving credit facility. Executives noted that ongoing tenant resolutions and new leasing activities underscore demand for its specialized cannabis real estate assets.