Overview

A class action lawsuit has been filed against Innovative Industrial Properties, Inc. (“IIPR” or the “Company”) (NYSE: IIPR) and certain of the Company’s current senior executive officers alleging violations of the federal securities laws.  The IIPR class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired IIPR securities between February 27, 2024, and December 19, 2024, both dates inclusive (the “Class Period”).  Investors have until March 18, 2025, to seek appointment as lead plaintiff in the IIPR class action lawsuit.

IIPR is an internally managed real estate investment trust (“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 funds from operations (“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 REIT’s ability to generate revenue and pay dividends.

The IIPR class action lawsuit alleges that 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.

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If you purchased or otherwise acquired IIPR securities between February 27, 2024 and December 19, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the IIPR class action lawsuit is March 18, 2025.