Innovative Industrial Properties Inc. provided temporary rent deferrals to three of its 21 tenants amid the coronavirus pandemic, after holding discussions with them in March and April, it said in its latest earnings report.
The cannabis-focused real estate investment trust said the deferrals were structured so a portion of the security deposit the REIT holds under each lease was used to pay full rent in April, then rents for May and June were deferred. The security deposit and deferred rent will be repaid, pro rata, over 18 months from July 1.
A total of $743,000 of security deposits that the REIT holds in cash were applied to the April rent payment with a total of approximately $1.5 million in rent deferred for May and June. The aggregate $2.3 million represents nearly 3% of the company's total revenues, as reported for the three months to March 31.
The REIT issued common shares for about $78.2 million under an at-the-market equity offering program in January.