Innovative Industrial Properties price target lowered to $179 from $196 at BTIG

BTIG analyst Thomas Catherwood lowered the firm’s price target on Innovative Industrial Properties to $179 from $196 but keeps a Buy rating on the shares after the company’s mixed update last week. While the resolution with Kings Garden played out exactly as predicted and the tenant resumed rent payment on its four operating assets in Q4, three additional tenants – which represent about 6.3% of investment – have now defaulted on rent, the analyst tells investors in a research note. Innovative Industrial Properties management has now proven its ability to work through tenant defaults and re-lease vacant facilities, but an eviction of Green Peak and Parallel would be the company’s largest test to date, the firm added.