On July 20, 2026, Parallel (affiliates of SH Parent, Inc.) defaulted on rent obligations for two Florida properties, totaling approximately $1.6 million in base rent, reimbursements, interest, and late charges. These properties represented 5.2% of the Company's annualized contractual rent and income from loans and securities as of March 31, 2026. Parallel notified the Company that it has ceased cannabis operations at both sites and intends to vacate and surrender possession. The Company may apply held security deposits to cover the defaulted amounts. Innovative Industrial Properties, Inc. is a real estate investment trust that acquires and manages properties leased to cannabis cultivators.
