Hoptocopter Innovative Industrial Properties ( NYSE: IIPR ) stock slid 2.7% in Wednesday after-hours trading as the cannabis REIT's Q1 revenue fell short of Wall Street expectations. Q1 normalized FFO per share of $1.
98 fell from $2.07 in Q4 2023 and $2.06 in Q1 2023.
Revenue of $75.5M, trailing the $78.5M consensus, dropped from $79.
2M in the prior quarter and $76.1M a year ago. No security deposits were applied for rent during Q1 2024.
The year-over-year revenue decrease was primarily due to a $5.6M decline in contractual rent and property management fees received during Q1 2024 related to properties that IIPR took back in possession since March 2023, and a decrease as a result of $1.5M in rent received but not recognized in total revenues due to a re-classification of two leases that are treated as sales-type leases starting Jan.
1, 2024. That decrease was partly offset by a $6.0M increase to contractual rent and property management fees, which was primarily driven by contractual rent escalations and amendments to leases for additional improvement allowances at existing properties that resulted in adjustments to rent, a full period of contractual rent and property management fees related to the two properties acquired during the three months ended March 31, 2023, and new leases entered into since March 31, 2023.
Expenses of $33.4M declined from $35.2M in the prior quarter and increased from $32.
7M in the year-ago period. In the year-to-date, the owner of medical cannabis p.
