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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-09 00:00:00",
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      "text": "According to our analysis, after taking into consideration the effects of tenants defaulting, and removing overpayment effects, we determine that even in a good case scenario at least 38% of IIPR’s 2020 rental income is under direct jeopardy.",
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      "text": "The discounts we apply are based on a few main factors:\n- The tenant is already insolvent/has declared bankruptcy\n- The tenant is at high risk of insolvency\n- The underlying properties show no economic justification for the rental prices",
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      "text": "rental income: 38%",
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      "text": "In this chapter we quantify the impact of our previous analysis to set the insights into perspective and get an accurate picture of IIPR's financial future. We believe the company has overpaid for properties with cash hungry tenants, who soon falter under the pressure of IIPR leases. This has led to defaulting tenants, and sham deals in an effort to keep the most important tenants afloat.",
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      "text": "According to our analysis, after taking into consideration the effects of tenants defaulting, and removing overpayment effects, we determine that even in a good case scenario at least 38% of IIPR's 2020 rental income is under direct jeopardy. In our Appendix where comprehensively analyze each lease we explain in detail our reasons for applying a discount for each individual property.",
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      "text": "This spreadsheet shows our comprehensive bottom up analysis of every single lease we have identified. According to sell side reports the company has 52 leases in total of which we were able to identify 37. The remaining leases are smaller, and/or have not been announced or disclosed in any detail by IIPR. Our instinct tells us that if you see one cockroach there are probably many. In IIPR's case that means that the smaller leases where the company is even more opaque should be expected to have even more egregious terms than the ones we actually found. Accordingly, we apply the average discount of the properties we were able to find to the unidentified portion of the property portfolio.",
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      "kind": "title",
      "text": "5 Cash Flow Analysis shows Dividend is unsustainable – Why we believe IIPR has the characteristics of a Pyramid Scheme",
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