** Shares of cannabis REIT Innovative Industrial Properties

down 2.3% at $72 premarket

** Brokerages Piper Sandler, BTIG and Alliance Global Partners downgrade rating on stock

** IIPR on Friday disclosed that cannabis company PharmaCann, its largest tenant, defaulted rent on 11 properties in December

** Piper Sandler downgrades to "underweight" from "neutral", says Q4 won't be impacted due to security deposits but defaults display need for consolidation in industry; lowers PT to $70 from $118

** BTIG downgrades to "neutral" from "buy", says the defaults raise concerns over the health of U.S. cannabis industry

** Alliance Global Partners downgrades to "neutral" from "buy", sees company saying it will enforce its rights "aggressively" as an indication of taking a strong stance

** Brokerage notes uncertainty around company's smaller tenants in difficult markets, sees too much uncertainty on stock; lowers PT to $75 from $130

** One of eight brokerages rate the stock "buy", six "hold" and one "sell"; median PT is $78 - data compiled by LSEG

** Up to last close, stock down 27% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))