Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 153

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 153
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 may apply to transactions entered into prior to the date of their enactment.

General Fiduciary Obligations

Under ERISA and the Code, a person generally
is a fiduciary with respect to a Plan if, among other things, the person has discretionary authority or control over the administration
of the Plan or the management or disposition of Plan assets or provides investment advice for a fee or other compensation (direct or
indirect) with respect to the Plan. Each fiduciary of a Plan subject to ERISA (such as a profit sharing, Section 401(k) or
pension plan) or any other retirement plan or account subject to Section 4975 of the Code, such as an IRA, seeking to invest plan
assets in our securities must consider, taking into account the facts and circumstances of each such Plan, among other matters:

| · | whether the investment is consistent                  
 with the applicable provisions of ERISA and the Code; |

| · | whether, under the facts and circumstances                                                         
 pertaining to the Plan in question, the fiduciary’s responsibility to the Plan has been satisfied; |

| · | whether the investment will produce                                                     
 an unacceptable amount of “unrelated business taxable income” (“UBTI”) to the Plan; and |

| · | the need to value the assets of 
 the Plan annually.              |

Under ERISA, a Plan fiduciary’s responsibilities
include the following duties:

| · | to act solely in the interest of                                                                                                 
 plan participants and beneficiaries and for the exclusive purpose of providing benefits to them, as well as defraying reasonable 
 expenses of plan administration;                                                                                                 |

| · | to invest plan assets prudently; |

| · | to diversify the investments of                      
 the plan, unless it is clearly prudent not to do so; |

| · | to ensure sufficient liquidity for 
 the plan;                          |

| · | to ensure that plan investments                 
 are made in accordance with plan documents; and |

| · | to consider whether an investment                                                             
 would constitute or give rise to a non-exempt prohibited transaction under ERISA or the Code. |

ERISA also requires that, with certain exceptions,
the assets of an employee benefit plan be held in trust and that the trustee, or a duly authorized named fiduciary or investment manager,
have exclusive authority and discretion to manage and control the assets of the plan. In considering an investment in our securities,
a Plan fiduciary should consider whether such an investment is appropriate