Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 114

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 114
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 during at least 335 days of a taxable year of 12 months, or during a
proportionate part of a taxable year of less than 12 months. Requirements 5 and 6 applied to us beginning with our 2018 taxable year.
If we comply with certain requirements for ascertaining the beneficial ownership of our outstanding stock in a taxable year and have
no reason to know that we violated requirement 6, we will be deemed to have satisfied requirement 6 for that taxable year. For purposes
of determining stock ownership under requirement 6, an “individual” generally includes a supplemental unemployment compensation
benefits plan, a private foundation, or a portion of a trust permanently set aside or used exclusively for charitable purposes. An “individual,”
however, generally does not include a trust that is a qualified employee pension or profit sharing trust under the U.S. federal income
tax laws, and beneficiaries of such a trust will be treated as holding our stock in proportion to their actuarial interests in the trust
for purposes of requirement 6.

In addition, our charter provides for restrictions
regarding the ownership and transfer of shares of our capital stock. The restrictions in our charter are intended, among other things,
to assist us in satisfying requirements 5 and 6 described above. These restrictions, however, may not ensure that we will be able to
satisfy such share ownership requirements in all cases. If we fail to satisfy these share ownership requirements, our qualification as
a REIT may terminate.

To monitor compliance with the share ownership
requirements, we generally are required to maintain records regarding the actual ownership of our shares. To do so, we must demand written
statements each year from the record holders of significant percentages of our shares pursuant to which the record holders must disclose
the actual owners of the shares (i.e., the persons required to include our dividends in their gross income). We must maintain a list
of those persons failing or refusing to comply with this demand as part of our records. We could be subject to monetary penalties if
we fail to comply with these record-keeping requirements. If you fail or refuse to comply with the demands, you will be required by Treasury
Regulations to submit a statement with your tax return disclosing your actual ownership of our shares and other information. In addition,
we must satisfy all relevant filing and other administrative requirements that must be met to elect and maintain REIT status. We intend
to comply with these requirements.

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