Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 146

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 146
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market in the United States and (ii) the non-U.S. holder does not own more than 10% of such class of capital stock during the one-year
period preceding the distribution date. As a result, non-U.S. holders generally would be subject to withholding tax on such capital gain
distributions in the same manner as they are subject to withholding tax on ordinary dividends. If a class of our capital stock is not
regularly traded on an established securities market in the United States or the non-U.S. holder owned more than 10% of such class of
capital stock at any time during the one-year period prior to the distribution, capital gain distributions that are attributable to our
sale of real property would be subject to tax under FIRPTA. Moreover, if a non-U.S. holder disposes of our capital stock during the 30-day
period preceding a dividend payment, and such non-U.S. holder (or a person related to such non-U.S. holder) acquires or enters into a
contract or option to acquire our capital stock within 61 days of the 1st day of the 30 day period described above, and any portion
of such dividend payment would, but for the disposition, be treated as a United States real property interest capital gain to such non-U.S.
holder, then such non-U.S. holder will be treated as having United States real property interest capital gain in an amount that, but
for the disposition, would have been treated as United States real property interest capital gain.

A non-U.S. holder generally will not incur tax
under FIRPTA with respect to gain realized upon a disposition of our shares of capital stock as long as we are not a United States real
property holding corporation during a specified testing period. If at least 50% of a REIT’s assets are United States real property
interests, then the REIT will be a United States real property holding corporation. We anticipate that we will be classified as a United
States real property holding corporation based on our investment strategy and current investments. In that case, gains from the sale
of our shares of capital stock by a non-U.S. holder could be subject to a FIRPTA tax. However, a non-U.S. holder generally would not
incur tax under FIRPTA on gain from the sale of our shares of capital stock if we were a “domestically controlled qualified investment
entity.” A domestically controlled qualified investment entity includes a REIT in