Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 106

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 106
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 public policy as expressed in the Securities Act and is therefore unenforceable.

REIT Qualification

Our charter provides that our board of directors
may authorize us to revoke or otherwise terminate our REIT election, without approval of our stockholders, if it determines that it is
no longer in our best interests to attempt to, or continue to, qualify as a REIT. Our charter also provides that our board of directors
may determine that compliance with any restriction or limitation on ownership and transfer of our stock is no longer required for us
to qualify as a REIT.

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OUR OPERATING PARTNERSHIP AND THE OPERATING PARTNERSHIP AGREEMENT</div>

We have summarized the material terms and provisions of the Agreement of Limited Partnership of IIP Operating Partnership, LP (the “Operating Partnership Agreement”). This summary is not complete. For more detail, you should refer to the partnership agreement itself, which is incorporated by reference as an exhibit to the registration statement of which this prospectus is a part. See the section entitled “Where You Can Find Additional Information.”

Our Operating Partnership is a Delaware limited
partnership that was formed on June 20, 2016. We are the sole general partner of our Operating Partnership and own, directly or
through subsidiaries, 100% of the partnership interests in our Operating Partnership. Our Operating Partnership is treated as a partnership
for U.S. federal income tax purposes.

Description of Partnership Interests

Our Operating Partnership has two classes of
partnership interests: general partnership interests and limited partnership interests. General partnership interests represent an interest
as a general partner in our Operating Partnership and we, as general partner, hold all such interests.

Limited partnership interests represent an interest
as a limited partner in our Operating Partnership. Our Operating Partnership may issue, at the sole discretion of the General Partner,
additional partnership interests and classes of partnership interests with rights different from, and superior to, those of general partnership
interests and/or limited partnership interests.

Our Operating Partnership is treated as a partnership
for U.S. federal income tax purposes. See the section entitled “Material U.S. Federal Income Tax Considerations — Taxation
of Our Operating Partnership.”

Management of our Operating Partnership

Our Operating Partnership is organized as a Delaware
limited partnership pursuant to the terms of the Operating Partnership Agreement. We are the general partner of our Operating Partnership
and conduct substantially all of our business through it. Pursuant to the Operating Partnership Agreement, we, as the general partner,