Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 14

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 14
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 Stock.

| S-11 |

In addition, the Change
of Control/Delisting conversion feature of the Series A Preferred Stock may have the effect of discouraging a third party from making
an acquisition proposal for our company or of delaying, deferring or preventing certain change of control transactions of our company
under circumstances that stockholders may otherwise believe is in their best interests.

As a holder of Series A Preferred Stock you have extremely limited voting rights.

Your voting rights as
a holder of shares of Series A Preferred Stock will be extremely limited. Our common stock is the only class or series of our stock
carrying full voting rights. Voting rights for holders of shares of Series A Preferred Stock exist primarily with respect to the
ability to elect two additional directors in the event that dividends for six quarterly dividend periods (whether or not consecutive)
payable on the Series A Preferred Stock are in arrears, and with respect to voting on amendments to our charter that materially and
adversely affect the rights of the Series A Preferred Stock or that create additional classes or series of preferred stock that are
senior to the Series A Preferred Stock. See “Description of Series A Preferred Stock — Limited Voting Rights.”
Other than the limited circumstances described in this prospectus, holders of Series A Preferred Stock will not have voting rights.

Our charter and the articles supplementary for the Series A Preferred Stock contain restrictions upon ownership and transfer of the Series A Preferred Stock, which may impair the ability of holders to acquire the Series A Preferred Stock.

Our charter and the articles
supplementary for the Series A Preferred Stock contain restrictions on ownership and transfer of the Series A Preferred Stock
intended to assist us in maintaining our qualification as a REIT for federal income tax purposes. For example, to assist us in qualifying
as a REIT, the articles supplementary establishing the Series A Preferred Stock prohibit anyone from owning, or being deemed to own
by virtue of the applicable constructive ownership provisions of the Internal Revenue Code of 1986, as amended (the “Code”),
more than 9.8% in value or number of shares, whichever is more restrictive, of the outstanding Series A Preferred Stock. See “Description
of Series A Preferred Stock — Restrictions on Ownership and Transfer” in this prospectus supplement. You should consider
these ownership limitations prior to your purchase of the Series A Preferred Stock. The restrictions could also have anti-takeover
effects and could reduce the possibility that a third party will attempt to acquire control of us, which could adversely affect