Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 72

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 72
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 appropriate.

In connection with granting an exemption from
the ownership limits or establishing an excepted holder limit or at any other time, our board of directors may increase or decrease the
ownership limits. Any decrease in the ownership limits will not be effective for any person whose percentage ownership of shares of our
stock is in excess of such decreased limits until such person’s percentage ownership of shares of our stock equals or falls below
such decreased limits (other than a decrease as a result of a retroactive change in existing law, which will be effective immediately),
but any further acquisition of shares of our stock in excess of such percentage ownership will be in violation of the applicable limits.
Our board of directors may not increase or decrease the ownership limits if, after giving effect to such increase or decrease, five or
fewer persons could beneficially own or constructively own in the aggregate more than 49.9% in value of the shares of our stock then
outstanding. Prior to any modification of the ownership limits, our board of directors may require such opinions of counsel, affidavits,
undertakings or agreements as it may deem necessary or advisable in order to determine or ensure our qualification as a REIT.

Our charter further prohibits:

| · | any person from beneficially or constructively owning,                                                                 
 applying certain attribution rules of the Code, shares of our stock that would result in us failing the “closely held” 
 test under Section 856(h) of the Code (without regard to whether the stockholder’s interest is held during the last    
 half of a taxable year) or otherwise cause us to fail to qualify as a REIT; and                                        |

| · | any person from transferring shares of our stock if                                                                                
 such transfer would result in shares of our stock to be beneficially owned by fewer than 100 persons (determined without reference 
 to any rules of attribution).                                                                                                      |

Any person who acquires or attempts or intends
to acquire beneficial or constructive ownership of shares of our stock that will or may violate the ownership limits or any of the other
foregoing restrictions on ownership and transfer of our stock will be required to immediately give written notice to us or, in the case
of a proposed or attempted transaction, give at least 15 days’ prior written notice to us, and provide us with such other information
as we may request in order to determine the effect of such transfer on our qualification as a REIT. The ownership limits and the other
restrictions on ownership and transfer of our