Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 1

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 1
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 shares, if any, under this prospectus supplement and the accompanying prospectus may be made by any
method permitted by law deemed to be an “at-the-market” offering as defined in Rule 415 under the Securities Act of 1933,
as amended (the “Securities Act”), including, without limitation, sales made directly on the New York Stock Exchange (“NYSE”),
on any other existing trading market for our common stock or Series A Preferred Stock, in block trades or to or through a market
maker or through an electronic communications network.

The equity distribution
agreements provide that, in addition to the issuance and sale of the offered shares by us through the Sales Agents, we may enter into
forward sale agreements under separate master forward sale agreements and related supplemental confirmations between us and a Forward
Seller or its affiliate with respect to shares of our common stock. We refer to these entities, when acting in this capacity, individually
as a “Forward Purchaser” and collectively as “Forward Purchasers.” In connection with each particular forward
sale agreement, the relevant Forward Purchaser (or an affiliate thereof) will borrow from third parties and, through the relevant Forward
Seller, sell a number of shares of common stock equal to the number of shares of common stock underlying the particular forward sale agreement.
No shares of Series A Preferred Stock will be sold under forward sale agreements.

We will not initially
receive any proceeds from the sale of borrowed shares of common stock by a Forward Seller. We expect to fully physically settle each particular
forward sale agreement with the relevant Forward Purchaser on one or more dates specified by us on or prior to the maturity date of that
particular forward sale agreement, in which case we expect to receive aggregate net cash proceeds at settlement equal to the number of
shares of common stock underlying the particular forward sale agreement multiplied by the relevant forward sale price. However, we may
also elect to cash settle or net share settle a particular forward sale agreement, in which case we may not receive any proceeds from
the issuance of shares of common stock, and we will instead receive or pay cash (in the case of cash settlement) or receive or deliver
shares of common stock (in the case of net share settlement).

Each Sales Agent will
receive from us a commission that will not exceed, but may be lower than, 2.0% of the gross sales price of all offered shares sold through
it as Sales Agent under the applicable equity distribution agreement. In connection with each forward sale, we will pay