Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 51

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 51
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 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,
have full, exclusive and complete responsibility and discretion in the management and control of our Operating Partnership.

Indemnification

To the extent permitted by law, the Operating
Partnership Agreement provides for indemnification of us when acting in good faith and in the best interests of our Operating Partnership
in our capacity as general partner. It also provides for indemnification of directors, officers and other persons that we may designate
under the same conditions, and subject to the same restrictions, applicable to the indemnification of officers, directors, employees
and stockholders under our charter. See the section entitled “Certain Provisions of Maryland Law and Our Charter and Bylaws —
Indemnification and Limitation of Directors’ and Officers’ Liability.”

Issuance of Additional Units

As general partner of our Operating Partnership,
we are able to cause our Operating Partnership to issue additional units representing general and/or limited partnership interests. A
new issuance may include preferred units, which may have rights which are different than, and/or