Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 54

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 54
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 complex provisions of U.S. federal income tax law for which no clear precedent or authority may be available. In addition, the tax consequences to any particular holder of our shares and warrants will depend on the holder’s particular tax circumstances. We urge you to consult your own tax advisors regarding the U.S. federal, state, local, foreign, and other tax consequences of the acquisition, ownership and disposition of our shares and of our intended election to be taxed as a REIT.

Taxation of Our Company

We were incorporated on June 15, 2016 as
a Maryland corporation. We have been organized to operate our business so as to qualify to be taxed as a REIT, for U.S. federal income
tax purposes, commencing with our taxable year ended December 31, 2017. Our ability to continue to qualify as a REIT depends upon
our ability to meet, on a continuing basis, various complex requirements under the Code relating to, among other things, the sources
of our gross income, the composition and values of our assets, our distribution levels and the diversity of ownership of our stock. No
assurances can be provided regarding our ability to maintain our qualification as a REIT because such qualification depends on our ability
to satisfy numerous asset, income, stock ownership and distribution tests described below, the satisfaction of which will depend, in
part, on our operating results.

The sections of the Code and Treasury Regulations
relating to qualification, operation and taxation as a REIT are highly technical and complex. The following discussion sets forth only
the material aspects of those sections. This summary is qualified in its entirety by the applicable Code provisions and the related Treasury
Regulations and administrative and judicial interpretations thereof.

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In connection with the filing of the registration
statement of which this prospectus is a part, Foley & Lardner LLP has issued an opinion to us to the effect that, commencing
with our taxable year ended December 31, 2017, we have been organized and have operated in conformity with the requirements for
qualification and taxation as a REIT under the U.S. federal income tax laws, and our current and proposed method of operation will enable
us to continue to meet the requirements for qualification and taxation as a REIT under the U.S. federal income tax laws. You should be
aware that Foley & Lardner LLP’s opinion is based on the U.S. federal income tax laws governing qualification as a REIT
as