Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 18

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 18
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 net share settlement provisions of that particular forward sale agreement irrespective of our capital needs, which would
result in dilution to our earnings per share, return on equity and dividends per share.

| S-13 |

We expect that settlement
of any forward sale agreement will generally occur no later than the date specified in the particular forward sale agreement, which will
be no sooner than three months and no later than two years following the trade date of that forward sale agreement. However,
any forward sale agreement may be settled earlier than the latest potential settlement date specified in that particular forward sale
agreement in whole or in part at our option. We expect that each forward sale agreement will be physically settled by delivery of shares
of our common stock unless we elect to cash settle or net share settle a particular forward sale agreement. Upon physical settlement or,
if we so elect, net share settlement of a particular forward sale agreement, delivery of shares of our common stock in connection with
such physical settlement or, to the extent we are obligated to deliver shares of our common stock, net share settlement, will result in
dilution to our earnings per share and dividends per share. If we elect cash settlement or net share settlement with respect to all or
a portion of the shares of common stock underlying a particular forward sale agreement, we expect that the relevant Forward Purchaser
(or an affiliate thereof) will purchase a number of shares of common stock necessary to satisfy its or its affiliate’s obligation
to return the shares of common stock borrowed from third parties in connection with sales of shares of our common stock in relation to
that forward sale agreement, adjusted in the case of net share settlement, by any shares deliverable by or to us under the forward sale
agreement. In addition, the purchase of shares of our common stock in connection with the relevant Forward Purchaser or its affiliate
unwinding its hedge positions could cause the price of our common stock to increase over such time (or prevent a decrease over such time),
thereby increasing the amount of cash we would owe to the relevant Forward Purchaser (or decreasing the amount of cash that the relevant
Forward Purchaser would owe us) upon a cash settlement of the relevant forward sale agreement or increasing the number of shares of common
stock we would deliver to the relevant Forward Purchaser (or decreasing the number of shares of common stock that the relevant Forward
Purchaser would deliver to us) upon net share settlement of the relevant forward sale agreement.

The forward sale price
that we expect to receive upon