Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 9

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 9
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 in these businesses
or to incur costs or liabilities that we do not control, but for which we may be required to contribute capital or satisfy financial commitments.
These arrangements are subject to uncertainties and risks, including those related to credit risk, conflicting joint venture partner interests,
including with respect to competition in other markets, and to our joint venture partners failing to meet their financial or other obligations.

In addition, the failure of a mezzanine loan
to qualify as a real estate asset could adversely affect our ability to qualify as a REIT. Pursuant to a safe harbor provided by the
IRS, if a mezzanine loan meets certain requirements, it will be treated by the IRS as a real estate asset for purposes of the asset tests,
and interest derived from the mezzanine loan will be treated as qualifying mortgage interest for purposes of the 75% gross income test.
We may acquire mezzanine loans that do not meet all of the requirements of this safe harbor. In the event we own a mezzanine loan that
does not meet the safe harbor, the IRS could challenge such loan’s treatment as a real estate asset for purposes of the REIT asset
and gross income tests and, if such a challenge were sustained, we could fail to qualify as a REIT.

The stock prices and trading volumes of our common stock and Series A Preferred Stock may continue to be volatile, and you may not be able to resell our shares at a profit or at all.

The market prices for
our common stock and Series A Preferred Stock have been, and may continue to be, volatile. In addition, the trading volumes in our
common stock and Series A Preferred Stock have fluctuated and may continue to fluctuate, resulting in significant price variations.

| S-9 |

Some of the factors that
could negatively affect the share prices of our common stock and Series A Preferred Stock or result in fluctuations in the price
or trading volume of our common stock and Series A Preferred Stock include:

| · | our actual or projected operating results, financial condition, cash flows and liquidity or changes in business strategy or prospects; |

| · | the performance of our current properties and additional properties that we acquire; |

| · | our ability to make acquisitions on preferable terms or at all; |

| · | the potential adverse effect of any future pandemic, epidemic or outbreak of infectious disease, on our financial condition, results 
 of operations, cash flows and performance, the real estate market and the global economy and financial markets;                      |

| · |