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

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 25
---
 on the date hereof.                                                                                         |

The term “capital stock” does not
include convertible or exchangeable debt securities, none of which are outstanding as of the date hereof, which, prior to conversion or
exchange, will rank senior in right of payment to the Series A Preferred Stock. The Series A Preferred Stock will also rank
junior in right of payment to our future debt obligations.

Dividends

Subject to the preferential rights of the holders
of any class or series of our capital stock ranking senior to the Series A Preferred Stock with respect to dividend rights, holders
of shares of the Series A Preferred Stock are entitled to receive, when, as and if authorized by our board of directors and declared
by us out of funds legally available for the payment of dividends, cumulative cash dividends on the Series A Preferred Stock at the
rate of 9.00% per annum of the $25.00 per share liquidation preference (equivalent to the fixed annual amount of $2.25 per share
of the Series A Preferred Stock).

Dividends on the Series A Preferred Stock
will accrue and be cumulative from and including the date of original issue and will be payable to holders quarterly in arrears on or
about the 15th day of January, April, July and October of each year (or if such day
is not a business day, on the next succeeding business day). The term “business day” means each day, other than a Saturday
or a Sunday, which is not a day on which banks in New York, New York are authorized or required to close.

The amount of any dividend payable on the Series A
Preferred Stock for any dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months. A dividend
period is the respective period commencing on and including the 15th day of January, April,
July and October of each year and ending on and including the day preceding the first day of the next succeeding dividend period
(other than the initial dividend period and the dividend period during which any shares of Series A Preferred Stock shall be redeemed).
Dividends will be payable to holders of record as they appear in our stock records at the close of business on the applicable record date,
which shall be the date designated by our board of directors as the record date for the payment of dividends that is not more than 35
and not fewer than 10 days prior to the scheduled dividend payment date.

| S-18