Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 53

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 53
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 taxation that may be relevant to particular investors in view of their personal investment
or tax circumstances, or to certain types of investors that are subject to special treatment under the U.S. federal income tax laws,
such as insurance companies, tax-exempt organizations, financial institutions, regulated investment companies, broker-dealers, partnerships
and other pass-through entities and trusts, persons holding our stock on behalf of other persons as nominees, persons who receive our
stock as compensation, persons subject to the alternative minimum tax, persons holding our stock as part of a hedge, straddle or other
risk reduction, constructive sale or conversion transaction, non-U.S. individuals and foreign corporations (except to the limited extent
discussed below under “— Taxation of Non-U.S. Holders”) and other persons subject to special tax rules. In addition,
the following summary does not address any U.S. federal income tax consequences to holders of our outstanding stock that could result
if we issue any redeemable preferred stock at a price that exceeds its redemption price by more than a de minimis amount or that otherwise
provides for dividends that are economically a return of the stockholders investment (rather than a return on the stockholder’s
investment), which preferred stock could be considered “fast-pay stock” under Treasury Regulations promulgated under Section 7701(l) of
the Code and treated under such regulations as a financing instrument among the holders of the fast-pay stock and our other stockholders.
Moreover, this summary assumes that holders will hold our shares as “capital assets” for U.S. federal income tax purposes,
which generally means property held for investment.

The statements in this section are based on the
current U.S. federal income tax laws, including the Code, the Treasury Regulations, rulings and other administrative interpretations
and practices of the Service, and judicial decisions, all as currently in effect, and all of which are subject to differing interpretations
or to change, possibly with retroactive effect. This discussion is for general purposes only and is not tax advice. We cannot assure
you that the Service would not assert, or that a court would sustain, a position contrary to any of the tax consequences described below.
Moreover, we cannot assure you that new laws, interpretations of law, or court decisions, any of which may take effect retroactively,
will not cause any statement in this section to be inaccurate.

The U.S. federal income tax treatment of holders of our shares and warrants depends, in some instances, on determinations of fact and interpretations of