Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 129

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 129
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,” other                                                                                             
 than an agreement with a related party tenant;                                                                                        |
| · | any obligation to pay “rents from real property;”                                                                                     |
| · | certain securities issued by governmental entities                                                                                    
 that are not dependent in whole or in part on the profits of  (or payments made by) a non-governmental entity;                        |
| · | any security (including debt securities) issued by                                                                                    
 another REIT;                                                                                                                         |
| · | any debt instrument of an entity treated as a partnership                                                                             
 for U.S. federal income tax purposes in which we are a partner to the extent of our proportionate interest in the equity and certain  
 debt securities issued by that partnership; or                                                                                        |
| · | any debt instrument of an entity treated as a partnership                                                                             
 for U.S. federal income tax purposes not described in the preceding bullet points if at least 75% of the partnership’s gross          
 income, excluding income from prohibited transactions, is qualifying income for purposes of the 75% gross income test described above 
 in “— Gross Income Tests.”                                                                                                            |

For purposes of the 10% value test, our proportionate
share of the assets of a partnership is our proportionate interest in any securities issued by the partnership, without regard to the
securities described in the last two bullet points above.

We intend that the assets that we will hold will
satisfy the foregoing asset test requirements. We will not obtain, however, nor are we required to obtain under the U.S. federal
income tax laws, independent appraisals to support our conclusions as to the value of our assets and securities or the real estate collateral
for any mortgage loans that we may originate or acquire. Therefore, we cannot assure you that we will be able to satisfy the asset tests
described above. We will monitor the status of our assets for purposes of the various asset tests and seek to manage our portfolio to
comply at all times with such tests. No assurance, however, can be given that we will continue to be successful in this effort. In this
regard, to determine our compliance with these requirements, we will have to value our investment in our assets to ensure compliance
with the asset tests. Although we seek to be prudent in making these estimates, no assurances can be given that the Service might not
disagree with these determinations and assert that a different value is applicable, in which case we might not satisfy the 75% asset
test and the other asset tests