Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 2

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 2
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 the relevant Forward
Seller, in the form of a reduced initial forward sale price under the related forward sale agreement with the related Forward Purchaser,
commissions at a mutually agreed rate that will not exceed, but may be lower than, 2.0% of the gross sales price of all borrowed shares
of common stock sold by it as a Forward Seller. Each of the Sales Agents, the Forward Sellers and/or the Forward Purchasers may be deemed
an “underwriter” within the meaning of the Securities Act, and the compensation paid to the Sales Agents or the Forward Sellers
in the form of a reduced initial forward sale price under the related forward sale agreements with the related Forward Purchaser may be
deemed to be underwriting discounts or commissions. The offering will terminate upon the earlier of (i) the sale of offered shares
having an aggregate offering price of $500,000,000 and (ii) the termination of the equity distribution agreements in accordance with
their terms.

We also may sell some
or all of the offered shares to a Sales Agent as principal for its own account at a price agreed upon at the time of sale.

Our common stock is
listed on the NYSE under the symbol “IIPR.” On February 25, 2025, the last reported sale price of our common stock
on the NYSE was $73.78 per share. Our Series A Preferred Stock is listed on the NYSE under the symbol “IIPRPrA.” On
February 25, 2025, the last reported sale price of our Series A Preferred Stock on the NYSE was $25.71 per share.

We have elected to be
taxed as a real estate investment trust for U.S. federal income tax purposes (“REIT”), commencing with our taxable year ended
December 31, 2017. The offered shares are subject to restrictions on ownership and transfer that are intended, among other purposes,
to assist us in maintaining our qualification as a REIT, including, subject to certain exceptions, a 9.8% ownership limit of our common
stock or capital stock. See “Description of Capital Stock — Restrictions on Ownership and Transfer” in
the accompanying prospectus and “Description of Series A Preferred Stock — Restrictions on Ownership and
Transfer” in this prospectus supplement.

Investing in the offered shares involves a high degree of risk. You should purchase the offered shares only if you can afford a complete loss of your investment. Before making a decision to invest in