Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 144

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 144
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 to be engaged in a U.S. trade or business solely as a
result of their ownership of our shares of capital stock. It is expected that the applicable withholding agent will withhold U.S. income
tax at the rate of 30% on the gross amount of any distribution that we do not designate as a capital gain distribution or retained capital
gain and is paid to a non-U.S. holder unless either:

| · | a lower treaty rate applies and                                                                                                
 the non-U.S. holder files with the applicable withholding agent an IRS Form W-8BEN or IRS Form W-8BEN-E evidencing eligibility 
 for that reduced rate, or                                                                                                      |

| · | the non-U.S. holder files with the                                                                              
 applicable withholding agent an IRS Form W-8ECI claiming that the distribution is effectively connected income. |

Capital gain dividends received or deemed received
by a non-U.S. holder from us that are not attributable to gain from our sale or exchange of “United States real property interests,”
as defined below, are generally not subject to U.S. federal income or withholding tax, unless either (1) the non-U.S. holder’s
investment in our shares of capital stock is effectively connected with a U.S. trade or business conducted by such non-U.S. holder (in
which case the non-U.S. holder will be subject to the same treatment as U.S. holders with respect to such gain) or (2) the non-U.S.
holder is a nonresident alien individual who was present in the United States for 183 days or more during the taxable year and has a
“tax home” in the United States (in which case the non-U.S. holder will be subject to a 30% tax on the individual’s
net capital gain for the year).

A non-U.S. holder will not incur tax on a distribution
on the shares of capital stock in excess of our current and accumulated earnings and profits if the excess portion of the distribution
does not exceed the adjusted tax basis of its shares of capital stock. Instead, the excess portion of the distribution will reduce such
non-U.S. holder’s adjusted tax basis of its shares of capital stock. A non-U.S. holder will be subject to tax on a distribution
that exceeds both our current and accumulated earnings and profits and the adjusted basis of its shares of capital stock, if the non-U.S.
holder otherwise would be subject to tax on gain from the sale or disposition of its shares of capital