Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 148

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 148
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 a U.S. person that is not an exempt recipient. Payments
of the net proceeds from a disposition or a redemption effected outside the United States by a non-U.S. holder made by or through a foreign
office of a broker generally will not be subject to information reporting or backup withholding. However, information reporting (but
not backup withholding) generally will apply to such a payment if the broker has certain connections with the U.S. unless the broker
has documentary evidence in its records that the beneficial owner is a non-U.S. holder and specified conditions are met or an exemption
is otherwise established. Payment of the net proceeds from a disposition by a non-U.S. holder of shares of capital stock made by or through
the U.S. office of a broker is generally subject to information reporting and backup withholding unless the non-U.S. holder certifies
under penalties of perjury that it is not a U.S. person and satisfies certain other requirements, or otherwise establishes an exemption
from information reporting and backup withholding.

Backup withholding is not an additional tax.
Any amounts withheld under the backup withholding rules may be refunded or credited against the non-U.S. holder’s U.S. federal
income tax liability if certain required information is timely furnished to the Service. Non-U.S. holders are urged to consult their
own tax advisors regarding application of backup withholding to them and the availability of, and procedure for obtaining an exemption
from, backup withholding.

Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act, or FATCA,
imposes a U.S. federal withholding tax on certain types of payments made to “foreign financial institutions” and certain
other non-U.S. entities unless certain due diligence, reporting, withholding, and certification obligation requirements are satisfied.
FATCA generally imposes a U.S. federal withholding tax at a rate of 30% on dividends on, and gross proceeds from the sale or other disposition
of, our stock if paid to a foreign entity unless either (i) the foreign entity is a “foreign financial institution”
that undertakes certain due diligence, reporting, withholding, and certification obligations, or in the case of a foreign financial institution
that is a resident in a jurisdiction that has entered into an intergovernmental agreement to implement FATCA, the entity complies with
the diligence and reporting requirements of such agreement, (ii) the foreign entity is not a “foreign financial institution”
and identifies certain of its U.S. investors, or (iii) the foreign entity otherwise is excepted under FAT