Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 110

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 110
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 and complex. The following discussion sets forth only
the material aspects of those sections. This summary is qualified in its entirety by the applicable Code provisions and the related Treasury
Regulations and administrative and judicial interpretations thereof.

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In connection with the filing of the registration
statement of which this prospectus is a part, Foley & Lardner LLP has issued an opinion to us to the effect that, commencing
with our taxable year ended December 31, 2017, we have been organized and have operated in conformity with the requirements for
qualification and taxation as a REIT under the U.S. federal income tax laws, and our current and proposed method of operation will enable
us to continue to meet the requirements for qualification and taxation as a REIT under the U.S. federal income tax laws. You should be
aware that Foley & Lardner LLP’s opinion is based on the U.S. federal income tax laws governing qualification as a REIT
as of the date of such opinion (which are subject to change, possibly on a retroactive basis), is not binding on the Service or any court,
and speaks only as of the date issued. In addition, Foley & Lardner’s opinion is based on customary assumptions and
is conditioned upon certain representations made by us as to factual matters, including representations regarding the nature of our assets
and the future conduct of our business. Moreover, our qualification and taxation as a REIT will depend on our ability to meet, on a continuing
basis, through actual results, certain qualification tests set forth in the U.S. federal income tax laws. Those qualification tests involve,
among other things, the percentage of our gross income that we earn from specified sources, the percentage of our assets that fall within
specified categories, the diversity of our stock ownership and the percentage of our earnings that we distribute. Foley & Lardner
LLP will not review our compliance with those tests on a continuing basis. Accordingly, we cannot assure you that the actual results
of our operations for any particular taxable year will satisfy such requirements. Foley & Lardner LLP’s opinion does not
foreclose the possibility that we may have to use one or more of the REIT savings provisions described below, which may require us to
pay a material excise or penalty tax (and interest) in order to maintain our REIT qualification. For a discussion of the tax consequences
of our failure to maintain our qualification as a REIT, see the section entitled