Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 11

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 11
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 date fixed for redemption, without interest.

We may, at our option,
redeem outstanding shares of Series A Preferred Stock, including shares of Series A Preferred Stock sold in this offering,
at any time, or from time to time, for a cash redemption price of $25.00 per share, plus an amount equal to all accrued but unpaid dividends
(whether or not authorized or declared) to, but not including, the date fixed for redemption, without interest. Any such redemptions
may occur at a time that is unfavorable to holders of such Series A Preferred Stock. It is likely that we would choose to
exercise our redemption right when prevailing interest rates have declined, which would adversely affect your ability to reinvest your
proceeds from the redemption in a comparable investment with an equal or greater yield to the yield on the Series A Preferred Stock
had the Series A Preferred Stock not been redeemed. Given the potential for immediate redemption of the Series A Preferred
Stock, holders of such shares may face an increased reinvestment risk, which is the risk that the return on an investment purchased with
proceeds from the sale or redemption of the Series A Preferred Stock may be lower than the return previously obtained from the investment
in such shares.

| S-10 |

Common stock and preferred stock eligible for future sale may have material and adverse effects on the share prices of our common stock and Series A Preferred Stock.

We may sell shares of
our common stock and our Series A Preferred Stock under this prospectus supplement with an aggregate gross offering price of up to
$500,000,000. In addition, as of December 31, 2024, we had reserved an additional 457,654 shares of common stock for future issuance
under our 2016 Omnibus Incentive Plan.

Subject to applicable
law, our board of directors, without stockholder approval, may authorize us to issue additional shares of our common stock or to raise
capital through the issuance of preferred stock (including equity or debt securities convertible into preferred stock), options, warrants
and other rights, on terms and for consideration as our board of directors in its sole discretion may determine. Any such issuance could
result in dilution of the equity of our stockholders. Sales of substantial amounts of shares of our common stock or preferred stock in
the public market, or the perception that such sales might occur, could adversely affect the market prices of our common stock and Series A
Preferred Stock.

Our charter also authorizes
our board of directors