Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 113

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 113
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 corporations, including TRSs, will be subject to U.S. federal corporate income tax. |

In addition, we may be subject to a variety of
taxes, including payroll taxes and state, local and foreign income, property and other taxes on our assets and operations. We also could
be subject to tax in situations and on transactions not presently contemplated.

Requirements for Qualification as a REIT

A REIT is a corporation, trust or association
that satisfies each of the following requirements:

| (1) | It is managed by one or more trustees or directors; |

| (2) | Its beneficial ownership is evidenced by transferable                              
 shares of stock, or by transferable shares or certificates of beneficial interest; |

| (3) | It would be taxable as a domestic corporation, but                   
 for Sections 856 through 860 of the Code, i.e., the REIT provisions; |

| (4) | It is neither a financial institution nor an insurance                     
 company subject to special provisions of the U.S. federal income tax laws; |

| (5) | At least 100 persons are beneficial owners of its stock                                         
 or ownership shares or certificates (determined without reference to any rules of attribution); |

| (6) | Not more than 50% in value of its outstanding stock                                                                                 
 or shares of beneficial interest are owned, directly or indirectly, by five or fewer individuals, which the U.S. federal income tax 
 laws define to include certain entities, during the last half of any taxable year;                                                  |

| (7) | It elects to be a REIT, or has made such election for                                                                            
 a previous taxable year, and satisfies all relevant filing and other administrative requirements established by the Service that 
 must be met to qualify to be taxed as a REIT for U.S. federal income tax purposes;                                               |

| (8) | It uses a calendar year for U.S. federal income tax                                            
 purposes and complies with the recordkeeping requirements of the U.S. federal income tax laws; |

| (9) | It meets certain other requirements described below,                                                                            
 regarding the sources of its gross income, the nature and diversification of its assets and the distribution of its income; and |

| (10) | It has no undistributed earnings and profits from any   
 non-REIT taxable year at the close of any taxable year. |

We must satisfy requirements 1 through 4, and
8 during our entire taxable year and must satisfy requirement 5