Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 115

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 115
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For purposes of requirement 8, we have adopted
December 31 as our year end for U.S. federal income tax purposes, and thereby satisfy this requirement.

Qualified REIT Subsidiaries. A “qualified REIT subsidiary” generally is a corporation, all of the stock
of which is owned, directly or indirectly, by a REIT and that is not treated as a TRS. A corporation that is a “qualified REIT
subsidiary” is treated as a division of the REIT that owns, directly or indirectly, all of its stock and not as a separate entity
for U.S. federal income tax purposes. Thus, all assets, liabilities, and items of income, deduction, and credit of a “qualified
REIT subsidiary” are treated as assets, liabilities, and items of income, deduction, and credit of the REIT that directly or indirectly
owns the qualified REIT subsidiary. Consequently, in applying the REIT requirements described herein, the separate existence of any “qualified
REIT subsidiary” that we own will be ignored, and all assets, liabilities, and items of income, deduction, and credit of such subsidiary
will be treated as our assets, liabilities, and items of income, deduction, and credit.

Other Disregarded Entities and Partnerships. The following discussion summarizes certain U.S. federal income
tax considerations applicable to our direct or indirect investments in our Operating Partnership and any subsidiary partnerships or limited
liability companies that we form or acquire.

An unincorporated domestic entity, such as a
partnership or limited liability company, that has a single owner, as determined under U.S. federal income tax laws, generally is not
treated as an entity separate from its owner for U.S. federal income tax purposes. We own various direct and indirect interests in entities
that are classified as partnerships and limited liability companies for state law purposes. Nevertheless, many of these entities currently
are not treated as entities separate from their owners for U.S. federal income tax purposes because such entities are treated as having
a single owner for U.S. federal income tax purposes. Consequently, the assets and liabilities, and items of income, deduction, and credit,
of such entities will be treated as our assets and liabilities, and items of income, deduction, and credit, for U.S. federal income tax
purposes, including the application of the various REIT qualification requirements.

An unincorporated domestic entity with two or
more owners, as determined under the U