Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 92

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 92
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 the sale of our capital stock were taxed under FIRPTA, a non-U.S. holder
would be taxed on that gain in the same manner as U.S. holders, subject to applicable alternative minimum tax and a special alternative
minimum tax in the case of nonresident alien individuals.

In addition, distributions to “qualified
shareholders” (generally, certain non-U.S. publicly traded shareholders that meet certain record-keeping and other requirements)
are exempt from FIRPTA, except to the extent owners of such qualified shareholders that are not also qualified shareholders own, actually
or constructively, more than 10% of our capital stock. Furthermore, distributions to “qualified foreign pension funds,” or
entities all of the interests of which are held by “qualified foreign pension funds,” are exempt from FIRPTA. Non-U.S. holders
should consult their tax advisors regarding the application of these rules.

Backup withholding will generally not apply to
payments of dividends made by us or our paying agents, in their capacities as such, to a non-U.S. holder provided that the non-U.S. holder
furnishes to the applicable withholding agent the required certification as to its non-U.S. status, such as providing a valid IRS Form W-8BEN
or W-8BEN-E or W-8ECI, or certain other requirements are met. Notwithstanding the foregoing, backup withholding may apply if the applicable
withholding agent has actual knowledge, or reason to know, that the holder is 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