Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 73

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 73
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 | debt instruments issued by “publicly offered                                                                                          
 REITs;” and                                                                                                                           |
| · | regular or residual interests in a REMIC. However,                                                                                    
 if less than 95% of the assets of a REMIC consist of assets that are qualifying real estate-related assets under the U.S. federal     
 income tax laws, determined as if we held such assets, we will be treated as holding directly our proportionate share of the assets   
 of such REMIC.                                                                                                                        |

Second, of our investments not included in the
75% asset class, the value of our interest in any one issuer’s securities may not exceed 5% of the value of our total assets (the
“5% asset test”).

Third, of our investments not included in the
75% asset class, we may not own more than 10% of the total voting power or 10% of the total value of any one issuer’s outstanding
securities (the “10% vote test” and the “10% value test,” respectively).

Fourth, no more than 20% of the value of our
total assets may consist of the securities of one or more TRSs.

Fifth, no more than 25% of the value of our total
assets may consist of the securities of TRSs and other non-TRS taxable subsidiaries and other assets that are not qualifying assets for
purposes of the 75% asset test (the “25% securities test”).

Sixth, not more than 25% of the value of our
total assets may be represented by debt instruments of “publicly offered REITs” to the extent those debt instruments are
not secured by real property or an interest in real property.

For purposes of these assets tests, we are treated
as holding our proportionate share of our Operating Partnership’s assets. For purposes of the 5% asset test, the 10% vote test
and the 10% value test, the term “securities” does not include stock in another REIT, equity or debt securities of a qualified
REIT subsidiary or TRS, mortgage loans, or equity interests in a partnership. For purposes of the 10% value test, the term “securities”
does not include:

| · | “straight debt” securities,                                                                                                           
 which is defined as a written unconditional promise to pay on demand or on a specified date a sum certain in money if  (i) the        
 debt is not convertible,