Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 128

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 128
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 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, directly or indirectly, into stock, and (ii) the interest rate and interest payment dates are not contingent 
 on profits, the borrower’s discretion, or similar factors. “Straight debt” securities do not include any securities                   
 issued by a partnership or a corporation in which we or any “controlled TRS” hold non-” straight” debt securities                     
 that have an aggregate value of more than 1% of the issuer’s outstanding securities. However, “straight debt” securities              
 include debt subject to the following contingencies:                                                                                  |

| · | a contingency relating to the time of payment of interest                                                                       
 or principal, as long as either (i) there is no change to the effective yield of the debt obligation, other than a change to    
 the annual yield that does not exceed the greater of 0.25% or 5% of the annual yield, or (ii) neither the aggregate issue price 
 nor the aggregate face amount of the issuer’s debt obligations held by us exceeds $1 million and no more than 12 months of      
 unaccrued interest on the debt obligations can be required to be prepaid; and                                                   |

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| · | a contingency relating to the time or amount of payment                                                                         
 upon a default or prepayment of a debt obligation, as long as the contingency is consistent with customary commercial practice; |

| · | any loan to an individual or an                                                                                                       
 estate;                                                                                                                               |
| · | any “section 467 rental agreement