Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 12

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 12
---
, without stockholder approval, to designate and issue one or more classes or series of preferred stock (including
equity or debt securities convertible into preferred stock) and to set or change the voting, conversion or other rights, preferences,
restrictions, limitations as to dividends or other distributions and qualifications or terms or conditions of redemption of each class
of shares so issued. If any preferred stock is publicly offered, the terms and conditions of such preferred stock (including any equity
or debt securities convertible into preferred stock) will be set forth in a registration statement registering the issuance of such preferred
stock or equity or debt securities convertible into preferred stock. Because our board of directors has the power to establish the preferences
and rights of each class or series of preferred stock, it may afford the holders of any series or class of preferred stock preferences,
powers, and rights senior to the rights of holders of common stock or Series A Preferred Stock. If we ever create and issue additional
preferred stock or equity or debt securities convertible into preferred stock with a distribution preference over common stock or Series A
Preferred Stock, payment of any distribution preferences of new outstanding preferred stock would reduce the amount of funds available
for the payment of distributions on the common stock and Series A Preferred Stock. Further, holders of preferred stock are normally
entitled to receive a preference payment if we liquidate, dissolve, or wind up before any payment is made to the common stockholders,
likely reducing the amount common stockholders would otherwise receive upon such an occurrence. In addition, under certain circumstances,
the issuance of additional preferred stock may delay, prevent, render more difficult or tend to discourage a merger, tender offer, or
proxy contest, the assumption of control by a holder of a large block of our securities, or the removal of incumbent management.

Additionally, from time
to time we also may issue shares of our common stock or operating partnership units of our Operating Partnership in connection with property
acquisitions. We may grant additional demand or piggyback registration rights in connection with these issuances. Sales of substantial
amounts of our common stock or operating partnership units of our Operating Partnership, or the perception that these sales could occur,
may adversely affect the prevailing market price of our common stock or may adversely affect the terms upon which we may be able to obtain
additional capital through the sale of equity securities.

You may experience significant dilution as a result of sales of shares pursuant to this prospectus supplement, which may adversely affect the per share trading prices of our common stock or Series A