Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 112

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 112
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 for the        
 year, and (3) any undistributed taxable income required to be distributed from earlier periods, then we will be subject to a   
 4% nondeductible excise tax on the excess of the required distribution over the sum of (a) the amount we actually distributed; 
 and (b) the amounts we retained and upon which we paid income tax at the corporate level.                                      |

| · | If we fail any of the asset tests, other than a de                                                                                
 minimis failure of the 5% asset test, the 10% vote test or the 10% value test, as described below under “— Asset Tests,”          
 as long as (1) the failure was due to reasonable cause and not to willful neglect, (2) we file a description of each asset        
 that caused such failure with the Service, and (3) we dispose of the assets causing the failure or otherwise comply with the      
 asset tests within six months after the last day of the quarter in which we identify such failure, we will pay a tax with respect 
 to such failure equal to the greater of $50,000 or the highest U.S. federal corporate income tax rate (currently 21%) multiplied  
 by the net income from the nonqualifying assets during the period in which we failed to satisfy the asset tests.                  |

| · | If we fail to satisfy one or more requirements for                                                                                
 REIT qualification, other than the gross income tests and the asset tests, and such failure is due to reasonable cause and not to 
 willful neglect, we will be required to pay a penalty of $50,000 for each such failure.                                           |

| · | We will be subject to a 100% excise tax on transactions     
 with a TRS that are not conducted on an arm’s-length basis. |

| · | We may be required to pay monetary penalties to the                                                                               
 Service in certain circumstances, including if we fail to meet recordkeeping requirements intended to monitor our compliance with 
 rules relating to the composition of a REIT’s stockholders, as described below in “— Requirements for Qualification.”             |

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| · | the amount of gain that we recognize at the time of 
 the sale or disposition, and                        |

| · | the amount of gain that we would have recognized if 
 we had sold the asset at the time we acquired it.   |

| · | The earnings of our subsidiary entities that are C