Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 8

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 8
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 investments, and we will have broad discretion to determine alternative uses of proceeds.

We intend to use a portion of the net
proceeds from this offering to fund investments that are consistent with our investment strategy, which may include acquisitions of
real estate or investments in real estate funds, other REITs, joint ventures, debt, mezzanine loans,
preferred equity or other forms of joint venture equity. We will have broad discretion in the application of the net
proceeds from this offering, and holders of the offered shares will not have the opportunity as part of their investment decision to
assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine
our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use, and result in investments that are not
accretive to our results from operations.

In addition to acquisitions of real estate, we may use a portion of the net proceeds from this offering to invest in real estate funds, other REITs, joint ventures, debt, mezzanine loans, preferred equity and other forms of joint venture equity over which we may not have significant control, to or for which we may owe significant funding or obligations and for which there is no readily available market, and these investments may not be profitable.

We may invest with third parties through real
estate funds, other REITs, joint ventures or other entities, by acquiring non-controlling interests in or sharing responsibility for managing
the affairs of a property, partnership, joint venture or other entity. Further, we may invest in debt or mezzanine loans for a property,
and any such investments may be second liens and lower in priority than any first lien lender. Any of the foregoing types of investments
may not be liquid and we may have little or no rights, or ability, to exercise the direction or control of the respective enterprises.
In connection with these investments, we may have obligations under certain guarantees related to such investments. The ultimate value
of any minority investments, joint ventures or debt investments will be dependent upon the efforts of others over an extended period of
time. The nature of our interests and the absence of a readily available market for those interests restrict our ability to dispose of
them. Our lack of control over the management of any business in which we are a minority investor, joint owner or creditor and the lack
of a readily available market to sell our interest in these businesses may cause us to recognize a loss on our investment