Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 108

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 108
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MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS</div>

This section summarizes the material U.S. federal
income tax considerations that you, as a prospective investor, may consider relevant in connection with the acquisition, ownership and
disposition of our common and preferred shares and warrants and our election to be taxed as a REIT. Supplemental material U.S. federal
income tax considerations relevant to the acquisition, ownership, and disposition of the other securities offered by this prospectus
may be provided in the additional prospectus or prospectus supplement that relates to those securities. As used in this section, the
terms “we” and “our” refer solely to Innovative Industrial Properties, Inc. and not any subsidiaries or
other lower-tier entities or affiliates, except as otherwise indicated.

This discussion does not exhaust all possible
tax considerations and does not provide a detailed discussion of any state, local or foreign tax considerations. Nor does this discussion
address all aspects of U.S. federal income taxation that may be relevant to particular investors in view of their personal investment
or tax circumstances, or to certain types of investors that are subject to special treatment under the U.S. federal income tax laws,
such as insurance companies, tax-exempt organizations, financial institutions, regulated investment companies, broker-dealers, partnerships
and other pass-through entities and trusts, persons holding our stock on behalf of other persons as nominees, persons who receive our
stock as compensation, persons subject to the alternative minimum tax, persons holding our stock as part of a hedge, straddle or other
risk reduction, constructive sale or conversion transaction, non-U.S. individuals and foreign corporations (except to the limited extent
discussed below under “— Taxation of Non-U.S. Holders”) and other persons subject to special tax rules. In addition,
the following summary does not address any U.S. federal income tax consequences to holders of our outstanding stock that could result
if we issue any redeemable preferred stock at a price that exceeds its redemption price by more than a de minimis amount or that otherwise
provides for dividends that are economically a return of the stockholders investment (rather than a return on the stockholder’s
investment), which preferred stock could be considered “fast-pay stock” under Treasury Regulations promulgated under Section 7701(l) of
the Code and treated under such regulations as a financing instrument among the holders of the fast-pay stock and our other stockholders.
Moreover, this summary assumes that holders will hold our