Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 58

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 58
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 of the U.S. federal income tax laws; |

| (5) | At least 100 persons are beneficial owners of its stock                                         
 or ownership shares or certificates (determined without reference to any rules of attribution); |

| (6) | Not more than 50% in value of its outstanding stock                                                                                 
 or shares of beneficial interest are owned, directly or indirectly, by five or fewer individuals, which the U.S. federal income tax 
 laws define to include certain entities, during the last half of any taxable year;                                                  |

| (7) | It elects to be a REIT, or has made such election for                                                                            
 a previous taxable year, and satisfies all relevant filing and other administrative requirements established by the Service that 
 must be met to qualify to be taxed as a REIT for U.S. federal income tax purposes;                                               |

| (8) | It uses a calendar year for U.S. federal income tax                                            
 purposes and complies with the recordkeeping requirements of the U.S. federal income tax laws; |

| (9) | It meets certain other requirements described below,                                                                            
 regarding the sources of its gross income, the nature and diversification of its assets and the distribution of its income; and |

| (10) | It has no undistributed earnings and profits from any   
 non-REIT taxable year at the close of any taxable year. |

We must satisfy requirements 1 through 4, and
8 during our entire taxable year and must satisfy requirement 5 during at least 335 days of a taxable year of 12 months, or during a
proportionate part of a taxable year of less than 12 months. Requirements 5 and 6 applied to us beginning with our 2018 taxable year.
If we comply with certain requirements for ascertaining the beneficial ownership of our outstanding stock in a taxable year and have
no reason to know that we violated requirement 6, we will be deemed to have satisfied requirement 6 for that taxable year. For purposes
of determining stock ownership under requirement 6, an “individual” generally includes a supplemental unemployment compensation
benefits plan, a private foundation, or a portion of a trust permanently set aside or used exclusively for charitable purposes. An “individual,”
however, generally does not include a trust that is a qualified employee pension or profit sharing trust under the U.S. federal income
tax laws, and beneficiaries of such a trust will be treated as holding our stock in proportion to their actuarial interests