Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 52

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 52
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 superior to, those of general partnership
interests and limited partnership interests.

Capital Contributions

The Operating Partnership Agreement provides
that, if our Operating Partnership requires additional funds at any time, or from time to time, in excess of funds available to it from
prior borrowings, operating revenue or capital contributions, we, as general partner, have the right to raise additional funds required
by our Operating Partnership by causing it to borrow the necessary funds from third parties on such terms and conditions as we deem appropriate.
As an alternative to borrowing funds required by our Operating Partnership, we may contribute the amount of such required funds as an
additional capital contribution.

Liquidation

Upon the liquidation of our Operating Partnership,
after payment of debts and obligations, any remaining assets of the partnership will be distributed to partners pro rata in accordance
with their relative percentage interest ownership.

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Distributions and Allocations

Distributions are made, and all items of net
income, net loss and any other individual items of income, gain, loss or deduction of our Operating Partnership are allocated to the
general partner and the limited partner based on their relative percentage interest ownership.

Term

Our Operating Partnership will continue in full
force and effect until December 31, 2099 or until sooner dissolved and terminated upon (i) our election to dissolve the Partnership;
(ii) the entry of a decree of judicial dissolution of our Operating Partnership; or (iii) by operation of law.

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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