Innovative Industrial Properties Announces Tax Treatment of 2025 Distributions

Key Terms

cusip financial

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

cumulative redeemable preferred stock financial

Cumulative redeemable preferred stock is a type of investment that gives shareholders priority over common stockholders to receive dividends and get their money back if the company is sold or closes. If the company misses dividend payments, it must pay them later before any dividends can go to other shareholders. This makes it a more secure and flexible option for investors seeking steady income with some ability to redeem their shares in the future.

unrecaptured section 1250 gain regulatory

A portion of the taxable profit realized when selling depreciable real estate that represents previously claimed depreciation deductions and is taxed at a special, generally higher capital-gains-related rate (capped at 25% under U.S. tax rules). Think of it as paying back part of the tax benefit you took earlier; it matters to investors because it reduces the after-tax proceeds from a sale and can change the economics and timing of selling property or property-related investments.

section 199a dividend regulatory

A section 199A dividend is a type of corporate payout that can qualify individual shareholders for a special U.S. tax break that reduces taxable income by up to 20% for certain pass-through earnings. For investors, it matters because the label affects after-tax returns and how dividends are reported on tax forms—think of it as a coupon that lowers the tax bill on part of the dividend, so identical cash payments can result in different take-home amounts depending on this classification.

return of capital financial

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

long-term capital gain financial

A long-term capital gain is the profit you make from selling an investment, like stocks or property, after holding onto it for more than a year. It matters because these gains are often taxed at a lower rate than quick profits, encouraging people to invest and keep their investments longer.

split-year distribution financial

A split-year distribution is when a company or fund divides a single payout so parts are treated as belonging to two different tax or reporting periods. For investors it matters because the timing can change when you record income, pay taxes, and compare yields—like receiving part of a paycheck in December and the rest in January, which affects which year’s accounts show the money.

SAN DIEGO--(BUSINESS WIRE)-- Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) today announced the tax treatment of its 2025 distributions as follows:

Security Description: Common Stock
CUSIP: 45781V101
Ticker Symbol: IIPR

Record Date	Payable Date	Total Distribution Per Share	Allocable to 2025	Taxable Ordinary Dividend	Return of Capital	Long-Term Capital Gain	Unrecaptured Section 1250 Gain	Section 199A Dividend(1)
12/31/2024	01/15/2025	$1.900000	$1.070000	$0.970900	$0.099100	$0.000000	$0.000000	$0.970900
03/31/2025	04/15/2025	$1.900000	$1.900000	$1.724100	$0.175900	$0.000000	$0.000000	$1.724100
06/30/2025	07/15/2025	$1.900000	$1.900000	$1.724100	$0.175900	$0.000000	$0.000000	$1.724100
09/30/2025	10/15/2025	$1.900000	$1.900000	$1.724100	$0.175900	$0.000000	$0.000000	$1.724100
	Totals	$7.600000	$6.770000	$6.143200	$0.626800	$0.000000	$0.000000	$6.143200

Security Description: 9.00% Series A Cumulative Redeemable Preferred Stock
CUSIP: 45781V200
Ticker Symbol: IIPR PR A

Record Date	Payable Date	Total Distribution Per Share	Allocable to 2025	Taxable Ordinary Dividend	Return of Capital	Long-Term Capital Gain	Unrecaptured Section 1250 Gain	Section 199A Dividend(1)
03/31/2025	04/15/2025	$0.562500	$0.562500	$0.510400	$0.052100	$0.000000	$0.000000	$0.510400
06/30/2025	07/15/2025	$0.562500	$0.562500	$0.510400	$0.052100	$0.000000	$0.000000	$0.510400
09/30/2025	10/15/2025	$0.562500	$0.562500	$0.510400	$0.052100	$0.000000	$0.000000	$0.510400
	Totals	$1.687500	$1.687500	$1.531200	$0.156300	$0.000000	$0.000000	$1.531200

(1)	These amounts are a subset of, and included in, Taxable Ordinary Dividend amounts.

As previously disclosed by IIP on January 27, 2025 in its press release announcing the tax treatment of 2024 dividends, the common stock distribution with a record date of December 31, 2024 was a split-year distribution, with $0.83 allocable to 2024 for federal income tax purposes and $1.07 allocable to 2025 for federal income tax purposes. The preferred stock distribution with a record date of December 31, 2024 was all allocable to 2024 for federal income tax purposes.

IIP did not incur any foreign taxes in 2025. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of IIP’s distributions.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260123602264/en/

Company Contact:

David Smith

Chief Financial Officer

Innovative Industrial Properties, Inc.

(858) 997-3332

Source: Innovative Industrial Properties, Inc.