Business Wire | Jan 31, 2022 10:31AM EST

Innovative Industrial Properties Announces Amended Tax Treatment of 2021 Distributions

Jan. 31, 2022

SAN DIEGO--(BUSINESS WIRE)--Jan. 31, 2022--Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) today announced an amendment to its initial tax treatment of its 2021 distributions that was provided in a press release dated January 28, 2022. The amended tax treatment of its 2021 distributions is as follows:

Security Description: Common Stock

CUSIP: 45781V101

Ticker Symbol: IIPR

Section Total Taxable Unrecaptured 199ARecord Payable Distribution Allocable Ordinary Return of Long-Term Section 1250 Dividend^Date Date Per Share to 2021 Dividend Capital Capital Gain (1) Gain

12/31/ 01/15/ $1.240000 $1.020000 $1.020000 $0.000000 $0.000000 $0.000000 $1.0200002020 2021

03/31/ 04/15/ $1.320000 $1.320000 $1.320000 $0.000000 $0.000000 $0.000000 $1.3200002021 2021

06/30/ 07/15/ $1.400000 $1.400000 $1.400000 $0.000000 $0.000000 $0.000000 $1.4000002021 2021

09/30/ 10/15/ $1.500000 $1.500000 $1.500000 $0.000000 $0.000000 $0.000000 $1.5000002021 2021

12/31/ 01/14/ $1.500000 $0.100000 $0.100000 $0.000000 $0.000000 $0.000000 $0.1000002021 2022

Totals $6.960000 $5.340000 $5.340000 $0.000000 $0.000000 $0.000000 $5.340000

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 2021

Taxable Ordinary Dividend

Return of Capital

Long-Term Capital Gain

Unrecaptured Section 1250 Gain

Section 199A Dividend(1)

03/31/2021

04/15/2021

$0.562500

$0.562500

$0.562500

$0.000000

$0.000000

$0.000000

$0.562500

06/30/2021

07/15/2021

$0.562500

$0.562500

$0.562500

$0.000000

$0.000000

$0.000000

$0.562500

09/30/2021

10/15/2021

$0.562500

$0.562500

$0.562500

$0.000000

$0.000000

$0.000000

$0.562500

12/31/2021

01/14/2022

$0.562500

$0.562500

$0.562500

$0.000000

$0.000000

$0.000000

$0.562500

Totals

$2.250000

$2.250000

$2.250000

$0.000000

$0.000000

$0.000000

$2.250000

Security Description: 9.00% Series A Cumulative Redeemable Preferred Stock

CUSIP: 45781V200

Ticker Symbol: IIPR PR A

Section Total Taxable Unrecaptured 199ARecord Payable Distribution Allocable Ordinary Return of Long-Term Section 1250 Dividend^Date Date Per Share to 2021 Dividend Capital Capital Gain (1) Gain

03/31/ 04/15/ $0.562500 $0.562500 $0.562500 $0.000000 $0.000000 $0.000000 $0.5625002021 2021

06/30/ 07/15/ $0.562500 $0.562500 $0.562500 $0.000000 $0.000000 $0.000000 $0.5625002021 2021

09/30/ 10/15/ $0.562500 $0.562500 $0.562500 $0.000000 $0.000000 $0.000000 $0.5625002021 2021

12/31/ 01/14/ $0.562500 $0.562500 $0.562500 $0.000000 $0.000000 $0.000000 $0.5625002021 2022

Totals $2.250000 $2.250000 $2.250000 $0.000000 $0.000000 $0.000000 $2.250000

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

The common stock distribution with a record date of December 31, 2021 will be a split-year distribution, with $0.10 allocable to 2021 for federal income tax purposes and $1.40 allocable to 2022 for federal income tax purposes.

As previously disclosed by IIP on February 1, 2021 in its press release announcing the tax treatment of 2020 dividends, the common stock distribution with a record date of December 31, 2020 was a split-year distribution, with $0.22 allocable to 2020 for federal income tax purposes and $1.02 allocable to 2021 for federal income tax purposes, and the 9.00% Series A Cumulative Redeemable Preferred Stock distribution with a record date of December 31, 2020 was allocable entirely to 2020 for federal income tax purposes.

IIP did not incur any foreign taxes in 2021. 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 self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005578/en/

CONTACT: Catherine Hastings Chief Financial Officer Innovative Industrial Properties, Inc. (858) 997-3332