Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 146

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 146
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| 57 |

Taxation of Tax-Exempt Stockholders

This section is a summary of rules governing the
U.S. federal income taxation of U.S. stockholders that are tax-exempt entities and is for general information only. We urge tax-exempt stockholders to consult their tax advisors to determine the impact of U.S. federal, state, and local income tax laws on the purchase, ownership and disposition of our stock, including any reporting requirements.

Tax-exempt entities, including qualified employee
pension and profit sharing trusts and individual retirement accounts, generally are exempt from U.S. federal income taxation. However,
they are subject to taxation on their unrelated business taxable income (“UBTI”). Although many investments in real estate
generate UBTI, the IRS has issued a ruling that dividend distributions from a REIT to an exempt employee pension trust do not constitute
UBTI so long as the exempt employee pension trust does not otherwise use the shares of the REIT in an unrelated trade or business of the
pension trust. Based on that ruling, amounts that we distribute to tax-exempt stockholders generally should not constitute UBTI. However,
if a tax-exempt stockholder were to finance (or be deemed to finance) its acquisition of our stock with debt, a portion of the income
that it receives from us would constitute UBTI pursuant to the “debt-financed property” rules. Moreover, social clubs, voluntary
employee benefit associations, supplemental unemployment benefit trusts and qualified group legal services plans that are exempt from
taxation under special provisions of the U.S. federal income tax laws are subject to different UBTI rules, which generally will require
them to characterize distributions that they receive from us as UBTI. Finally, in certain circumstances, a qualified employee pension
or profit sharing trust that owns more than 10% of our shares of stock must treat a percentage of the dividends that it receives from
us as UBTI. Such percentage is equal to the gross income we derive from an unrelated trade or business, determined as if we were a pension
trust, divided by our total gross income for the year in which we pay the dividends. That rule applies to a pension trust holding more
than 10% of our shares of stock only if:

| · | the percentage of our dividends that the tax-exempt trust must treat as UBTI is at least 5%; |

| · | we qualify as a REIT by reason of the modification of the rule requiring