Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 121

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 121
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 pay rent for the period of use of the property; |

| · | the tenants stand to reap substantial gains (or incur substantial losses) depending on how successfully they operate the property; |

| · | the useful lives of the property are significantly longer than the terms of the leases; and |

| · | we will receive the benefit of increases in value, and will bear the risk of decreases in value, of the properties during the terms 
 of the leases.                                                                                                                      |

If the IRS were to challenge successfully the
characterization of our leases as true leases, we would not be treated as the owner of the healthcare facility in question for U.S. federal
income tax purposes. There are no controlling Treasury regulations, published rulings, or judicial decisions involving leases with terms
substantially similar to those contained in our leases that address whether such leases constitute true leases for U.S. federal income
tax purposes. If our leases are recharacterized as partnership agreements, rather than true leases, part or all of the payments that we
receive from the tenant-operators may not be considered rent or may not otherwise be treated as qualifying income. In that case, we likely
would not be able to satisfy either the 75% or 95% gross income tests and, as a result, could lose REIT qualification. If any of our leases
from a sale-leaseback transaction is recharacterized as a financing transaction or loan for U.S. federal income tax purposes, the seller-lessee
would be the owner of the healthcare facility and the IRS would disallow our deductions for depreciation and cost recovery relating to
the leased healthcare facilities. As a result, the amount of our REIT taxable income could be recalculated, which might cause us to fail
to meet the distribution requirement required for REIT qualification. See “—Distribution Requirements.”

We will continue to use our best efforts to structure
any leasing transaction, including leasing transactions from our sale-leaseback transactions, so that the lease will be characterized
as a true lease and we will be treated as the owner of the healthcare facility in question for U.S. federal income tax purposes. We will
not seek an advance ruling from the IRS and do not intend to seek opinions of counsel that our leases will be treated as the owner of
any other leased healthcare facilities for U.S. federal income tax purposes, and thus there can be no assurance that our leases will be
treated as true leases for U.S. federal income tax purposes.

In addition, rent