Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 119

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 119
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s; |

| · | gain from the sale of real estate assets, other than: |

| · | property held primarily for sale to customers in the ordinary course of business; and |

| · | debt instruments issued by “publicly offered REITs” (i.e., REITs that are required to file annual and periodic reports        
 with the SEC under the Exchange Act), unless the debt instrument is secured by real property or an interest in real property; |

| · | income derived from the operation, and gain from the sale, of Foreclosure Property; |

| · | amounts (other than amounts the determination of which depends in whole or in part on the income or profits of any person) received        
 or accrued as consideration for entering into agreements to make loans secured by mortgages on real property or interests in real property 
 or to purchase or lease real property (including interests in real property and interests in mortgages on real property); and              |

| 43 |

Second, in general, at least 95% of our gross
income for each taxable year must consist of income that is qualifying income for purposes of the 75% gross income test, other types of
interest and dividends, gain from the sale or disposition of shares or securities, or any combination of these. Cancellation of indebtedness
income and gross income from our sale of property that we hold primarily for sale to customers in the ordinary course of business are
excluded from both the numerator and the denominator in both gross income tests. In addition, income and gain from “hedging transactions”
that we enter into to hedge indebtedness incurred or to be incurred to acquire or carry real estate assets and that are clearly and timely
identified as such will be excluded from both the numerator and the denominator for purposes of the 75% and 95% gross income tests. See
“—Hedging Transactions.” In addition, certain foreign currency gains will be excluded from gross income for purposes
of one or both of the gross income tests. See “—Foreign Currency Gain.” The following paragraphs discuss the specific
application of the gross income tests to us.

Rents from Real Property. “Rents
from real property” is qualifying income for both 75% and 95% gross income tests. Our leases generally are on a “triple-net”
basis, requiring the tenant-operators to pay substantially all expenses associated with the operation of the healthcare facilities, such
as real estate taxes, insurance, utilities, services, maintenance and other operating expenses and any