Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 144

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 144
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 certain constructive ownership rules set forth in the Code,
as well as stock actually owned, generally must be taken into account. Because the determination as to whether any of the three alternative
tests of Section 302(b) of the Code described above will be satisfied with respect to any particular U.S. stockholder of the preferred
stock depends upon the facts and circumstances at the time that the determination must be made, prospective investors are advised to consult
their tax advisors to determine such tax treatment.

If a redemption of preferred stock does not meet
any of the three tests described above, the redemption proceeds will be treated as a distribution, as described in “—Taxation
of Taxable U.S. Stockholders” above. In that case, a U.S. stockholder’s adjusted tax basis in the redeemed preferred stock
will be transferred to such U.S. stockholder’s remaining stock holdings in our company. If the U.S. stockholder does not retain
any of our stock, such basis could be transferred to a related person that holds our stock or it may be lost.

Under previously proposed Treasury regulations,
if any portion of the amount received by a U.S. stockholder on a redemption of any class of our preferred stock is treated as a distribution
with respect to our stock but not as a taxable dividend, then such portion will be allocated to all shares of the redeemed class of stock
held by the redeemed stockholder just before the redemption on a pro-rata, share-by-share, basis. The amount applied to each share will
first reduce the redeemed U.S. stockholder’s basis in that share and any excess after the basis is reduced to zero will result in
taxable gain. If the redeemed stockholder has different bases in its stock, then the amount allocated could reduce some of the basis in
certain shares while reducing all the basis and giving rise to taxable gain in others. Thus, the redeemed U.S. stockholder could have
gain even if such U.S. stockholder’s basis in all its stock of the redeemed class exceeded such portion.

The previously proposed Treasury regulations would
permit the transfer of basis in the redeemed preferred stock to the redeemed U.S. stockholder’s remaining, unredeemed preferred
stock of the same class (if any), but not to any other class of stock held (directly or indirectly) by the redeemed U.S. stockholder.
Instead, any unrecovered basis in the redeemed preferred stock would be treated as a deferred loss to be recognized when certain conditions
are