Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 139

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 139
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 income tax treatment of a partner in the partnership
will generally depend on the status of the partner and the activities of the partnership. If you are a partner in a partnership holding
our stock, you should consult your tax advisor regarding the consequences of the ownership and disposition of our stock by the partnership.

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As long as we maintain our qualification as a
REIT, a taxable U.S. stockholder must generally take into account as ordinary income distributions made out of our current or accumulated
earnings and profits that we do not designate as capital gain dividends or retained long-term capital gain. For purposes of determining
whether a distribution is made out of our current or accumulated earnings and profits, our earnings and profits will be allocated first
to our preferred stock dividends and then to our common stock dividends. Individuals, trusts, and estates generally may deduct 20% of
the “qualified REIT dividends” (i.e., REIT dividends other than capital gain dividends and portions of REIT dividends designated
as “qualified dividend income,” which in each case are already eligible for capital gain tax rates) they receive. The deduction
for qualified REIT dividends is not subject to the wage and property basis limits that apply to other types of “qualified business
income” eligible for the 20% deduction. However, to qualify for this deduction, the U.S. stockholder receiving such dividends must
hold the dividend-paying REIT stock for at least 46 days (taking into account certain special holding period rules) of the 91-day period
beginning 45 days before the stock becomes ex-dividend and cannot be under an obligation to make related payments with respect to a position
in substantially similar or related property. The 20% deduction for qualified REIT dividends results in a maximum 29.6% U.S. federal income
tax rate on ordinary REIT dividends, not including the 3.8% Medicare tax, discussed below. Without further legislation, this deduction
will sunset after 2025.

A U.S. stockholder will not qualify for the dividends
received deduction generally available to corporations. Additionally, because we are not generally subject to U.S. federal income tax
on the portion of our REIT taxable income distributed to our stockholders (See “—Taxation of Our Company” above), our
dividends generally will not be eligible for the 20% U.S. federal income tax rate on “qualified dividend income” (generally,
dividends paid by domestic C corporations and