Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 136

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 136
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 for non-partnership entities for their 2019 and 2020
taxable years and for partnerships for their 2020 taxable years under the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the
“CARES Act”)) of the sum of adjusted taxable income, business interest, and certain other amounts. Adjusted taxable income
does not include items of income or expense not allocable to a trade or business, business interest or expense, the deduction for qualified
business income, net operating losses (“NOLs”), and for years prior to 2022, deductions for depreciation, amortization, or
depletion. Under the CARES Act, a taxpayer may have elected to use its adjusted taxable income from its 2019 taxable year for purposes
of calculating its limitation in its 2020 taxable year. For partnerships, the interest deduction limit is applied at the partnership level,
subject to certain adjustments to the partners for unused deduction limitation at the partnership level. Disallowed interest expense is
carried forward indefinitely (subject to special rules for partnerships, including, under the CARES Act, the ability for a partner allocated
disallowed interest with respect to the partnership’s 2019 taxable year to deduct 50% of such amount in its 2020 taxable year).

A “real property trade or business”
may elect out of this interest limit so long as it uses a 40-year recovery period for nonresidential real property, a 30-year recovery
period for residential real property, and a 20-year recovery period for related improvements described below. For this purpose, a real
property trade or business is any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental,
operating, management, leasing, or brokerage trade or business. We believe this definition encompasses our business and thus will have
elected to opt out of the limits on interest deductibility.

In addition, for taxable years beginning after
December 31, 2020, the NOL deduction is generally limited to 80% of taxable income (before the deduction). REITs may indefinitely carryforward
(but not carryback) unused NOLs.

As a result of the foregoing, we may have less
cash than is necessary to distribute taxable income sufficient to avoid U.S. federal corporate income tax and the excise tax imposed on
certain undistributed income or even to meet the 90% distribution requirement. In such a situation, we may need to borrow funds or