Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 111

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 111
---
 possibility that we may have to use one or more of the REIT savings provisions described below, which could require us to pay an excise
or penalty tax (which could be material) in order for us to maintain our REIT qualification. For a discussion of the tax consequences
of our failure to qualify as a REIT, see “—Failure to Qualify.”

As long as we qualify as a REIT, we generally
will not be subject to U.S. federal income tax on the taxable income that we distribute to our stockholders. The benefit of that tax treatment
is that it avoids the “double taxation,” or taxation at both the corporate and stockholder levels, that generally applies
to distributions by a corporation to its stockholders. However, even if we qualify as a REIT, we will be subject to U.S. federal tax in
the following circumstances:

| · | We will pay U.S. federal income tax on any taxable income, including net capital gain, that we do not distribute to stockholders during, 
 or within a specified time period after, the calendar year in which the income is earned.                                                |

| 39 |

| · | We will pay U.S. federal income tax at the highest corporate rate on: |

| · | net income from the sale or other disposition of property acquired through foreclosure (“Foreclosure Property”) that we        
 hold primarily for sale to customers in the ordinary course of business and have elected to treat as Foreclosure Property, and |

| · | other non-qualifying income from Foreclosure Property. |

| · | We will pay a 100% tax on our net income from sales or other dispositions of property, other than Foreclosure Property, that we hold 
 primarily for sale to customers in the ordinary course of business.                                                                  |

| · | If we fail to satisfy one or both of the 75% gross income test or the 95% gross income test, as described below under “—Gross 
 Income Tests,” and nonetheless continue to qualify as a REIT because we meet other requirements, we will pay a 100% tax on:   |

| · | the gross income attributable to the greater of the amount by which we fail the 75% gross income test or the 95% gross income test, 
 in either case, multiplied by                                                                                                       |

| · | a fraction intended to reflect our profitability. |

| · | If, during a calendar year, we fail to distribute at least the sum of (1)